Open AccessCorporate real estate management and bank profitability
Author(s) -
Kenneth Appiah Donkor-Hyiaman,
Esther Narhkwor Terkper,
Eric Paul Tudzi,
DeGraft OwusuManu,
Benjamin Avurinyinbiik Ajabuin
Publication year - 2021
Publication title -
journal of research in emerging markets
Language(s) - English
Resource type - Journals
ISSN - 2663-905X
DOI - 10.30585/jrems.v3i4.651
Subject(s) - profitability index , business , real estate , corporate real estate , productivity , asset (computer security) , capital (architecture) , finance , value (mathematics) , economics , history , computer security , archaeology , machine learning , computer science , macroeconomics
Acquiring property for any business is capital intensive and for that matter, strategically managing such assets is considered equally important. This paper provides an analysis of the value-adding attributes of corporate real estate management (CREM) and bank performance in Ghana. The multiple regression method was applied to a cross-section of both primary and secondary data sourced from 25 commercial banks in Ghana. The study shows that the banks identify with the value-adding attributes of corporate real estate asset management even though there are variations in the level of importance to individual banks. These variations are attributable to the unique mandates of the banks. Further analysis shows that CREM has significantly positive impacts on bank profitability by strategies that help to increase innovations, increase productivity, and promote marketing and sales. The finding suggests that optimizing these CREM strategies could help increase bank profits.