The Influence of Religion on Capital Structure Decision among Small and Medium Enterprises in Ghana

Prince Kusi-Mensah, Christopher Bright Daboug, Richard Opoku


This paper examines the influence of religion on capital structure decisions of small and medium enterprises (SMEs) in Ghana. The issue is very relevant considering the meritorious contributions SMEs offer to growth of the Ghanaian economy. Exploratory- descriptive of its kind, this study adopts quantitative and quota sampling approaches to select 200 SMEs owned and manage being Christians and Moslems. Statistically, the results of the study suggest that religion has a significantly weak influence as far as decisions on capital structure are concern. The direction of the study revealed that relative to Muslims, SME operators being Christians greatly accounted to the significant influence religion had on total capital structure of SME businesses. Since most SMEs owners value full ownership of their business, any capital structure that risk their full control may not be entertain.

Keywords: Capital Structure, Religion, Small and medium enterprise (SME)

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ISSN (Paper)2222-1697 ISSN (Online)2222-2847

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