NAVIGATING MARKETS WITH AI: THE NEXT FRONTIER IN INVESTMENT STRATEGY
The financial market is changing rapidly, and to sustain themselves in this dynamic investment world, investors need to adopt various strategies. Traditional investment tactics rely entirely on human intuitions and historical data, which may fail to keep pace with the ever-changing nature of investment. If someone fails to adopt the need-based strategies, they will be kept in the market. Investors need more complex tools and approaches to make sound investment decisions and withstand the fluctuating market environment. Technology has made it easier by providing these tools to analyze large amounts of data and identify trends, thus crafting prudent investment strategies. One of the blessings of technology that is changing the investment world dynamically is artificial intelligence (AI). Therefore, this research aims to investigate the multifaceted role of Artificial Intelligence in investment strategies, emphasizing its predictive capabilities, data management efficiencies, user engagement enhancements, practical applications, and emerging trends. This paper employs a qualitative approach with a significant focus on existing literature and case study analysis to give a comprehensive overview of the impact of AI on investment strategies. The analysis reveals that integrating AI into investment strategies is redesigning the investment landscape, offering unprecedented opportunities such as improved predictive capabilities and risk management, which help make informed decisions. The study's finding provides valuable insights for investors and financial institutions seeking to optimize their strategies with AI in an increasingly data-driven investment environment. JEL Classification Codes: G11, G17, E44.
Research Paper/Theoretical Paper/Review Paper/Short Communication Paper
Artificial Intelligence, Investment Strategies, Predictive Analytics, Financial Markets, Emerging Trends.
Copyright (c) 2024 Nurjahan Akter Monira
WHAT DRIVES MOVEMENTS IN THE INCOME VELOCITY OF MONEY? A CASE STUDY OF THE U.S.
In their efforts to stabilize the price level, central banks often rely on the growth rate in the stock of money as an intermediate target variable. Usually, the premise underlying this approach is that the income velocity of money, defined as the ratio of nominal GDP to the stock of money, either randomly fluctuates around a constant mean or can, at least, be predicted with sufficient accuracy. The purpose of this paper is to put this assumption to the test. We do so by applying a first-order autoregressive model, supplemented by a set of lagged exogenous regressors, to the quarterly changes in velocity in the U.S. Our results confirm previous findings that dynamic dependencies exist between changes in the income velocity of money over successive periods of time. They also support the assertion that rising long-term interest rates lower the demand for money. Perhaps most importantly, however, we find that all else being equal, the degree of financialization in the economy, measured by the ratio of financial assets to GDP, has a positive and statistically significant effect on velocity. A possible explanation of this finding is the increasing availability of tradable, non-monetary financial instruments that are close substitutes for bank deposits. JEL Classification Codes: E41, E43, E51.
Income Velocity of Money, Financialization, Interest Rates.
Copyright (c) 2023 Mahfuza Khatun, Sikandar Siddiqui
SOLIDITY AND IMMUTABILITY OF BEHAVIOURAL FINANCE THEORY IN CAPITAL MARKET INVESTMENT: A GLOBAL PERSPECTIVE
This study evaluated the argument that the capital market is efficient such that all information from both the past, present, and unpublished have already been reflected in the market price of security as a guide for investors in the market and that the behavior of the same investors could affect the performance of the market. To address the above concern, the researcher employed various suitable final metric tools such as the Normality/Random Walk test, Variance ratio test, EGARCH models, etc., to analyze the daily historical data from prominent capital markets, each from all the continents around the world. From the results of these tools employed, none of the markets under study follow the random walk theory within the scope of the study. The results of EGARCH and volatility clustering tests also revealed that all the countries under study exhibited the property of stock returns distribution called volatility clustering or volatility pooling, a kind of heteroscedasticity, suggesting the nonconformity of the random walk theory. The failure of the various results to corroborate the random walk theory shows that investors are rational and unpredictable. These results have rightly positioned the behavioral finance theory as a veritable tool that can guide economic agents on capital market investment decisions. That means the behavior of investors makes share prices deviate from the economic fundamentals or assumptions. Considering the above findings, the researcher boldly advocates for a paradigm shift to behavioral finance theory, where emotions and psychology or mindsets of investors influence the investment decision-making process and financial markets, hence a veritable guide for decisions on stock market investments. Therefore, the researcher suggested that emotional and psychological checks be carried out on all stock market investors, mainly when an innovation or new policy is promulgated. JEL Classification Codes: C32, C58, G14, G41.
Behavioural Finance, Random Walk, Stock Return, Investors, Autocorrelation Test.
THE NEXUS OF TRADE LIBERALIZATION AND UNEMPLOYMENT IN THE CONTEXT OF AFGHANISTAN
Despite this, there have been conducted outnumber of studies on the relationship between trade and unemployment around the world. The purpose of this study is to investigate the nexus between trade and unemployment, and whether trade creates or destroys jobs in the context of Afghanistan. To answer this question, the data was gathered from various sources including the World Bank, and the National Statistics and Information Authority of Afghanistan, from 1990 to 2018. Using ADF (Augmented Dicky Fuller) stationarity test, ARDL Bound test, and causality test. The empirical evidence showed only short-run consequences in one variable which is Gross Domestic Products Per Capita. Further, the study employed diagnostic and stability tests to understand the fitness of the model. Hence, this study surely answers the questions and shows that there is no link between trade and unemployment. Finally, the study evinced only the influence of GDP Per Capita on unemployment. Besides, there is a unilateral causality running from GDP Per Capita toward Unemployment and also the study analyzed that GDP Per Capita has a negative and significant impact on Unemployment in the short run. Eventually, the study suggests that the government needs to reform policy in regard to tackling unemployment through domestic investment. JEL Classification Codes: E24, F1.
Unemployment, Trade Liberalization, Afghanistan.
Copyright (c) 2022 Abdul Wahid Naderi, Ata Mohammad Nikzad, Eralappa Thippeswamy, Jayavantha Nayak
ANALYZING THE USES OF DIFFERENT BRAND MANAGEMENT STRATEGIES OF BANK: A STUDY ON PUBLIC BANK
Brand management strategies are a series of techniques used to increase the perceived value of a product or service. Brand management strategies are a series of techniques used to increase the perceived values of all products or services. The objective of the report is to analyze the uses of different brand management strategies of a public bank in Bangladesh. The paper is more important for marketers to know the significance of the uses of different brand management strategies of the public banks. This paper is most significant for the executives to gain a lot of customers by the use of brand management strategies. This is descriptive when the data is analyzed through a structured questionnaire and it is exploratory when the data is analyzed through in-depth interviews. This study is quantitative and qualitative in nature. The quantitative strategy will be utilized on account of the potential for speculation of discoveries. The targeted population of this study was the clients of public banking in Bangladesh. Data was collected using depth interview questionnaire and survey questionnaire. Data were analyzed quantitatively using SPSS, which was a statistical method for analyzing numerical data. The researcher distributed the questionnaires to 50 executives and employees of the public bank who has been asked through questionnaire and non-probability judgmental sampling was taken from an in-depth interviews w with the customers and also use the survey questionnaire to the 100 customers. JEL Classification Codes: M38.
Brand Management, Public Bank, Emotional Connection.
Copyright (c) 2021 Shamim Fakir, Abdullah Al Naeem, Syed Manzurul Karim
IMPACT OF ARTIFICIAL INTELLIGENCE AND DIGITAL ECONOMY ON INDUSTRIAL REVOLUTION 4: EVIDENCE FROM BANGLADESH
This research investigates effects of artificial intelligence and digital economy on the 4th industry revolution from the perspective of Bangladesh. Artificial intelligence affecting the labor market both positively and negatively. Because of artificial intelligence, few existing jobs have been demolished and few new jobs have been emerged as well. Digital economy in Bangladesh is now an emerging issues with the blessings of artificial intelligence. Few employment opportunities will be created in Bangladesh because of emerging digital economy. The objective of this research is to analyze these opportunities and come out with few policy recommendations to implement towards industry revolution 4. Secondary data have been used along with recent relevant literatures to achieve the above stated objective as this is an empirical research. Ideas regarding revised national plan, financial tools, emerging digital economy in Bangladesh are the prominent outcome of this research. The policy recommendations of managing the gap between digital economy and industry revolution 4 regarding artificial intelligence could be helpful to The Government of the Peoples’ Republic of Bangladesh to implement policies. JEL Classification Codes: L0, D74.
Artificial Intelligence, Digital Economy, Industry Revolution 4, Bangladesh, Labor Market, Policy.
Copyright (c) 2021 Mohammed Masum Iqbal, K. M. Anwarul Islam, Nurul Mohammad Zayed, Tahrima Haque Beg, Shahiduzzaman Khan Shahi
RELATIVE STANDING OF ROE AND ROCE IN EFFECTIVE LIQUIDITY MANAGEMENT: EVIDENCE FROM BANGLADESHI COMMERCIAL BANKS
This study has been designed for examining the effectiveness of liquidity management through the relative standing of ROE and ROCE of Nationalized Commercial Banks in Bangladesh for the duration of 2008–2018. Six NCBs are selected purposively as sample. The study relies on a balanced panel data set of 66 observations which are gathered from the annual reports of banks and analyzed by random effects regression model. However, the research only examined a few variables. The empirical results reveal that the selected NCBs have been portraying better standing in case of ROE than ROCE in effective liquidity management. The value of R2 of ROE is 75.25%; it signifies that the explanatory measures could clarify 75.25% of the variations in ROE. Among the liquidity measures, Assets/Shareholders Equity has highly significant negative effect; Tier 1 Capital/Risk Weighted Assets has highly significant positive effect; Deposits/Assets have some significant positive and Bank Size in terms of Deposits has some significant negative effect on ROE of the selected NCBs. JEL Classification Codes: E44, G14, G21, O16.
Bangladesh, Commercial Bank, Effective Liquidity Management, ROE, ROCE.
Copyright (c) 2021 Nazneen Jahan Chaudhury
CUSTOMERS’ ASSESSMENT ON E- BANKING SERVICE QUALITY IN BANGLADESH: CHALLENGES AND STRATEGIES
This paper attempts to investigate to understand customers’ evaluation regarding service quality of e-banking in Bangladesh. It also examines the major challenges and required strategies for promoting e-banking. To conduct the study, a total number of 205 respondents were taken as sample from Chittagong region by using simple judgmental sampling technique. A face-to-face interview method was followed by using a structured questionnaire to collect the data. Five points Likert scale was used to examine the customers’ evaluation on the service quality and through statistical measures it analyze the problem. Garret’s ranking technique was applied to rank the qualitative data for analyzing challenges and required strategies of e-banking. The study reveals that from the customers’ assessment, e-banking saves time and hazard, facilitates quick and easier access to information, speedy transaction, receiving service easily, ensures accuracy, effectiveness and security, provides versatile service, anytime, anywhere banking facility. The study also found that technological disturbance, insufficient infrastructure, unavailability of service in rural areas, high service charge are the major challenges of e-banking service in Bangladesh. The customers suggests to develop infrastructure, upgrade technology, increase security measure, enhance promotion for developing customers’ awareness, introduce innovative initiative of Bangladesh bank, extend service across the country etc. JEL Classification Codes: G21, L15.
E-Banking, Service Quality, Customers’ Assessment.
Copyright (c) 2021 Dhiman Barua, S. M. Akber
A COMPARATIVE ANALYSIS OF FINANCIAL PERFORMANCE OF NON-BANK FINANCIAL INSTITUTIONS IN BANGLADESH
NBFIs play an important role in economic development through ensuring proper mobilization of funds in Bangladesh. This study represents a comparison of nine NBFIs operating their business in Bangladesh within the period from 2016 to 2019 through using financial ratios and other measures. To analyze the financial performance this study has used ratio analysis, such as ROA, ROE, ROCE, Institutional size/ Total assets and total equity etc. The outcome of this study says that for generating return the NBFIs performance based on efficiency ratio is different from the performance based on liquidity ratio, capital ratio and other financial measures. This study suggests to NBFIs to be more conscious about loan selection and establish a brand image through providing more efficient services. It also suggests the NBFIs to finds more income generating areas to be more competitive. In the coming years NBFIs will have more prospects that will ensure the economic development of our country. JEL Classification Codes: F36, L25, G23.
NBFIs, Financial Performance, Efficiency, Liquidity, Profitability, ROA, ROE, ROCE.
Copyright (c) 2021 S. M. Akber, Dhiman Barua
An Empirical Research on Fu-Wang Foods Ltd: Industry, Strategy, Accounting, Ratio, Valuation and Proforma Analysis
In this study an attempt was made to prepare the research on Fu-Wang Foods Ltd. We have also analyzed the strategies, accounting policies and ratios. Historical and Proforma income statements, balance sheet and cash flow statement have been made. We have also determined, loosely speaking, the intrinsic value of stocks of firm. The company is in food processing industry. The position of Fu-Wang is good in this industry. Its long term profitability and sustainability is also secured. The accounting policies and estimates of Fu-Wang as well as the food industry are flexible enough. Management enjoys moderate discretionary powers. Analysis of the various ratios over the five years reveals that many of them are satisfactory and some are not. By doing the valuation of the company with some assumption we found the intrinsic value of the firm is approximately 36 tk. Sensitivity of stock price by changing the discount rate and sales growth rate has also been examined. By projecting the historical accounting figures we have also prepared Proforma income statements, balance sheets and cash flow statements and found that the future of Fu-Wang Foods ltd. is rather satisfactory, given some assumptions.
Fu-Wang Foods Ltd, Industry, Strategy, Accounting, Ratio, Valuation, Proforma Analysis
Entrepreneurial Intention among Postgraduate Students in Nigerian Universities: Conceptual Review
Governments in most developing countries are doing their best to ensure that graduates who are not employed should engage in entrepreneurship activities which can go a long way in reducing the problem of unemployment among the youths. Nigeria is among one of those developing nations with such problem. The government has introduced some many programs and policies which are aimed at reducing poverty and will encourage self-employment among the youths. Yet, students are still lacking the intention of becoming entrepreneur. From this study, there will be need to cover the gap found in the literature and then developed a conceptual framework (from which propositions where developed. The study used factors such as entrepreneurship education, environmental factors and societal entrepreneurship attitude to explore the student’s entrepreneurial intention. These factors where adopted bases on past theoretical and empirical studies which will cover the gap and contribute to the body of knowledge in the field of literature. Finally, this study calls upon researchers and Ministry of Education to examine this propositions on how to design a more comprehensive and benefice entrepreneurship courses and curriculum to these Nigerian universities. This will aim at preparing these students to be self-employed (entrepreneurs) which will reduce and assist the government in overcoming the problem of youth poverty and unemployment in Nigeria.
Entrepreneurial intention, entrepreneurial education, environmental factor, societal entrepreneurship attitude.
Copyright (c) 2017 Adamu Abdullahi Idris
The Mediating Role of Opportunity of Participation Impact in Determining Training Effectiveness among Potential Entrepreneurs in Business Organisations
The main objective of this study is to evaluate the training effectiveness on potential entrepreneurs through opportunity of participation given on a task in an organisation. The methodology used in this study is a survey research design through a quantitative approach. Questionnaires are used in collecting data in a cross-sectional survey. The data was analysed using the special package for social sciences (SPPS). Pearson’s correlation co-efficient and regression analysis were conducted. Sobel test was also conducted to confirm the mediating effect of opportunity of participation. The findings revealed that there is a positive relationship between training effectiveness (Kirkpatrick Four Levels) and potential entrepreneur’s performance. The regression analysis indicates opportunity of participation has been a dominant factor in the relationship between training effectiveness and potential entrepreneur’s performance. The integration of a mediator in the frame contributes to Kirkpatrick model in the extant training and development as well as entrepreneurship literature. Furthermore, policy makers and HR departments of business organizations will have more appreciation of how training can be appropriately evaluated more particularly, the on-the-job training for an improved performance.
Training Effectiveness, Kirkpatrick, Opportunity of Participation (Work Environment), Potential Entrepreneurs, Business Organisations.
An Investigation of the Students Attitude towards Introductory Computer Course at Bauchi Metropolitan Universities: An Undergraduates Survey
This study investigates the students‟ attitude on the introductory computer course at Bauchi Metropolitan University. Bauch State is one of the 36 States in Nigerialocated in the North East Region of the country with only Two Public Universities, ATBU and BASUG. Inboth universities it is mandatory for students to undertake introductory computer course in their first year entry to the university and this research was conductedwith the aim to find out the students attitude toward the computer course as part of the requirement to their studies. This study uses a sample of 300 undergraduate students (male=188, female=110) students. Primary data were utilized where questionnaire was employ as the tool of data collection. Computer attitude related questionnaire was developed and administered to the respondents and retrieved. Frequencies and Percentages was used to analyzed the respondents demographic information and questions asked while the chi-square X2 analysis was employ to test the stated hypothesis. The result of this study shows that students had positive attitude toward introductory computer course as the calculated chi-square X2c 0.253 which is less than the tabulated chi-square X2t of 3.841i.e. X2c < X2t therefore the study conclude that students had significant and positive attitude toward introductory computer course at Bauchi metropolitan university and we recommends that priority attention in terms of computer practical session should be given to students to increase their likeness of the computer and adequate arrangements should be made by universities to ensure students have access to computer and the internet whenever needed within the campus area and this will also mould a positive attitude for students.
Computer, Attitude, Universities, Metropolitan, Bauchi.
Nigeria’s Border and Its Effect on the Economic and Security Development: A Case of Northern Borders in Nigeria
Generally speaking, the borders in most of the African countries were among the upshot of the colonial ruling in those countries. Such demarcations were mostly created in a kind of problematic situation thereby causing serious misunderstanding among neighboring countries. It is also an imperative to know that these creations were actually perpetrated intentionally by the imperialist to serve so many purposes which includes among others the continuation of exploitation, free access to their colonies and coming back as aids providers. Moreover, such demarcations are being constructed on the papers without visiting those countries during the berlin conference in 1885 with the aid of complimenting the countries that were affected by the second world to revive them. Nevertheless, Nigeria without an exception has also faced with so many challenges in its borders especially the northern area. Therefore, this paper tries to examine why despite so many consideration by different governments and administrations yet border issues continue to be the most challenging factor in this prevailing situation in the country. Furthermore, the borders in the north were so porous to the extent that the issue of proliferation of weapons and food security were very obvious thereby challenging the security and economic wellbeing which in turn affect the nation building in the country.Based on the above, thisresearch concentrates on the qualitative technique on the area of economy and security as the drivers that highly contributed to this menaces and also measures to address it.
Border, Economy, Security and Development.
Bank Lending and Monetary Policy: Evidence from Deposit Money Banks (DMBs) in Nigeria
Monetary policy is aimed at attaining price stability, full employment and moderate long-term interest rates in the economy based on regulatory authority priorities, prevailing economic and financial conditions. Using annualized time series data from DMBs in Nigeria and the Vector Error Correction Model (VECM) as well as the simulates generalized impulse response functions, this study assessed the dynamic interactions between bank lending and monetary policy by observing how banks’ lending patterns are influenced by changes in monetary policy over the years in Nigeria.The result revealed that bank lending responds to short run changes in monetary policy but there is no long run influence from monetary policy to bank loan as banks adjust their portfolio mix in line with the prevailing monetary policy. Similarly, it revealed that changes in monetary policy often create fluctuations on bank health and as such regulatory authority must focus on factors such as monetary policy rate and bank capital that influence bank position in order to attain a significant economic performance using banks as a monetary policy transmission mechanism to the economy.
Bank Lending, Monetary Policy, Capital, Economy.
Monetary Policy and Commercial Bank Lending to the Real Sector in Nigeria: A Time Series Study
This study empirically examined the effects of monetary policy on commercial banks lending to the real sector from 1981 – 2014. The objective was to examine the effectiveness of monetary policy in channeling bank credit to the real sector. Annual time series data were sourced from Central Bank of Nigeria statistical bulletin. Two multiple regression models were specifically estimated with the aid of Software Package for Social Sciences. The study modeled commercial banks credit to agricultural and manufacturing sector as the function of interest rate, monetary policy rate, treasury bill rate, exchange rate, broad money supply and liquidity ratio. The result shows collinearity that corresponds with the Eigen value condition index, and variance constant are less than the required value. The Durbin Watson statistics shows the absence of multiple auto correlation and negative autocorrelation, while the variance inflation factors indicate the absence of auto-correlation. The regression results from model one found that interest rate, monetary policy rate have positive relationship with commercial banks lending to the agricultural sector while Treasury bill rate, exchange rate, broad money supply and liquidity ratio have negative effect on the dependent variable. Model two found that interest rate, Treasury bill rate, exchange rate, broad money supply and liquidity ratio have negative effect on commercial banks lending the manufacturing sector while monetary policy rate have positive relationship with the dependent variable. We recommend that monetary policy should be harmonize with bank lending objectives to enhance commercial banks lending to the real sector of the economy and that management of commercial banks should formulate policies of managing the negative effect of monetary policy variables on its lending.
Monetary Policy, Commercial Bank Lending, Real Sector, Nigeria Economy, Time Series Study.
Copyright (c) 2018 Ogolo,Tamunotonye Magnus
Effect of Liquidity Risk, Premium Growth on the Performance of Quoted Insurance Firms in Nigeria: A Panel Data Analysis
This study assesses the effect of liquidity risk on firm performance of listed insurance companies in Nigeria for the period of 2011-2015. The listed insurance firms are twenty Five (25) in numbers out of which a sample of twelve (12) were used for the study. Liquidity risk as the independent variable was proxy with leverage, claim loss ratio and premium growth, while the return on asset was used to proxy firm performance. The study adopts a panel multiple regression techniques and data were collected from secondary source through the annual reports of the firms after controlling for fixed/random effects.The findings of random effect reveal that leverage has significant negative effect on return on assets. The claim loss ratio has insignificant negative influence on return on assets while premium growth has positive and insignificant effect on firm performance of listed insurance companies in Nigeria. It is recommended among others that the managers, shareholders and other stake holders to checkmate and control liquidity risk as it have been found empirically to enhance the quality of the firm’s financial performance.
Liquidity Risk, Claim Loss Ratio, Premium Growth, Performance and Insurance Companies.
Copyright (c) 2018 Lasisi Isiaka Olalekan
Money Supply and Inflation: Disaggregated Time Series Evidence from Nigeria
This paper examined money supply and inflation in Nigeria. The objective was to examine the extent to which components of money supply affect Nigerian inflation rate. Time series data was sourced from Central Bank of Nigeria (CBN) statistical bulletin and Stock Exchange Factbook. Nigerian Real Inflation Rate was proxy for dependent (INFR) variables while Currency in Circulation (CR), Demand Deposit (DD), Time Deposit (TD), Savings Deposit (SD) and Net Foreign Asset (NFA) were used as independent variables. The Ordinary Least Square (OLS) method of cointegration, Augmented Dickey Fuller Unit Root, Granger Causality was used as data analysis techniques. Regression result in the study shows that Currency in Circulation, Demand Deposit and Savings Deposit has negative relationship while Net Foreign Asset and Time Deposit have positive relationship with inflation. The Augmented Dickey Fuller Test proved non stationarity of the variables at level except Net Foreign Asset but stationary at first difference. The Granger Causality Test reveals no casual relationship running through the variables. The cointegration proved no long run relationship between the dependent and independent variables. The study conclude that Money Supply have significant relationship with Nigerian Inflation Rate. It therefore recommends effective management of money supply by the monetary authorities to achieve the monetary policy objectives of price stability.
Money Supply, Inflation, Currency in Circulation, Demand Deposit, Saving Deposit.
Monetary Policy and Return on Equity of Quoted Insurance Firms: A Time Series Study from Nigeria
The financial system is the transmission channel of monetary policy. This study examines the effect of monetary policy on the performance of insurance firms in Nigeria from 1990 – 2017. The objective is to investigate the existing relationship between monetary policy instruments and the performance indicators of insurance companies. Secondary data were sourced from Stock Exchange factbook, Central Bank of Nigeria (CBN) Statistical Bulletin. Multiple linear regressions were formulated to examine the effect of the independent variables on the dependent variable. Return on equity was modeled as a function of treasury bill rate, monetary policy rate, interest rate, growth of money supply and exchange rate. R2, T-Statistics, β Coefficient, F-Statistics and Durbin Watson were used to examine the extent to which the independent variables affect the dependent variables while augmented dickey fuller unit root test, granger causality test, cointgration test and error correction models was used to ascertain the dynamic relationship between monetary policy variables and return on equity of the insurance firms. Findings revealed that, all the explanatory variables have positive effect on return on equity except treasury bill rate. The unit root test found that the variables are stationary at first difference, the cointgration test found the presence of long run relationship while the granger causality test found a uni-directional causality. The study concludes that monetary policy has moderate effect on the return on equity of the insurance firms. We recommend that management of insurance companies should devise measures of managing the negative effects of the monetary policy instruments to enhance the performance of the insurance companies.
Monetary Policy, Return on Equity, Quoted Insurance Firms, Monetary Policy Rate, Treasury Bill Rate.
Copyright (c) 2018 Macfubara,Minafuro Suzane ., Norteh Dumbor ., Gberesuu,Barida Barry
A Test of Miller and Modigliani Dividend Policy Irrelevance Theory in Nigerian Stock Market
This study empirically tests for the validity of Miller and Modigliani’s dividend irrelevance proposition in the Nigerian Stock Exchange (NSE). Secondary data were obtained from the Nigerian Stock Exchange fact book and firms’ annual audited financial statements for fifteen years (2001-2015). Mediation Analyses, was used to measure the direct and indirect effects of dividend on stock price. Correction of the anomalous use of current dividend and current earnings by the use of naive expectation of dividend and earnings revealed that the direct effect of expected dividend on share price is significant but the indirect effect of expected dividend on share price through earnings is not significant. The implication of these results is that expected dividend has its unique (direct) effect on share price beyond the effect on share price which it shares with expected earnings (indirect effect). This conclusion suggests that dividend policy is relevant in valuation of shares in NSE. It was therefore recommended that company management should treat dividend as an active corporate finance decision-making variable and should employ dividend in information signalling to capital market investors.
Expected dividend, Expected earnings, Share price, Mediation, Relevance, Irrelevance
Copyright (c) 2018 Udobi, Philomina I. , Iyiegbuniwe, Wilfred I.
Non Performing Assets in Public Sector Banks: A Cause Analysis
Lending Funds is considered as the primary function of primary function which provides financial support to various sectors such as agriculture, industry, personal loans etc., but in recent times the banks as taken a cautious stand in lending. The main reason for such an initiative is the mounting issues of non-performing assets (NPAs).A loan asset is considered as non-performing asset when it ceases to generate income for the bank. From 31st March, 2004 NPA was defined as a credit facility in respect of which the interest or installation of principal has remained past due for a specified period of time which was four quarters. NPA in public sector banks is increasing year after year and thus this is becoming a debatable topic. So considering this anglete paper is undertaken to analyze the reasons for advances becoming NPA in Public sector banks and intends to give suitable suggestions to overcome NPA.
NPAs, NPA Classification, Types of NPA, Causes of NPA
Copyright (c) 2018 R.V. Naveenan, B. Ravi Kumar, B. Vijaya Lakshmi
Ownership Structure and Return on Assets of Commercial Bank in Nigeria
This study examined the effect of ownership structure on return on assets of deposit money banks in Nigeria. The objective was to investigate the relationship between the composition of ownership structure and deposit money banks return on assets. Cross sectional data was sourced from financial statement of fifteen quoted commercial banks. Return on assets was modeled as a function of domestic ownership, ownership concentration, foreign ownership institutional ownership and management ownership. After cross examination of the validity of the pooled effect, fixed effect and the random effect, the study accepts the fixed effect model. The result found that ownership concentration, management ownership and institutional ownership have negative relationship with the dependent variable while private ownership and management ownership have positive relationship with the dependent variable which is return on investment. While private ownership, ownership concentration, institutional ownership and foreign ownership have positive effect on the dependent variable which is return on assets while management ownership have negative effect on the dependent variable. We recommend that regulatory authorities such as the Securities and Exchange Commission, the Nigerian investment promotion council should encourage private investors to invest into the equity shares of the commercial banks and the need for commercial banks to increase their ownership structure through public listing, right issue and other means of attracting public and institutional investors.
Ownership Structure, Return on Assets, Commercial Bank
United States and the Middle East after the Cold War
The United States emerged as the most powerful country after World War II and as such found itself in an influential position to be involved in the future and destinies of many countries across the globe. The U.S. played a major role in the post War economic reconstruction in Europe and rendered assistance to many European states. American power at this time was seen to have extended to other parts of the globe, including the Middle East, which has been a region of interest to outside powers. This short paper tries to look at U.S. ambitions in the region and how far the U.S. has gone in achieving these ambitions. The paper argues that U.S. policies in the Middle East were in the long run, a failure, despite whatever successes achieved, following certain developments in the region, beginning with the 1979 revolution in Iran.
U.S., Middle East, Cold War, Power, Policies.
The Determinants of the Foreign Direct Investment on the Macroeconomic Variables: The Case of the Algerian Economy
Foreign direct investment in Algeria as a percentage of GDP represented 0.9% during the last decade. The goal of this study is to assess the effect of Foreign Direct Investment on Algerian economy through an empirical analysis by applying the bounds testing ARDL and ECM-ARDL using annual data for the period 1970-2014. As far as the role of FDI is concerned, we shall try to highlight its effect that may show causal relationships to non-hydrocarbon GDP, non-hydrocarbon export, industry and employment in long run. Our estimation of an ARDL model indicates that the political and macroeconomic stability are not enough to attract FDI to help non-hydrocarbon sectors drive economic growth.
Oil Price Volatility, Exchange Rate Movements and Stock Market Reaction: The Nigerian Experience (1985-2017)
Given the observed volatility in crude oil prices in the international oil market and the role which oil and gas play in the Nigerian economy, this paper is an attempt to investigate the impact of crude oil prices and foreign exchange rate movements on stock market prices in Nigeria. In addition, the paper examined whether there is any volatility pass-through between the dollar price of Nigerian crude oil, foreign exchange rate of the Naira and stock market prices respectively. Data employed for the study are monthly values of the Nigerian Stock Exchange (NSE) All-Share Index (ASI), Dollar price of Nigerian Crude Oil (DPO) and the Official Exchange Rate of the Naira to the US Dollar (FXR) from January, 1985 to August, 2017. The methodology adopted for the study include the ADF unit root tests, Johansen co-integration tests, the ECM technique, Granger causality tests, variance decomposition as well as the GARCH(1,1) to model the volatility relationships among the variables. Findings reveal that there is one long-run dynamic co-integrating relationship among the variables ASI, DPO and FXR while the ECM results indicate that Crude oil price (DPO) significantly impact on Stock market prices. The Granger causality test reports a bi-directional causality relationship between ASI and DPO and a unidirectional causality running from FXR to ASI. The ARCH-GARCH volatility analysis demonstrates vividly that stock market prices in the NSE exhibit ARCH effect with a significant and positive first order ARCH term. The GARCH term is also positive and significant indicating that previous month’s stock market price volatility significantly influences current stock market volatility in the NSE. In addition, findings show that the volatility of dollar price of Nigerian oil (DPO) in the world oil market is significantly transmitted to the volatility of stock market prices in Nigeria. The pass-through effect of the volatility of exchange rate (FXR) to the volatility of stock market prices is also positive and significant. These findings offer significant informational signal to policy makers, portfolio managers/advisors and the investing public in achieving optimal asset and portfolio profile.
Crude oil prices, Stock market price, exchange rates, Volatility, ARCH-GARCH, Variance decomposition.
Copyright (c) 2018 Onyemachi Maxwell Ogbulu
Challenges of the Nigerian Banking Sector and the Way Forward
Nigerian banking sector struggle with challenges in the day to day running of their business activities, challenges are enormous and can either be market or operational challenges and regulatory or reforms challenges instituted by the regulatory agencies such as CBN, NDIC, SEC and CIBN etc. Therefore, this paper seeks to examine the challenges facing the Nigerian banking sector and proper possible solutions to the challenges based on the prevailing economic environment. The paper utilized questionnaires as source of data collection, fifteen out of 24 banks were selected based on purposive sampling method. Chi-Square (x2) method was adopted as a statistical tool of data analysis to analyze the collected data. The result reveals that myriad of challenges exist in the Nigerian banking sector some of which are challenges both within and outside Nigeria. Banks are left behind in technological innovation aspect of banking transactions, movement of high volume of deposit or capital flight to foreign banks by the political class which reduce banks opportunity to expand their market base and the prevalent of fraud in the sector also hinders the banks progress, these challenges affects the sector to compete equally with banking sector in the developed nations. However, we also found that the challenges does not affect their financial performance. It is recommended that that government and relevant regulatory agencies should put heads together to render support and address those challenges identified that affect the sector, also Nigerian banking sector should invest in both technological innovation and human capital development, they should imbibe the culture of good corporate governance and stick to the issue of banking ethics and professionalism among others.
Banking Sector, Challenges, Nigeria, Nigerian Economy.
Factors that Influence the Adoptions of Internet Banking Among Customers
Internet banking is the latest technology that has revolutionized the changes of banking and business systems around the world. However, arrival of technology has an impact on Internet banking and transforms from a traditional banking system to a very useful innovation technology. The purpose of this study is to analyze factors that have influenced users to use Internet banking in doing financial transaction. This study uses content analysis on the previous literatures. The findings showed that there were 10 main different factors which influence the adoption of internet banking by the users. This study also proved that the highest factors which consist of 2 main factors are generated from technology acceptance model (TAM). Contribution of this research are significantly helps bank to have a better understanding on factors that influence the adoption of internet banking as well as help to develop a strategy to improved internet banking services.
Customer’s Adoption, Influence Factors, Internet Banking.
Copyright (c) 2018 Muhammad Azimulhakim Bin Haji Saman
Sovereign Wealth Fund Asset and Liability Management by Rastin Banking Financial Instruments (Rastin Certificates and Rastin Swap Bonds)
Low rate of return of National Development Fund (NDFI) resources and the concern regarding Sovereign Wealth Funds (SWFs) motivations and incentives to distort financing toward those investments and companies that are influenced by different political pressure groups and other types of corruptions are important problems with these funds.We try to propose a different financing procedure by using Rastin Banking mechanism and standards to fulfill both non-usury financial operations and fruitful supervised investments. This goal is achieved through Rastin Profit and Loss Sharing (PLS) system through Rastin Certificates financial instruments. Moreover, the governments operationally construct SWFs to use their surplus resources of the prosperity period in recession and crises years. We also show that Asset and Liability Management (ALM) of SWFs can be done by using Rastin Swap Bonds (RSBs) that are other Rastin Banking financial instruments.The proposed procedures positively improve NDFI regarding corruption reduction, supervision, preventing usury, availability of resources, funds stability, transactable instruments, operational ALM, rate of return, risk of bad loans, outstanding claims and transparency.
Islamic Finance, financial instrument, Sovereign Wealth Fund, SWF, Rastin Swap Bond, RSB, Finance, Islamic banking, Asset and Liability Management, ALM, National Development Fund, NDFI, Rastin Certificate, Rastin Banking
Functional Form for Estimating the Lorenz Curve
A flexible Lorenz curve which offers different curvatures allowed by the theory of income distribution is introduced. The intrinsically autoregressive nature of the errors in cumulative data of the Lorenz curve is also under consideration.
Lorenz Curve, Functional Form, Estimation, Income Inequality, Distribution
Copyright (c) 2019 Bijan Bidabad,Behrouz Bidabad
Different sizes of macro-econometric models are used for different policy purposes. In this paper, we introduce a small macro-econometric model that includes macro-aggregates variables that can be solved dynamically and be used as a sample model to be estimated for other countries.
Macro-Econometric, Econometric Model, Mathematical Model.