L25 - Firm Performance: Size, Diversification, and ScopeReturn

This study examines the effects of consumer price index (CPI) and regional minimum wage policy on firms’ sustainable growth from both economic and social perspectives. Using a balanced panel of 146 agricultural and manufacturing firms in Vietnam over 2011–2022 (1,752 firm-year observations), the analysis employs panel data regression models to estimate both linear and nonlinear effects. The results reveal clear evidence of inverted U-shaped relationships between CPI and the economic aspect of firm sustainable growth, indicating that moderate inflation promotes growth while excessive inflation constrains it. For the social aspect—measured by employees’ income growth, minimum wage policy show positive effects within certain thresholds, but the effects weaken beyond those levels. To ensure robustness, the system GMM approach is applied, and the results remain consistent. Overall, the findings provide firm-level evidence on how inflation and wage policies influence sustainable growth and offer implications for balanced policy design in emerging markets.

The objective of the study was in two parts; first, to construct an overall risk index to ascertain risk level of banks listed on Ghana Stock Exchange (GSE), second, to ascertain whether there is a significant relationship between risk management and bank performance. Secondary data of all listed banks on GSE over the period 2007-2014 was used and a panel regression data approach and a risk index were constructed for all listed banks. Findings show that, banks listed on Ghana Stock Exchange have declining risk indexes on average over the latter part of the study period indicating that the Ghanaian Banking Regulator may have to impose additional prudential and regulatory requirements to ensure banks remain solvent. We also find evidence that risk management is positively related to performance of GSE listed banks when the latter is measured from ROE perspective.