Regulatory frameworks and double-bottom-line outcomes in Ghanaian cooperative financial institutions: The moderating role of firm characteristics
Keywords:
Double-bottom-line performance, Technology adoption, Cooperative financial institutions, Regulatory frameworksAbstract
This study examines the influence of regulatory frameworks on the double-bottom-line (DBL) performance of cooperative financial institutions (CFIs) in Ghana, focusing on the moderating effects of firm age and size. Utilizing institutional and stakeholder theories, the study offers an empirical examination of the effect of regulatory compliance on financial and social outcomes. Data were gathered from 207 licensed CFIs across Ghana's 10 former administrative areas via a quantitative cross-sectional survey design. Partial Least Squares Structural Equation Modeling (PLS-SEM) was utilized to examine the direct and moderating influences among constructs. The findings indicate that regulatory compliance markedly improves DBL performance. Moreover, institutional age positively influences this relationship, indicating that older CFIs are more proficient in leveraging regulatory frameworks for improved results. Conversely, corporate size lacks a significant moderating effect. The findings underscore the importance of adaptive, tiered regulatory monitoring, particularly in providing tailored solutions for younger CFIs.This research advances the current literature on cooperative finance by experimentally validating the DBL model within a regulatory context. It offers practical insights for legislators, regulators, and cooperative management, promoting varied regulatory strategies that align with institutional maturity.
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