Template-Type: ReDIF-Article 1.0
Author-Name: Nipun Agarwal
Author-X-Name-First: Nipun
Author-X-Name-Last: Agarwal
Title: How to obtain high returns with lower volatility in emerging markets?
Abstract:
Emerging markets equity indexes are usually seen as high return with a
high degree of volatility associated with them. However, this should not
be the case, if you choose high-quality firms that have increasing returns
and lower volatility. The intent of this paper is to introduce the risk
weighted alpha (RWA) indexation method that helps identify stocks that
have stable increasing returns with lower volatility. In order to review
this method in the context of emerging markets scenario, this paper takes
the example of the Sensex index listed on the Bombay Stock Exchange (BSE)
that comprises India's top 30 stocks by market capitalisation. Results
show that some stocks like Hindustan Lever do show increasing returns and
lower volatility. The RWA Sensex index outperforms the BSE Sensex index,
while still maintaining a beta that is the same as that in the BSE Sensex
index.
Journal: Cogent Economics & Finance
Pages: 1-16
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.890060
File-URL: http://hdl.handle.net/10.1080/23322039.2014.890060
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Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.890060
Template-Type: ReDIF-Article 1.0
Author-Name: Nikolas Hourvouliades
Author-X-Name-First: Nikolas
Author-X-Name-Last: Hourvouliades
Author-Name: Ljupco Davcev
Author-X-Name-First: Ljupco
Author-X-Name-Last: Davcev
Title: Banking concentration and developments in FYROM: A country in transition
Abstract:
The Former Yugoslav Republic of Macedonia (FYROM) belongs to the
transition economies that have witnessed significant structural changes in
their domestic markets during the 2000s. We examine the evolution of the
banking competition from 2003 until 2011, covering the first period of
economic growth followed by the acute financial crisis that still
threatens European countries. We apply the Herfindahl-Hirschman index and
the CR3 and CR5 indicators in order to estimate banking concentration on
five industry variables. Our findings show that the market has been
persistently operating under oligopolistic, if not monopolistic,
conditions where the leading three or five institutions dominate the
market. Foreign newcomers and legislative developments have not changed
the situation during the past 10 years and bank customers seem to keep
their preferences unaffected, staying loyal to their prior choices. We
analyze the banking sector profitability since 2008 and during the
economic crisis, as well as the operational performance and the future
trends concerning this sector.
Journal: Cogent Economics & Finance
Pages: 1-12
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.895395
File-URL: http://hdl.handle.net/10.1080/23322039.2014.895395
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Template-Type: ReDIF-Article 1.0
Author-Name: Horacio Matos-Díaz
Author-X-Name-First: Horacio
Author-X-Name-Last: Matos-Díaz
Title: Measuring grade inflation and grade divergence accounting for student quality
Abstract:
This study uses a rich longitudinal data-set of 13,202 full-time students
belonging to 11 cohorts over 22 consecutive semesters (Fall 1995 to Spring
2006) to model the determinants of the grade inflation rates prevailing at
the University of Puerto Rico at Bayamón. The following new interesting
findings are reported: (1) Estimated rates vary significantly among and
within the academic programs, implying grade divergence, depending on the
time reference used: cohort time dummies or semesters since admission to
the institution. (2) The rates are significantly related to the
proportions of female students, students who switch from their original
academic programs, and students from private schools. (3) Results suggest
that, under determinate circumstances, average- and low-quality students
consider higher grades as normal goods; conversely, high-quality students
consider higher grades as inferior goods.
Journal: Cogent Economics & Finance
Pages: 1-16
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.915756
File-URL: http://hdl.handle.net/10.1080/23322039.2014.915756
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Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.915756
Template-Type: ReDIF-Article 1.0
Author-Name: Mauricio Martinelli Silva Luperi
Author-X-Name-First: Mauricio Martinelli Silva
Author-X-Name-Last: Luperi
Title: Advances in the mathematization process of Brazilian Academic Studies in Economics since the 1980s
Abstract:
Looking at Brazilian economic discourse, in this article, we look at how
mathematization of economics has advanced in the country in the last three
decades. For this, we have classified into several categories all articles
published in three major Brazilian economic journals (Revista
Brasileira de Economia, Estudos Econômicos, and Revista de Economia
Política) and the publications of ANPEC meetings from 1981 to
2010, according to the type of argument used. A total of 5,733 articles
were analyzed. We attempt to see how mathematization of economic discourse
developed, and found that there was an increased use of a formalized
language from the mid-1990s onwards. Finally, to confirm our findings, we
focus on the process of mathematization through the observation of a
quantitative variable: equations per article.
Journal: Cogent Economics & Finance
Pages: 1-19
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.918853
File-URL: http://hdl.handle.net/10.1080/23322039.2014.918853
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Template-Type: ReDIF-Article 1.0
Author-Name: Kentaka Aruga
Author-X-Name-First: Kentaka
Author-X-Name-Last: Aruga
Title: An intervention analysis on the Tokyo Grain Exchange non-genetically modified and conventional soybean futures markets
Abstract:
This paper examines how efficiently the price premium for non-genetically
modified (non-GM) soybeans at the Tokyo Grain Exchange (TGE) reacts to an
announcement to change the contract unit, suppliers, and expiration date
on the conventional soybean futures contract. An intervention analysis is
used for this purpose. The results reveal that the price premium for
non-GM soybeans increases after the change and this effect did not
disappear immediately. This implies that the two soybean futures markets
did not respond quickly to the announcement and there was an informational
inefficiency after the announcement. The TGE non-GM soybean futures market
is one of the first segregated markets for a non-GM commodity. An
intervention of clearing houses on such newly opened markets can often
lead to market inefficiency so a further study is necessary in order to
understand what causes such inefficiency and to find out how clearing
houses can minimize the effects of intervention.
Journal: Cogent Economics & Finance
Pages: 1-11
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.918854
File-URL: http://hdl.handle.net/10.1080/23322039.2014.918854
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Template-Type: ReDIF-Article 1.0
Author-Name: Sasipa Pojanavatee
Author-X-Name-First: Sasipa
Author-X-Name-Last: Pojanavatee
Title: Cointegration and causality analysis of dynamic linkage between stock market and equity mutual funds in Australia
Abstract:
The existing literature finds conflicting results on the magnitude of
price linkages between equity mutual funds and the stock market. The study
contends that in an optimal lagged model, the expectations of future
prices using knowledge of past price behaviour in a particular equity
mutual fund category will improve forecasts of prices of other equity
mutual fund categories and the stock market index. The evidence shows that
the long-run pricing of equity mutual funds is cointegrated with the stock
market index. In the short run, the results indicate that some equity
mutual fund categories possess both long-run and short-run exogeneity with
the stock market. Therefore, the short-run dynamic indicates short-run
Granger causal links running between different equity mutual fund
categories.
Journal: Cogent Economics & Finance
Pages: 1-17
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.918855
File-URL: http://hdl.handle.net/10.1080/23322039.2014.918855
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Template-Type: ReDIF-Article 1.0
Author-Name: Sami El-Mahgary
Author-X-Name-First: Sami
Author-X-Name-Last: El-Mahgary
Author-Name: Petri Rönnholm
Author-X-Name-First: Petri
Author-X-Name-Last: Rönnholm
Author-Name: Hannu Hyyppä
Author-X-Name-First: Hannu
Author-X-Name-Last: Hyyppä
Author-Name: Henrik Haggrén
Author-X-Name-First: Henrik
Author-X-Name-Last: Haggrén
Author-Name: Jenni Koponen
Author-X-Name-First: Jenni
Author-X-Name-Last: Koponen
Title: Evaluating the performance of university course units using data envelopment analysis
Abstract:
The technique of data envelopment analysis (DEA) for measuring the
relative efficiency has been widely used in the higher education sector.
However, measuring the performance of a set of course units or modules
that are part of a university curriculum has received little attention. In
this article, DEA was used in a visual way to measure the performance of
12 course units that are part of a Photogrammetry curriculum taught at
Aalto University. The results pinpointed the weakest performing units,
i.e. units where the provided teaching efforts might not be adequately
reflected in the students' marks in the unit. Based on the results, a
single unit was considered to offer poor performance with respect to its
teaching resources and was selected as a candidate for revision of its
contents. Financial resources were not used as such; instead, the
performance of students in previous pre-requisite units was used as the
inputs. For clarity, a single output covering the overall student
performance in the examined unit was used. The technique should be widely
applicable assuming the grade point averages of the students who took the
course unit are available along with the marks obtained in the evaluated
units and their pre-requisites.
Journal: Cogent Economics & Finance
Pages: 1-20
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.918856
File-URL: http://hdl.handle.net/10.1080/23322039.2014.918856
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Template-Type: ReDIF-Article 1.0
Author-Name: Agnieszka Bielinska-Kwapisz
Author-X-Name-First: Agnieszka
Author-X-Name-Last: Bielinska-Kwapisz
Title: Do football teams learn from changing coaches? A test of the deceleration hypothesis
Abstract:
The paper explores the nature of change and finds evidence in favor of
deceleration hypothesis: prior changes of a given type decrease the
likelihood of a subsequent change of the same type while controlling for
unobserved heterogeneity. We analyze leadership changes by explaining
factors that influence football teams to replace their coaches. We use
panel data for 33 National Football League's teams from 1976 to 2008.
Journal: Cogent Economics & Finance
Pages: 1-9
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.918857
File-URL: http://hdl.handle.net/10.1080/23322039.2014.918857
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Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.918857
Template-Type: ReDIF-Article 1.0
Author-Name: Claus Holm
Author-X-Name-First: Claus
Author-X-Name-Last: Holm
Author-Name: Morten Balling
Author-X-Name-First: Morten
Author-X-Name-Last: Balling
Author-Name: Thomas Poulsen
Author-X-Name-First: Thomas
Author-X-Name-Last: Poulsen
Title: Corporate governance ratings as a means to reduce asymmetric information
Abstract:
Can corporate governance ratings reduce problems of asymmetric information
between companies and investors? To answer this question, we set out to
examine the information basis for providing such ratings by reviewing
corporate governance attributes that are required or recommended in laws,
accounting standards, and codes, respectively. After that, we scrutinize
and organize the publicly available information on the methodologies
actually used by rating providers. However, important details of these
methodologies are treated as confidential property, thus we approach the
evaluation of corporate governance ratings as a means to reduce asymmetric
information in a more general manner. We propose that the rating process
may be seen as consisting of two general activities, namely a data
reduction phase, and a data weighting, aggregation, and classification
phase. Findings based on a Danish data-set suggest that rating providers
by selecting relevant attributes in an intelligent way can improve the
screening of companies according to governance quality. In contrast, it
seems questionable that weighting, aggregation, and classification of
corporate governance attributes considerably improve discrimination
according to governance quality.
Journal: Cogent Economics & Finance
Pages: 1-16
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.919235
File-URL: http://hdl.handle.net/10.1080/23322039.2014.919235
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Template-Type: ReDIF-Article 1.0
Author-Name: Rod B. McNaughton
Author-X-Name-First: Rod B.
Author-X-Name-Last: McNaughton
Author-Name: Brian Paul Cozzarin
Author-X-Name-First: Brian Paul
Author-X-Name-Last: Cozzarin
Title: Inter-organizational linkages and resource dependence
Abstract:
Few studies have examined the relationship between inter-industry,
inter-corporate ownership (ICO) patterns and inter-industry resource
exchange patterns. Using data from Statistics Canada, this paper reveals a
positive association between the degree of ICO linkages and the degree of
input-output dependence among Canadian industry groups. This provides
empirical support for the primary assertion of resource dependence theory:
that corporations employ ICO linkages to manage their input-output
dependence resulting from recurrent resource exchanges. This research
differs from extant tests of resource dependence in that it uses data for
the population of firms (over a size threshold) in Canada and includes all
forms of interdependence between enterprises. The findings suggest
scenarios in which corporations can adopt ICO linkages to manage resource
dependence and reduce transaction costs.
Journal: Cogent Economics & Finance
Pages: 1-18
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.920269
File-URL: http://hdl.handle.net/10.1080/23322039.2014.920269
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Template-Type: ReDIF-Article 1.0
Author-Name: David Tanganelli
Author-X-Name-First: David
Author-X-Name-Last: Tanganelli
Author-Name: Jean-Louis Schaan
Author-X-Name-First: Jean-Louis
Author-X-Name-Last: Schaan
Title: Japanese subsidiaries in the European Union: Entry modes and performance
Abstract:
Japanese Foreign Direct Investment (FDI) in the European Union and its
performance were analysed in this work. Three different FDI or entry modes
used by Japanese companies to enter the European market were compared, and
the presence of a relationship between the selected entry mode and the
performance of the subsidiary was investigated. We found that more than
half of the Japanese investments in Europe took the form of new ventures,
approximately 40% were joint ventures and less than 6% were acquisitions.
We found that no specific entry mode performed better than another.
Journal: Cogent Economics & Finance
Pages: 1-9
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.920270
File-URL: http://hdl.handle.net/10.1080/23322039.2014.920270
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Template-Type: ReDIF-Article 1.0
Author-Name: Tadashi Yamada
Author-X-Name-First: Tadashi
Author-X-Name-Last: Yamada
Author-Name: Tetsuji Yamada
Author-X-Name-First: Tetsuji
Author-X-Name-Last: Yamada
Author-Name: Chia-Ching Chen
Author-X-Name-First: Chia-Ching
Author-X-Name-Last: Chen
Author-Name: Weihong Zeng
Author-X-Name-First: Weihong
Author-X-Name-Last: Zeng
Title: Determinants of health insurance and hospitalization
Abstract:
Our paper empirically examines how the decision to purchase private
insurance and hospitalization are made based on household income,
socio-demographic factors, and private health insurance factors in both
Japan and the USA. Using these two data-sets, we found some similarities
and dissimilarities between Japan and the United States. As income of
households rises, households have a positive effect on purchasing health
insurance as a normal good. Another similarity between the two countries
is seen in the income effect on risk of hospitalization, which is negative
for both Japanese and US cases. For dissimilarity, the insurance premium
effect on risk of hospitalization is positive for the Japanese case, while
negative for the US case. Since the Japanese insurance data had variables
such as payments per day of hospitalization if household gets
hospitalized, insurance payments upon death of an insured person, and
annuity payments at maturity, we tested to see if these characteristics
affect the risk of hospitalization for households; we do not eliminate a
possibility of adverse selection. For the US pure health issuance
characteristics, an increase in premium of health insurance policies cause
individuals to substitute more health capital investment which causes
lower risk of hospitalization.
Journal: Cogent Economics & Finance
Pages: 1-27
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.920271
File-URL: http://hdl.handle.net/10.1080/23322039.2014.920271
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Template-Type: ReDIF-Article 1.0
Author-Name: Robert J. Sonora
Author-X-Name-First: Robert J.
Author-X-Name-Last: Sonora
Author-Name: Josip Tica
Author-X-Name-First: Josip
Author-X-Name-Last: Tica
Title: Harrod, Balassa, and Samuelson (re)visit Eastern Europe
Abstract:
In this paper, we investigate the Harrod-Balassa-Samuelson (HBS)
hypothesis in 11 Central and Eastern European transition countries. Unlike
previous research, we test the HBS hypothesis with NACE 6 quarterly data
which enables us to divide data into tradable and nontradable sectors
without requiring unrealistic assumptions on the nature of the data.
Contrary to previous results, we are only able to find evidence for
univariate HBS effects in Bulgaria, Croatia, Hungary, and Poland. However,
using panel cointegration tests, we find strong statistical evidence for
the HBS hypothesis within countries and across countries. Our results also
demonstrate that cross-country HBS holds under the assumption that the law
of one price for tradables does not hold. Finally, we find, contrary to
theory, that government consumption negatively impacts relative prices.
The policy implications are that failing to acknowledge the peculiarities
of the transition process results in suboptimal monetary policy.
Journal: Cogent Economics & Finance
Pages: 1-17
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.920557
File-URL: http://hdl.handle.net/10.1080/23322039.2014.920557
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Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.920557
Template-Type: ReDIF-Article 1.0
Author-Name: Minqiang Li
Author-X-Name-First: Minqiang
Author-X-Name-Last: Li
Title: Aumann and Serrano's economic index of risk for sums of gambles
Abstract:
We study Aumann and Serrano's (2008) risk index for sums of gambles that
are not dependent. If the dependent parts are similarly ordered, then the
risk index of the sum is always larger than the minimum of the risk
indices of the two gambles. For negative dependence, the risk index of the
sum is always smaller than the maximum. The above results agree with our
intuitions of risk diversification well. These result points out another
attractive property of Aumann and Serrano's risk index. These properties
are potentially useful for risk assessment purposes of financial
securities.
Journal: Cogent Economics & Finance
Pages: 1-5
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.921574
File-URL: http://hdl.handle.net/10.1080/23322039.2014.921574
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Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.921574
Template-Type: ReDIF-Article 1.0
Author-Name: A. Deshkovski
Author-X-Name-First: A.
Author-X-Name-Last: Deshkovski
Author-Name: A. Dzeshkovskaia
Author-X-Name-First: A.
Author-X-Name-Last: Dzeshkovskaia
Title: Is a night better than a day: Empirical evidence
Abstract:
In this study, we analyze the portfolio allocation based on time asymmetry
of stock characteristics. In particular, we analyzed the empirical data of
changes in financial stock prices during the day period and during the
night period and have found that characteristics such as mean and variance
are different for changes during the day and changes during the night.
Also, the portfolio characteristics, such as covariance between stocks,
differ on whether we take into account day changes or night changes in
prices. That greatly affects the allocation of fund to the portfolio for
an investor who trades frequently. The portfolio should be re-balanced
every day in order to achieve optimality and much higher return. At the
same level of risk the returns on this new portfolio may by several times
larger than the returns on a portfolio without everyday re-balancing. We
computed numerically the allocation of funds for the stocks from the
finance industry and showed that the increase in returns is substantial.
Journal: Cogent Economics & Finance
Pages: 1-11
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.921575
File-URL: http://hdl.handle.net/10.1080/23322039.2014.921575
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Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.921575
Template-Type: ReDIF-Article 1.0
Author-Name: Garoui Nassreddine
Author-X-Name-First: Garoui
Author-X-Name-Last: Nassreddine
Author-Name: Jarboui Anis
Author-X-Name-First: Jarboui
Author-X-Name-Last: Anis
Title: Cognitive governance, cognitive mapping and cognitive conflicts: Structural analysis with the MICMAC method
Abstract:
This research aims to achieve a better understanding of the modes of
conceptualization and thinking on issues of governance. It is part of a
cognitive approach, to our knowledge unprecedented. This research has
shown that the mapping concepts of governance can provide the original
performance and meaningful. The purpose was to plot the thought of
governance actors in the form of a cognitive map and analyze it. The
results highlighted the relative importance of the concepts they used, the
dimensions from which they structured more or less consciously, here own
thoughts, and the nature and characteristics of the concepts they
considered primarily as an explanation or consequences. They allowed
characterizing very special or very precise structure and content of the
thought of these actors. The construction of collective cognitive maps is
to help structure the relationship between governance actors in the sense
that it will detect the conflict relations of cognitive order. The
cognitive map is by definition a representation of mental models of actors
on any topic. Actors of governance do not have the same definitions of the
concepts of governance that represents for us a sort of cognitive conflict
and hence through cognitive mapping can map the concentration of these
conflicts and we are still looking for more to show the effectiveness
governance mechanisms to resolve these conflicts.
Journal: Cogent Economics & Finance
Pages: 1-13
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.922893
File-URL: http://hdl.handle.net/10.1080/23322039.2014.922893
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Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.922893
Template-Type: ReDIF-Article 1.0
Author-Name: Martins Iyoboyi
Author-X-Name-First: Martins
Author-X-Name-Last: Iyoboyi
Author-Name: Olarinde Muftau
Author-X-Name-First: Olarinde
Author-X-Name-Last: Muftau
Title: Impact of exchange rate depreciation on the balance of payments: Empirical evidence from Nigeria
Abstract:
The paper investigates the impact of exchange rate depreciation on the
balance of payments (BOP) in Nigeria over the period 1961-2012. The
analysis is based on a multivariate vector error correction framework. A
long-term equilibrium relationship was found between BOP, exchange rate
and other associated variables. The empirical results are in favour of
bidirectional causality between BOP and other variables employed. Results
of the generalized impulse response functions suggest that one standard
deviation innovation on exchange rate reduces positive BOP in the medium
and long term, while results of the variance decomposition indicate that a
significant variation in Nigeria's BOP is not due to changes in exchange
rate movements. The policy implication is that exchange rate depreciation
which has been preponderant in Nigeria since the mid-1980s has not been
very useful in promoting the country's positive BOP. It is recommended
that growth in the real sector should be improved to enhance exports,
create employment, curb inflation and reduce poverty, while cutting
non-productive imports, attracting foreign private investment and
implementing well coordinated macroeconomic policies that impact inflation
positively and stimulate exchange rate stability.
Journal: Cogent Economics & Finance
Pages: 1-23
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.923323
File-URL: http://hdl.handle.net/10.1080/23322039.2014.923323
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Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.923323
Template-Type: ReDIF-Article 1.0
Author-Name: Mohammed S. Khaled
Author-X-Name-First: Mohammed S.
Author-X-Name-Last: Khaled
Author-Name: Stephen P. Keef
Author-X-Name-First: Stephen P.
Author-X-Name-Last: Keef
Title: On the dynamics of international stock market efficiency
Abstract:
The Granger causality procedure is used to assess the dynamics of market
efficiency of 17 international stock indices. These indices are based on
relatively smaller firms. The reference of market efficiency is a stock
index, from the same economy, which is based on relatively larger firms.
There is evidence that market efficiency increases over time at a
decreasing rate.
Journal: Cogent Economics & Finance
Pages: 1-11
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.923778
File-URL: http://hdl.handle.net/10.1080/23322039.2014.923778
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Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.923778
Template-Type: ReDIF-Article 1.0
Author-Name: Chin-Yin Huang
Author-X-Name-First: Chin-Yin
Author-X-Name-Last: Huang
Author-Name: Philip K.P. Lin
Author-X-Name-First: Philip K.P.
Author-X-Name-Last: Lin
Title: Application of integrated data mining techniques in stock market forecasting
Abstract:
Stock market is considered too uncertain to be predictable. Many
individuals have developed methodologies or models to increase the
probability of making a profit in their stock investment. The overall hit
rates of these methodologies and models are generally too low to be
practical for real-world application. One of the major reasons is the huge
fluctuation of the market. Therefore, the current research focuses in the
stock forecasting area is to improve the accuracy of stock trading
forecast. This paper introduces a system that addresses the particular
need. The system integrates various data mining techniques and supports
the decision-making for stock trades. The proposed system embeds the
top-down trading theory, artificial neural network theory, technical
analysis, dynamic time series theory, and Bayesian probability theory. To
experimentally examine the trading return of the presented system, two
examples are studied. The first uses the Taiwan Semiconductor
Manufacturing Company (TSMC) data-set that covers an investment horizon of
240 trading days from 16 February 2011 to 23 January 2013. Eighty four
transactions were made using the proposed approach and the investment
return of the portfolio was 54% with an 80.4% hit rate during a 12-month
period in which the TSMC stock price increased by 25% (from $NT 78.5 to
$NT 101.5). The second example examines the stock data of Evergreen Marine
Corporation, an international marine shipping company. Sixty four
transactions were made and the investment return of the portfolio was 128%
in 12 months. Given the remarkable investment returns in trading the
example TSMC and Evergreen stocks, the proposed system demonstrates
promising potentials as a viable tool for stock market forecasting.
Journal: Cogent Economics & Finance
Pages: 1-18
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.929505
File-URL: http://hdl.handle.net/10.1080/23322039.2014.929505
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Template-Type: ReDIF-Article 1.0
Author-Name: S. Menguy
Author-X-Name-First: S.
Author-X-Name-Last: Menguy
Title: Which is the optimal fiscal rule in a monetary union? Targeting the structural, the global budgetary deficit, or the public debt?
Abstract:
The aim of our paper is to contribute to the debate on optimal fiscal
rules in a monetary union: in terms of global budgetary deficit, of
structural budgetary deficit, or of public debt. Indeed, these rules seem
to be mixed in the framework of the European Economic and Monetary Union,
with the new Fiscal Compact. With the help of a simple macroeconomic
model, we show that a goal in terms of public debt is the most appropriate
in order to decrease the indebtedness levels, but that it could increase
the recessionary risks for the most indebted European countries. Goals in
terms of global budgetary deficit or public debt are the most appropriate
to limit the budgetary activism and to stabilize fiscal variables in case
of demand or supply shocks. However, a goal in terms of structural
budgetary deficit is the most appropriate in order to stabilize economic
activity levels in case of asymmetric demand or supply shocks.
Journal: Cogent Economics & Finance
Pages: 1-21
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.932257
File-URL: http://hdl.handle.net/10.1080/23322039.2014.932257
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Template-Type: ReDIF-Article 1.0
Author-Name: Fadzlan Sufian
Author-X-Name-First: Fadzlan
Author-X-Name-Last: Sufian
Author-Name: Fakarudin Kamarudin
Author-X-Name-First: Fakarudin
Author-X-Name-Last: Kamarudin
Title: The impact of ownership structure on bank productivity and efficiency: Evidence from semi-parametric Malmquist Productivity Index
Abstract:
The present study employs the state of the art bias-corrected Malmquist
Productivity Index method to examine the sources of efficiency and
productivity of the foreign and domestic banks operating in the Malaysian
banking sector. The preferred methodology enables us to isolate efforts to
catch up to the frontier (efficiency change) from shifts in the frontier
(technological change [TECHCH]). The results indicate that the Malaysian
banking sector has exhibited productivity progress mainly attributed to
technological progress. The empirical findings suggest that both the
domestic and foreign banks have exhibited productivity progress albeit at
different quantum attributed mainly to progress in TECHCH.
Journal: Cogent Economics & Finance
Pages: 1-27
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.932700
File-URL: http://hdl.handle.net/10.1080/23322039.2014.932700
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Template-Type: ReDIF-Article 1.0
Author-Name: N.D. Geomelos
Author-X-Name-First: N.D.
Author-X-Name-Last: Geomelos
Author-Name: E. Xideas
Author-X-Name-First: E.
Author-X-Name-Last: Xideas
Title: Forecasting spot prices in bulk shipping using multivariate and univariate models
Abstract:
This paper employs an applied econometric study concerning forecasting
spot prices in bulk shipping in both markets of tankers and bulk carriers
in a disaggregated level. This research is essential, as spot market is
one of the most volatile markets and there is a great uncertainty about
the future development of spot prices. This uncertainty could be reduced
by using estimates of ex-post and ex-ante forecasts. Econometric analysis
focuses in the comparison of different econometric models from two
important categories of econometrics: (1) multivariate models (VAR and
VECM) and (2) univariate time series models (ARIMA, GARCH and E-GARCH) in
order to derive the best predicting model for each ship type. Also,
forecasts can be modified to yield an improved performance of forecasting
accuracy via the theory of combining methods. Ex-post and ex-ante
forecasts are estimated on the basis of best predicting model's
performance. Results show that the combining methodology can reduce even
more the forecasting errors. The results of empirical analysis could also
be useful from the specialization, identification, estimation, and
evaluation of previous econometric models' point of view. Also, ex-ante
forecasts, which are taking into consideration the present economic
crisis, can be used for the formation of efficient economic policy from
decision-makers of shipping industry reducing even more spot markets'
risk.
Journal: Cogent Economics & Finance
Pages: 1-37
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.932701
File-URL: http://hdl.handle.net/10.1080/23322039.2014.932701
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Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Bande-Ramudo
Author-X-Name-First: Roberto
Author-X-Name-Last: Bande-Ramudo
Author-Name: Manuel Fernandez-Grela
Author-X-Name-First: Manuel
Author-X-Name-Last: Fernandez-Grela
Author-Name: Dolores Riveiro-Garcia
Author-X-Name-First: Dolores
Author-X-Name-Last: Riveiro-Garcia
Title: Consumption, investment and unemployment: SVAR tests of the effects of changes in the consumption-saving pattern
Abstract:
In this paper, we provide evidence supporting the hypothesis that
permanent shifts in the consumption-saving pattern will have permanent
effects on investment, with subsequent consequences for the unemployment
rate, by estimating a structural vector autoregression model for the
Spanish economy. Our results suggest a significant impact of consumption
shocks on unemployment through changes in investment.
Journal: Cogent Economics & Finance
Pages: 1-7
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.933676
File-URL: http://hdl.handle.net/10.1080/23322039.2014.933676
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Template-Type: ReDIF-Article 1.0
Author-Name: Olga Yashkir
Author-X-Name-First: Olga
Author-X-Name-Last: Yashkir
Author-Name: Yuri Yashkir
Author-X-Name-First: Yuri
Author-X-Name-Last: Yashkir
Title: Overnight Index Rate: Model, calibration and simulation
Abstract:
In this study, the extended Overnight Index Rate (OIR) model is presented.
The fitting function for the probability distribution of the OIR daily
returns is based on three different Gaussian distributions which provide
modelling of the narrow central peak and the wide fat-tailed component.
The calibration algorithm for the model is developed and investigated
using the historical OIR data.
Journal: Cogent Economics & Finance
Pages: 1-11
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.936955
File-URL: http://hdl.handle.net/10.1080/23322039.2014.936955
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Template-Type: ReDIF-Article 1.0
Author-Name: Carren Pindiriri
Author-X-Name-First: Carren
Author-X-Name-Last: Pindiriri
Title: A theoretical analysis of the effectiveness of sustainable development assistance on environmental quality
Abstract:
A number of empirical studies have been carried out to assess the impact
of sustainable development assistance (SDA) and aid on environmental
quality in poor countries, but these studies have been characterized by
weak theoretical anchor. It is against this background that this paper
provides a theoretical basis from which empirical models of the
effectiveness and impact of SDA on environmental quality can be derived.
The paper applies the classical consumer theory of utility maximization,
Keynesian macroeconomic model and further suggests an incentive-based
approach (post-cure financial SDA model) in explaining the effectiveness
of environmental financing. The theories discussed in this paper confirm
the results obtained by previous empirical studies on environmental
financing.
Journal: Cogent Economics & Finance
Pages: 1-10
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.939293
File-URL: http://hdl.handle.net/10.1080/23322039.2014.939293
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Template-Type: ReDIF-Article 1.0
Author-Name: Arghya Kusum Mukherjee
Author-X-Name-First: Arghya Kusum
Author-X-Name-Last: Mukherjee
Author-Name: Amit Kundu
Author-X-Name-First: Amit
Author-X-Name-Last: Kundu
Title: Government-sponsored microfinance program: Joint liability vs. individual liability
Abstract:
Swarnajayanti Gram Swarozgar Yojana (SGSY) is a government-sponsored
microfinance program. The scheme is based on four features: group lending
with joint liability, progressive lending, back-ended subsidy, and social
capital. We propose a new model of SGSY having these features: group
lending with individual liability, progressive lending, back-ended
subsidy, and social capital. "Joint liability" clause of the existing
model is replaced with individual liability in the new model. The paper
shows that problem of adverse selection is removed in both models, i.e. in
"SGSY with group lending and joint liability" and "SGSY with group lending
and individual liability." The problem of "moral hazard" is more severe in
the existing model of SGSY compared with the proposed model of SGSY.
Borrowers are also benefitted from participation in the proposed scheme of
SGSY than that in the existing model of SGSY.
Journal: Cogent Economics & Finance
Pages: 1-14
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.939768
File-URL: http://hdl.handle.net/10.1080/23322039.2014.939768
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Template-Type: ReDIF-Article 1.0
Author-Name: Anindya Goswami
Author-X-Name-First: Anindya
Author-X-Name-Last: Goswami
Author-Name: Ravi Kant Saini
Author-X-Name-First: Ravi Kant
Author-X-Name-Last: Saini
Title: Volterra equation for pricing and hedging in a regime switching market
Abstract:
It is known that the risk minimizing price of European options in
Markov-modulated market satisfies a system of coupled PDE, known as
generalized B-S-M PDE. In this paper, another system of equations, which
can be categorized as a Volterra integral equations of second kind, are
considered. It is shown that this system of integral equations has smooth
solution and the solution solves the generalized B-S-M PDE. Apart from
showing existence and uniqueness of the PDE, this IE representation helps
to develop a new computational method. It enables to compute the European
option price and corresponding optimal hedging strategy by using
quadrature method.
Journal: Cogent Economics & Finance
Pages: 1-11
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.939769
File-URL: http://hdl.handle.net/10.1080/23322039.2014.939769
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Template-Type: ReDIF-Article 1.0
Author-Name: P. Geetha Rani
Author-X-Name-First: P.
Author-X-Name-Last: Geetha Rani
Title: Disparities in earnings and education in India
Abstract:
This paper studies the impact of different levels of education, religion,
caste as well as the impact of living in urban and rural communities on
earnings in India. Besides these conventional stratification, yet another
academic caste which influence earnings-the English language ability, is
also examined. The paper uses a large cross-section sample of India Human
Development Survey to estimate Mincer and augmented Mincer equations. The
rates of return estimates obtained in these data and method confirm that
returns to education increase with the level of education across location,
caste-religion and English language ability. Returns to lower levels of
education are low across different groups, indicating the low quality of
basic schooling in the country. Returns to higher education vary at a
great deal ranging between 4.9% among the rural workers and 38.2% among
fluent English ability group. This is in contrast to Duraisamy reporting
the highest returns to secondary education in India, between the period
1983 and 1993-1994. In a decade's time, with changes in the economy and in
the labour market, higher education especially the English language
ability along with higher education brings in the highest wage premium.
Journal: Cogent Economics & Finance
Pages: 1-18
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.941510
File-URL: http://hdl.handle.net/10.1080/23322039.2014.941510
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Template-Type: ReDIF-Article 1.0
Author-Name: Jason Giersch
Author-X-Name-First: Jason
Author-X-Name-Last: Giersch
Title: Effects of vacation properties on local education budgets
Abstract:
Residents of school districts with large percentages of vacation
properties have the opportunity to export a portion of their school taxes
onto the owners of those vacation properties. Those property owners are
unlikely to consume educational services or have the opportunity to vote
against local school taxes. Previous studies address exportation of taxes
onto vacation property owners and the effects on local government budgets
generally but not on education finances specifically. This study connects
research on rates of vacation properties with that on local education
finances by using data from the state of Georgia in 2010 and weighted
least squares regression analysis to show that high percentages of
vacation properties do indeed result in larger local school expenditures.
Journal: Cogent Economics & Finance
Pages: 1-9
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.941890
File-URL: http://hdl.handle.net/10.1080/23322039.2014.941890
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Template-Type: ReDIF-Article 1.0
Author-Name: S. Alonso
Author-X-Name-First: S.
Author-X-Name-Last: Alonso
Author-Name: V. Azofra
Author-X-Name-First: V.
Author-X-Name-Last: Azofra
Author-Name: G. De La Fuente
Author-X-Name-First: G.
Author-X-Name-Last: De La Fuente
Title: What do you do when the binomial cannot value real options? The LSM model
Abstract:
The Least-Squares Monte Carlo model (LSM model) has emerged as the
derivative valuation technique with the greatest impact in current
practice. As with other options valuation models, the LSM algorithm was
initially posited in the field of financial derivatives and its extension
to the realm of real options requires considering certain questions which
might hinder understanding of the algorithm and which the present paper
seeks to address. The implementation of the LSM model combines Monte Carlo
simulation, dynamic programming and statistical regression in a flexible
procedure suitable for application to valuing nearly all types of
corporate investments. The goal of this paper is to show how the LSM
algorithm is applied in the context of a corporate investment, thus
contributing to the understanding of the principles of its operation.
Journal: Cogent Economics & Finance
Pages: 1-17
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.942338
File-URL: http://hdl.handle.net/10.1080/23322039.2014.942338
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Template-Type: ReDIF-Article 1.0
Author-Name: Rana Ejaz Ali Khan
Author-X-Name-First: Rana Ejaz Ali
Author-X-Name-Last: Khan
Author-Name: Qazi Muhammad Adnan Hye
Author-X-Name-First: Qazi Muhammad
Author-X-Name-Last: Adnan Hye
Title: Foreign direct investment and liberalization policies in Pakistan: An empirical analysis
Abstract:
To enhance the inflow of foreign direct investment (FDI) and ultimately to
increase the economic growth, the countries have implemented a variety of
financial and trade liberalization policies in the last three decades.
Pakistan also initiated such type of policies. This study makes an
analysis of the impact of liberalization (financial and trade) in
Pakistan, on the inflow of FDI using the time series data of 1971-2009.
The DF-GLS test is used to determine the level of integration, and
autoregressive distributed lag model to examine the long-run relationship.
The results indicate that liberalization indicators, like financial
liberalization index and trade openness along with real interest rate,
negatively affect the inflow of FDI in Pakistan. Tax revenue of product
also negatively affects the FDI. On the other hand, the gross fixed
capital formation, infrastructure, and inflation positively influence the
FDI in Pakistan. The market size (proxied by real gross domestic product)
has shown insignificant effect on FDI.
Journal: Cogent Economics & Finance
Pages: 1-12
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.944667
File-URL: http://hdl.handle.net/10.1080/23322039.2014.944667
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Template-Type: ReDIF-Article 1.0
Author-Name: Rajesh Acharya
Author-X-Name-First: Rajesh
Author-X-Name-Last: Acharya
Author-Name: Vishal Gaikwad
Author-X-Name-First: Vishal
Author-X-Name-Last: Gaikwad
Title: Pre-open call auction and price discovery: Evidence from India
Abstract:
Premier stock exchanges in India, viz. National Stock Exchange of India
and Bombay Stock Exchange, introduced call auction in the pre-open session
from 18 October 2010. This paper analyzes the impact of introduction of
pre-open call auction on price discovery at the open. Empirical analysis
is based on the familiar market model in an event study framework. The
result shows a decline in the market model R-super-2 for
both opening and closing returns of stocks forming the part of call
auction and also control sample. However, the magnitude of decline is less
in the opening prices for the call auction stocks compared with control
sample. Furthermore, analysis carried out using the second pass
β and R-super-2 regressions shows
that the introduction of pre-open call auction does not have any
significant impact on market quality. The findings of the study have
implications for the future policy-making on the call auction framework.
Journal: Cogent Economics & Finance
Pages: 1-11
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.944668
File-URL: http://hdl.handle.net/10.1080/23322039.2014.944668
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Template-Type: ReDIF-Article 1.0
Author-Name: Peter Brusov
Author-X-Name-First: Peter
Author-X-Name-Last: Brusov
Author-Name: Tatiana Filatova
Author-X-Name-First: Tatiana
Author-X-Name-Last: Filatova
Author-Name: Natali Orekhova
Author-X-Name-First: Natali
Author-X-Name-Last: Orekhova
Title: Mechanism of formation of the company optimal capital structure, different from suggested by trade off theory
Abstract:
Under condition of proved by us insolvency of well-known classical trade
off theory it becomes important to identify mechanisms for forming the
optimal capital structure of a company. This paper presents one of the
real such mechanisms based on the decrease of debt cost with leverage,
which is determined by growth of debt volume. This mechanism is absent in
perpetuity Modigliani-Miller theory, even in modified version, developed
by us, and exists within more general modern theory of capital cost and
capital structure by Brusov-Filatova-Orekhova, or BFO theory..
Journal: Cogent Economics & Finance
Pages: 1-13
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.946150
File-URL: http://hdl.handle.net/10.1080/23322039.2014.946150
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Template-Type: ReDIF-Article 1.0
Author-Name: Christopher A. Hartwell
Author-X-Name-First: Christopher A.
Author-X-Name-Last: Hartwell
Title: Do (successful) stock exchanges support or hinder institutions in transition economies?
Abstract:
A stock exchange and the presence of functioning equity markets are part
and parcel of an advanced market-based financial system. Previous research
has also established that equity markets function more efficiently in the
presence of supporting institutions such as property rights and rule of
law. But how do these two aspects of the institutional environment
interact? That is, does the performance of a stock exchange support the
development of property rights, or can it actually hinder it? Examining
monthly data for 21 transition economies over a shifting monthly window
from 1989 to 2012, and using a fixed-effects specification with
Driscoll-Kraay standard errors, I find support for the existence of an
inverted U-shaped relationship between property rights and stock market
performance. While a well-functioning stock market may help reinforce
property rights through demonstration effects, a stock market that has
become "too successful" may entrench interests and lead to property
rights-eroding policies.
Journal: Cogent Economics & Finance
Pages: 1-18
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.946620
File-URL: http://hdl.handle.net/10.1080/23322039.2014.946620
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Template-Type: ReDIF-Article 1.0
Author-Name: Habibeh Sherafatmand
Author-X-Name-First: Habibeh
Author-X-Name-Last: Sherafatmand
Author-Name: Saeed Yazdani
Author-X-Name-First: Saeed
Author-X-Name-Last: Yazdani
Title: The management of price risk in Iranian dates: An application of futures instruments
Abstract:
Effective risk management is an important aspect of farming. Risk
management involves choosing among alternatives that reduce the financial
effects of the uncertainties of weather, yields, prices, government
policies, and other factors that can cause wide swings in farm income. To
deal with price uncertainty, this paper focuses on futures markets and
calculates hedge ratio for dates. A bivariate BEKK GARCH model is used to
determine time-varying hedge ratios. The results show that the average
BEKK BGARCH hedge ratio for dates is .7. Also in this paper, the hedge
ratio, which takes into consideration the producers' risk-averse
parameter, is estimated [Extended mean Gini hedge ratio (EMGHR)]. Results
of EMGHR recommended that risk-averse producers, who have risky parameter
equal to 50, could reduce their price risk to 60% by attending futures
markets.
Journal: Cogent Economics & Finance
Pages: 1-12
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.946998
File-URL: http://hdl.handle.net/10.1080/23322039.2014.946998
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Template-Type: ReDIF-Article 1.0
Author-Name: Desiderio Romero-Jordán
Author-X-Name-First: Desiderio
Author-X-Name-Last: Romero-Jordán
Author-Name: José Félix Sanz
Author-X-Name-First: José Félix
Author-X-Name-Last: Sanz
Author-Name: Mercedes Burguillo
Author-X-Name-First: Mercedes
Author-X-Name-Last: Burguillo
Title: Is it environmentally desirable to encourage public transport through taxes? Evidence for Spanish households
Abstract:
There are studies that suggests that the use of environmental taxes to
promote the consumption of "clean goods" could have unwanted effects in
that it leads to the consumption of "dirty goods". The results will depend
on the multiple effects of cross-price elasticities. This paper
illustrates the above hypothesis as applied to earth transport consumption
in Spanish households. Using microdata for Spanish households, we firstly
estimate an AIDS model for 16 groups of goods and services. And secondly
simulate two alternative revenue-neutral tax reforms in which the relative
price of public transport, in terms of private transport, is reduced
between 1 and 2%. The results confirm Sandmo's hypothesis. With both
reforms, fuel consumption (as measure of private transport use) increases
and public transport consumption decreases. The consequence in each case
is a net increase in CO2 emissions per household. So, fiscal
reforms of this kind do not seem to be effective to improve the
environmental performance of passengers earth transport sector in Spain.
Journal: Cogent Economics & Finance
Pages: 1-9
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.946999
File-URL: http://hdl.handle.net/10.1080/23322039.2014.946999
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Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.946999
Template-Type: ReDIF-Article 1.0
Author-Name: Mirajul Haq
Author-X-Name-First: Mirajul
Author-X-Name-Last: Haq
Author-Name: Muhammad Luqman
Author-X-Name-First: Muhammad
Author-X-Name-Last: Luqman
Title: The contribution of international trade to economic growth through human capital accumulation: Evidence from nine Asian countries
Abstract:
This study is an attempt to test the hypothesis "international trade
contributes to economic growth through its effects on human capital
accumulation." To assess the hypothesis empirically, we employed the
extended Neo-Classical growth model that reflects some features of the
endogenous growth models. We thus ended up with a model in which the
change in human capital is sensitive to change in trade policies. Unlike
conventional approaches, the model serves to assess and determine the
impact of international trade on the accumulation of human capital. The
empirical analysis estimates dynamic panel growth equations by using a
data-set of nine Asian countries, over the period 1972-2012. The overall
evidence substantiates the fact that in countries under consideration,
international trade enhances the accumulation of human capital and
contributes to economic growth positively through human capital
accumulation.
Journal: Cogent Economics & Finance
Pages: 1-13
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.947000
File-URL: http://hdl.handle.net/10.1080/23322039.2014.947000
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Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.947000
Template-Type: ReDIF-Article 1.0
Author-Name: Eduardo Ariel Corso
Author-X-Name-First: Eduardo Ariel
Author-X-Name-Last: Corso
Title: Ambiguity, ambiguity aversion and stores of value: The case of Argentina
Abstract:
We study the household portfolio allocation in an economy with a history
of nominal anchor volatility. Applying smooth ambiguity preferences to a
static portfolio choice problem, we rationalize two facts about the
Argentine experience of the last 20years: the dollarization of household
financial assets and its bias towards investment real estate as a means of
preserving the real value of wealth. We find that ambiguity explains
portfolio dollarization. In addition, ambiguity aversion reduces the
demand for assets denominated in US dollars and increases the demand for
investment real estate.
Journal: Cogent Economics & Finance
Pages: 1-13
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.947001
File-URL: http://hdl.handle.net/10.1080/23322039.2014.947001
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Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.947001
Template-Type: ReDIF-Article 1.0
Author-Name: Mehdi Hajamini
Author-X-Name-First: Mehdi
Author-X-Name-Last: Hajamini
Author-Name: Mohammad Ali Falahi
Author-X-Name-First: Mohammad Ali
Author-X-Name-Last: Falahi
Title: The nonlinear impact of government consumption expenditure on economic growth: Evidence from low and low-middle income countries
Abstract:
The purpose of this paper is to investigate the impact of government
consumption expenditure as a share of GDP on economic growth in developing
countries. The paper uses threshold panel model to examine nonlinear
relationship between the government consumption expenditure share and
economic growth in 21 low-income countries and 11 low-middle income
countries during 1981-2007. The results confirm nonlinear relationship, in
which the threshold share of government consumption expenditure for the
low and low-middle income countries is 16.2 and 16.9% with the confidence
intervals of [13.7-17.3%] and [16.5-16.9%], respectively. The results
indicate that, after passing the threshold, the effect of government
consumption expenditure share on economic growth changes from
insignificantly positive to significantly negative.
Journal: Cogent Economics & Finance
Pages: 1-15
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.948122
File-URL: http://hdl.handle.net/10.1080/23322039.2014.948122
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Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.948122
Template-Type: ReDIF-Article 1.0
Author-Name: Hamza Fadhila
Author-X-Name-First: Hamza
Author-X-Name-Last: Fadhila
Author-Name: Azouzi Mohamed Ali
Author-X-Name-First: Azouzi
Author-X-Name-Last: Mohamed Ali
Author-Name: Jarboui Anis
Author-X-Name-First: Jarboui
Author-X-Name-Last: Anis
Title: CEO's commitment bias, ownership concentration, and innovation decision: Behavioral management of CEO's discretion
Abstract:
This paper deals with approving the effect of both a governance system and
individual cognitive and emotional features in the financial analysis of a
firms' innovation decision. After discussing the theoretical linking
between ownership concentration and the CEO's attitude and behavior, we
are showing on empirical grounds the relationship between the manager's
behavior toward the innovation decision and his cognitive commitment
level. The CEO's commitment bias and attitude conception were measured
using a questionnaire. The data analysis was performed using the Bayesian
network method on 220 Tunisian managers. In particular, we found that the
application of a persuasion mechanism does not have a real impact on the
alignment of the manager's attitude and behavior in key tasks, such as the
innovation decision. The CEO's real behavior was more related to an
important individual involvement in this behavior rather than to
persuasive effort committed by block holders to make him contract this
action. Attitude and behavior toward innovation appeared to be associated
with psychological commitment "manager-task" which suggests that the
disciplinary governance system plays no role in the process of a CEO's
discretion management. We argue that the persuasion approach is not an
interesting path in behavior alignment; yet, it should be reinforced with
the commitment approach for understanding manager choices.
Journal: Cogent Economics & Finance
Pages: 1-24
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.948123
File-URL: http://hdl.handle.net/10.1080/23322039.2014.948123
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Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.948123
Template-Type: ReDIF-Article 1.0
Author-Name: Victoria I. Audu
Author-X-Name-First: Victoria I.
Author-X-Name-Last: Audu
Author-Name: Goodness C. Aye
Author-X-Name-First: Goodness C.
Author-X-Name-Last: Aye
Title: The effects of improved maize technology on household welfare in Buruku, Benue State, Nigeria
Abstract:
This study was carried out to determine the welfare effects of improved
maize technology in Buruku Local Government Area of Benue State, Nigeria.
The study also examined the determinants of the adoption of improved maize
technology. Structured questionnaires were used in collecting the primary
data for the study. A multi-stage random technique was used in selecting
125 farm households for the study. The Logit and ordinary least square
(OLS) models were used in analyzing the data. The OLS results show that
adoption of improved maize varieties is positively and significantly
related to household welfare and thus has contributed to moving farm
households out of poverty. Other variables found to be statistically
significant in explaining household welfare are education, household size,
and landholding. The Logit results show that age, household size, off-farm
income, and education were found to be significant in influencing farmers'
adoption decisions. Some robustness checks were performed with different
specifications of the Logit and OLS models as well as re-estimation with
propensity matching score approach. Overall, the results are robust to
different specifications.
Journal: Cogent Economics & Finance
Pages: 1-10
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.960592
File-URL: http://hdl.handle.net/10.1080/23322039.2014.960592
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Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.960592
Template-Type: ReDIF-Article 1.0
Author-Name: Zouheir Mighri
Author-X-Name-First: Zouheir
Author-X-Name-Last: Mighri
Author-Name: Faysal Mansouri
Author-X-Name-First: Faysal
Author-X-Name-Last: Mansouri
Title: Modeling international stock market contagion using multivariate fractionally integrated APARCH approach
Abstract:
The aim of this article is to examine how the dynamics of correlations
between two emerging countries (Brazil and Mexico) and the US evolved from
January 2003 to December 2013. The main contribution of this study is to
explore whether the plunging stock market in the US, in the aftermath of
global financial crisis (2007-2009), exerts contagion effects on emerging
stock markets. To this end, we rely on a multivariate fractionally
integrated asymmetric power autoregressive conditional heteroskedasticity
dynamic conditional correlation framework, which accounts for long memory,
power effects, leverage terms, and time-varying correlations. The
empirical analysis shows a contagion effect for Brazil and Mexico during
the early stages of the global financial crisis, indicating signs of
"recoupling." Nevertheless, linkages show a general pattern of
"decoupling" after the Lehman Brothers collapse. Furthermore, correlations
between Brazil and the US are decreased from early 2009 onwards, implying
that their dependence is larger in bearish than in bullish markets.
Journal: Cogent Economics & Finance
Pages: 1-25
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.963632
File-URL: http://hdl.handle.net/10.1080/23322039.2014.963632
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Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.963632
Template-Type: ReDIF-Article 1.0
Author-Name: Yongli Luo
Author-X-Name-First: Yongli
Author-X-Name-Last: Luo
Title: Cross-listing, managerial compensation and corporate governance
Abstract:
This study examines the relationship between cross-listing and managerial
compensation of Chinese firms that concurrently issued A- and B-shares or
A- and H-shares during 2001-2010. The results show that executive
compensation is a positive factor to motivate Chinese A-share firms to
cross-list as B- or H-shares; it implies that cross-listings could be
employed as a way of asset appropriation at the managers' discretion. The
results also confirm that corporate governance is important in determining
cross-listings. Under the weak corporate governance institution, Chinese
firms were chosen to cross-list based on political considerations rather
than on economic merits, serving as a vehicle to signal the quality of
state owned enterprises. The results are drawn on agency theory,
signalling hypothesis and bonding hypothesis.
Journal: Cogent Economics & Finance
Pages: 1-17
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.967361
File-URL: http://hdl.handle.net/10.1080/23322039.2014.967361
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Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.967361
Template-Type: ReDIF-Article 1.0
Author-Name: Concetta Castiglione
Author-X-Name-First: Concetta
Author-X-Name-Last: Castiglione
Author-Name: Davide Infante
Author-X-Name-First: Davide
Author-X-Name-Last: Infante
Author-Name: Maria Teresa Minervini
Author-X-Name-First: Maria Teresa
Author-X-Name-Last: Minervini
Author-Name: Janna Smirnova
Author-X-Name-First: Janna
Author-X-Name-Last: Smirnova
Title: Environmental taxation in Europe: What does it depend on?
Abstract:
The present work adds to the existing literature the analysis of the
determinants of environmental taxation in European economies. Using a
pooled panel data, we consider various groups of factors influencing
environmental taxation referring to production and consumption,
environmental performance and the quality of governance of European
countries, taking into account their heterogeneity. We argue that in order
to function, environmental taxation policy should rely on the virtuous
interrelationship between economic development and institutional
enforcement, which contributes to enhancing the process of environmental
renaissance.
Journal: Cogent Economics & Finance
Pages: 1-8
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.967362
File-URL: http://hdl.handle.net/10.1080/23322039.2014.967362
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Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.967362
Template-Type: ReDIF-Article 1.0
Author-Name: Feng Dai
Author-X-Name-First: Feng
Author-X-Name-Last: Dai
Author-Name: Songtao Wu
Author-X-Name-First: Songtao
Author-X-Name-Last: Wu
Author-Name: Ling Liang
Author-X-Name-First: Ling
Author-X-Name-Last: Liang
Title: Capital and innovation aggregation with environmental pressure: An optimal evolution
Abstract:
Based on the advance-retreat course model, a growth model under
environmental pressure, this paper builds an economic growth model that
focuses on the aggregation of capital and innovation with environmental
pressure. Importantly, the paper presents methods for computing the
optimal quantity of capital-goods and innovation-goods. The paper makes
the empirical researches using US GDP data (1940-2010 and 1969-2010). The
findings include that the aggregations of capital and innovation promote
economic growth, the optimal number of capital-goods decreases with
innovation growth, the optimal number of innovation-goods decreases with
capital expansion, both capital-goods and innovation-goods aggregate with
environmental pressure increasing, and innovation is quicker than capital
in aggregation.
Journal: Cogent Economics & Finance
Pages: 1-16
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.988401
File-URL: http://hdl.handle.net/10.1080/23322039.2014.988401
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Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.988401
Template-Type: ReDIF-Article 1.0
Author-Name: Samih Antoine Azar
Author-X-Name-First: Samih Antoine
Author-X-Name-Last: Azar
Author-Name: Vera Karaguezian-Haddad
Author-X-Name-First: Vera
Author-X-Name-Last: Karaguezian-Haddad
Title: Simulating the market coefficient of relative risk aversion
Abstract:
In this paper, expected utility, defined by a Taylor series expansion
around expected wealth, is maximized. The coefficient of relative risk
aversion (CRRA) that is commensurate with a 100% investment in the risky
asset is simulated. The following parameters are varied: the riskless
return, the market standard deviation, the market stock premium, and the
skewness and the kurtosis of the risky return. Both the high extremes and
the low extremes are considered. With these figures, the upper bound of
the market CRRA is 3.021 and the lower bound is 0.466. Log utility, which
corresponds to a CRRA of 1, is not excluded.
Journal: Cogent Economics & Finance
Pages: 1-7
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.990742
File-URL: http://hdl.handle.net/10.1080/23322039.2014.990742
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Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.990742
Template-Type: ReDIF-Article 1.0
Author-Name: Ivan K. Cohen
Author-X-Name-First: Ivan K.
Author-X-Name-Last: Cohen
Author-Name: Fabrizio Ferretti
Author-X-Name-First: Fabrizio
Author-X-Name-Last: Ferretti
Author-Name: Bryan McIntosh
Author-X-Name-First: Bryan
Author-X-Name-Last: McIntosh
Title: Decomposing the misery index: A dynamic approach
Abstract:
The misery index (the unweighted sum of unemployment and inflation rates)
was probably the first attempt to develop a single statistic to measure
the level of a population's economic malaise. In this letter, we develop a
dynamic approach to decompose the misery index using two basic relations
of modern macroeconomics: the expectations-augmented Phillips curve and
Okun's law. Our reformulation of the misery index is closer in spirit to
Okun's idea. However, we are able to offer an improved version of the
index, mainly based on output and unemployment. Specifically, this new
Okun's index measures the level of economic discomfort as a function of
three key factors: (1) the misery index in the previous period; (2) the
output gap in growth rate terms; and (3) cyclical unemployment. This
dynamic approach differs substantially from the standard one utilised to
develop the misery index, and allow us to obtain an index with five main
interesting features: (1) it focuses on output, unemployment and
inflation; (2) it considers only objective variables; (3) it allows a
distinction between short-run and long-run phenomena; (4) it places more
importance on output and unemployment rather than inflation; and (5) it
weights recessions more than expansions.
Journal: Cogent Economics & Finance
Pages: 1-8
Issue: 1
Volume: 2
Year: 2014
Month: 12
X-DOI: 10.1080/23322039.2014.991089
File-URL: http://hdl.handle.net/10.1080/23322039.2014.991089
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Handle: RePEc:taf:oaefxx:DOI:10.1080/23322039.2014.991089
Template-Type: ReDIF-Article 1.0
Author-Name: Huthaifa Alqaralleh
Author-X-Name-First: Huthaifa
Author-X-Name-Last: Alqaralleh
Author-Name: Radi Adayleh
Author-X-Name-First: Radi
Author-X-Name-Last: Adayleh
Title: The dynamics of the economic cycle with duration dependence: Further evidence from Jordan
Abstract:
In this article, we investigate the effectiveness of the credit facilities and foreign trade to combat the cycle duration in the industrial production index. The turning point methodology of Harding and Pagan was adapted to formulate the economic cycle. Using the industrial production index of the Jordanian economy over the months from January 2000 to December 2017, the Logit model was used to test for duration dependence, with the credit facilities and net export included as controls. We find that industrial production index expansions and contractions have positive duration dependence, since their exit probabilities increase with duration. These results first help policy-makers to predict the length of economic cycles and to use these factors to reduce the consequences of the contraction. Second, the fact that duration is significant for the expansion phase could become a useful indicator in predicting the length of an economic cycle. The asymmetric nature of our duration dependence findings is striking.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1565609
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1565609
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1565609
Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth A. Tah
Author-X-Name-First: Kenneth A.
Author-X-Name-Last: Tah
Title: Remittances and financial access: Evidence from Sub-Saharan Africa
Abstract:
This paper empirically investigates the effects of remittances on access to financial services in 26 Sub-Saharan African countries over the period 2004–2015. We find that remittances have a significantly positive impact on financial access in Sub-Saharan Africa. This finding remains true in least squares regressions and with Arellano-Bond Dynamic Panel Estimation that accounts for the endogenous relationship between remittances and financial access and that controls for any bias arising from the lagged dependent variables, as well as using an alternative measure of financial access.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1570581
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1570581
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1570581
Template-Type: ReDIF-Article 1.0
Author-Name: Alex Garivaltis
Author-X-Name-First: Alex
Author-X-Name-Last: Garivaltis
Title: Super-replication of the best pairs trade in hindsight
Abstract:
This paper derives a robust online equity trading algorithm that achieves the greatest possible percentage of the final wealth of the best pairs rebalancing rule in hindsight. A pairs rebalancing rule chooses some pair of stocks in the market and then perpetually executes rebalancing trades so as to maintain a target fraction of wealth in each of the two. After each discrete market fluctuation, a pairs rebalancing rule will sell a precise amount of the outperforming stock and put the proceeds into the underperforming stock.Under typical conditions, in hindsight one can find pairs rebalancing rules that would have spectacularly beaten the market. Our trading strategy, which extends Ordentlich and Cover’s “max-min universal portfolio,” guarantees to achieve an acceptable percentage of the hindsight-optimized wealth, a percentage which tends to zero at a slow (polynomial) rate. This means that on a long enough investment horizon, the trader can enforce a compound-annual growth rate that is arbitrarily close to that of the best pairs rebalancing rule in hindsight. The strategy will “beat the market asymptotically” if there turns out to exist a pairs rebalancing rule that grows capital at a higher asymptotic rate than the market index.The advantages of our algorithm over the Ordentlich and Cover strategy are twofold. First, their strategy is impossible to compute in practice. Second, in considering the more modest benchmark (instead of the best all-stock rebalancing rule in hindsight), we reduce the “cost of universality” and achieve a higher learning rate.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1568657
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1568657
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1568657
Template-Type: ReDIF-Article 1.0
Author-Name: Ray Saadaoui Mallek
Author-X-Name-First: Ray Saadaoui
Author-X-Name-Last: Mallek
Author-Name: Mohamed Albaity
Author-X-Name-First: Mohamed
Author-X-Name-Last: Albaity
Title: Individual differences and cognitive reflection across gender and nationality the case of the United Arab Emirates
Abstract:
This study aims to investigate the effect of gender differences and nationality on the Cognitive Reflection Test (CRT), as well as behavioural biases. A sample of 770 questionnaires was collected from undergraduate business students in public and private universities across the United Arab Emirates. The results suggested that low CRT values were dominant in males and females alike for non-UAE citizens in the age group of 18–22 years old, of whom at least one of the parents had a college degree. Subjects with higher cognitive reflection scores were significantly more likely to exhibit overconfidence, risk preference, and risk illiteracy. In addition, females scored lower than males, and non-UAE citizens scored higher than local citizens in the CRT. However, further analysis of the interaction between gender and nationality revealed that local females scored on average higher than non-UAE females.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1567965
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1567965
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1567965
Template-Type: ReDIF-Article 1.0
Author-Name: Kehinde Damilola Ilesanmi
Author-X-Name-First: Kehinde Damilola
Author-X-Name-Last: Ilesanmi
Author-Name: Devi Datt Tewari
Author-X-Name-First: Devi Datt
Author-X-Name-Last: Tewari
Title: Management of shadow banks for economic and financial stability in South Africa
Abstract:
The global increase in the regulation of banks has encouraged the channeling of investment funds into less regulated institutions such as shadow banks to avoid restriction. Shadow banks are institutions that operate outside the regulatory framework of the traditional banking system and because of that, they lack adequate safety compared to the traditional banks. These among others have raised serious concerns, especially after the recent financial crisis as they see these institutions as a major source of risk and instability in the financial system and the economy as a whole. This study examined the link between shadow banking and financial stability in South African by employing a modest desktop literature review approach. Although the shadow banking in South Africa is advantageous in terms providing alternative source of credit to support economic activities by extending banking services and investment opportunities to the unbanked as well as those who lack knowledge of how to access capital, however, issues of regulations, management and transparency have not been adequately dealt with. These create a great risk to the economy if not properly addressed. Protecting the interest and investment of customers should be a major concern of government or regulatory authorities without necessarily jeopardising the interest of shadow banking operators. Also, a proper risk measurement technique that fits the shadow banking system is necessary.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1568849
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1568849
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1568849
Template-Type: ReDIF-Article 1.0
Author-Name: Ameet Kumar
Author-X-Name-First: Ameet
Author-X-Name-Last: Kumar
Author-Name: Niaz Ahmed Bhutto
Author-X-Name-First: Niaz Ahmed
Author-X-Name-Last: Bhutto
Author-Name: Khalid Ahmed Mangrio
Author-X-Name-First: Khalid Ahmed
Author-X-Name-Last: Mangrio
Author-Name: Muhammad Ramzan Kalhoro
Author-X-Name-First: Muhammad Ramzan
Author-X-Name-Last: Kalhoro
Title: Impact of external debt and exchange rate volatility on domestic consumption. New evidence from Pakistan
Abstract:
This study has examined the impact of external debt and the volatility of exchange rate on domestic consumption in Pakistan by using the yearly data (1980–2014). We apply the bounds testing approach to cointegration and error-correction modeling to check their short run and long-run impact on the domestic consumption. The findings of this study has contributed to the existing literature in two ways: bound test results show that income, interest rate, exchange rate, volatility of exchange rate, and external debt have long-term relationship with domestic consumption and income, interest rate and exchange rate have positive impact whereas exchange rate volatility and external debt have negative impact on domestic consumption in the short run as well as in long run. Moreover, the coefficient of ECMt-1 is significantly negative and it shows that adjustment toward equilibrium from short run to long run takes more than half a year. Consumption is the major component of GDP so policymakers use its determinants to fine-tune the economy. This study proposes that policymakers should consider external debt and exchange rate volatility in devising the monetary policy of Pakistan.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1568656
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1568656
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1568656
Template-Type: ReDIF-Article 1.0
Author-Name: Huthaifa Alqaralleh
Author-X-Name-First: Huthaifa
Author-X-Name-Last: Alqaralleh
Title: Measuring business cycles: Empirical evidence based on an unobserved component approach
Abstract:
We adopt an unobserved components time series model to track the business cycles in the G7 countries using the Industrial production index over the period from 1:1961 to 8:2017. The advantage of adopting the industrial production series frequency is that the business cycle can be investigated in terms of a higher frequency than once per quarter. The aim here is to extract the classical cycle by dating the peaks and troughs and investigating the characteristics of the business cycle through the unobserved component model, which has the capacity to model fat tails data using a driven parameter through the Kalman filter. We find that the industrial production index has medium-term cycles which have a few statistical properties in common. We show that the length and amplitude of the business cycles vary over time and across countries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1571692
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1571692
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1571692
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Author-Name: Dike Chukwudi Henry
Author-X-Name-First: Dike Chukwudi
Author-X-Name-Last: Henry
Title: RETRACTED ARTICLE: Penalties and contagion in financial networks
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1575565
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1575565
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1575565
Template-Type: ReDIF-Article 1.0
Author-Name: Sulaiman Mouselli
Author-X-Name-First: Sulaiman
Author-X-Name-Last: Mouselli
Author-Name: Aziz Jaafar
Author-X-Name-First: Aziz
Author-X-Name-Last: Jaafar
Title: Industry concentration, stock returns and asset pricing: The UK evidence
Abstract:
How does competition in firms’ product markets influence stock returns? We examine this question using firms domiciled in the UK. We find that firms in less concentrated industries earn higher returns, even after controlling for the well-known determinants of the cross-section of UK stock returns. Furthermore, we suggest a novel asset pricing model that explicitly incorporates industry concentration as a distinguished risk factor capturing important features of product markets. Our results link the explanatory power of R&D activity of stock returns to product market structure. Also, we suggest an explanation for value premium on the basis of product market structure that favours barriers to entry interpretation for the higher returns obtained by less concentrated industries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1576350
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1576350
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1576350
Template-Type: ReDIF-Article 1.0
Author-Name: Gaurav Kumar
Author-X-Name-First: Gaurav
Author-X-Name-Last: Kumar
Author-Name: Arun Kumar Misra
Author-X-Name-First: Arun Kumar
Author-X-Name-Last: Misra
Title: Liquidity-adjusted CAPM — An empirical analysis on Indian stock market
Abstract:
This article examines the impact of various sources of systematic liquidity risk and idiosyncratic liquidity risk on expected returns in the Indian stock market. The study tested the liquidity-adjusted capital asset pricing model (LCAPM) which is previously tested on developed markets. Systematic liquidity risk is found to be significant in impacting asset returns through various channels, viz. commonality in liquidity and illiquidity sensitivity to market returns. Covariance between individual stock returns and associated stock liquidity has a commanding influence as an idiosyncratic liquidity risk factor. The estimated asset pricing model is found to be robust across the two sub-time periods. The findings indicate that given the multidimensional nature of risk, the alternative of LCAPM along with the idiosyncratic risk is persuasive for consideration in investment decisions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1573471
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1573471
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1573471
Template-Type: ReDIF-Article 1.0
Author-Name: Hamid Baghestani
Author-X-Name-First: Hamid
Author-X-Name-Last: Baghestani
Title: Long-term interest rate predictability: Exploring the usefulness of survey forecasts of growth and inflation
Abstract:
This study focuses on the consensus forecasts from the Survey of Professional Forecasters (SPF) for 1993–2017. These include the SPF forecasts of US 10-year Treasury rate (TBR), Moody’s Aaa corporate bond rate (Aaa), CPI inflation, and real GDP growth. We show that both SPF and random walk forecasts of TBR and Aaa generally fail to be orthogonal to changes in SPF inflation (but not growth) forecasts. Such findings point to the potential usefulness of SPF inflation forecasts in improving the accuracy of SPF and random walk forecasts of TBR and Aaa. Further results indicate that changes in SPF inflation forecasts accurately predict directional change in both TBR and Aaa at longer forecast horizons for 2008–2017 (but not for 1993–2007). These latter results raise the question of whether long-term interest rates have become easier to predict, which deserves subsequent research.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1582317
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1582317
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1582317
Template-Type: ReDIF-Article 1.0
Author-Name: Anis Khayati
Author-X-Name-First: Anis
Author-X-Name-Last: Khayati
Title: Multidimensional approach to factors affecting Japanese firms’ expansion in the MENA region
Abstract:
This paper investigates whether factors specific to firms, countries, mode of entry, and the timing of entry contribute to value-creation from the investment of a sample of Japanese firms in the MENA economies over the period 2006–2014. Results show that while this expansion was on average associated with positive wealth effects, such effects were relatively stronger in recent years. Also, results from firms’ choice of entry mode show that the least risky modes of entry were rewarded by the highest returns. Specifically, expansion through acquisitions and new plants was on average associated with negative wealth effects compared to expansion through non-FDI modes of entry. Besides, there is an heterogeneity in wealth effects across countries. In addition, due to changing economic and institutional environments, differences in wealth effects from investments in the same country are observed overtime.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1585223
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1585223
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1585223
Template-Type: ReDIF-Article 1.0
Author-Name: Sharad Nath Bhattacharya
Author-X-Name-First: Sharad Nath
Author-X-Name-Last: Bhattacharya
Author-Name: Mousumi Bhattacharya
Author-X-Name-First: Mousumi
Author-X-Name-Last: Bhattacharya
Author-Name: Sankarshan Basu
Author-X-Name-First: Sankarshan
Author-X-Name-Last: Basu
Title: Stock market and its liquidity: Evidence from ARDL bound testing approach in the Indian context
Abstract:
This paper attempts to capture the relationship between stock market movements and its endogenous liquidity measures using Autoregressive Distributed-lag (ARDL) Bounds Testing Approach. We consider depth, breadth, tightness, immediacy and resiliency dimensions of market liquidity using suitable liquidity measures (proxies). Findings suggest that multidimensional liquidity measures like the volume of trade, spread, market efficiency coefficient, turnover rate, trading probability, and the stock market index are in a long-term relationship. While trading activity and market efficiency coefficient affect stock market positively, the negative impact is seen in the case of spread. The liquidity measures affect the stock market in the short run as well. We find that impact of the turnover rate on the stock market is negative in short-run but positive in the long-run. The findings are important for investors and the market participants as well who pursue loss minimization strategies. The results indicate that short-term policy interventions need not get more important than the long-term objectives of market reforms.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1586297
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1586297
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1586297
Template-Type: ReDIF-Article 1.0
Author-Name: Sabyasachi Mohapatra
Author-X-Name-First: Sabyasachi
Author-X-Name-Last: Mohapatra
Author-Name: Arun Kumar Misra
Author-X-Name-First: Arun Kumar
Author-X-Name-Last: Misra
Title: Cross-sectional returns predictability for emerging market banks: A study on Indian banking system
Abstract:
Using Indian bank-level data, we examine the cross-sectional returns predictability for banking stocks in view of the distinct industry parameters prevalent in the financial services space. We find the existence of abnormal returns in banking stocks. We also observe that the celebrated Fama–French (1992) 3-factor model could not explain the abnormal returns, primarily due to very high leveraged banks’ balance sheets. Thus, we extend the Fama–French 3-factor model and Carhart 4-factor model alongside bank-specific conditioning information in the form of asset quality variables, operational efficiency variables and solvency variables to articulate the existence of abnormal returns. With the inclusion of conditioning information, the study predictability of abnormal returns improved significantly.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1586078
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1586078
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1586078
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Teresa Medeiros Garcia
Author-X-Name-First: Maria Teresa Medeiros
Author-X-Name-Last: Garcia
Author-Name: Vítor Hugo Ferreira Carvalho
Author-X-Name-First: Vítor Hugo Ferreira
Author-X-Name-Last: Carvalho
Title: A cross-sectional application of the Nelson-Siegel-Svensson model to several negative yield cases
Abstract:
The appearance of negative bond yields presents significant challenges for the fixed income markets, which mainly concern related forecasting models. The Nelson-Siegel-Svensson model (NSS) is one of the models that is most frequently used by central banks to estimate the term structure of interest rates. The objective of this study is to evaluate the application of the NSS model to fit the yield curve of a set of 20 countries, the majority from the Eurozone, which registered negative sovereign bond yields. We conclude that the model adjusted well for all countries’ yield curves, although no changes or constraints were introduced. In addition, a comparison was carried out between market instantaneous interest rate and the interest rate for the very distant future, which the model can predict, with good results for the instantaneous interest rate. An evaluation of the possible behaviour of shared debt securities (i.e. Eurobonds) was also analysed. In conclusion, the NSS model seems to remain a valuable, easy to use, and adaptable tool, to fit negative yield curves, for monetary policy institutions and market players alike.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1582319
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1582319
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1582319
Template-Type: ReDIF-Article 1.0
Author-Name: Slah Benyoussef
Author-X-Name-First: Slah
Author-X-Name-Last: Benyoussef
Author-Name: Wael Hemrit
Author-X-Name-First: Wael
Author-X-Name-Last: Hemrit
Title: Measuring the relative efficiency of insurance companies in Saudi Arabia: The case study of Takaful vs cooperative industries
Abstract:
The aim of this paper is to measure the efficiency of insurance companies in Saudi Arabia using data envelopment analysis (DEA), to analyse the effectiveness of underwriting processes primarily inputs and outputs are determined. Moreover, this study aims at comparing the efficiency of Takaful and cooperative in the year 2014. Taking into account two main approaches of this technique and considering a sample of 23 insurance companies, we show that the results revealed that insurance companies do not operate efficiently. Also, a classification of companies allows to discover that on average, Takaful insurance are relatively more efficient than cooperative insurance companies. The main finding of this paper is the need for better resource allocation in the cooperative insurance companies’ systems, because some Takaful insurance companies have resource surplus and in other cooperative ones it is observed a lack of resources.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1590818
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1590818
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1590818
Template-Type: ReDIF-Article 1.0
Author-Name: Nixon S. Chekenya
Author-X-Name-First: Nixon S.
Author-X-Name-Last: Chekenya
Title: Maximum likelihood estimation of stock volatility using jump-diffusion models
Abstract:
We investigate whether there are systematic jumps in stock prices using the Brownian motion approach and Poisson processes to test diffusion and jump risk, respectively, on Johannesburg Stock Exchange and whether these jumps cause asset return volatility. Using stock market data from June 2002 to September 2016, we hypothesize that stocks with high positive (negative) slopes are more likely to have large positive (negative) jumps in the future. As such, we expect to observe salient properties of volatility on listed stocks. We also conjecture that it is valid to use maximum likelihood procedures in estimating jumps in stocks.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1582318
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1582318
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1582318
Template-Type: ReDIF-Article 1.0
Author-Name: Anh Phong Nguyen
Author-X-Name-First: Anh Phong
Author-X-Name-Last: Nguyen
Author-Name: Hoang Anh Nguyen
Author-X-Name-First: Hoang Anh
Author-X-Name-Last: Nguyen
Author-Name: Thi Hong Minh Ho
Author-X-Name-First: Thi Hong Minh
Author-X-Name-Last: Ho
Author-Name: Phu Thanh Ngo
Author-X-Name-First: Phu Thanh
Author-X-Name-Last: Ngo
Title: Risk and returns of different foreign ownership portfolios: Evidence from Vietnam stock market
Abstract:
This study aims at assessing the risk–return profile of stock portfolios by different levels of the foreign ownership ratio. The paper also evaluates the performance of portfolios by their size and the book-to-market ratio (BTM). In this study, we apply GMM approach with the data computed from stock-related database in Ho Chi Minh Stock Exchange and Ha Noi Stock Exchange for the period 2010–2017. Our findings reveal a pronounced foreign ownership impact, whereby the increase in the foreign ownership ratio results in the upturn in stocks’ liquidity, return and size but also brings about the higher risk for stocks. In addition, our empirical analyses indicate that the portfolios with the foreign ownership ratio falling either to the bottom 20% or to the top 20% outperform other portfolios
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1589412
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1589412
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1589412
Template-Type: ReDIF-Article 1.0
Author-Name: Samuel Gameli Gadzo
Author-X-Name-First: Samuel Gameli
Author-X-Name-Last: Gadzo
Author-Name: Holy Kwabla Kportorgbi
Author-X-Name-First: Holy Kwabla
Author-X-Name-Last: Kportorgbi
Author-Name: John Gartchie Gatsi
Author-X-Name-First: John Gartchie
Author-X-Name-Last: Gatsi
Title: Credit risk and operational risk on financial performance of universal banks in Ghana: A partial least squared structural equation model (PLS SEM) approach
Abstract:
In recent years, financial institutions especially universal/commercial banks across Africa have been faced with forceful mergers and acquisitions. These occurrences impede the level of financial inclusion and reduces public confidence in the financial system as a whole. This study assessed the effect of credit and operational risk on the financial performance of universal banks in the context of the structural equation model (SEM). Data were collected from all the 24 universal banks in Ghana without missing variables and using the PLS-SEM, the results showed that credit risk influences financial performance negatively contrary to the empirical study but in line with the information asymmetry tenant of the lemon theory. It was also found that operational risk influences the financial performance of the universal banks in Ghana negatively. Furthermore, the study indicated that bank specific variables measured by (asset quality, bank leverage, cost to income ratio and liquidity) significantly influence credit risk, operational risk as well as the financial performance of the universal banks positively. We recommend that banks be encouraged to cut-down their lending rates in other to decrease credit risk and subsequently boost profitability. Regarding operational risk, banks should reduce leverage and have their portfolio more concentrated on liquid investment income so as to boost profitability.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1589406
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1589406
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1589406
Template-Type: ReDIF-Article 1.0
Author-Name: Kashif Zaheer Malik
Author-X-Name-First: Kashif
Author-X-Name-Last: Zaheer Malik
Author-Name: Syed Zahid Ali
Author-X-Name-First: Syed
Author-X-Name-Last: Zahid Ali
Author-Name: Ali Imtiaz
Author-X-Name-First: Ali
Author-X-Name-Last: Imtiaz
Author-Name: Ammar Aftab
Author-X-Name-First: Ammar
Author-X-Name-Last: Aftab
Title: Preference shocks in an RBC model with intangible capital
Abstract:
In this paper, we develop and simulate an RBC model that includes intangible capital as a third factor of production. We study the effects of intra-temporal preference shocks on economic aggregates, employing the undetermined coefficient method of to solve the model. Impulse response functions to preference shocks reveal that demand-side shocks are important in explaining the variations in macroeconomic aggregates.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1586621
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1586621
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1586621
Template-Type: ReDIF-Article 1.0
Author-Name: Novi Swandari Budiarso
Author-X-Name-First: Novi Swandari
Author-X-Name-Last: Budiarso
Author-Name: Bambang Subroto
Author-X-Name-First: Bambang
Author-X-Name-Last: Subroto
Author-Name: Sutrisno T
Author-X-Name-First: Sutrisno
Author-X-Name-Last: T
Author-Name: Winston Pontoh
Author-X-Name-First: Winston
Author-X-Name-Last: Pontoh
Title: Dividend catering, life-cycle, and policy: Evidence from Indonesia
Abstract:
This study examines the behavior of firms in Indonesia in relation to the life-cycle and catering theories under the assumption that investors expect optimum returns on stock investments through dividends, capital gains, or both. To this end, we examine 212 firms listed on the Indonesia Stock Exchange during 2010 to 2016 and investigate dividend policy, our dependent variable, in terms of: (1) dividend payers and non-payers and (2) higher, lower, and non-dividend payers. The independent variables in the basic model of this study are retained earnings-over-total-equity, return-on-assets, market-to-book value, firm size, and dividend premium, and the control variables are systematic and idiosyncratic risks. For hypothesis testing, this study conducts two analyses, namely logistic regression and its extension to multinomial regression. The findings confirm that pseudo R-squared and confidence improve under the dividend policy when controlling for risk and dividend payers. We find that mature Indonesian firms pay higher dividends as they are larger and more profitable, with more free cash and insignificant growth opportunities. Conversely, growing Indonesian firms with significant future opportunities pay lower dividends. The findings of this study imply that the dividend policy of mature Indonesian firms supports the life-cycle theory and is inconsistent with the catering theory.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1594505
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1594505
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1594505
Template-Type: ReDIF-Article 1.0
Author-Name: S. J. Ferreira
Author-X-Name-First: S. J.
Author-X-Name-Last: Ferreira
Author-Name: S. Mohlamme
Author-X-Name-First: S.
Author-X-Name-Last: Mohlamme
Author-Name: G Van Vuuren
Author-X-Name-First: G
Author-X-Name-Last: Van Vuuren
Author-Name: Z. Dickason (Koekemoer)
Author-X-Name-First: Z.
Author-X-Name-Last: Dickason (Koekemoer)
Title: The influence of corporate financial events on selected JSE-listed companies
Abstract:
In South Africa, corporate finance events receive extensive coverage in the media. However, there are only a few studies examining the behaviour of share prices in response to such events. Using the event study methodology commonly used in corporate finance research, the reaction of a sample of large- and small-cap stocks to selected corporate finance events (such as dividend and earnings announcements, stock splits and accounting policy changes) was analysed. Results show that there is a rapid stock price adjustment immediately post-announcement, but the time taken varies depending on the nature of the event and company size. This may have profound implications on discretionary portfolio management: fund managers should find it beneficial from a diversification standpoint. Exiting from heavy concentrations in large-cap stocks and diversifying into smaller cap stocks could offer the stability of portfolio returns against adverse events like Steinhoff’s accounting fraud.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1597665
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1597665
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1597665
Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad Shameem Jawed
Author-X-Name-First: Mohammad Shameem
Author-X-Name-Last: Jawed
Author-Name: Amol S. Dhaigude
Author-X-Name-First: Amol S.
Author-X-Name-Last: Dhaigude
Author-Name: Archit Vinod Tapar
Author-X-Name-First: Archit Vinod
Author-X-Name-Last: Tapar
Title: The sectoral effect of demonetization on the economy: Evidence from early reaction of the Indian stock markets
Abstract:
We investigate the impact of the Demonetization of 85% currency in circulation in India on the eve of 8 November 2016 on all the listed stocks spanning over 20 broad industry clusters (sectors) and their affiliation type from the Indian economy over the period of November to Mid-January 2016. Using the event study methodology, we assess the effects of Demonetization, relative to what had been anticipated, as measured by abnormal returns (ARs). The results indicate that Group Affiliated firms witnessed the highest negative abnormal returns both on the event days and during the event window period, while PSUs witnessed the least wrath. On the sectoral front, Demonetization shows a mixed effect in the early days which changes to positive for most of the sectors barring a few. Banking Sector was the worst hit in the early days with a CAAR of −1.74%, while many sectors like Pharma, Paper and Wholesale Trading witnessed a windfall gain in the long run.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1595992
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1595992
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1595992
Template-Type: ReDIF-Article 1.0
Author-Name: Nneka Umeorah
Author-X-Name-First: Nneka
Author-X-Name-Last: Umeorah
Author-Name: Phillip Mashele
Author-X-Name-First: Phillip
Author-X-Name-Last: Mashele
Title: A Crank-Nicolson finite difference approach on the numerical estimation of rebate barrier option prices
Abstract:
In modelling financial derivatives, the pricing of barrier options are complicated as a result of their path-dependency and discontinuous payoffs. In the case of rebate knock-out barrier options, discount factors known as rebates are introduced, which are payable to the option holder when the barrier level is breached. The analytical closed-form solution for the vanilla options are known but the barrier options, owing to their discontinuous nature, can be obtained analytically using the extended Black-Scholes formula. This research work captures the solution of the corresponding option pricing partial differential equation on a discrete space-time grid. We employ the Crank-Nicolson finite difference scheme to estimate the prices of rebate barrier options, as well as to discuss the effect of rebate on barrier option values. This work will further investigate the spurious oscillations which arise from the sensitivity analysis of the Greeks of the barrier options using the Crank-Nicolson scheme. The theoretical convergence of the Crank-Nicolson discretisation scheme will be analysed. Furthermore, our research will compare the results from the extended Black-Scholes model based on continuous time monitoring, together with the finite difference results from the Crank-Nicolson method.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1598835
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1598835
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1598835
Template-Type: ReDIF-Article 1.0
Author-Name: Carlos Valencia
Author-X-Name-First: Carlos
Author-X-Name-Last: Valencia
Author-Name: Sergio Cabrales
Author-X-Name-First: Sergio
Author-X-Name-Last: Cabrales
Author-Name: Laura Garcia
Author-X-Name-First: Laura
Author-X-Name-Last: Garcia
Author-Name: Juan Ramirez
Author-X-Name-First: Juan
Author-X-Name-Last: Ramirez
Author-Name: Diego Calderona
Author-X-Name-First: Diego
Author-X-Name-Last: Calderona
Title: Generalized additive model with embedded variable selection for bankruptcy prediction: Prediction versus interpretation
Abstract:
This paper explores the properties of using a generalized additive model with embedded variable selection for the prediction of bankruptcy. The main purpose is to explore an innovative way to close the gap between interpretation and prediction that has prevented widespread use of methods based on machine learning. An additive model enables the incorporation of nonlinear effects for each predictor, thereby enhancing the predictive power over classical linear models, while simultaneously keeping the marginal effects for interpretation separated. In addition, we propose a penalization likelihood approach that automatically selects important financial ratios and classifies them under linear and nonlinear effects, thereby improving the interpretation of the estimations. We implemented the proposed model on data from the retail industry in Colombia. The results demonstrate a good generalization performance of the algorithm and a prediction accuracy not far below typical black box algorithms such as random forest and support vector machines.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1597956
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1597956
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1597956
Template-Type: ReDIF-Article 1.0
Author-Name: F. K. Y. Amevenku
Author-X-Name-First: F. K. Y.
Author-X-Name-Last: Amevenku
Author-Name: R. K. Asravor
Author-X-Name-First: R. K.
Author-X-Name-Last: Asravor
Author-Name: J. K. M. Kuwornu
Author-X-Name-First: J. K. M.
Author-X-Name-Last: Kuwornu
Title: Determinants of livelihood strategies of fishing households in the volta Basin, Ghana
Abstract:
The main objective of this study is to identify livelihood strategies of fishing households in response to prevalent vulnerabilities they face within the Volta Basin. Questionnaires were administered to fishery households in the Basin using the multistage sampling technique. A non-hierarchical k-means cluster analysis partitioned the households into four livelihood strategies on which the multinomial logit regression was performed. These four identified strategies are fishery only, fishery and farming, fishery and non-farm, and fishery, non-farming and farming. The results from the multinomial logit regression revealed that marital status of head of household, number of months of food shortage experienced by a household per year, access to credit, access to extension services, distance to regular markets and district capital as well as experience in fishery were the major determinants of livelihood strategies. Implications for policy include the need for public extension services and training to invigorate fishery households’ income. As majority of the fishery households combined fishing and non-fishing strategies, livelihood intervention programmes should prioritize improvement of the non-fishing activities and lead to opening other opportunities for rural development. This will take pressure off the fish stock by facilitating the regeneration of fish stock.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1595291
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1595291
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1595291
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Arslan
Author-X-Name-First: Muhammad
Author-X-Name-Last: Arslan
Author-Name: Sazali Abidin
Author-X-Name-First: Sazali
Author-X-Name-Last: Abidin
Title: Nexus between corporate governance practices and cost of capital in PSX listed firms
Abstract:
The aim of this study is to examine the relationship between corporate governance (CG), in terms of its internal significance, and cost of capital (COC), based on a sample of listed firms of Pakistan Stock Exchange (PSX) over the period of 2009–2015. We used Pakistan as a case study mainly because we expect that key features of Pakistani setting in terms of CG and financial markets will have impact on the relationship between CG and COC. Drawing on a sample of 120 PSX listed firms, we find that CG compliance and disclosure (CG index [CGI]) has improved over time among PSX listed firms. The findings also reveal a positive relationship of institutional, government and director ownership with both CGI and COC, while this relationship becomes negative with block ownership. The findings of 2SLS reveal a significant negative association between CG compliance and COC; hence, firms with higher CG score enjoy a lower COC. Interestingly, gender diversity and board size have a negative association with CG compliance and COC, while audit firm size reveals a positive association with CG compliance and disclosure while a negative association with COC. The study contributes to existing literature dealing with CG and determinant of firm value (COC) in emerging markets, particularly in Pakistan, which has not been extensively explored in existing research.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1600222
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1600222
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1600222
Template-Type: ReDIF-Article 1.0
Author-Name: Abhinav Kumar Rajverma
Author-X-Name-First: Abhinav Kumar
Author-X-Name-Last: Rajverma
Author-Name: Rakesh Arrawatia
Author-X-Name-First: Rakesh
Author-X-Name-Last: Arrawatia
Author-Name: Arun Kumar Misra
Author-X-Name-First: Arun Kumar
Author-X-Name-Last: Misra
Author-Name: Abhijeet Chandra
Author-X-Name-First: Abhijeet
Author-X-Name-Last: Chandra
Title: Ownership structure influencing the joint determination of dividend, leverage, and cost of capital
Abstract:
The article analyses inter-dependencies between dividend, capital structure, and cost of capital, factoring the ownership structure of listed firms in India, using 3SLS system approach. The study finds that family firms are dominant with concentrated ownership. Dividend, leverage, and average cost of capital are inter-linked. However, family firms pay lower dividends, consistent with family owners extracting rent from external minority shareholders. Additionally, these firms have high leverage and lower cost of capital, suggesting that family control (reputation) provides intangible value to the firms. Ownership structure plays a critical role in understanding the policy decisions in emerging markets.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1600462
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1600462
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1600462
Template-Type: ReDIF-Article 1.0
Author-Name: Muneer Shaik
Author-X-Name-First: Muneer
Author-X-Name-Last: Shaik
Author-Name: S. Maheswaran
Author-X-Name-First: S.
Author-X-Name-Last: Maheswaran
Title: Volatility behavior of asset returns based on robust volatility ratio: Empirical analysis on global stock indices
Abstract:
In this paper, we come up with an alternate theoretical proof for the independence and unbiased property of extreme value robust volatility estimator with respect to the standard robust volatility estimator. We show that the robust volatility ratio is unbiased both in the population and in the finite samples. We empirically test the robust volatility ratio on nine global stock indices from America, Asia Pacific and EMEA markets for the period from January 1996 to June 2017 based on daily open, high, low and close prices to understand the volatility behavior of stock returns over a period of time. Our results show that robust volatility ratio for different k-month periods is significantly less than 1 for all the global stock indices, thus finding the clear evidence of random walk behavior. This is possibly the first study based on robust volatility ratio to understand the volatility behavior of global stock indices.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1597430
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1597430
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1597430
Template-Type: ReDIF-Article 1.0
Author-Name: Santanu Pal
Author-X-Name-First: Santanu
Author-X-Name-Last: Pal
Author-Name: Ajay K Garg
Author-X-Name-First: Ajay K
Author-X-Name-Last: Garg
Title: Macroeconomic surprises and stock market responses—A study on Indian stock market
Abstract:
This study analyzes the sensitivity of a series of Indian stock indices for the astonishing component of monetary and macroeconomic policy with the data set from 1 April 2004 to 31 July 2016. The immediate impact is assessed with event analysis, and the dynamic effect is analyzed with the Vector Autoregression (VAR) model. The result of the event analysis indicates that the monetary policy surprise significantly affects the stock market and is more prominent than that of other macroeconomic surprises. Unlike the event study, the VAR analysis found that the other macroeconomic surprise also affects stock return. The study also highlights the industry effect and size effect, which is coherent with the predictions of the CAPM (Capital Asset Pricing Model) model. While many studies have been conducted on the monetary policy surprise in the developed economy, there are relatively few studies on macroeconomic surprises. Some studies conducted in India have analyzed the impact of monetary policy surprises on stock price; however, to the best of our knowledge, none of the studies has examined the simultaneous effect of both macroeconomic and monetary policy surprise. The study is relevant because the responses differ across sectors and vary with firm sizes. Thus, the study can effectively be used as a hedging instrument. Furthermore, the stock market acts as a vital channel for policy transmission and a critical decision driver for corporate finance. The understanding of firm and stock market dynamics against macroeconomic surprises can help policymakers in enhancing policy effectiveness and corporate finance professionals in improving decision-making.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1598248
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1598248
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1598248
Template-Type: ReDIF-Article 1.0
Author-Name: Le Doan Minh Duc
Author-X-Name-First: Le Doan
Author-X-Name-Last: Minh Duc
Author-Name: Nguyen Thi Hoang Yen
Author-X-Name-First: Nguyen
Author-X-Name-Last: Thi Hoang Yen
Author-Name: Vo Hoang Ngoc Thuy
Author-X-Name-First: Vo
Author-X-Name-Last: Hoang Ngoc Thuy
Author-Name: Nguyen Hoang Tien
Author-X-Name-First: Nguyen
Author-X-Name-Last: Hoang Tien
Author-Name: Dinh Ba Hung Anh
Author-X-Name-First: Dinh Ba
Author-X-Name-Last: Hung Anh
Title: Enhancing auditors’ independence in auditing enterprises in Vietnam
Abstract:
The working environment of professional auditors can make a threat to independence. There are many studies in the world on this issue but the results are not the same due to differences in each country. By using the qualitative methodology in combination with quantitative data analysis through the period 2016–2017, the study identifies factors affecting auditor independence. The results show that the observed factors that are related to the independent auditor’s working environment and that affect the auditor independence are: corporate governance, audit tenure, auditing fee, non-audit service, the auditor–client relationship, and size of audit companies. In particular, the corporate governance of the auditing company has the greatest influence on auditing independence. The paper has contributed to the theoretical body of literature by introducing a theoretical framework for auditors’ independence in Vietnam, providing the basis for further research. As a result, the results of the study suggest that auditing firms need to focus on corporate governance that will promote other factors. Moreover, the research contributes to enhancing the auditor independence to meet the expectations of society.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1602240
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1602240
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1602240
Template-Type: ReDIF-Article 1.0
Author-Name: Md. Hashibul Hassan
Author-X-Name-First: Md. Hashibul
Author-X-Name-Last: Hassan
Author-Name: Md. Shahidullah Kayser
Author-X-Name-First: Md. Shahidullah
Author-X-Name-Last: Kayser
Title: Ramadan effect on stock market return and trade volume: Evidence from Dhaka Stock Exchange (DSE)
Abstract:
A predictable pattern of stock market return is the violation of the efficient market hypothesis (EMH). It is well studied and evident in financial literature that stock markets around the world have predictable patterns, e.g. calendar effect, behavioural effect, and Religious festival effect. By analysing market return and trading volume data of Dhaka Stock Exchange (DSE) over the period of 1 January 2002 to 30 August 2018, this study attempts to investigate the association of Ramadan, the holy month for the Muslims, with the market return, volatility and trade volume in the of DSE. Applying GJR-GARCH (p,q) model on the market return of DSE, this study concludes that Ramadan month has no significant relationship with stock market return and volatility. However, Ramadan has a significant negative impact on the daily trade volume of DSE. This is might be the outcome of decreased trading and banking hour and religious perception of investors.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1605105
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1605105
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1605105
Template-Type: ReDIF-Article 1.0
Author-Name: Quratulain Zafar
Author-X-Name-First: Quratulain
Author-X-Name-Last: Zafar
Author-Name: Winai Wongsurawat
Author-X-Name-First: Winai
Author-X-Name-Last: Wongsurawat
Author-Name: David Camino
Author-X-Name-First: David
Author-X-Name-Last: Camino
Title: The determinants of leverage decisions: Evidence from Asian emerging markets
Abstract:
This study provides a stage-level analysis of firm-scale pooled data of 16 Asian countries to classified income economy-based data for various firm- and country-specific predictors of leverage. Our analysis captures the selection impact of both micro- and macro-level determinants on capital structure with and without income economy-based models. The regression model evaluated the significance of predictor variables based on random effect model of panel data setting. The study further explores the issue of interest by looking at key individual regression models by income economy to avoid any potential loss of information. We argue that this approach provides a comprehensive and insightful set of determinants because of the newer dimension of income economy classification based on per-capita Gross National Product (GNP) defined by the World Bank. The estimating equations for financing determinants identify the additional variables of non-debt tax shield, liquidity, tax and GDP growth rate in case of Asian countries. Our study establishes that the core variables of tangibility, growth, size, and profitability retain their significance for leverage choice in both options during 2008–2014 in Asian economies. Furthermore, the findings show that the financing choices of firms in Asian regional markets are complemented by financial system development stages using the equity market, the bond market and the banking industry as proies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1598836
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1598836
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1598836
Template-Type: ReDIF-Article 1.0
Author-Name: Lorraine Rupande
Author-X-Name-First: Lorraine
Author-X-Name-Last: Rupande
Author-Name: Hilary Tinotenda Muguto
Author-X-Name-First: Hilary Tinotenda
Author-X-Name-Last: Muguto
Author-Name: Paul-Francois Muzindutsi
Author-X-Name-First: Paul-Francois
Author-X-Name-Last: Muzindutsi
Title: Investor sentiment and stock return volatility: Evidence from the Johannesburg Stock Exchange
Abstract:
Volatility is an important component of asset pricing; an increase in volatility on markets can trigger changes in the risk distribution of financial assets. In conventional financial theory, investors are considered to be rational and any changes in relevant risk are assumed to be a result of the movement in fundamental factors. However, herein this study, it is hypothesized that there are movements in risk that are driven by volatility linked to sentiment-driven noise trader activity whose patterns are irreconcilable with changes in fundamental factors. This assertion is tested using a daily sentiment composite index constructed from a set of proxies and Generalised Autoregressive Conditional Heteroscedasticity models on the South African market over a period spanning July 2002 to June 2018. The results show that there is a significant connection between investor sentiment and stock return volatility which shows that behavioural finance can significantly explain the behaviour of stock returns on the Johannesburg Stock Exchange. It is, thus, recommended that due to the inadequacies of popular asset pricing models such as the Capital Asset Pricing Model, consideration should be made towards augmenting these asset pricing models with a sentiment risk factor.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1600233
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1600233
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1600233
Template-Type: ReDIF-Article 1.0
Author-Name: N. Mhlaba
Author-X-Name-First: N.
Author-X-Name-Last: Mhlaba
Author-Name: A. Phiri
Author-X-Name-First: A.
Author-X-Name-Last: Phiri
Title: Is public debt harmful towards economic growth? New evidence from South Africa
Abstract:
The issue of whether public debt is useful or harmful towards economic growth is one of the most prevailing debates in the literature with no consensus existing on the subject matter. The study employs the ARDL model to examine the long-run and short-run effects of public debt on economic growth for South African data spanning a period between 2002:q1 and 2016:q4. Our sensitivity analysis consists of re-estimating our empirical regressions using two sub-samples dataset corresponding to the post-crisis period (i.e. 2007:q3–2016:q4). All estimated regressions unanimously find negative debt–growth relationship, with the negative relationship strengthening in the post-crisis period. Overall, our empirical results have some useful ramifications towards fiscal policymakers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1603653
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1603653
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1603653
Template-Type: ReDIF-Article 1.0
Author-Name: Sheunesu Zhou
Author-X-Name-First: Sheunesu
Author-X-Name-Last: Zhou
Author-Name: D. D. Tewari
Author-X-Name-First: D. D.
Author-X-Name-Last: Tewari
Title: Shadow financial services and firm performance in South Africa
Abstract:
The last two decades have seen a sharp increase in shadow banking activities in both advanced and emerging economies. Shadow banks have therefore become an important part of financial markets due to their credit creation and capital allocation roles. This study investigates the impact of shadow banking on firm profitability in South Africa and evaluates the linkages between shadow banking and real economic activity. We employ single-equation cointegration methods and three measures of firm profitability in our analyses, and several macroeconomic and bank-specific variables are used as control variables. Our results are mixed showing that shadow banking has a negative impact on traditional banks’ profitability whilst on the other hand it positively impacts non-financial firms and the overall measures of firm profitability. Our results indicate that both non-financial firms and non-bank financial institutions could be benefiting from the expansion in shadow banking activities. Targeted, functional regulation is suggested in order to promote economic activities in the shadow banking sector whilst at the same time limiting possible risks that may arise.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1603654
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1603654
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1603654
Template-Type: ReDIF-Article 1.0
Author-Name: Prince Kwasi Sarpong
Author-X-Name-First: Prince Kwasi
Author-X-Name-Last: Sarpong
Author-Name: Jugjith Deodutt
Author-X-Name-First: Jugjith
Author-X-Name-Last: Deodutt
Title: Legal theory of finance: Evidence from global financial networks
Abstract:
Katharina Pistor proposed the Legal Theory of Finance (LTF), based on the premise that finance is legally constructed. In this paper, we apply network science to provide empirical evidence from global financial networks (GFN) to support the argument of the LFT. Using data from the World Bank and IMF, we confirm that the GFN is indeed hierarchical. We also show that the depth of interconnectedness in the GFN is increasing. The United States is the most important node in the GFN but temporarily lost its position to the United Kingdom in 2008. This paper shows that the most important node in the GFN can temporarily shift during major global financial events. The United Kingdom has also lost its position in the GFN to Switzerland on several measures of centrality. We further confirm that there is no evidence of a flattening of the GFN. Although some emerging economies have improved significantly in terms of GDP and international reserves, these improvements have not reflected in their positions in the GFN. We propose that the approach to regulating the global financial system should focus on more stringent rules for the most central countries in the GFN. This could be more effective in ensuring stability in the global financial system.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1593071
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1593071
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1593071
Template-Type: ReDIF-Article 1.0
Author-Name: Jayanta Kumar Seal
Author-X-Name-First: Jayanta Kumar
Author-X-Name-Last: Seal
Author-Name: Arunima Paul
Author-X-Name-First: Arunima
Author-X-Name-Last: Paul
Title: Does direct-sold funds provide a sizeable edge to investors? Evidences from selected mutual funds in India
Abstract:
In this study, an attempt has been made to find out why investors still prefer broker-sold fund over direct-sold fund despite the superior performance of the latter. We find the sensitivity of funds flow in selected direct-sold funds and broker-sold funds in India. We do not find any evidence that direct-sold funds underperform the broker-sold funds. Despite the superior performance of direct-sold funds, Indian investors go for broker-sold funds because of ignorance and also for the additional services provided by the brokers. We find that fund houses in India offer both direct and broker-sold funds to target different segments of investors.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1612573
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1612573
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1612573
Template-Type: ReDIF-Article 1.0
Author-Name: Fredrick Ikpesu
Author-X-Name-First: Fredrick
Author-X-Name-Last: Ikpesu
Author-Name: Olusegun Vincent
Author-X-Name-First: Olusegun
Author-X-Name-Last: Vincent
Author-Name: Olamitunji Dakare
Author-X-Name-First: Olamitunji
Author-X-Name-Last: Dakare
Title: Growth effect of trade and investment in Sub-Saharan Africa countries: Empirical insight from panel corrected standard error (PCSE) technique
Abstract:
The pre-eminence of trade and investment in the economic prosperity of developed and developing countries cannot be overemphasized. Many studies have shown a strong positive impact of trade on economic growth across developed and the emerging market. However, very little is known about the simultaneous effect of trade and investment on growth in SSA when institutional control variables are introduced in the model. Therefore, this study examines the role of trade and investment in the growth process in the SSA using trade openness (% GDP), export (% of GDP) and import (% of GDP) as a measure of trade. We embrace an ideographic perspective that allows methodology and design that are sensitive to the nature of the study by deploying panel corrected standard error (PCSE). In this paper, we draw on 35 countries within the SSA. The research outcomes reveal that trade domestic investment and import affect growth in the region positively while export affects growth negatively. A possible reason for this is the nature of export of sub-Saharan African economies which are mostly affected by price volatility in the global market among other factors such as low prices, vagaries of weather, etc.. We discuss the policy implication of the study.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1607127
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1607127
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1607127
Template-Type: ReDIF-Article 1.0
Author-Name: Anders Stensås
Author-X-Name-First: Anders
Author-X-Name-Last: Stensås
Author-Name: Magnus Frostholm Nygaard
Author-X-Name-First: Magnus Frostholm
Author-X-Name-Last: Nygaard
Author-Name: Khine Kyaw
Author-X-Name-First: Khine
Author-X-Name-Last: Kyaw
Author-Name: Sirimon Treepongkaruna
Author-X-Name-First: Sirimon
Author-X-Name-Last: Treepongkaruna
Title: Can Bitcoin be a diversifier, hedge or safe haven tool?
Abstract:
This paper investigates whether Bitcoin acts as a diversifier, hedge or safe haven tool for investors in major developed and developing markets, as well as for commodities. This paper employs the GARCH Dynamic Conditional Correlation (DCC) model. The sample covers seven developed and six developing countries, five regional indices and 10 commodity series. The results show that Bitcoin acts as a hedge for investors in most of the developing countries such as Brazil, Russia, India and South Korea, but only as a diversifier for investors in developed countries and for commodities. Moreover, Bitcoin acts as a diversifier for all the 10 commodities studied here. During the US election in 2016, Brexit referendum in 2016, and the burst of Chinese market bubble in 2015, Bitcoin acted as a safe haven asset for both the US and non-US investors. Understanding the role of Bitcoin is important for financial market participants who seek protection against market turmoil and downward movements. Furthermore, our findings would be of interests to regulators and governments to engage in more discussion of the role of Bitcoin in financial markets. This paper contributes to the ongoing debate on the usefulness of Bitcoin for investments. Furthermore, it distinguishes the benefits of Bitcoin as a diversifier, hedge and safe haven to investors in the developed versus developing markets.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1593072
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1593072
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1593072
Template-Type: ReDIF-Article 1.0
Author-Name: Yaya Keho
Author-X-Name-First: Yaya
Author-X-Name-Last: Keho
Title: Myopia, liquidity constraints and private consumption: the case of Cote d’Ivoire
Abstract:
In this paper, we estimate the behavior of private consumption in Cote d’Ivoire under the permanent income hypothesis using annual data for the period 1970–2016. The first objective is to test the validity of the permanent income hypothesis in Cote d’Ivoire. Our second concern is to investigate the reason explaining the rejection of this hypothesis. The data consists of real household consumption, real gross domestic product, and the real interest rate on deposits. The empirical analysis uses the nonlinear autoregressive distributed lag (NARDL) model proposed by Shin et al. This approach allows us to simultaneously test the short and long run nonlinearities through positive and negative partial sum decompositions of income. The results suggest that the absolute income hypothesis is valid rather than permanent income hypothesis. Also, there is evidence pointing to the rejection of the permanent income hypothesis-driven by the presence of liquidity constraints rather than myopia. As policy implications, the lending conditions of banks should be relaxed to increase the accessibility of households to credits. In addition, private consumption can be increased through income or consumption tax reductions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1608052
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1608052
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1608052
Template-Type: ReDIF-Article 1.0
Author-Name: Iddrisu Awudu
Author-X-Name-First: Iddrisu
Author-X-Name-Last: Awudu
Author-Name: Saravanan Kuppusamy
Author-X-Name-First: Saravanan
Author-X-Name-Last: Kuppusamy
Author-Name: Mario Norbis
Author-X-Name-First: Mario
Author-X-Name-Last: Norbis
Author-Name: Matthew O’Connor
Author-X-Name-First: Matthew
Author-X-Name-Last: O’Connor
Title: Recruitment strategies in a university institution: a theoretical cost minimization approach
Abstract:
We study faculty recruitment issues in a university. We develop a cost minimization model that considers the decision-making process for the university administration by proposing a new approach of selecting tenure and non-tenure track faculty who are expected to achieve the institutional research and teaching goals. We explain the existence of tenure from an economic perspective. We propose a faculty tenure-granting process for a variety of institutions ranging from pure-teaching, teaching emphasis, research emphasis and pure-research institutions. We find that a teaching-emphasis or a pure-teaching institution (a research-emphasis or a pure-research institution) can increase the emphasis on research (teaching) without increasing costs. This paper makes important contributions to the university recruitment strategy by providing a set of guidelines on how to manage teaching and research incentives. The paper also contributes to the ongoing debate about tenure by providing a newer perspective and to the general theory of strategic university management.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1607050
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1607050
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1607050
Template-Type: ReDIF-Article 1.0
Author-Name: Edina Berlinger
Author-X-Name-First: Edina
Author-X-Name-Last: Berlinger
Title: Why APRC is misleading and how it should be reformed
Abstract:
The annual percentage rate of charge (APRC) designed to reflect all costs of borrowing is a widely used measure to compare different credit products. It disregards completely, however, risks of possible future changes in interest and exchange rates. As an unintended consequence of the general advice to minimize APRC, many borrowers take adjustable-rate mortgages with extremely short interest rate period or foreign currency denominated loans and run into an excessive risk without really being aware of it. To avoid this, we propose a new, risk-adjusted APRC incorporating also the potential costs of risk hedging. This new measure eliminates most of the virtual advantages of riskier structures and reduces the danger of excessive risk-taking. As an illustration, we analyze the latest Hungarian home loan trends with the help of scenario analysis.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1609766
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1609766
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1609766
Template-Type: ReDIF-Article 1.0
Author-Name: Adeleke Omolade
Author-X-Name-First: Adeleke
Author-X-Name-Last: Omolade
Author-Name: Harold Ngalawa
Author-X-Name-First: Harold
Author-X-Name-Last: Ngalawa
Author-Name: Adebayo Kutu
Author-X-Name-First: Adebayo
Author-X-Name-Last: Kutu
Title: Crude oil price shocks and macroeconomic performance in Africa’s oil-producing countries
Abstract:
The study investigates the influence of crude oil price shocks on the macroeconomic performance of Africa’s oil-producing countries. Eight major net oil producers, namely, Algeria, Nigeria, Egypt, Angola, Gabon, Equatorial Guinea and Congo Republic are included in the study. Sudan is excluded due to data constraints. The study covers the period between 1980 and 2016, which represents the periods with the most boom and bust movements in crude oil prices. The Hamilton Index (1996) which uses the net oil price increase is applied. The study compares the price of oil in each quarter with the maximum value observed during the preceding four quarters. This is used to derive sharp increases and declines in oil prices to capture oil price shocks. A Panel Structural Vector Auto-Regression model is adopted for analysis. The results show that the reaction of output to sharp increases and declines in oil prices differ. It is also observed that structural inflation accompanies sharp declines in oil prices more than monetary inflation, since both outputs and investment decline significantly.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1607431
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1607431
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1607431
Template-Type: ReDIF-Article 1.0
Author-Name: Faisal Abbas
Author-X-Name-First: Faisal
Author-X-Name-Last: Abbas
Author-Name: Shahid Iqbal
Author-X-Name-First: Shahid
Author-X-Name-Last: Iqbal
Author-Name: Bilal Aziz
Author-X-Name-First: Bilal
Author-X-Name-Last: Aziz
Title: The impact of bank capital, bank liquidity and credit risk on profitability in postcrisis period: A comparative study of US and Asia
Abstract:
The purpose of this study is to explore the influence of bank capital, bank liquidity level and credit risk on the profitability of commercial banks in the postcrisis period between 2011 and 2017 in Asian developed economies in comparison with the USA banking industry. The findings show that bank capital and credit risk influence profitability in Asian developed economies similar to in the USA commercial banks, whereas the impact of liquidity on the profitability of the USA large commercial banks is negative and positive on Asian developed economies commercial banks in the postcrisis era. The findings indicate that a 6% increase in capital leads to a 1% increase in profit, a 3.5% increase in liquidity leads to a 1% increase in profit. Specifically, larger banks generate 1% profit against a 1% increase in liquid assets. Medium size banks make 1% profit against a 3% increase in liquid assets, and small size banks produce 1% profit against a 7% increase in liquid assets. The findings show that liquidity influences profitability more intensively than capital, whereas the sign of coefficients is similar for large, small and medium-size banks. The results of this paper indicate that liquidity and bank capital have a positive impact on profitability, while credit risk has a negative influence on the profitability of banks. The findings of the simultaneous equations model indicate that bank capital has a positive impact on profitability in large and medium banks, whereas the profitability of banks influences the bank capital positively in case of large banks and negatively in case of medium banks.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1605683
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1605683
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1605683
Template-Type: ReDIF-Article 1.0
Author-Name: Eissa A. Al‐Homaidi
Author-X-Name-First: Eissa A.
Author-X-Name-Last: Al‐Homaidi
Author-Name: Mosab I. Tabash
Author-X-Name-First: Mosab I.
Author-X-Name-Last: Tabash
Author-Name: Najib H. Farhan
Author-X-Name-First: Najib H.
Author-X-Name-Last: Farhan
Author-Name: Faozi A. Almaqtari
Author-X-Name-First: Faozi A.
Author-X-Name-Last: Almaqtari
Title: The determinants of liquidity of Indian listed commercial banks: A panel data approach
Abstract:
The objective of this study is to examine the liquidity (LQD) determinants of Indian listed commercial banks. The study has applied both GMM and pooled, fixed and random effect models to a panel of 37 commercial banks listed on the Bombay Stock Exchange (BSE) in India for the period from 2008 to 2017. The banks’ LQD was taken as a dependent variable which functioned against both bank-specific and macroeconomic determinants. The results indicated that among the bank-specific factors, bank size, capital adequacy ratio, deposits ratio, operation efficiency ratio, and return on assets ratio are found to have a significant positive impact on LQD, while assets quality ratio, assets management ratio, return on equity ratio, and net interest margin ratio are found to have a significant negative impact on LQD. With respect to macroeconomic factors, the results indicated that interest rate and exchange rate are found to have a significant effect on LQD. The Reserve Bank of India (RBI) should give benchmarks for the above mentioned ratios to achieve smooth LQD of commercial banks in India. The study recommended that bankers should consider assets quality in such a way that improves banks’ performance. Finally, the current study provides useful insights for bankers, analysts, regulators, investors, and other interested parties on the LQD of listed commercial banks.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1616521
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1616521
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1616521
Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad W. Alomari
Author-X-Name-First: Mohammad W.
Author-X-Name-Last: Alomari
Author-Name: Zyad Marashdeh
Author-X-Name-First: Zyad
Author-X-Name-Last: Marashdeh
Author-Name: Ala G. Bashayreh
Author-X-Name-First: Ala G.
Author-X-Name-Last: Bashayreh
Title: Contribution of financial market development in competitiveness growth
Abstract:
Purpose: The study aims at re-examining the relationship between financial market development and economic development in the context of competitiveness of developed and higher income countries. Methodology/approach: The study employs generalized least square (GLS) regression model to analyze the panel data of 21 higher income countries over the period (2009–2017). Further, the study checked the robustness of the results by introduces a lagged dependent variable in the regression models by employing the generalized methods of moments (GMM) for Dynamic Panel analysis. Findings: Results reveal that four independent variables: Financial market development (FMDG), trade openness (OPNG), Labor market efficiency (LMEG), and Technological readiness (TRG), were positive and significant, which indicates the existence of relationship from those variables to competitiveness in the context of growth. while one of the independent variables is Market size (MSG) was positive but insignificant. Moreover, the results from the GMM estimator remain robust in terms of directions and significance levels and confirm the robustness of the findings. Originality: This paper represents a significant contribution especially for the higher income countries that can help them in designing the policies and strategies in order to improve their performance and competitiveness by financial market development besides other competitiveness sources.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1622483
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1622483
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1622483
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Nakosteen
Author-X-Name-First: Robert
Author-X-Name-Last: Nakosteen
Author-Name: Michael Zimmer
Author-X-Name-First: Michael
Author-X-Name-Last: Zimmer
Title: Latent earning capacity and the race marriage gap
Abstract:
One of the most persistent socioeconomic phenomena in the process of family formation is the relatively low rate of marriage by black men and women. The enduring conventional wisdom has been that low black marriage rates reflect a relative shortage of marriageable black men. Yet numerous studies that have attempted to account for the shortage have reported that the race marriage gap remains, albeit sometimes in reduced magnitude, even after controlling for economic attributes of potential spouses and potential supplies of spouses in regional marriage markets. This paper examines the possibility that the race gap is explained in part by disparities in unobserved earning capacities between black and white men. In doing so, this study redefines the marriage market for each man in terms of his position in the earnings distribution rather than by geographic region. Our results indicate that when young black men are placed in competitive positions in the distribution of white residual earnings, the race gap disappears and even shows strong signs of greater marriage propensities in the black population.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1609155
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1609155
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1609155
Template-Type: ReDIF-Article 1.0
Author-Name: Talknice Saungweme
Author-X-Name-First: Talknice
Author-X-Name-Last: Saungweme
Author-Name: Nicholas M. Odhiambo
Author-X-Name-First: Nicholas M.
Author-X-Name-Last: Odhiambo
Title: Government debt, government debt service and economic growth nexus in Zambia: a multivariate analysis
Abstract:
This paper explores the causal relationships between public debt and economic growth, and between public debt service and economic growth in Zambia for the period from 1970 to 2017. Unlike previous studies on this subject that relied on bivariate frameworks, this paper includes fiscal balance and savings as intermittent variables to minimise the problem of omission-of-variable bias. Using a dynamic multivariate autoregressive-distributed lag (ARDL)-bounds testing approach, the results indicate that there is unidirectional Granger-causality from economic growth to public debt in Zambia, irrespective of whether the analysis is done in the short run or in the long run. The study results, however, fail to find any causality between public debt service and economic growth in Zambia. These study findings support the hypothesis that the pace of economic growth matters in defining the level of public sector indebtedness. The study, therefore, recommends that the Zambian government should channel borrowed funds towards the expansion and diversification of the country’s economy. This will promote its long-term economic growth, broaden its revenue base, and enhance its ability to repay its financial obligations when they fall due.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1622998
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1622998
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1622998
Template-Type: ReDIF-Article 1.0
Author-Name: John Kanburi Bidzakin
Author-X-Name-First: John
Author-X-Name-Last: Kanburi Bidzakin
Author-Name: Simon C. Fialor
Author-X-Name-First: Simon C.
Author-X-Name-Last: Fialor
Author-Name: Dadson Awunyo-Vitor
Author-X-Name-First: Dadson
Author-X-Name-Last: Awunyo-Vitor
Author-Name: Iddrisu Yahaya
Author-X-Name-First: Iddrisu
Author-X-Name-Last: Yahaya
Title: Impact of contract farming on rice farm performance: Endogenous switching regression
Abstract:
Contract farming (CF) is increasing been used as a strategy in rice production in Ghana while there is no empirical data supporting it. This study investigated the importance of CF in rice production. Cross-sectional farm household level data collected from 350 rice farmers randomly selected across the rice production areas of Ghana was used. The adoption and casual impact of CF was estimated using endogenous switching regression and propensity score matching methods. Results revealed positive and significant relationship between CF and farm performance measures (yield and gross margins). Results indicate that, CF increases yield and gross margins significantly. It further identified educational level, rice farm size and ISFM as positive determinants of contract participation. This evidence provides strong support for efforts to promote CF in Ghana. Educated farmers should be targeted for CF participation because their propensity to participate in CF is high. Sensitising our illiterate farmers to participate in CF should be vigorously pursued. CF should also be encouraged as a means to promote the adoption of ISFM technology. CF is recommended as a good tool for developing the local rice value chain in Ghana.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1618229
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1618229
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1618229
Template-Type: ReDIF-Article 1.0
Author-Name: Tung Lam Dang
Author-X-Name-First: Tung Lam
Author-X-Name-Last: Dang
Author-Name: Hai Ly Ho
Author-X-Name-First: Hai
Author-X-Name-Last: Ly Ho
Author-Name: Chi Dzung Lam
Author-X-Name-First: Chi
Author-X-Name-Last: Dzung Lam
Author-Name: Thanh Thao Tran
Author-X-Name-First: Thanh
Author-X-Name-Last: Thao Tran
Author-Name: Xuan Vinh Vo
Author-X-Name-First: Xuan Vinh
Author-X-Name-Last: Vo
Title: Stock liquidity and capital structure: International evidence
Abstract:
Relying on the assumption that equity market provides useful information for firm decision, this study examines the effect of stock liquidity on corporate capital structure decision. We also analyze whether this effect varies according to country-level institutional environments. Using a comprehensive international dataset of 19,939 firms across 41 countries over 2000–2010, the paper offers two key findings. First, firms with higher stock market liquidity tend to have lower leverage. Second, countries with strong institutional environments are more likely to have a weaker (negative) relationship between stock market liquidity and leverage. These results are robust to different liquidity measurement and subsamples.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1587804
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1587804
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1587804
Template-Type: ReDIF-Article 1.0
Author-Name: V. Gopikumar
Author-X-Name-First: V.
Author-X-Name-Last: Gopikumar
Author-Name: Smitha Nair
Author-X-Name-First: Smitha
Author-X-Name-Last: Nair
Author-Name: S Sreevathsava
Author-X-Name-First: S
Author-X-Name-Last: Sreevathsava
Author-Name: Raja Sreedharan V
Author-X-Name-First: Raja
Author-X-Name-Last: Sreedharan V
Title: Financial strength information and institutional investor demand: Evidence from India
Abstract:
In this paper, we examine whether foreign institutional investors (FII) and mutual funds (MF) show a higher preference for fundamentally stronger firms. We employ Pitroski’s F score and its constituents (profitability, efficiency, and leverage) to measure the fundamental strength of firms. Further, we examine the preferences of FIIs and MFs by conditioning on size and book-to-market ratio. Overall, the results indicate that both types of institutional investors prefer firms with higher expected profitability and are willing to take higher risks. FIIs show a higher preference for riskier firms and MFs prefer firms with higher profitability.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1623751
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1623751
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1623751
Template-Type: ReDIF-Article 1.0
Author-Name: Adamu Jibir
Author-X-Name-First: Adamu
Author-X-Name-Last: Jibir
Author-Name: Chandana Aluthge
Author-X-Name-First: Chandana
Author-X-Name-Last: Aluthge
Title: Modelling the determinants of government expenditure in Nigeria
Abstract:
In Nigeria, the government activities vis-à-vis public expenditure has grown rapidly both in absolute, relative and as a share of GDP over the years. These growths in government expenditure have been due to certain factors which are believed to have significant effect on the fiscal operation of the country. These perceived implications of government expenditure expansion on the economy necessitate the need to understand factors that are responsible for the growth in government expenditure size. For that, the study employs a slightly modified version of Wagner’s law by incorporating new variables such as oil revenue, trade openness, public debt, exchange rate, oil price, taxation and inflation—to examine their effect on government expenditure size. The study uses time series data for Nigeria spanning between 1970 and 2017. Time series data were analysed using Autoregressive Distributed Lag (ARDL) model. The findings of the study reveal that oil revenue, GDP, population, trade openness, oil price, taxation and inflation are important determinants of the size of Nigeria’s government expenditure. The study recommends among others that the revenue base of the country should be diversified beyond oil sector, strengthening of fiscal and monetary policies to ensure stability in price level and exchange rate, the use of fiscal rule through excess crude oil account should also be strengthened to create buffer against fluctuation in oil price and as well appropriate population reduction policies should be undertaken to curtail rapid population growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1620154
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1620154
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1620154
Template-Type: ReDIF-Article 1.0
Author-Name: James Atta Peprah
Author-X-Name-First: James Atta
Author-X-Name-Last: Peprah
Author-Name: Isaac Kwesi Ofori
Author-X-Name-First: Isaac
Author-X-Name-Last: Kwesi Ofori
Author-Name: Abel Nyarko Asomani
Author-X-Name-First: Abel Nyarko
Author-X-Name-Last: Asomani
Title: Financial development, remittances and economic growth: A threshold analysis
Abstract:
Sources of economic growth in Ghana have not been clear. Several studies have contributed to the finance and growth literature with little attention on remittances and the joint effect of financial sector development and remittances. This paper uses macrodata to examine the linkages between financial development, remittances and economic growth in Ghana. We estimate a dynamic heterogeneous Autoregressive Distributed Lag (ARDL) model to show that financial booms are not, in general, growth-enhancing, and a certain level of financial development can drag down economic growth in the long term and the combined effect of financial development and remittances should be of concern to policymakers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1625107
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1625107
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1625107
Template-Type: ReDIF-Article 1.0
Author-Name: Oluwasogo S. Adediran
Author-X-Name-First: Oluwasogo S.
Author-X-Name-Last: Adediran
Author-Name: Emmanuel O. George
Author-X-Name-First: Emmanuel O.
Author-X-Name-Last: George
Author-Name: Philip O. Alege
Author-X-Name-First: Philip O.
Author-X-Name-Last: Alege
Author-Name: Barnabas O. Obasaju
Author-X-Name-First: Barnabas O.
Author-X-Name-Last: Obasaju
Title: Is there any relationship between monetary policy tools and external credit-growth nexus in Nigeria?
Abstract:
The Nigerian economy attracts abundance of foreign capital inflows and credit supply; hence, an adverse external credit shock might lead to a large decrease of external inflows due to global credit tightening, which may leave the domestic economy in deep recession. In this case, domestic monetary policy tools should be preferred to mitigate the external adverse effect on the domestic economy and stimulate investment. As a result, an important issue of concern in this study is how can the use of monetary policy tools mitigate the effect of external credit shocks on economic growth in Nigeria? In answering this question, this study attempted to assess the influence of monetary policy tools on external credit and economic growth nexus in Nigeria, using annual data covering 36 years for the period 1980–2015. The study adopted the Cobb–Douglas production function and estimated a specified model using autoregressive distributed lag cointegration approach. The study found out that cash reserve requirement, which is credit policy easing, is significant in growing the Nigerian economy, as compared to monetary policy rate. The implication of this is that, if credit policy easing is properly implemented, it could be efficient in offsetting adverse external credit shocks.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1625100
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1625100
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1625100
Template-Type: ReDIF-Article 1.0
Author-Name: Vasanth Kamath
Author-X-Name-First: Vasanth
Author-X-Name-Last: Kamath
Author-Name: Seena Biju
Author-X-Name-First: Seena
Author-X-Name-Last: Biju
Author-Name: Giridhar B Kamath
Author-X-Name-First: Giridhar B
Author-X-Name-Last: Kamath
Title: A Participatory Systems Mapping (PSM) based approach towards analysis of business sustainability of rural Indian milk dairies
Abstract:
Drawing from the theories of Participatory Systems Mapping (PSM) this study presents an approach to analysing the business sustainability of entrepreneurial dairy ventures in India. The article begins with a general introduction to the small and medium scale dairy ventures in rural India, highlighting the prominent issues and challenges faced by the stakeholders. The second part demonstrates the use of the PSM framework in developing the Stock and flow diagram (SFD). Further, data from a local milk dairy is collected, and simulations are carried out between 2017–2025 using Vensim®. The outputs are analysed, and inferences are made. This study is expected to enable the policy makers towards the development of sustainable strategies for dairy businesses in general and enable the entrepreneur to analyse the future trends of the potential strategies under his consideration.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1622172
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1622172
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1622172
Template-Type: ReDIF-Article 1.0
Author-Name: Tung Lam Dang
Author-X-Name-First: Tung Lam
Author-X-Name-Last: Dang
Author-Name: Nguyen Trang Phuong Doan
Author-X-Name-First: Nguyen Trang Phuong
Author-X-Name-Last: Doan
Author-Name: Thi Minh Hue Nguyen
Author-X-Name-First: Thi Minh Hue
Author-X-Name-Last: Nguyen
Author-Name: Thanh Thao Tran
Author-X-Name-First: Thanh Thao
Author-X-Name-Last: Tran
Author-Name: Xuan Vinh Vo
Author-X-Name-First: Xuan Vinh
Author-X-Name-Last: Vo
Title: Analysts and stock liquidity – Global evidence
Abstract:
This paper investigates the relation between analyst coverage and stock liquidity with a focus on the role of information produced by financial analysts. Using a comprehensive dataset across 41 countries for the period 2000–2010, we document two novel findings. First, analyst coverage is positively correlated with stock liquidity. Second, the positive effect of analyst following on stock liquidity is attributed to the weak institutional environment. These findings suggest that financial analysts provide more public information to market participants and thus improve stock liquidity. This effect is attenuated in a country with a stronger institutional environment.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1625480
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1625480
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1625480
Template-Type: ReDIF-Article 1.0
Author-Name: SJ Ferreira
Author-X-Name-First: SJ
Author-X-Name-Last: Ferreira
Author-Name: E. Redda
Author-X-Name-First: E.
Author-X-Name-Last: Redda
Author-Name: SH Dunga
Author-X-Name-First: SH
Author-X-Name-Last: Dunga
Title: A structural equation model of reputational risk in South Africa
Abstract:
The central function of a bank inherently exposes it to various financial risks where each of these risks has the possibility to influence stakeholders’ perception. This perception, which is linked to the trustworthiness, credibility and performance of the bank, translates into the reputation of the bank. Depositors can be regarded as the main stakeholders of a bank and hence their behaviour can influence the reputational risk of the bank. With very limited research on reputational risk and depositor behaviour within the South African banking sector, the main purposes of this paper was to provide a meaningful contribution toward literature and empirical analysis. Primary data was collected from 417 depositors in Gauteng, South Africa, using a self-structured questionnaire. Statistical techniques such as correlation and structural equation modelling were used in the statistical analysis. The SEM identified three variables that uniquely influences reputational risk in banks. Operational risk events, behavioural finance biases and depositors level of risk tolerance were found to influence reputational risk. These empirical findings will help banks to profile depositor behaviour during operational risk events in order to mitigate against large losses and possible bank runs. The structural model will enable banks to forecast the factors that will influence a banks reputation i.e. a banks most valuable intangible asset. This will, in turn, enable banks to come up with better mitigation and management strategies for reputational risk.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1625739
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1625739
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1625739
Template-Type: ReDIF-Article 1.0
Author-Name: Edmore Mahembe
Author-X-Name-First: Edmore
Author-X-Name-Last: Mahembe
Author-Name: Nicholas Mbaya Odhiambo
Author-X-Name-First: Nicholas Mbaya
Author-X-Name-Last: Odhiambo
Title: Foreign aid, poverty and economic growth in developing countries: A dynamic panel data causality analysis
Abstract:
This article examines the causal relationship between foreign aid, poverty, and economic growth in 82 developing countries for the period 1981–2013. Taking advantage of the recently developed dynamic panel data estimation techniques, the paper tests for both panel unit roots and cointegration before employing the panel vector error-correction model (VECM) Granger causality test. The main findings are that in the short run, there is evidence of (a) a bidirectional causal relationship between economic growth and poverty; (b) a unidirectional causal relationship from economic growth to foreign aid; and (c) unidirectional causality from poverty to foreign aid. In the long-run, the study found that (a) foreign aid tends to converge to its long-run equilibrium path in response to changes in economic growth and poverty; and (b) both economic growth and poverty jointly Granger cause foreign aid.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1626321
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1626321
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1626321
Template-Type: ReDIF-Article 1.0
Author-Name: Ramzi Ben Slama
Author-X-Name-First: Ramzi
Author-X-Name-Last: Ben Slama
Author-Name: Aymen Ajina
Author-X-Name-First: Aymen
Author-X-Name-Last: Ajina
Author-Name: Faten Lakhal
Author-X-Name-First: Faten
Author-X-Name-Last: Lakhal
Title: Board gender diversity and firm financial performance in France: Empirical evidence using quantile difference-in-differences and dose-response models
Abstract:
The purpose of this paper is to investigate the relationship between board gender diversity and firm performance under the enabling and voluntary institutional settings in France. We use a Quantile difference-in-differences and dose-response function estimations. The findings show that the comply-or-explain recommendation by the French code is likely to decrease performance for poorly performing firms. However, firm performance increases after the enabling date in high-performing firms. The results of the dose-response functions show that accounting performance reaches a threshold of 40% of women on boards, which coincides with the French law requirements in 2017.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1626526
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1626526
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1626526
Template-Type: ReDIF-Article 1.0
Author-Name: Abdulaziz Abdulmohsen Alfalih
Author-X-Name-First: Abdulaziz
Author-X-Name-Last: Abdulmohsen Alfalih
Title: Investigating critical resource determinants of start-ups: An empirical study of the MENA region
Abstract:
Purpose: By drawing upon the resource-based view theory, this study investigates the critical resource determinants of start-up companies in the Middle East and North Africa (MENA) region in order to encourage the development of entrepreneurship in the region. Design/methodology/approach: A quantitative approach based on multiple linear hierarchical regression analysis was used. Three sets of data were employed. Firstly, the study used the World Bank’s Doing Business Report which investigated the ease of starting businesses, access to electricity and access to credit across the 23 MENA countries. Secondly, the study also used the human capital index from the Global Entrepreneurship Index as one of the predictor variables of start-ups. Finally, three specific data sets, namely population, Foreign Direct Investment (FDI) and Gross Domestic Product of the 23 MENA countries were used as control variables due to their importance as determinants of entrepreneurship orientation. Findings: The results of this study indicate that access to two critical resources, namely electricity and credit, have greatly contributed to the formation of start-ups in the MENA region. However, the current level of human capital in the region does not support entrepreneurial activity, hence its inability to support entrepreneurs in the venture creation process. There is a need to augment entrepreneurship education across the region, as well as the provision of entrepreneurial skill development to current and potential entrepreneurs. Research limitations/implications: Firstly, the study depended heavily on secondary data to examine the determinants of start-ups in the MENA region. Even though the sources of these data are credible, it is impossible to determine any anomalies in the original data. Secondly, the model used in this study is parsimonious in the sense that many more predictor variables could have been explored in understanding the determinants of start-ups in the region. Future research could therefore investigate other factors, such as technology, property rights, the legal system and other important factors in the entrepreneurial ecosystem of the MENA region. Originality/value: Start-ups are a major source of new employment in a country. However, it is essential to understand the various factors which foster their survival and growth. Even though similar studies have been conducted in various settings, this is one of the few studies which have focused on empirical investigation into the resource determinants of start-ups in the MENA region. The MENA region is noted for its access to abundant oil reserves and other resources. However, this has not culminated in the emergence of successful start-ups. This is what has necessitated this study; to investigate the factors that are responsible for start-up growth in the region. The uniqueness of this study is that it is one of the few studies which have used a three-factor construct in investigating the drivers of start-ups in the MNEA region. This study adopts an exhaustive approach with different variables in different levels of analysis which can provide extra information for further comparative study.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1628494
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1628494
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1628494
Template-Type: ReDIF-Article 1.0
Author-Name: Shweta Ahalawat
Author-X-Name-First: Shweta
Author-X-Name-Last: Ahalawat
Author-Name: Archana Patro
Author-X-Name-First: Archana
Author-X-Name-Last: Patro
Title: Exchange rate and Chinese financial market: Variance decomposition under vector autoregression approach
Abstract:
The foremost objective of the manuscript is to predict dynamic behaviour of economic and financial time series i.e. exchange rate and price of stock market in China and also to determine if there is a interrelation between the two. Monthly time series data of 10 years have been taken, from January 2009 to December 2018 (post-financial crisis of 2008). The unit root test, variance decomposition under vector autoregressive (VAR) approach, impulse response function and Granger causality under VAR environment have been smeared to infer the long and short-run statistical dynamics. The outcomes of vector autoregression approach depict that the two variables have positive impact and are statistically significant in the short run. There is no long-run association and causal relation between the exchange rate and Chinese financial market.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1628512
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1628512
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1628512
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Retraction: Penalties and Contagion in Financial Networks
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1629787
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1629787
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1629787
Template-Type: ReDIF-Article 1.0
Author-Name: William Gabriel Brafu-Insaidoo
Author-X-Name-First: William Gabriel
Author-X-Name-Last: Brafu-Insaidoo
Author-Name: Ferdinand Ahiakpor
Author-X-Name-First: Ferdinand
Author-X-Name-Last: Ahiakpor
Author-Name: Fiador Vera Ogeh
Author-X-Name-First: Fiador
Author-X-Name-Last: Vera Ogeh
Author-Name: Cantah William G.
Author-X-Name-First: Cantah
Author-X-Name-Last: William G.
Title: Macro-determinants of short-term foreign debt in Ghana
Abstract:
This study tests the validity of the hypothesis that the regulatory and macroeconomic environments and the disparity between domestic and international interest rates are important determinants of short-term foreign debt stock in a developing economy like Ghana. This study employs a time series econometric analysis of annual secondary data covering the period 1970 to 2012. More specifically, the bounds testing approach is used to estimate the impact of potential determinants—identified in the theoretical and empirical literature—on the real stock of short-term foreign debt in Ghana. The study finds that a reduction in regulatory restrictions on external borrowing, a widening of the disparity between domestic and international interest rates, economic growth performance and domestic financial deepening lead to increases in the short-term foreign debt stock in both the long and short run, respectively. The short-term foreign debt stock reduces in response to an increase in trade openness in the short run, and to international debt relief initiatives by multilateral development institutions in the long run.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1630161
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1630161
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1630161
Template-Type: ReDIF-Article 1.0
Author-Name: Tough Chinoda
Author-X-Name-First: Tough
Author-X-Name-Last: Chinoda
Author-Name: Farai Kwenda
Author-X-Name-First: Farai
Author-X-Name-Last: Kwenda
Title: Do mobile phones, economic growth, bank competition and stability matter for financial inclusion in Africa?
Abstract:
The lower levels of financial inclusion and severe financial inclusion gaps in Africa motivates the investigation of whether mobile phones, economic growth, bank competition and stability matter for financial inclusion. Data from 49 countries for the periods 2004–2016 were collected and analysed using a five-variable panel structural vector autoregressive model. There was evidence to show that financial inclusion responds positively and significantly to shocks in bank competition, economic growth, mobile phones and bank stability. However, the results reveal that all the variables respond to one standard deviation shock in financial inclusion, suggesting that while the variables matter for financial inclusion, they also require financial inclusion for their effective operation. Hence, the conclusion is that financial inclusion plays a central in the effective running of economies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1622180
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1622180
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1622180
Template-Type: ReDIF-Article 1.0
Author-Name: Matthew W. Burkett
Author-X-Name-First: Matthew W.
Author-X-Name-Last: Burkett
Author-Name: William T. Scherer
Author-X-Name-First: William T.
Author-X-Name-Last: Scherer
Author-Name: Andrew Todd
Author-X-Name-First: Andrew
Author-X-Name-Last: Todd
Title: Are financial market states recurrent and persistent?
Abstract:
Market participants often invoke the concept of discrete state when discussing financial markets. Bull market, bear market, depression, and recession are all terms that map to discrete market states. Mental models of how markets behave in each state and transition between states are then applied to decision-making. Implicit to that approach is the assumption that states are persistent and recurrent over time. This article seeks to formalize notions of discrete market states by proposing a parsimonious and innovative approach to segmenting periods of time into discrete states. The technique is demonstrated and evaluated in a series of case studies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1622171
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1622171
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1622171
Template-Type: ReDIF-Article 1.0
Author-Name: Saeid Tajdini
Author-X-Name-First: Saeid
Author-X-Name-Last: Tajdini
Author-Name: Mohsen Mehrara
Author-X-Name-First: Mohsen
Author-X-Name-Last: Mehrara
Author-Name: Reza Tehrani
Author-X-Name-First: Reza
Author-X-Name-Last: Tehrani
Title: Double-sided balanced conditional Sharpe ratio
Abstract:
The purpose of this study was to investigate the behavior of various indices of Tehran Stock Exchange firstly in the boom period from 2018-03-21 to 2018-11-02 and secondly in the recession period from 2016-03-20 to 2016-12-20 using double-sided balanced conditional Sharpe ratio. The results of this study showed the best performance for the insurance index with a double-sided balanced conditional Sharpe ratio of 0.123 and later for the metallic minerals index with a measure of 0.1215. Moreover, on the basis of the double-sided balanced conditional Sharpe ratio, the food except for sugar index with a measure of 0.035 showed the worst performance.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1630931
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1630931
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1630931
Template-Type: ReDIF-Article 1.0
Author-Name: Dominic Tasila Konja
Author-X-Name-First: Dominic
Author-X-Name-Last: Tasila Konja
Author-Name: Franklin N. Mabe
Author-X-Name-First: Franklin N.
Author-X-Name-Last: Mabe
Author-Name: Richard Oteng-Frimpong
Author-X-Name-First: Richard
Author-X-Name-Last: Oteng-Frimpong
Title: Profitability and profit efficiency of certified groundnut seed and conventional groundnut production in Northern Ghana: A comparative analysis
Abstract:
This study seeks to compare profitability and profit efficiency of certified groundnut seed (CGS) and conventional groundnut (CG) production in Northern Ghana using cross-sectional data. The two-step stochastic metafrontier profit model was used to estimate profit efficiencies and their determining factors for CGS and CG producers. The study found that CGS production is more profitable and profit efficient than CG production. Whilst profit efficiency of CGS is influenced by age, education, extension visits, Farmer-Based Organisation meetings, and farming experience, profit efficiency of CG producers is influenced by educational status, access to extension, and access to mobile phone. To increase profit and profit efficiency, the capacity of CGS producers should be built to incentivise them to upscale CGS production so as to bridge the demand deficit in the country. Also, farmers should be trained to enter into CGS production.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1631525
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1631525
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1631525
Template-Type: ReDIF-Article 1.0
Author-Name: Barnabas Olusegun Obasaju
Author-X-Name-First: Barnabas Olusegun
Author-X-Name-Last: Obasaju
Author-Name: Wumi Kolawole Olayiwola
Author-X-Name-First: Wumi Kolawole
Author-X-Name-Last: Olayiwola
Author-Name: Henry Okodua
Author-X-Name-First: Henry
Author-X-Name-Last: Okodua
Author-Name: Oluwasegun Eseyin
Author-X-Name-First: Oluwasegun
Author-X-Name-Last: Eseyin
Author-Name: Ayodele Victor Ahmed
Author-X-Name-First: Ayodele Victor
Author-X-Name-Last: Ahmed
Title: Intermediate tariffs and intraregional intermediate exports: Implications for regional value chains in ECOWAS
Abstract:
This paper primarily aims at analysing the impact of (intermediate) tariffs on intraregional intermediate exports between 2000 and 2015 with the aim of predicting the likely implications this has for regional value chains within the Economic Community of West African States (ECOWAS). As a secondary objective, the paper investigates whether corresponding effectively applied tariffs significantly affect other classification of exports—all products, raw products and consumer products. Paying attention to the Heckman Two-step technique, we find that tariffs on intermediate products do not significantly drive intermediate exports, inter alia. And as garnered from the auxiliary regression, generally, tariffs are not sufficiently low as to bolster intraregional exports in ECOWAS. The statistical insignificance of intermediate tariffs implicates that the prevailing effectively applied tariff levels is not likely to augur well for formation and strengthening of new and existing value chains in ECOWAS. The need for this regional economic community to consider reviewing tariffs downwards is exigent for both the success of value chains and regional trade integration in general.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1622179
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1622179
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1622179
Template-Type: ReDIF-Article 1.0
Author-Name: Araya Mebrahtu Teka
Author-X-Name-First: Araya Mebrahtu
Author-X-Name-Last: Teka
Author-Name: Sung-Kyu Lee
Author-X-Name-First: Sung-Kyu
Author-X-Name-Last: Lee
Title: The impact of agricultural package programs on farm productivity in Tigray-Ethiopia: Panel data estimation
Abstract:
Ethiopian government has introduced various agricultural package programs in promoting agricultural productivity of the smallholder farmers. The paper attempts to explore the status and determinants of agricultural productivity and estimate the impact of integrated agricultural package programs on farm productivity by using extensive panel data in the Eastern zone of Tigray in Ethiopia. Thus far, there have been no researches attempted to analyze the impact of the integrated agricultural package programs introduced to the farmers on various outcome variables in Tigray region in Ethiopia by using panel data. In doing so, we used two estimation methods: (i) the fixed effect (FE) estimation model to empirically evaluate the impact of household-based agricultural package programs on farm productivity in Tigray region, and (ii) the propensity score matching (PSM) method to estimate the average treatment effect on the treated (ATT). Our econometric estimates show the following two practical results. Firstly, household-based agricultural package programs have a positive and statistically significant impact on farm productivity in the Eastern zone of Tigray. This implies that the agricultural household package participant households have higher productivity than the non-beneficiaries. Secondly, the PSM estimation result ensures that the ATT is positive and statistically significant for the package participant smallholder farmers. In the end, these outcomes provide governments with some useful guides to promote farm productivity in Tigray, Ethiopia.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1631987
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1631987
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1631987
Template-Type: ReDIF-Article 1.0
Author-Name: Feng Li
Author-X-Name-First: Feng
Author-X-Name-Last: Li
Author-Name: Zhuojing He
Author-X-Name-First: Zhuojing
Author-X-Name-Last: He
Title: Credit risk clustering in a business group: Which matters more, systematic or idiosyncratic risk?
Abstract:
Understanding how defaults correlate across firms is a persistent concern in risk management. In this paper, we apply covariate-dependent copula models to assess the dynamic nature of credit risk dependence, which we define as “credit risk clustering”. We also study the driving forces of the credit risk clustering in CEC business group in China. Our empirical analysis shows that the credit risk clustering varies over time and exhibits different patterns across firm pairs in a business group. We also investigate the impacts of systematic and idiosyncratic factors on credit risk clustering. We find that the impacts of the money supply and the short-term interest rates are positive, whereas the impacts of exchange rates are negative. The roles of the CPI on credit risk clustering are ambiguous. Idiosyncratic factors are vital for predicting credit risk clustering. From a policy perspective, our results not only strengthen the results of previous research but also provide a possible approach to model and predict the extreme co-movement of credit risk in business groups with financial indicators.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1632528
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1632528
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1632528
Template-Type: ReDIF-Article 1.0
Author-Name: Wajdi Bardi
Author-X-Name-First: Wajdi
Author-X-Name-Last: Bardi
Author-Name: Saif Eddine Ayouni
Author-X-Name-First: Saif Eddine
Author-X-Name-Last: Ayouni
Author-Name: Mekki Hamdaoui
Author-X-Name-First: Mekki
Author-X-Name-Last: Hamdaoui
Title: Are structural policies in countries bordering mediterranean appropriate to economic convergence: Panel ARDL application
Abstract:
Our main contribution in this paper consists of analyzing long-run interactions between structural policies and economic growth accounting for possible convergence. For this purpose, we are based on a sample of eight countries bordering the Mediterranean during the period 1975–2012. In fact, we used a technique based on panel ARDL methods which deals with the stationary series problem of different orders to monitor possible convergence in the long-run horizon. This method allows us to study potential long-term effects of structural economic policies on growth as well as capture the possible links between candidate variables and the trend of convergence in terms of per capita GDP. Our empirical results support convergence processes of GDP per capita in all the bordering Mediterranean countries. Moreover, we find that the increased number of secondary schools enrollment through public expenditure on education, greater economic openness, and fluid foreign direct investments stimulates economic growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1636496
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1636496
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1636496
Template-Type: ReDIF-Article 1.0
Author-Name: Sheunesu Zhou
Author-X-Name-First: Sheunesu
Author-X-Name-Last: Zhou
Author-Name: D. D. Tewari
Author-X-Name-First: D. D.
Author-X-Name-Last: Tewari
Title: Shadow banking, risk-taking and monetary policy in emerging economies: A panel cointegration approach
Abstract:
This study investigates the nexus between shadow banking, bank risk and monetary policy in emerging economies. The importance of this topic arises from its impact on the relationship between price and financial stability objectives of the regulator. In essence, the existence of financial market channels of monetary policy distorts the dichotomy between price and financial stability objectives of central banks. We employ panel cointegration techniques and find a negative association between monetary policy and shadow banking. Specifically, an increase in the central bank policy rate results in a decrease in shadow bank asset growth. In addition, we find a positive association between shadow banking and bank risk. Monetary policy effectiveness increases when bank risk is high. In sum, our results show that shadow banks are an element of the bank risk-taking channel of monetary policy. We suggest policy coordination between monetary and macro-prudential policy, and close monitoring of shadow banking activities to reduce risky undertakings in the financial sector.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1636508
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1636508
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1636508
Template-Type: ReDIF-Article 1.0
Author-Name: Thi Kieu Hoa Phan
Author-X-Name-First: Thi Kieu Hoa
Author-X-Name-Last: Phan
Author-Name: Nam Hoai Tran
Author-X-Name-First: Nam Hoai
Author-X-Name-Last: Tran
Title: Dividend policy and stock price volatility in an emerging market: Does ownership structure matter?
Abstract:
This paper examines the impacts of dividend policy and ownership structure on stock price volatility in the Vietnamese market. The study also tests for the moderating effect of foreign/state ownership on the dividend policy–price volatility relation. The authors use a comprehensive panel dataset of non-financial firms listed publicly on the Ho Chi Minh Stock Exchange and Hanoi Stock Exchange over the period from 2008 to 2015. Employing a set of different econometric methods, the robust results indicate that dividend yield mitigates stock price volatility in the emerging market of Vietnam. The price-stabilising effect of foreign (and state) involvement has no longer been significant after the global financial crisis. Also, the study finds no moderating effect of ownership structure on the relation between dividend yield and price volatility during the sample period. The finding of the influence of dividend policy on stock market risk has critical implications for the investment landscape in emerging markets.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1637051
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1637051
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1637051
Template-Type: ReDIF-Article 1.0
Author-Name: Smitha Nair
Author-X-Name-First: Smitha
Author-X-Name-Last: Nair
Author-Name: V Gopikumar
Author-X-Name-First: V
Author-X-Name-Last: Gopikumar
Author-Name: Anjaly Ajith
Author-X-Name-First: Anjaly
Author-X-Name-Last: Ajith
Author-Name: Raja Sreedharan V
Author-X-Name-First: Raja
Author-X-Name-Last: Sreedharan V
Title: Exploring bequest intentions of Indian households
Abstract:
This paper examines the bequest motives of Indian households in a context of changing demographic factors such as ageing and economic shocks such as the financial crisis of 2009, and demonetization in the year 2016. We employ a standardized questionnaire, and collect data from a random sample of 220 participants. The results indicate that self- interest has a negative association and social norms is positively associated with the intention to bequest. Further, altruism, religiosity and social norms negatively amplifies the relationship between self-interest and intention to bequest.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1637592
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1637592
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1637592
Template-Type: ReDIF-Article 1.0
Author-Name: Tuan Anh Nguyen
Author-X-Name-First: Tuan Anh
Author-X-Name-Last: Nguyen
Author-Name: Tuyen Quang Tran
Author-X-Name-First: Tuyen Quang
Author-X-Name-Last: Tran
Author-Name: Huong Vu Van
Author-X-Name-First: Huong Vu
Author-X-Name-Last: Van
Author-Name: Dat Quoc Luu
Author-X-Name-First: Dat Quoc
Author-X-Name-Last: Luu
Title: Access to homebuyer credit and housing satisfaction among households buying affordable apartments in urban Vietnam
Abstract:
This study examines the relationship between the access to homebuyer credits and housing satisfaction among those buying affordable apartments, using a sample of 1,000 respondents from our own survey in 2016 in Hanoi, Da Nang and Ho Chi Minh Cities. Our regression analysis reveals the education level, the size and value of apartments are closely linked with the access to preferential homebuyer credits. Notably, we find that the access to preferential home loans has a strongly positive impact on housing satisfaction, after controlling for all other factors in the model. Thus, the finding confirms that preferential home loan programs play an important role in helping low-income households own affordable apartments and increase their housing satisfation. We also find that some other features of their apartments, such as the number of bathrooms and balconies, the distance from the apartment building to schools, bus stations and markets, are strongly linked with housing satisfaction.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1638112
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1638112
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1638112
Template-Type: ReDIF-Article 1.0
Author-Name: Ritab Al-Khouri
Author-X-Name-First: Ritab
Author-X-Name-Last: Al-Khouri
Author-Name: Houda Arouri
Author-X-Name-First: Houda
Author-X-Name-Last: Arouri
Title: Market power and the role of banks as liquidity providers in GCC markets
Abstract:
Purpose: The study aims to discuss the role of market power and the banks as a liquidity provider, specifically in the twenty-first century.Design: The empirical investigation has evaluated the effects of market power on the ability of GCC banks to provide and transform liquidity.Findings: The banks conveniently perform two significant functions as the financial institution; therefore, they are known to play the role of risk transformers. They have been recognized as the important entities of liquidity creators and providers. The increase in market power increases the ability of GCC banks to create liquidity. There is a negative association between Inflation, growth in GDP, and ability of bank to produce liquidity.Conclusion: The financing impediments are reinforced due to increased competition among different banks. The demand of loans is likely to increase, when the investors possess valuable investment projects during expansion. The study recommends that the future research must involve off-balance-sheet items in the investigation for further clarification.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1639878
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1639878
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1639878
Template-Type: ReDIF-Article 1.0
Author-Name: Somlanare Romuald Kinda
Author-X-Name-First: Somlanare Romuald
Author-X-Name-Last: Kinda
Author-Name: Felix Badolo
Author-X-Name-First: Felix
Author-X-Name-Last: Badolo
Title: Does rainfall variability matter for food security in developing countries ?
Abstract:
This paper contributes to the existing literature on rainfall variability and food security. It analyses the effect of rainfall variability on food security for 71 developing countries from 1960 to 2016. Results suggest that rainfall variability reduces food security in developing countries. Indeed, it reduces food availability per capita and increases the percentage of total undernourished population. Moreover, the negative effects of rainfall variability are exacerbated in the presence of civil conflicts and are high for the countries that are vulnerable to food price shocks.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1640098
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1640098
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1640098
Template-Type: ReDIF-Article 1.0
Author-Name: Randy Beavers
Author-X-Name-First: Randy
Author-X-Name-Last: Beavers
Title: CEO Compensation in IPOs
Abstract:
Research Question/Issue: Does inside debt compensation affect previous thought on compensation effects in IPOs? What explains variation in compensation when a company goes public? What is the composition of CEO compensation in an IPO? What types of compensation may be more optimal for or are associated with future financial success for the firm?Research Findings/Insights: Using a sample of 852 IPOs in the United States from 2006 until 2014, we find only one-third of firms have or reported having compensation broken down further into categories of pensions, retirement plans, and deferred compensation. These types of compensation are associated with higher financial success through profitability and asset management. Option compensation remains detrimental to a firm’s financial success through lower profitability and worse asset management.Theoretical/Academic Implications: A theoretical compensation model provides and empirically explains 79% of the variation in compensation in IPOs in the first year of the public firm. In addition, this study finds the majority of firms are still inaccurately reporting deferred compensation, at least in the Summary Compensation Table. Future research could look to see why this is the case.Practitioner/Policy Implications: Further investigation and potential litigation by the SEC may be necessary in the future to force firms to place information appropriately in the summary compensation table, especially concerning pension plans, retirement accounts, and other deferred compensation. In addition, individuals on compensation committees may consider giving the CEO more long-term compensation through stock and pensions instead of options.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1640099
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1640099
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1640099
Template-Type: ReDIF-Article 1.0
Author-Name: Dayne Cary
Author-X-Name-First: Dayne
Author-X-Name-Last: Cary
Author-Name: Gary van Vuuren
Author-X-Name-First: Gary
Author-X-Name-Last: van Vuuren
Title: Replicating the CBOE VIX using a synthetic volatility index trading algorithm
Abstract:
This article tests whether a correlation exists between a stochastic synthetic volatility index (SVIX) and the Chicago Board Options Exchange (CBOE) volatility index (VIX) and assesses the success of the indicators’ application by pairing an undeveloped trading strategy to gauge its forecasting accuracy. The SVIX aims to address the scaling limitations of the CBOE VIX. The SVIX allows traders to graph volatility as a 100% scale on securities that do not have an official CBOE VIX ticker symbol. The SVIX shows high correlation with the CBOE VIX. Backtesting indicators with an investment strategy using US stocks proved successful. The winning percentage of trades and net profit are positive only for long strategies and fail in short strategies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1641063
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1641063
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1641063
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Correction
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1641683
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1641683
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1641683
Template-Type: ReDIF-Article 1.0
Author-Name: Catherine Mwema
Author-X-Name-First: Catherine
Author-X-Name-Last: Mwema
Author-Name: Wibke Crewett
Author-X-Name-First: Wibke
Author-X-Name-Last: Crewett
Title: Social Networks and Commercialisation of African Indigenous Vegetables in Kenya: A Cragg’s Double Hurdle Approach
Abstract:
This paper employs a two-stage Cragg’s double-hurdle model to assess the effects of market information networks on commercialisation decisions of smallholders of African Indigenous Vegetables (AIVs). We explore sources of market information and social networks for information exchange as determinants of the decision to sell and how much volume to sell. The paper is based on household survey data collected in Western Kenya from 202 farmers, using multistage sampling. Findings show market information networks to have positive effects on the second stage decision of volumes sold. Bridging social capital depicted by information received from people outside farmers’ own village had the likelihood of increasing volumes of AIVs sold. Other determinants of commercialisation were farm size and household size which reported positive marginal effects while age, livestock units and off-farm income reported negative marginal effects. We recommend the need to have policy frameworks that strengthen network linkages for farmers aimed at promoting market information exchange, as this will have a positive effect in the commercialisation of indigenous crops.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1642173
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1642173
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1642173
Template-Type: ReDIF-Article 1.0
Author-Name: Sudheer Reddy
Author-X-Name-First: Sudheer
Author-X-Name-Last: Reddy
Author-Name: Aditya Mohan Jadhav
Author-X-Name-First: Aditya Mohan
Author-X-Name-Last: Jadhav
Title: Gender diversity in boardrooms – A literature review
Abstract:
This paper examines the advancement of literature on gender diversity on corporate boards (board gender diversity). We discuss important management theories cited in the literature and examine the factors that affect board gender diversity. We present evidence from developed and emerging markets based on a review of studies to show how board gender diversity impacts a firm performance. We also review growing literature on the gender quota legislation that mandates the appointment of female director(s) on corporate boards. Research on board gender diversity reveals director characteristics, firm size, board size, board diversity, industry, type of ownership, customer base, and social and cultural characteristics as the factors that influence representation of female directors on corporate boards. Studies on the impact of board gender diversity on firm performance present inconclusive results. In a similar vein, studies on the impact of gender quota legislation on firm performance also present mixed results. Our study contributes to the growing literature on board gender diversity and provides a further understanding of factors that influence gender diversity on corporate boards. It also offers insights to regulators on potential limitations and the benefits of gender quota legislation.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1644703
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1644703
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1644703
Template-Type: ReDIF-Article 1.0
Author-Name: Beneberu A. Wondimagegnhu
Author-X-Name-First: Beneberu A.
Author-X-Name-Last: Wondimagegnhu
Author-Name: Admassu T. Huluka
Author-X-Name-First: Admassu T.
Author-X-Name-Last: Huluka
Author-Name: Sarah M. Nischalke
Author-X-Name-First: Sarah M.
Author-X-Name-Last: Nischalke
Title: Determinants of farm livelihoods of smallholder farmers in Yayu biosphere reserve, SW Ethiopia: a gender disaggregated analysis
Abstract:
Improving food security has remained to be one of the major challenges in Sub-Saharan Africa, where Ethiopia is not an exception. As a result of poor productivity of the farming sector, smallholder farmers in Ethiopia have been strained to have a precarious livelihood. This study aims at analyzing the determinants of farm livelihood of smallholder farmers particularly in the context of Yayu biosphere reserve, where farmers are legally prohibited from expanding farmland and wild animals often intrude into the farmers’ field. A household survey was conducted to collect gender disaggregated data from 334 smallholder farmers supported by focus group discussions and key informant interviews. T-test mean comparison was made to compare socio-economic and household characteristics between male and female-headed households. Tobit regression analysis was also employed to capture the probability and extent of determinant variables in predicting the engagement of households in farm livelihoods. The result shows that augmented production factors, particularly farm physical capital and land along with access to credit, yield enhancing inputs and local labor support systems were found to significantly increase the intensity of engagement in farming both in male and female-headed households. Encroachment of wild animals to the farmers’ field brought insignificant effects on farm livelihoods. However, it brought additional burdens on farmers as they are expected to patrol their fields regularly. The findings implied that farm livelihood is highly dependent on ownership and efficient use of scarce production factors. These call for sustainable and integrated approaches to improve the future productivity of smallholder agriculture in Ethiopia.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1645583
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1645583
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1645583
Template-Type: ReDIF-Article 1.0
Author-Name: Niaz Kammoun
Author-X-Name-First: Niaz
Author-X-Name-Last: Kammoun
Author-Name: Ahmed Bounfour
Author-X-Name-First: Ahmed
Author-X-Name-Last: Bounfour
Author-Name: Altay Özaygen
Author-X-Name-First: Altay
Author-X-Name-Last: Özaygen
Author-Name: Rokhaya Dieye
Author-X-Name-First: Rokhaya
Author-X-Name-Last: Dieye
Title: Financial market reaction to cyberattacks
Abstract:
Drawing upon an extensive dataset comprising 3,680 cyberattacks on firms listed in 5 stock markets, our main objective is to ascertain the financial market reaction based on a hybrid valuation inspired by the event study methodology and a counterfactual analysis. Analyses concern three dates that are specific to cyberattacks: 1) the accident date; 2) the first notice date; and 3) the original loss start date. Results indicate that there is a negative abnormal return for the NASDAQ after the accident date. The reactions of the NASDAQ and NYSE are similar, and negative for the first notice date but positive after the original loss start date. In the European context, cumulative abnormal returns are negative for French and German companies after the first notice date.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1645584
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1645584
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1645584
Template-Type: ReDIF-Article 1.0
Author-Name: Vinod Madhavan
Author-X-Name-First: Vinod
Author-X-Name-Last: Madhavan
Author-Name: Simon George
Author-X-Name-First: Simon
Author-X-Name-Last: George
Author-Name: Gururaj Kidiyoor
Author-X-Name-First: Gururaj
Author-X-Name-Last: Kidiyoor
Title: Perceived intrusiveness of rich media ads in online advertising: Evidences from young Indian travellers
Abstract:
This paper examines the interrelated effects of perceived ad intrusiveness of rich media ads in online advertisements with respect to attitudes towards brands, online advertisement and the publisher’s website on young Indian travellers. Despite the widespread use of the term in marketing literature, ad intrusiveness has received almost no attention in the destination marketing literature especially in the context of rich media ads. Data have been collected from 304 young Indian travellers using a structured questionnaire in an experimental design setting. Results indicate that perceived ad intrusiveness has direct and negative relationship on attitude towards brand, online advertisement and the publisher’s website. Results suggest strategies that advertisers may adopt to minimize the negative influence of intrusiveness in case of direct response when compared to branding objectives. Various theoretical and managerial implications are discussed with directions for future research.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1645631
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1645631
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1645631
Template-Type: ReDIF-Article 1.0
Author-Name: Xuan Hoa Ao
Author-X-Name-First: Xuan Hoa
Author-X-Name-Last: Ao
Author-Name: Trinh Vuong Vu
Author-X-Name-First: Trinh Vuong
Author-X-Name-Last: Vu
Author-Name: Khac Dong Le
Author-X-Name-First: Khac Dong
Author-X-Name-Last: Le
Author-Name: Sopin Jirakiattikul
Author-X-Name-First: Sopin
Author-X-Name-Last: Jirakiattikul
Author-Name: Kuaanan Techato
Author-X-Name-First: Kuaanan
Author-X-Name-Last: Techato
Title: An analysis of the smallholder farmers’ cassava (Manihot esculenta Crantz) value chain through a gender perspective: the case of Dak Lak province, Vietnam
Abstract:
Many rural women, who are faced with the challenges of low rural incomes and gender inequality, improve their role in the farming system based on participation in the agricultural value chain thus enhancing agricultural productivity, household income and sustainable development. This study investigates the factors which affect participation in the production of cassava in Dak Lak Province and decisions in relation to the cassava value chain from a gender perspective. Data were obtained through a questionnaire-based survey of 300 household farmers, in-depth interviews with key informants, and focus group discussions. Probit and ordinary least squares regression models in a two-stage Heckman model were adopted to determine the factors affecting females’ decisions to participate in cassava cultivation, their level of participation and their participation in other stages of the cassava value chain. The survey results show that men are prominent in all stages of cassava production but there is a more equal gender dynamic in both cassava production participation decisions and decisions relating to the quantity of cassava to be supplied for commercial purposes. This article draws attention to the continuing role challenges of female smallholder farmers, but also shows how women’s empowerment is contingent on equity dynamics in the household as well as social norms in the community and wider society.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1645632
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1645632
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1645632
Template-Type: ReDIF-Article 1.0
Author-Name: Omolade Adeleke
Author-X-Name-First: Omolade
Author-X-Name-Last: Adeleke
Author-Name: Mbonigaba Josue
Author-X-Name-First: Mbonigaba
Author-X-Name-Last: Josue
Title: Poverty and green economy in South Africa: What is the nexus?
Abstract:
The study investigates the relationship between the green economy and poverty in South Africa from 1990 to 2017. Data on green economy indicators such as share of clean energy, CO2 emissions, human development index, secondary school enrolment, life expectancy at birth and access to electricity are extracted from United Nations Development Programme database, while data on per capita income and percentage of population living below the poverty line, which is used as the dependent variable, are collected from Statistics South Africa. Based on the statistical properties of the data, the Auto-Regressive Distributed Lags approach is used to analyse the short- and long-run influences of the green economy on poverty reduction in South Africa. The results show that the green economy has more of significant long-run impact than short run. It also shows that share of clean energy, CO2 emissions, human development index, secondary school enrolment, life expectancy at birth and access to electricity are the most important green economy indicators that have a significant impact on poverty reduction, while levels of income appear to have a weak impact. As a result, efforts should be more focused on improving the indicators of the green economy and sustainable development in South Africa if the increasing poverty level in the country is to be restrained.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1646847
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1646847
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1646847
Template-Type: ReDIF-Article 1.0
Author-Name: Shreyansh Goyal
Author-X-Name-First: Shreyansh
Author-X-Name-Last: Goyal
Title: The dividend puzzle misspecification – Why the role of dividends is not what people think
Abstract:
The dividend payout problem in literature has largely been misspecified. The roles of dividends as signals, agency cost reducers, fixed income providers or even the invariance of dividend payouts are all phenomenon that, based on market conditions, follow from the role of dividends as equalizers of firm value, discounted from a given point in time, across firm’s life. In this study, I discuss few problems with prevalent approaches towards solving dividend puzzle in academia, provide justification for the aforementioned hypothesis based on few assumptions, derive a model applicable under ideal conditions and then measure the deviations from the ideal model in two market indices—Nifty 500 (India) and S&P 500 (USA). The results obtained are then compared with the studies already done on these market and the reasons for deviation are discussed. Once the dividend model is derived, all roles of dividend flow automatically from the primary role of dividends and the extent of efficacy of each of the secondary role is based on numerous factors which vary, giving different results across different studies. The empirical investigation gives a view of these different factors at work in the markets.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1649000
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1649000
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1649000
Template-Type: ReDIF-Article 1.0
Author-Name: Tahmina Akhter
Author-X-Name-First: Tahmina
Author-X-Name-Last: Akhter
Author-Name: Othman Yong
Author-X-Name-First: Othman
Author-X-Name-Last: Yong
Title: Adaptive market hypothesis and momentum effect: Evidence from Dhaka Stock Exchange
Abstract:
This paper examines time-varying behavior of momentum and contrarian profits to identify the existence of adaptive market hypothesis (AMH), and whether AMH can provide justification for the presence of such anomalous behavior in the Dhaka Stock Exchange (DSE) of Bangladesh. To investigate the time-varying pattern of momentum/contrarian anomaly, the study uses stock prices of all listed companies on the DSE and values of DSE general index from January 1995 to December 2018. To construct the relative strength portfolios for momentum strategies, the current study employs the portfolio formation methods of Jegadeesh and Titman with minor modifications. The study findings suggest the existence of medium-term momentum profits and the long-term reversal effect that vary over time. Moreover, the empirical evidence of the study shows that the changed market conditions that are considered as the main reasons under AMH for time-varying behavior of market efficiency and by extension the stock market anomalies influence the momentum profits. The findings suggest that although market risk cannot always explain the existence of momentum profits in the DSE, the bullish stock market condition positively impacts this anomalous profit pattern. In addition, the momentum profits are not statistically significant during stock market crashes and bubbles, but the normal market condition positively influences the momentum profits. The most interesting finding of this study is that the investors from emerging stock markets may not adapt towards changed market conditions like the investors from the developed markets as reported in the AMH literature.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1650441
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1650441
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1650441
Template-Type: ReDIF-Article 1.0
Author-Name: Esmaeil Akhlaghi Yazdinejad
Author-X-Name-First: Esmaeil Akhlaghi
Author-X-Name-Last: Yazdinejad
Author-Name: Hossein Jokar
Author-X-Name-First: Hossein
Author-X-Name-Last: Jokar
Title: Discovering determinants of trade credit demand: Evidence from top managers insight
Abstract:
In resources consumption management, determining the volume of trade credit demand (TCD) is the main concern for financial managers. Despite the importance of TCD, it is not well explored in developing countries. Therefore, this paper investigates the internal and external factors affecting the amount of TCD. Qualitative research method and questionnaire were used to collect opinions of top managers about the factors determining the volume of TCD. SPSS and AMOS statistical tools were used to analyze the quantitative data collected from the questionnaire. Based on the results, internal factors such as available collaterals, inventory turnover, reorder point, and payable payment period affect the volume of TCD. Furthermore, external factors such as banks availability, customer monopoly, and living in metropolitans affect the volume of TCD.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1650611
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1650611
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1650611
Template-Type: ReDIF-Article 1.0
Author-Name: Aboubakar Mirza
Author-X-Name-First: Aboubakar
Author-X-Name-Last: Mirza
Author-Name: Mazrah Malek
Author-X-Name-First: Mazrah
Author-X-Name-Last: Malek
Author-Name: Mohamad Ali Abdul-Hamid
Author-X-Name-First: Mohamad Ali
Author-X-Name-Last: Abdul-Hamid
Title: Value relevance of financial reporting: Evidence from Malaysia
Abstract:
The objective of this paper is to examine the value relevance of financial reporting from a developing country perspective after the adoption of the full set of IFRS. The study utilizes the Ohlson price model to determine the value relevance of financial reporting. The findings show that generally earnings, book value of equity and cash flow from operations are useful for investment decision making, whereas, there is an increasing significance of cash flow from operations in the Malaysian Capital Market. This finding is not consistent with the rationale given by conceptual framework for financial reporting regarding the dominance of earnings in investment decision making due to the perception of managerial bias in the reported earnings and book value of equity in the Malaysian Capital Market over the period 2012–2106. The findings have an important implication for regulators and local standards-setting body to curtail earnings management practices to improve the quality of earnings and book value of equity to increase the investor’s confidence in general purpose financial reporting. The findings of the study contribute to the existing literature by performing a detailed empirical analysis of the value relevance of financial reporting in Malaysia, a developing country where the full set of IFRS has been implemented.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1651623
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1651623
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1651623
Template-Type: ReDIF-Article 1.0
Author-Name: Nandan Prabhu K.P.
Author-X-Name-First: Nandan
Author-X-Name-Last: Prabhu K.P.
Author-Name: Rashmi Y Pai
Author-X-Name-First: Rashmi Y
Author-X-Name-Last: Pai
Author-Name: Abhishek S Rao K. P.
Author-X-Name-First: Abhishek S
Author-X-Name-Last: Rao K. P.
Title: Underlying assumptions in team effectiveness research: An application of problematization methodology
Abstract:
This paper examines current assumptions underlying the team effectiveness literature so as to propose alternative assumptions. Problematization methodology was used to problematize the existing assumptions. Integral Framework was applied to categorize constructs of team effectiveness literature. Alternative assumptions were proposed along with a discussion on their theory generation potential and the potential audience to whom these assumptions would be of benefit. Results of the application of problematization methodology and integral framework have problematized the three current assumptions, i.e.“experienced meaningfulness”, “outside-in” view of team processes, and the impact of “structure on behavior” of team members. Alternative assumptions of “felt meaningfulness”, inside-out’ view of team processes, and the impact of “culture of leadership on behavior” of team members have resulted in relevant research propositions. Limitations and directions for future research are discussed along with theoretical and managerial implications.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1658418
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1658418
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1658418
Template-Type: ReDIF-Article 1.0
Author-Name: George Tweneboah
Author-X-Name-First: George
Author-X-Name-Last: Tweneboah
Author-Name: John Garchie Gatsi
Author-X-Name-First: John Garchie
Author-X-Name-Last: Gatsi
Author-Name: Michael Effah Asamoah
Author-X-Name-First: Michael Effah
Author-X-Name-Last: Asamoah
Title: Financial development and dollarization in Ghana: an empirical investigation
Abstract:
This study strengthens the frontiers of research on the drivers of dollarization in emerging economies by exploring the case of Ghana using the autoregressive distributed lag modelling framework. The data for the study spanned from January 2002 to March 2016. The evidence suggests that dollarization shares a common stochastic trend with exchange rates, inflation, interest rate differential, real output, and financial development. The analysis points to the important roles of exchange rate depreciation and financial development in the evolution of dollarization. Whereas depreciation induces a switch to the use of foreign currency, financial development diminishes the trend. Some policy recommendations to curtail the rising dollarization of the Ghanaian economy have been provided.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1663699
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1663699
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1663699
Template-Type: ReDIF-Article 1.0
Author-Name: Josephat Lotto
Author-X-Name-First: Josephat
Author-X-Name-Last: Lotto
Title: Evaluation of factors influencing bank operating efficiency in Tanzanian banking sector
Abstract:
This paper examines factors affecting operating efficiency of 36 commercial banks in Tanzania for the period between 2000 and 2017. The paper employs robust random-effect regression model to estimate the relationship between bank operating efficiency and its determinants. The results show that bank liquidity and capital adequacy have a positive relationship with bank operating efficiency. This suggests that capital adequacy and liquidity, not only strengthen financial stability by providing a larger capital cushion and bank required liquidity level, but also improve bank operating efficiency by lowering moral hazard between shareholders and debt-holders. Furthermore, the study shows that bank profitability and operating efficiency are directly related—implying that banks should put emphasis on improving their earning generating power to increase their operational efficiency. This paper suggests banks to increase their profitability by investing more on financial innovations and branch networks, and expand their market shares to boost their operational efficiency. Further, the paper argues that banks should optimally use their asset capacity to enhance their earnings profiles. At the same time, banks should avoid reckless lending that would increase the level of unsecured credits in banks’ portfolio. Finally, the results encourage banks in Tanzania to monitor and evaluate these factors for improvement to enable the sustainability of banks and industry for economic growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1664192
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1664192
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1664192
Template-Type: ReDIF-Article 1.0
Author-Name: Sudipa Roy
Author-X-Name-First: Sudipa
Author-X-Name-Last: Roy
Author-Name: Arun Kr Misra
Author-X-Name-First: Arun Kr
Author-X-Name-Last: Misra
Author-Name: Purna Chandra Padhan
Author-X-Name-First: Purna Chandra
Author-X-Name-Last: Padhan
Author-Name: Molla Ramizur Rahman
Author-X-Name-First: Molla Ramizur
Author-X-Name-Last: Rahman
Title: Interrelationship among Liquidity, Regulatory Capital and Profitability- A Study on Indian Banks
Abstract:
Liquidity is the ability of a bank to fund assets and meet obligations, as they become due, at reasonable costs. Technological and financial innovations have impacted the management of liquidity in banks. Declining ability to rely on core deposits, increased reliance on capital markets and recent turmoil in financial markets have created new challenges for banks in managing liquidity. The current study has discussed theories, indicators, factors influencing bank liquidity, and its implications on bank’s capital and profitability. It has empirically analyzed the determinants of liquidity through Arellano-Bond estimates and studied the interrelationship of liquidity, regulatory capital, and profitability through 2-SLS system equations. It has found that bank size, profitability, leverage, net interest margin, CRAR, gross non-performing loans, and Central Bank Policy Rate are the significant determinants of banks’ liquidity. The interactive effects among liquidity, profitability, and regulatory capital convey that banks can be more liquid with less profit, but less risky with more liquidity.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1664845
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1664845
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1664845
Template-Type: ReDIF-Article 1.0
Author-Name: Melain Modeste Senou
Author-X-Name-First: Melain Modeste
Author-X-Name-Last: Senou
Author-Name: Wautabouna Ouattara
Author-X-Name-First: Wautabouna
Author-X-Name-Last: Ouattara
Author-Name: Denis Acclassato Houensou
Author-X-Name-First: Denis
Author-X-Name-Last: Acclassato Houensou
Title: Financial inclusion dynamics in WAEMU: Was digital technology the missing piece?
Abstract:
Like most of International Institutions, the Central Bank of West African States (BCEAO) considers universal access to finance as key to empowering disadvantaged people. Fitting into that context, this study aims to assess the accelerating role of digital technologies using mobile phone penetration and internet usage as broad indicators, on the dynamics of financial inclusion in WAEMU. Using data from the Central Bank of West African States (BCEAO) and the International Telecommunication Union (ITU) over the periods 2006–2017, we estimated first a random effect model and thereafter a system GMM devised by Arrelano-Bover/Bundell-Bond, to correct the endogeneity issue raised from the static model. Findings show that beyond the specific effects of mobile phone penetration and Internet usage, the joint use of these two technologies is very key to financial inclusion in the WAEMU countries. It urges then for policy makers to take steps toward the availability, accessibility, affordability and to design flexible legislation pertaining to mobile financial services providers in order to accelerate financial inclusion in that region.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1665432
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1665432
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1665432
Template-Type: ReDIF-Article 1.0
Author-Name: Gurudutt Nayak
Author-X-Name-First: Gurudutt
Author-X-Name-Last: Nayak
Author-Name: Amol S. Dhaigude
Author-X-Name-First: Amol S.
Author-X-Name-Last: Dhaigude
Title: A conceptual model of sustainable supply chain management in small and medium enterprises using blockchain technology
Abstract:
This paper proposes a conceptual model of sustainable supply chain management (SSCM) in small and medium enterprises (SME) using blockchain technology (BT). With growing focus on sustainable business process, research on SSCM is gaining prominence. BT, being a disruptive technology, has potential to impact the SSCM. Using the extant literature, the antecedents of SSCM using BT have been identified. Multiple-criteria decision-making has been deployed to develop the conceptual model. Various managerial and theoretical implications along with scope for future research have been discussed.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1667184
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1667184
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1667184
Template-Type: ReDIF-Article 1.0
Author-Name: A. Rizkiana
Author-X-Name-First: A.
Author-X-Name-Last: Rizkiana
Author-Name: H. Sari
Author-X-Name-First: H.
Author-X-Name-Last: Sari
Author-Name: P. Hardjomidjojo
Author-X-Name-First: P.
Author-X-Name-Last: Hardjomidjojo
Author-Name: B. Prihartono
Author-X-Name-First: B.
Author-X-Name-Last: Prihartono
Title: The development of composite sentiment index in Indonesia based on the internet-available data
Abstract:
The development of internet technology raises new sentiment measures used to predict stock market return. This raises a new problem because we must choose carefully which sentiment measures to be used to predict stock market return because various correlations and limitations of these different data sources, different sentiment measures, and its general prediction applicability to different domains are unclear. Since there are no perfect and/or uncontroversial proxies for investor sentiment, we will develop a composite sentiment index based on those different sentiment measures using principal component analysis. The investor sentiment measures we use are investor sentiment measured in social media, google search volume, and news media sentiment. We find that each investor sentiment proxies are positively related to sentiment index. We also find that investor sentiment in news media has one-day lag compared to investor sentiment in social media and investor attention in google trend. Lastly, we confirm that investor sentiment cannot be used to predict stock return.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1669399
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1669399
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1669399
Template-Type: ReDIF-Article 1.0
Author-Name: Javed Mahmood
Author-X-Name-First: Javed
Author-X-Name-Last: Mahmood
Author-Name: Irfan Mahmood
Author-X-Name-First: Irfan
Author-X-Name-Last: Mahmood
Title: Comprehensive income disclosure (the case of US companies)
Abstract:
Purpose: The purpose of this paper is to examine alternative reporting formats of comprehensive income (CI) information and measures the extent to which losses are being accumulated in other comprehensive income (OCI) in the specific context of two major FASB updates: Summary of Financial Accounting Standard (SFAS) No. 130 and Accounting Standard Update (ASU) 2011–05. Design/methodology/approach: This paper investigates alternative reporting formats of CI information and its effect on Earnings Per Share (EPS) of 100 top US firms over the 1997–1999 period. The pattern of Other Comprehensive Income (OCI) is then examined using a sub-sample of ten companies with 31 December year ends over the 1995–2014 period. Findings: The results indicate that several firms show OCI items as part of shareholders’ equity. On average, the difference between CI and net income is significant for the majority of firms, fluctuating by up to 15% (in absolute terms) over three-years. The negative effect on EPS is significant. For sub-sample firms, OCI is predominantly negative (i.e., is reported as a loss). Research limitations/implications: The effect of the above findings is that reported earnings generally provide an overly optimistic picture of book values. Conservative book values are shown to be a more sufficient statistic for returns than earnings for investors.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1674587
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1674587
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1674587
Template-Type: ReDIF-Article 1.0
Author-Name: Ebenezer Megbowon
Author-X-Name-First: Ebenezer
Author-X-Name-Last: Megbowon
Author-Name: Courage Mlambo
Author-X-Name-First: Courage
Author-X-Name-Last: Mlambo
Author-Name: Babatunde Adekunle
Author-X-Name-First: Babatunde
Author-X-Name-Last: Adekunle
Title: Impact of china’s outward fdi on sub-saharan africa’s industrialization: Evidence from 26 countries
Abstract:
The growing involvement of China in the African region has continued to stimulate questions on the impact of her involvement in the region. This paper attempt to contribute to this debate and as well pursue a development goal by empirically answering the question that “can China’s FDI in sub-Saharan Africa (SSA) stimulate the sub-region’s industrialization?” Consequently, data used for this study were obtained from China Africa Research Initiative, the World Bank and the Energy Information Administrator (EIA) websites for a sample of 26 economies in the SSA over the period 2003–2016. Panel-Corrected Standard Error (PCSE) was used to achieve the objectives of the study. The PCSE estimate result indicates that China’s FDI in SSA has an insignificant but positive effect on SSA industrialization. Suggesting that China’s FDI is not enough to boost industrialization in SSA. Furthermore, the result shows that the electricity supply in SSA has a significant and positive impact on industrialization in the continent. For SSA to benefit from China FDI significantly, SSA government must prioritize and where necessary modify future agreement to promote or prioritize Chinese investment in sectors with positive linkages with the manufacturing sector and increasing local outsourcing of inputs and intermediate production activities.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1681054
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1681054
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1681054
Template-Type: ReDIF-Article 1.0
Author-Name: Charles O. Manasseh
Author-X-Name-First: Charles O.
Author-X-Name-Last: Manasseh
Author-Name: Ndubuisi O. Chukwu
Author-X-Name-First: Ndubuisi O.
Author-X-Name-Last: Chukwu
Author-Name: Felicia C. Abada
Author-X-Name-First: Felicia C.
Author-X-Name-Last: Abada
Author-Name: Jonathan E. Ogbuabor
Author-X-Name-First: Jonathan E.
Author-X-Name-Last: Ogbuabor
Author-Name: Kenechukwu A. Onyeka
Author-X-Name-First: Kenechukwu A.
Author-X-Name-Last: Onyeka
Author-Name: Okoro E. Okoro
Author-X-Name-First: Okoro E.
Author-X-Name-Last: Okoro
Title: Interactions between stock prices and exchange rates: An application of multivariate VAR-GARCH model
Abstract:
The study examined stock prices (SP) and exchange rate (ER) interactions with multivariate VAR-GARCH model using monthly data from January 2000 to October 2014. The results of the Engle and Granger and Johansen cointegration test show that there is stable long-term relationship between SP and ER. The empirical evidence of the VAR-GARCH model shows a significant mean spillover running from stock market to exchange market but not a mean spillover from exchange market to stock market. The variance equation results indicated the existence of bidirectional volatility transmission effect between SP and ERs, indicating the past innovations in stock market have the great effect on future volatility in foreign exchange market, and vice versa. The results have important implications for international portfolio managers in the portfolio diversification decisions and risk hedging strategies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1681573
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1681573
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1681573
Template-Type: ReDIF-Article 1.0
Author-Name: Arjun Mittal
Author-X-Name-First: Arjun
Author-X-Name-Last: Mittal
Author-Name: Sanjay Sehgal
Author-X-Name-First: Sanjay
Author-X-Name-Last: Sehgal
Author-Name: Anand Mittal
Author-X-Name-First: Anand
Author-X-Name-Last: Mittal
Title: Dynamic currency linkages between select emerging market economies: An empirical study
Abstract:
In this article, we examine the dynamic currency linkages for BRIS (Brazil, Russia, India and South Africa) and 15 other emerging market economies (EMEs) using weekly data from 2001 to 2018. Using the asymmetric dynamic conditional correlation (ADCC)-EGRARCH framework, we find that the average correlation between BRIS currencies in the pre-crisis period is low and stood at 0.29, which rose to 0.39 in the post-crisis period implying contagion effects. Based on both ADCC results and Diebold-Yilmaz, Vector Autoregressive (VAR)framework enhanced by Greenwood-Nimmo block aggregation technique, we find that Brazil is a net transmitter while Russia, India and South Africa seem to be net receivers of information based on the first two moments. We further find empirical support for expanding BRIS into a larger economic block. Based on prior research findings on equity market linkages on BRICS and EMEs as well as our work on currency market linkages, we suggest Mexico, Poland and Hungary as potential candidates to be included in this economic block in the first phase. Turkey, Chile, Columbia and Romania may be included in the next phase as they dominate BRIS in either stock or currency markets of BRIS. This study is pertinent for global policymakers, international monetary agencies, currency investors and academia.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1681581
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1681581
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1681581
Template-Type: ReDIF-Article 1.0
Author-Name: Kwame Asiam Addey
Author-X-Name-First: Kwame Asiam
Author-X-Name-Last: Addey
Author-Name: Saleem Shaik
Author-X-Name-First: Saleem
Author-X-Name-Last: Shaik
Author-Name: Kekoura Sakouvogui
Author-X-Name-First: Kekoura
Author-X-Name-Last: Sakouvogui
Title: Comparative sectoral price elasticities of U.S. energy demand
Abstract:
A sustainable energy system is key for addressing the world’s environmental and social challenges. The U.S is the second largest consumer of energy, with increased energy consumption in the previous half-century. To curb energy demand, it is essential to understand the relative price elasticities among the four main U.S energy consumption sectors; residential, industrial, commercial and transportation. The aim of this study is to present a theory-based comparative analysis of U.S sectoral energy price elasticities using the pooled mean group model. The speed of adjustment for the four sectors were −0.43, −0.41, −0.55 and −0.37, suggesting the existence of long-run relationships. The short-run own-price elasticities were −0.17, −0.39 and −0.27 for the commercial, industrial and residential sectors while the long-run own-price elasticities were −0.33, −0.45 and −0.20 for the commercial, residential and transportation sectors. We conclude that the residential sector readjusts to long-run equilibrium at a faster rate than the three other sectors. In the long run, this sector will yield a higher response to a price change. We suggest that price policies aimed at reducing energy demand should primarily target the residential sector, followed by the commercial and transportation sectors.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1682743
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1682743
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1682743
Template-Type: ReDIF-Article 1.0
Author-Name: Stein Masunda
Author-X-Name-First: Stein
Author-X-Name-Last: Masunda
Author-Name: Norman Mupaso
Author-X-Name-First: Norman
Author-X-Name-Last: Mupaso
Title: A microeconometric analysis of factors affecting global value chain participation in Zimbabwe
Abstract:
Using firm-level data, this study explores the microeconomic factors affecting global value chain (GVC) participation in Zimbabwe. GVCs are important as a result of the fragmentation of global production across countries. As expected, firm size and credit financing are important determinants in fostering GVC participation. However, and quite surprising, foreign-owned firms in Zimbabwe participate less in GVCs when compared to domestically owned firms. Using data for 549 firms, this study postulates that if firm participation in GVCs is to be enhanced, access to credit for firms should be frictionless and firm growth-enabling environment and policies should be established. Summarily, the study postulates positive trade and financial linkages. Thus, access to credit and firm size are important in promoting intra-firm trade.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1682746
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1682746
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1682746
Template-Type: ReDIF-Article 1.0
Author-Name: Hung Manh Nguyen
Author-X-Name-First: Hung Manh
Author-X-Name-Last: Nguyen
Author-Name: Tuan Anh Nguyen
Author-X-Name-First: Tuan Anh
Author-X-Name-Last: Nguyen
Title: Investigating the determinants of household welfare in the Central Highland, Vietnam
Abstract:
To provide policy implication for improving household welfare, one should understand which characteristics of households in a specific location they live, enable them to raise their welfare levels. This paper uses micro-econometric models for investigating the determinants of household welfare in the Central Highland, Vietnam using the recent data from the Vietnam Household Living Standard Survey in 2016. Despite the relative simplicity, rich information is obtained from its use on cross-sectional survey data. Both descriptive statistics and regression analysis were employed in the study. Ordinary Least Square (OLS) and a Logit estimators were used to examine factors affecting household income and poverty incidence, respectively. Results specific to the region include: a substantial contribution of nonfarm self-employment and education to household income and poverty eradication; wage employment is positively associated with poverty alleviation but not per capita income; and only some types of land were positively related to income and poverty reduction. The findings suggest that policies for poverty reduction should aim at improving the access of the poor to education and nonfarm employment.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1684179
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1684179
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1684179
Template-Type: ReDIF-Article 1.0
Author-Name: Hammad Siddiqi
Author-X-Name-First: Hammad
Author-X-Name-Last: Siddiqi
Author-Name: John Quiggin
Author-X-Name-First: John
Author-X-Name-Last: Quiggin
Title: The pricing kernel puzzle: A behavioral explanation
Abstract:
We show that if sophisticated institutional managers and individual investors perceive tail-risks differently, then a new explanation for the pricing kernel puzzle emerges. We show, by example, that even a tiny difference in tail-risk perception by the two investor types can explain the pricing kernel puzzle.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1684609
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1684609
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1684609
Template-Type: ReDIF-Article 1.0
Author-Name: Wade Gunning
Author-X-Name-First: Wade
Author-X-Name-Last: Gunning
Author-Name: Gary van Vuuren
Author-X-Name-First: Gary
Author-X-Name-Last: van Vuuren
Title: Exploring the drivers of tracking error constrained portfolio performance
Abstract:
Maximising returns is often the primary goal of asset management but managing and mitigating portfolio risk also plays a significant role. Successful active investing requires outperformance of a benchmark through skillful stock selection and market timing, but these bets necessarily give rise to risk. The risk, relative to the benchmark, is the tracking error and active managers are constrained by investment mandates including a restriction on tracking error. The locus of possible portfolio risks and returns, constrained by a tracking error is elliptical, and the main axis slope’s sign and magnitude varies under different market conditions. How these variations affect portfolio performance is explored for the first time. We find that changes in main axis slope (magnitude and sign) acts as an early indicator of portfolio performance and could therefore be used as another risk management tool.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1684181
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1684181
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1684181
Template-Type: ReDIF-Article 1.0
Author-Name: Pankaj K Agarwal
Author-X-Name-First: Pankaj K
Author-X-Name-Last: Agarwal
Author-Name: H. K. Pradhan
Author-X-Name-First: H. K.
Author-X-Name-Last: Pradhan
Title: Mutual fund performance in changing economic conditions: Evidence from an emerging economy
Abstract:
Traditional measures of assessment of mutual fund performance (alpha) are based mostly on Capital Assets Pricing Model which presupposes fixed sensitivity of risk exposure of a fund to its market proxy (beta). However, changing economic conditions will alter this relationship. In conditional performance evaluation, the betas as well as alphas are allowed to vary in response to changing economic conditions over time. We hypothesize that true skill in fund management goes beyond altering the portfolio in response to changes in macroeconomic indicators. Therefore, this study examines the existence of superior performance of open-ended equity mutual funds in India in a conditional setting. We use a survivorship-bias-free database including all schemes since inception (2006–2015). We find evidence of selectivity and timing skills by the Indian fund managers even after controlling for changing macroeconomic variables. The evidence is weaker on aggregate basis than at fund level.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1687072
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1687072
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1687072
Template-Type: ReDIF-Article 1.0
Author-Name: Kola Ijasan
Author-X-Name-First: Kola
Author-X-Name-Last: Ijasan
Author-Name: George Tweneboah
Author-X-Name-First: George
Author-X-Name-Last: Tweneboah
Author-Name: Maurice Omane-Adjepong
Author-X-Name-First: Maurice
Author-X-Name-Last: Omane-Adjepong
Author-Name: Peterson Owusu Junior
Author-X-Name-First: Peterson
Author-X-Name-Last: Owusu Junior
Title: On the global integration of REITs market returns: A multiresolution analysis
Abstract:
This paper explores dynamic correlation and interdependence of five global REIT markets using multivariate wavelet methods. United States, Hong Kong, Belgium, South Africa and Australia’s daily REITs returns are used as proxies for North America, Asia, Europe, Africa and the Oceania continents, respectively. Highlights from our results indicate the following: First, almost a perfect market integration at long-run periods for the REIT markets is observed. However, such strong market correlations dissipate significantly to moderate and weaker linkages at the medium, and short-run periods, thereby showing possible diversification opportunities at the latter scales. The finding also signifies that global REITs linkages increases with investment horizons. Second, an interdependent global market is found, where well-developed REITs tend to lead/lag relatively smaller or less developed market (especially Africa’s REIT) across scales. Third, there are prospects of gaining higher expected daily returns per unit of risk from Europe and Asia’s REITs than all other markets. Though not totally integrated, there exist conspicuous evidence against a segmented global REIT market. Our findings are useful for improving portfolio selection and minimising trading risk.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1690211
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1690211
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1690211
Template-Type: ReDIF-Article 1.0
Author-Name: Huy Pham
Author-X-Name-First: Huy
Author-X-Name-Last: Pham
Author-Name: Osama Al-Hares
Author-X-Name-First: Osama
Author-X-Name-Last: Al-Hares
Author-Name: Vikash Ramiah
Author-X-Name-First: Vikash
Author-X-Name-Last: Ramiah
Author-Name: Nisreen Moosa
Author-X-Name-First: Nisreen
Author-X-Name-Last: Moosa
Title: Measuring the effect of the North Korea-U.S. summit on the South Korean stock market
Abstract:
We examine the effects of the North Korea-U.S. summit and related events on the South Korean stock market over the period March 2018 to June 2018. Employing the event study methodology, we estimate sectoral abnormal returns following the events surrounding the summit and conduct several robustness tests to control for market integration and firm-specific information. Furthermore, we assess how sectoral systematic risk changes following these events by using various ARCH-type models such as GARCH, TARCH, EGARCH and PARCH. The results show that the South Korean stock market was highly sensitive to these events. In particular, we find that the market was negatively affected by the news that could reduce the probability of holding the summit and vice versa. We also find that market scepticism about the summit leads to the rise of a diamond risk structure.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1690212
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1690212
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1690212
Template-Type: ReDIF-Article 1.0
Author-Name: Mohammed Tanko
Author-X-Name-First: Mohammed
Author-X-Name-Last: Tanko
Author-Name: Salifu Ismaila
Author-X-Name-First: Salifu
Author-X-Name-Last: Ismaila
Author-Name: Saeed Abu Sadiq
Author-X-Name-First: Saeed Abu
Author-X-Name-Last: Sadiq
Title: Planting for Food and Jobs (PFJ): A panacea for productivity and welfare of rice farmers in Northern Ghana
Abstract:
This research examined the effect of the Government of Ghana’s agricultural policy of Planting for Food and Jobs (PFJ) on rice farmers` productivity and welfare in Northern Ghana. The study used survey data collected from beneficiaries and non-beneficiaries of the programme who cultivated rice in 2018 production season. Respondents were randomly selected, and data analysed using empirical methods of Inverse Propensity Weighting Estimation and the Local Average Treatment Effect. The results indicate an insignificant increase in income levels from rice production, but a significant reduction in farm expenditure, an increase in per capita monthly spending and a decrease in income poverty of households. The findings reveal a positive impact of the agricultural technologies implemented under Planting for Food and Jobs programme on rice productivity and welfare of rice farmers in Northern Ghana. The research recommends the need for government to expand the beneficiaries using local media and the policy instrument of input subsidies to promote the use of fertiliser and improved rice varieties.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1693121
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1693121
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1693121
Template-Type: ReDIF-Article 1.0
Author-Name: Ziyun Zhang
Author-X-Name-First: Ziyun
Author-X-Name-Last: Zhang
Title: Attitudes towards ambiguous information and stock returns
Abstract:
This study examines whether investors’ attitudes toward ambiguity can explain cross-sectional stock returns by investigating the relationship between future stock returns and option-implied volatilities as well as implied third moments. We find that investors’ attitudes toward different levels of ambiguous stocks help explain cross-sectional variations of stock returns during the 1996–2010 period in the U.S. stock market. In this study, investors’ attitudes toward ambiguity are measured by stocks’ option-implied third moments. Negative-skewed quintiles represent ambiguity aversion and vice versa. Different levels of ambiguity for stocks are distinguished by stocks’ option-implied volatility. High volatility quintiles represent stocks with high information ambiguity. Independent two-dimension sorting results show that ambiguity averters are compensated for holding stocks with higher ambiguity. Meanwhile, ambiguity-loving investors are willing to give up some returns to hold stocks with lower levels of ambiguity. The results show that both types of ambiguity attitudes increase the factor model’s explanatory power. The estimated monthly premiums for ambiguity-aversion and ambiguity-loving factors are 0.38% and 1.28%, respectively.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1693678
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1693678
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1693678
Template-Type: ReDIF-Article 1.0
Author-Name: Courage Mlambo
Author-X-Name-First: Courage
Author-X-Name-Last: Mlambo
Author-Name: Peter Mukarumbwa
Author-X-Name-First: Peter
Author-X-Name-Last: Mukarumbwa
Author-Name: Ebenezer Megbowon
Author-X-Name-First: Ebenezer
Author-X-Name-Last: Megbowon
Title: An investigation of the contribution of processed and unprocessed agricultural exports to economic growth in South Africa
Abstract:
The paper attempts to empirically test the contribution of unprocessed and processed agriculture of exports to economic growth in South Africa. The study used time series data which spanned from 1986 to 2012. A Johansen cointegration approach was used to test for cointegration after the unit root tests had shown that all variables were non-stationary at levels. Cointegration results showed that there was one cointegrating equation. Subsequently, a VECM was used as the estimation technique. The study found that processed agricultural exports have a positive relationship with economic growth whereas unprocessed agricultural exports have a negative relationship with economic growth. This shows that manufactured agricultural exports contribute significantly to economic growth. The study recommends that the South African government should promote and stimulate investment in the processed agricultural commodities sector. There should be more production and expansion in the manufacture agricultural commodities sector. Processed manufactured goods usually are sold at a much higher price and this may generate more income for South African firms.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1694234
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1694234
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1694234
Template-Type: ReDIF-Article 1.0
Author-Name: Armando Elizondo-Noriega
Author-X-Name-First: Armando
Author-X-Name-Last: Elizondo-Noriega
Author-Name: Idalia Estefania Ponce-Jaramillo
Author-X-Name-First: Idalia Estefania
Author-X-Name-Last: Ponce-Jaramillo
Author-Name: Sonia Valeria Avilés-Sacoto
Author-X-Name-First: Sonia Valeria
Author-X-Name-Last: Avilés-Sacoto
Author-Name: David Güemes-Castorena
Author-X-Name-First: David
Author-X-Name-Last: Güemes-Castorena
Author-Name: Víctor G. Tercero-Gómez
Author-X-Name-First: Víctor G.
Author-X-Name-Last: Tercero-Gómez
Author-Name: Naveen Tiruvengadam
Author-X-Name-First: Naveen
Author-X-Name-Last: Tiruvengadam
Author-Name: Mario G. Beruvides
Author-X-Name-First: Mario G.
Author-X-Name-Last: Beruvides
Title: A nonparametric economic index to measure the collective effort of national-level economic activities directed towards greater efficiency
Abstract:
For an economic system such as a nation, assessing the efforts of its constituent economic activities that are directed toward greater efficiency, which in aggregate determines the overall efficiency at the national level is important. Such an exercise provides information on which constituent economic activities are underperforming and require attention. This article presents an economic performance index called the Efficiency Effort Index (EE-Index) that measures such efforts of economic activities directed at efficiency improvement. This nonparametric, dimensionless index is computed based on a combination of Leveled-Data-Envelopment-Analysis (LDEA) and Markov Chains (MCs). LDEA compares diverse decision-making units to yield a set of efficiency scores, which are first discretized and then subjected to first-order MC treatment. The EE-Index was computed for a chosen nation and compared with that nation’s average relative efficiency (ARE) score, another performance index presented in this study, and GDP per capita. This comparison suggested that the slow growth in the chosen country’s GDP coincided with a general declining trend exhibited in the country’s efforts and aggregate efficiency achieved by these efforts, measured, respectively, by the EE-Index and the ARE-Index.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1695997
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1695997
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1695997
Template-Type: ReDIF-Article 1.0
Author-Name: Ume Salma Akbar
Author-X-Name-First: Ume Salma
Author-X-Name-Last: Akbar
Author-Name: Suresh Kumar Oad Rajput
Author-X-Name-First: Suresh Kumar
Author-X-Name-Last: Oad Rajput
Author-Name: Niaz Ahmed Bhutto
Author-X-Name-First: Niaz Ahmed
Author-X-Name-Last: Bhutto
Title: Do investors herd with industries or markets? Evidence from Pakistan stock exchange
Abstract:
This study investigates investors’ herd behavior at market and industry level in Pakistan stock exchange (PSX). The novel contribution of this study is the incorporation of stock trading volume to explore the herding behavior laterally with daily stock returns. Using daily observations of the stock trading volume and stock closing prices of 254 firms listed on PSX for the period January 2000 - December 2014. Our empirical results found stock trading volume is the more robust predictor of herding than stock returns by employing ordinary least square method for cross-sectional absolute deviation (CSAD). Findings under stock returns indicate herding in eight industries at the industry level and in only one industry at market level. However, stock trading volume significantly predicts herding for 5 out of 11 industries both at industry and market level. This study recommends investor to focus more on daily trading volume than daily stock returns to devise their trading strategies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1698089
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1698089
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1698089
Template-Type: ReDIF-Article 1.0
Author-Name: Priviledge Cheteni
Author-X-Name-First: Priviledge
Author-X-Name-Last: Cheteni
Title: Explaining levels of between-group and within-group inequality and poverty in South Africa
Abstract:
Most research on poverty has focused on causes of poverty and the inequality gap nationally, meanwhile increasing levels of inequality and poverty has actual occurred within population groups. This study focuses on the sources and extent of within-groups (intragroup; blacks African against each other) and between-groups (intergroup; whites, Indians, coloured and black Africans) inequality and poverty which varies more widely today than over the past decade. To achieve this, two harmonised General Household Surveys from 2012 and 2017 were utilised. The study found that poverty was mainly within-groups, yet, inequality was between-groups. Thus, more efforts should be directed in reducing poverty amongst black Africans within sub groups or tribal lines. Furthermore, income sources from agriculture and pension were the more elastic income components, suggesting that any changes in these two has the likelihood of worsening or reducing inequality. The study recommends that the government should focus on ways of boosting agricultural employment and social grants distribution.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1698266
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1698266
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1698266
Template-Type: ReDIF-Article 1.0
Author-Name: Najib Shrydeh
Author-X-Name-First: Najib
Author-X-Name-Last: Shrydeh
Author-Name: Mohammed Shahateet
Author-X-Name-First: Mohammed
Author-X-Name-Last: Shahateet
Author-Name: Suleiman Mohammad
Author-X-Name-First: Suleiman
Author-X-Name-Last: Mohammad
Author-Name: Mohammed Sumadi
Author-X-Name-First: Mohammed
Author-X-Name-Last: Sumadi
Title: The hedging effectiveness of gold against US stocks in a post-financial crisis era
Abstract:
Purpose—The purpose of this paper is to examine the transmission mechanisms and dynamic spillover effects between gold spot prices and US equity prices following the 2007 Global Financial Crisis. It also aims at estimating hedging effectiveness between stocks and gold in major US financial market. Design/methodology/approach—There is large agreement in the literature that gold exhibits the main requirements to qualify as a risk-mitigating instrument against changes in stock prices and other market variables. To test the validity of this conception, this study applies a VAR-ADCC-BVGARCH model for 2,870 daily observations of US financial market during 2007–2017. Findings—The results suggest that the hedging effectiveness of gold against US stocks tends to diminish as stock market capitalization increases, implying that a marginal level of risk exposure is mitigated considering the relatively high proportion of funds that need to be invested in gold against stocks. Originality/value—The real economy is heavily influenced by financial markets, the implications of which are imperative for investors, policy makers and portfolio managers. The key findings of this study are critical in formulating optimal hedging strategies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1698268
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1698268
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1698268
Template-Type: ReDIF-Article 1.0
Author-Name: Sure Mataramvura
Author-X-Name-First: Sure
Author-X-Name-Last: Mataramvura
Title: An optimal reinsurance management and dividend payout strategy when the insurer’s reserve is an Ito–Levy process
Abstract:
We solve the problem of an insurer who decides to optimally allocate a proportion (1—a(t)) of premiums to a re-insurance company (thereby retaining a proportion a(t) of premiums) and who also has to optimally pay dividends c(t) at any time t to shareholders. If the insurer’s reserve x(t) is a given Ito–Levy process and the shareholders' preferences are given by a general constant relative risk aversion utility function, we set the problem as a stochastic control problem and solve the resulting HJB equation. Results are discussed in detail and show that it is optimal that premiums and dividends be directly proportional to the reserve. High premium lead to high reserves which in turn leads to high premium payouts. This paper contributes to the rich area of stochastic control and also it helps insurers whose reserves can be modelled, to make technical decisions of how to charge premiums, reinsure liabilities and pay dividends to shareholders.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1698939
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1698939
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1698939
Template-Type: ReDIF-Article 1.0
Author-Name: Xuan Vinh Vo
Author-X-Name-First: Xuan Vinh
Author-X-Name-Last: Vo
Author-Name: Thi Kim Huong Chu
Author-X-Name-First: Thi Kim Huong
Author-X-Name-Last: Chu
Title: Do foreign shareholders improve corporate earnings quality in emerging markets? Evidence from Vietnam
Abstract:
Employing a panel dataset of Vietnamese non-financial listed firms, we find that firms with greater foreign shareholdings are aligned with higher quality of financial disclosure. More specially, we find that greater foreign shareholdings are associated with (i) lower earnings management; (ii) more persistent earnings; and (iii) higher informative earnings. On the ground that foreign investors in Vietnam equity market are dominated by institutional investors, the finding from this study supports the spillover hypothesis. This suggests that foreign institutional shareholders with extensive management skills might have ability to assist their invested firms in improving quality of reported earnings.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1698940
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1698940
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1698940
Template-Type: ReDIF-Article 1.0
Author-Name: Subramania Raju Rajasulochana
Author-X-Name-First: Subramania Raju
Author-X-Name-Last: Rajasulochana
Author-Name: Savitha Heggede
Author-X-Name-First: Savitha
Author-X-Name-Last: Heggede
Author-Name: Aditya Mohan Jadhav
Author-X-Name-First: Aditya Mohan
Author-X-Name-Last: Jadhav
Title: Student-managed investment course: A learner-centric approach to investment management
Abstract:
While there has been a rapid growth of business and management schools in India since 1990, the curricula, teaching methods and the mode of delivery largely remain an instructor-led approach overlooking the needs of learners and potential employers. This paper presents a learner-centric investment management course known as Student-Managed Investment Course (hereafter, SMIC). It elucidates the structure, design and implementation of SMIC based on the principles of experiential learning. SMIC has been organised to create a conducive environment for the emergence of varied experiences and encourage reflections among students on the theory and practice of investment finance. The unique feature of the course is real-time exposure to investment activity in the Bombay Stock exchange/National Stock exchange, which helps students observe and grasp the nuances of capital market functioning and to acquire requisite skills for financial decision-making. This document on SMIC has a value in being a useful guide for other business schools in India for adopting a learner-centric approach to investment management.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1699390
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1699390
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1699390
Template-Type: ReDIF-Article 1.0
Author-Name: S.C. Thushara
Author-X-Name-First: S.C.
Author-X-Name-Last: Thushara
Author-Name: Jen-Je Su
Author-X-Name-First: Jen-Je
Author-X-Name-Last: Su
Author-Name: Jayatilleke S. Bandara
Author-X-Name-First: Jayatilleke S.
Author-X-Name-Last: Bandara
Title: Forecasting international tourist arrivals in formulating tourism strategies and planning: The case of Sri Lanka
Abstract:
In some developing countries, tourism-led growth strategy has been used to accelerate growth, generate employment opportunities and increase foreign exchange earnings. To maximise benefits from the tourism industry, appropriate policy decisions, infrastructure development and conducive business environments need to be developed. For that, accurate forecasting of international arrivals is vital. Tourism has been identified, as a driving force of post-war economic development in Sri Lanka. The main purpose of this study is to develop accurate forecasting models for total international arrivals in Sri Lanka and its top 10 source countries using SARIMA method. Monthly data from January 1984 to December 2016 were used as the training sample and data from January 2017 to December 2017 were used to evaluate the accuracy of the selected models. Results demonstrate that (a) achieving Sri Lankan Government’s forecast of four million tourist arrivals by 2020 is highly unlikely, (b) accurate forecasting is necessary for tourism strategies and planning, and (c) the SARIMA method provides accurate forecasts in the presence of seasonality. Finally, the findings in this study will be useful for government agencies and private establishments in the industry in their policymaking, designing promotional campaigns, and planning infrastructure.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1699884
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1699884
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1699884
Template-Type: ReDIF-Article 1.0
Author-Name: Ibrahim Nandom Yakubu
Author-X-Name-First: Ibrahim Nandom
Author-X-Name-Last: Yakubu
Title: Does corruption grease or sand the wheels of bank profitability in Ghana?
Abstract:
This paper investigates the effect of corruption on bank profitability in Ghana using bank-level dataset spanning 2008 to 2017. By employing the system Generalized Method of Moments (GMM) technique, the study finds a significant negative relationship between corruption and bank profitability. This supports the “sand the wheels” view on corruption and controverts the “grease the wheels” view, which hypothesizes that corruption boost firm performance. Controlling for bank-specific and macroeconomic factors, the findings further reveal that, while bank size, capital adequacy, and inflation have a significant positive effect on profitability, management efficiency and monetary policy rate negatively and significantly drive bank profits. The study discusses key implications for policy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1701909
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1701909
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1701909
Template-Type: ReDIF-Article 1.0
Author-Name: Eero Pätäri
Author-X-Name-First: Eero
Author-X-Name-Last: Pätäri
Author-Name: Sheraz Ahmed
Author-X-Name-First: Sheraz
Author-X-Name-Last: Ahmed
Author-Name: Elena John
Author-X-Name-First: Elena
Author-X-Name-Last: John
Author-Name: Ville Karell
Author-X-Name-First: Ville
Author-X-Name-Last: Karell
Title: The changing role of emerging and frontier markets in global portfolio diversification
Abstract:
Although the literature on the benefits of diversifying equity portfolios to emerging markets is abundant, the role of frontier markets in global equity portfolio diversification is clearly less examined. We contribute to the existing literature by examining three different, though closely related, spillover effects (i.e., return, shock and volatility spillovers) between developed, emerging and frontier markets over the period from June 2002 to December 2016. We also investigate the time-variability in the cross-market correlations within the same period. Moreover, we divide the full-sample period into two sub-periods to find out how the intensity of integration of emerging and frontier markets with three developed equity markets (represented by the US, European and Japanese stock markets) has changed or varied during the sample period. Based on both correlation analysis and the VAR(1)–BEKK-GARCH(1,1) model, the global financial crisis and the Euro-zone crisis 2009–2012 have changed the interlinkages between developed and developing markets, as well as those between emerging and frontier markets. The results show that after the global financial crisis, particularly frontier markets have become more integrated with the developed markets, whereas in case of emerging markets, the same tendency has taken place already before the financial crisis. The increased cross-market integration has important practical implications for risk management of global equity portfolios.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1701910
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1701910
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1701910
Template-Type: ReDIF-Article 1.0
Author-Name: Sahar Hassan Khayat
Author-X-Name-First: Sahar
Author-X-Name-Last: Hassan Khayat
Title: A gravity model analysis for trade between the GCC and developed countries
Abstract:
The study aimed to empirically analyse GCC’s trade patterns based on the gravity model. Gravity model is derived from physics and is used to explain the bilateral flow of trade determined by GDP per capita, population, and distance. It is assumed that trade flow between the two countries is positively related to their economic size and population. The gravity model has been analysed in six developed countries concerning trade with GCC countries from 2001 to 2012. The study concluded that GDP per capita and population for GCC and destination countries was significant. It also suggests that the trade barriers among the countries must be eradicated for better trade flow.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1703440
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1703440
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1703440
Template-Type: ReDIF-Article 1.0
Author-Name: Suné Ferreira
Author-X-Name-First: Suné
Author-X-Name-Last: Ferreira
Author-Name: Zandri Dickason-Koekemoer
Author-X-Name-First: Zandri
Author-X-Name-Last: Dickason-Koekemoer
Title: A conceptual model of operational risk events in the banking sector
Abstract:
Operational risk constitutes a large portion of a bank’s risk exposure. Unlike other financial risks, operational risk is classified as a pure risk (only an opportunity of a loss), as it always leads to a financial loss for a bank. The failure to mitigate and manage operational risk effectively during past operational risk events has led to the demise of several banks and other financial institutions. Operational risk has the possibility to lead to other bank risk and to influence the perceptions of the banks’ main stakeholder group i.e. depositors. The rationale behind profiling depositors’ behaviour during operational risk events will contribute toward constructing a revolutionised risk management model. A better indication of how depositors react during operational risk events may lead to better prediction of withdrawal risk within banks. Primary data was collected from 417 depositors in Gauteng, South Africa, using a self-structured questionnaire. Statistical techniques such as correlation and `significance tests were used in the statistical analysis. A positive relationship was found between depositor likelihood to withdraw during operational risk events for two of the three variables; bank perceptive and behavioural finance biases. A negative relationship was found between depositor’s likelihood to withdraw and their risk tolerance level.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1706394
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1706394
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1706394
Template-Type: ReDIF-Article 1.0
Author-Name: Aaron Alesane
Author-X-Name-First: Aaron
Author-X-Name-Last: Alesane
Author-Name: Kamaldeen Yussif
Author-X-Name-First: Kamaldeen
Author-X-Name-Last: Yussif
Author-Name: Benjamin Tetteh Anang
Author-X-Name-First: Benjamin
Author-X-Name-Last: Tetteh Anang
Title: Determinants of Village Savings and Loans Association membership and savings amounts in Awutu Senya West District of Ghana
Abstract:
At the macro level, savings mobilization plays an important role in economic growth and development whilst at the micro household level it plays a critical role in production, consumption and investment decisions. However, savings mobilization in many developing countries remains low which calls for further research and insight into the savings behaviour of the poor and ways to encourage rural savings. This study therefore investigates the factors influencing the decision to join Village Savings and Loans Association (VSLA) in Awutu Senya West District of Ghana and the resulting amounts saved. Using a cross-sectional design and a linear regression with endogenous treatment-effects model, the study indicated that the propensity to join VSLA was positively related to household size and respondent being male but was negatively associated with respondent’s age and educational status. Also, absolute amount saved increased with respondent’s age, education and amount of current loan. In general, absolute savings amounts were very low. The estimated average treatment effect of VSLA membership on savings indicated that belonging to a VSLA increased the savings of members by GH¢ 268. Thus, VSLAs can be used as channels to deepen financial inclusion and savings mobilization among the rural poor to promote the growth of the rural economy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1707004
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1707004
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1707004
Template-Type: ReDIF-Article 1.0
Author-Name: Shreya Biswas
Author-X-Name-First: Shreya
Author-X-Name-Last: Biswas
Title: Understanding the small-world nature of board network in India
Abstract:
The study analyzes the small-world nature of the board interlock network for National Stock Exchange–listed firms in India. The small world is the notion that each firm can reach any other firm in the network through a small number of intermediate firms. We find that since the introduction of corporate governance regulations in India, the small worldliness of the network has increased, indicating the concentration of directorial positions in the hands of few elites in the country. The small-world nature of the network can be attributed to the presence of few linchpins in the network and the majority of the linchpins are business group firms in the country. The linchpin acts as a bridge between otherwise sparsely connected clusters in the network. The firms that act as linchpins have higher profitability on account of access to a larger pool of resources.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 7
Year: 2019
Month: 1
X-DOI: 10.1080/23322039.2019.1710424
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1710424
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Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1710424
Template-Type: ReDIF-Article 1.0
Author-Name: Inyong Shin
Author-X-Name-First: Inyong
Author-X-Name-Last: Shin
Title: Change and prediction of income and fertility rates across countries
Abstract:
This paper analyzes and predicts the changes of relationship between income and fertility rate of cross-countries using a bivariate mixture model and a latent change score model. This paper has shown that there is a negative relationship between income and fertility rate, which is presented in the form of inverted S-shaped curve which shows the three regimes of demographic transition. Some developed countries have completed their demographic transition in fertility rate, and in developing countries, the demographic transition in fertility rate is still in progress. This paper has also shown that the number of peaks of income distribution has increased in recent years comparing to 1960s and the number won’t decrease in the future. However, the number of peaks of fertility rate distribution hasn’t changed from 1960s to recent years but due to the shift, finally, the distribution will change to a uni-modal distribution in the future. The income will be applied to the conditional convergence and the fertility rate will be applied to the absolute convergence. The fertility gap among cross-countries will disappear, but the income gap won’t. Although the population conditions in developing countries will improve, income inequality in cross-country may not be improved after all.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2015.1119367
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1119367
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1119367
Template-Type: ReDIF-Article 1.0
Author-Name: Aloui Mouna
Author-X-Name-First: Aloui
Author-X-Name-Last: Mouna
Author-Name: Jarboui Anis
Author-X-Name-First: Jarboui
Author-X-Name-Last: Anis
Title: Market, interest rate, and exchange rate risk effects on financial stock returns during the financial crisis: AGARCH-M approach
Abstract:
Our aim is to investigate the sensitivity of financial sector stock returns to market, interest rate, and exchange rate risk in three financial sectors (financial services, banking, and insurance) in eight countries, including various European, the US, and China economies, over the period 2006–2009 during the financial crisis. The econometric framework is a four-variate GARCH-in-mean model and volatility spillovers. The empirical results show the significant effects (positive and negative, respectively) of the stock market returns, interest rate, and exchange rate volatility of the financial sector during the crisis. Besides, we find, in most cases, significant (positive and negative, respectively) volatility spillovers from market return, interest rate, exchange rate, and interest rate in the financial services and the banking sector both in the European and the US economies during the financial crisis.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2015.1125332
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1125332
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1125332
Template-Type: ReDIF-Article 1.0
Author-Name: Sanjaya Kumar Lenka
Author-X-Name-First: Sanjaya Kumar
Author-X-Name-Last: Lenka
Author-Name: Arun Kumar Bairwa
Author-X-Name-First: Arun Kumar
Author-X-Name-Last: Bairwa
Title: Does financial inclusion affect monetary policy in SAARC countries?
Abstract:
Alike the role of heart for human body, finance is the focal point of an economy, whereas savings and investment are its tubes and vessels. Hence, a solid financial system is a fundamental character of an enduring economy. The frozen financial system endures longer if its foundation is concrete and subsists in the people of grass-root level. They are those, who live in villages and small towns, earn meager income, work in primary sector, spend more on food, and have lesser social securities. In this setting, the process of bringing these people into the main stream of financial activities is called financial inclusion. This study describes the impact of financial inclusion on monetary policy of South Asian Association for Regional Cooperation (SAARC) countries from 2004–2013. The study uses principal component analysis (PCA) to construct a Financial Inclusion Index that serves as a proxy variable for the accessibility of financial inclusion in the SAARC countries. Adding to it, three different models like FEM, REM, and Panel-corrected standard errors are used for the analysis. In this study, an empirical result of generalized least square(GLS) estimation shows that financial inclusion, exchange rate, and interest rate are negatively associated with inflation in SAARC countries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2015.1127011
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1127011
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1127011
Template-Type: ReDIF-Article 1.0
Author-Name: John Robst
Author-X-Name-First: John
Author-X-Name-Last: Robst
Author-Name: Jennifer VanGilder
Author-X-Name-First: Jennifer
Author-X-Name-Last: VanGilder
Title: The relationship between faculty characteristics and the use of norm- and criteria-based grading
Abstract:
Norm-based grading has been associated with a reduction in student incentives to learn. Thus, it is important to understand faculty incentives for using norm-based grading. This paper used two waves of the National Study of Postsecondary Faculty to examine faculty characteristics related to the use of norm-based grading. Results suggest that norm-based grading is more likely when faculty and departments are more research oriented. Faculty who are at lower rank, male, younger, in science and social science departments are more likely to use norm-based grading, while faculty who feel that teaching should be the primary promotion criterion use criteria-based grading.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2015.1127746
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1127746
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1127746
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Surajo Sanusi
Author-X-Name-First: Muhammad Surajo
Author-X-Name-Last: Sanusi
Author-Name: Farooq Ahmad
Author-X-Name-First: Farooq
Author-X-Name-Last: Ahmad
Title: An analysis of seasonality fluctuations in the oil and gas stock returns
Abstract:
This paper investigates the existence of seasonality anomalies in the stock returns of the oil and gas companies on the London Stock Exchange. It employs F-test, Kruskal–Wallis and Tukey tests to examine days-of-the-week effect. Generalised autoregressive conditional heteroscedasticity specification was also employed to investigate both the days-of-the-week and months-of-the-year effects. The analysis had been extended to some key FTSE indices. Our results showed no evidence of any regularity or seasonal fluctuation in the oil and gas stock returns despite the seasonal changes of demand in the companies’ products. However, January effect has been observed in FTSE All Share and FTSE 100 indices.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2015.1128133
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1128133
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1128133
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Ali Nasir
Author-X-Name-First: Muhammad Ali
Author-X-Name-Last: Nasir
Author-Name: Milton Yago
Author-X-Name-First: Milton
Author-X-Name-Last: Yago
Author-Name: Alaa M. Soliman
Author-X-Name-First: Alaa M.
Author-X-Name-Last: Soliman
Author-Name: Junjie Wu
Author-X-Name-First: Junjie
Author-X-Name-Last: Wu
Title: Financial stability, wealth effects and optimal macroeconomic policy combination in the United Kingdom: A new-Keynesian dynamic stochastic general equilibrium framework
Abstract:
This study derives an optimal macroeconomic policy combination for financial sector stability in the United Kingdom by employing a New Keynesian Dynamic Stochastic General Equilibrium (NK-DSGE) framework. The empirical results obtained show that disciplined fiscal and accommodative monetary policies stance is optimal for financial sector stability. Furthermore, fiscal indiscipline countered by contractionary monetary stance adversely affects financial sector stability. Financial markets, e.g. stocks and Gilts show a short-term asymmetric response to macroeconomic policy interaction and to each other. The asymmetry is a reflection of portfolio adjustment. However in the long-run, the responses to suggested optimal policy combination had homogenous effects and there was evidence of co-movement in the stock and Gilt markets.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2015.1136098
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1136098
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1136098
Template-Type: ReDIF-Article 1.0
Author-Name: Gurudeo Anand Tularam
Author-X-Name-First: Gurudeo Anand
Author-X-Name-Last: Tularam
Author-Name: Rajibur Reza
Author-X-Name-First: Rajibur
Author-X-Name-Last: Reza
Title: Water exchange traded funds: A study on idiosyncratic risk using Markov switching analysis
Abstract:
We investigate the relationship between idiosyncratic risk and return among four water exchange traded funds—PowerShares Water Resources Portfolio, Power Shares Global Water, First Trust ISE Water Index Fund, and Guggenheim S&P Global Water Index ETF using the Markov switching model for the period 2007–2015. The generated transition probabilities in this paper show that there is a high and low probability of switching between Regimes 1 and 3, respectively. Moreover, we find that the idiosyncratic risk for most of the exchange traded funds move from low volatility (Regime 2) to very low volatility (Regime 1 and 3). Our study also identify that the beta coefficients are positive and entire values are less than 1. Thus, it seems that water investment has a lower systematic risk and a positive effect on the water exchange traded index funds returns during different regimes.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1139437
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1139437
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1139437
Template-Type: ReDIF-Article 1.0
Author-Name: Riccardo Ferretti
Author-X-Name-First: Riccardo
Author-X-Name-Last: Ferretti
Author-Name: Andrea Cipollini
Author-X-Name-First: Andrea
Author-X-Name-Last: Cipollini
Author-Name: Francesco Pattarin
Author-X-Name-First: Francesco
Author-X-Name-Last: Pattarin
Title: Can an unglamorous non-event affect prices? The role of newspapers
Abstract:
Our paper offers evidence that the print media can affect stock prices by covering public information. After price-to-book value figures of Italian listed shares were first published on the major national financial newspaper, the prices of value stocks did, on average, show a positive reaction. The price reaction was limited to small caps stocks and disappeared within three weeks. Over the period of analysis, we could not find any abnormal behaviour of the returns of small and value stocks on other European markets. These findings support the view that newspapers play a role in disseminating information to small investors and grabbing their attention, even if news are continuously realeased by faster and more sophisticated media.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1142847
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1142847
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1142847
Template-Type: ReDIF-Article 1.0
Author-Name: B.C. Okoye
Author-X-Name-First: B.C.
Author-X-Name-Last: Okoye
Author-Name: A. Abass
Author-X-Name-First: A.
Author-X-Name-Last: Abass
Author-Name: B. Bachwenkizi
Author-X-Name-First: B.
Author-X-Name-Last: Bachwenkizi
Author-Name: G. Asumugha
Author-X-Name-First: G.
Author-X-Name-Last: Asumugha
Author-Name: B. Alenkhe
Author-X-Name-First: B.
Author-X-Name-Last: Alenkhe
Author-Name: R. Ranaivoson
Author-X-Name-First: R.
Author-X-Name-Last: Ranaivoson
Author-Name: R. Randrianarivelo
Author-X-Name-First: R.
Author-X-Name-Last: Randrianarivelo
Author-Name: N. Rabemanantsoa
Author-X-Name-First: N.
Author-X-Name-Last: Rabemanantsoa
Author-Name: I. Ralimanana
Author-X-Name-First: I.
Author-X-Name-Last: Ralimanana
Title: Differentials in technical efficiency among smallholder cassava farmers in Central Madagascar: A Cobb Douglas stochastic frontier production approach
Abstract:
This study employed the Cobb–Douglas stochastic frontier production function to measure the level of technical efficiency among smallholder cassava farmers in Central Madagascar. A multi-stage random sampling technique was used to select 180 cassava farmers in the region and from this sample, input–output data were obtained using the cost route approach. The parameters of the stochastic frontier production function were estimated using the maximum likelihood method. The results of the analysis showed that individual farm-level technical efficiency was about 79%. The study found education, gender and age to be indirectly and significantly related to technical efficiency at a 1% level of probability, and to household size at a 5% level. The coefficient for occupational status was positive and highly significant at a 1% level. The results show that the study’s cassava farmers are not fully technically efficient, showing a mean score of .79%, and suggesting that opportunities still exist for increasing efficiency among the farmers. There is a need, therefore, to ensure that these farmers have access to the appropriate inputs, especially land and capital. The results also call for land reform policies to be introduced, aimed at making more land available, especially to the younger and full-time female farmers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1143345
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1143345
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1143345
Template-Type: ReDIF-Article 1.0
Author-Name: B.C. Okoye
Author-X-Name-First: B.C.
Author-X-Name-Last: Okoye
Author-Name: A. Abass
Author-X-Name-First: A.
Author-X-Name-Last: Abass
Author-Name: B. Bachwenkizi
Author-X-Name-First: B.
Author-X-Name-Last: Bachwenkizi
Author-Name: G. Asumugha
Author-X-Name-First: G.
Author-X-Name-Last: Asumugha
Author-Name: B. Alenkhe
Author-X-Name-First: B.
Author-X-Name-Last: Alenkhe
Author-Name: R. Ranaivoson
Author-X-Name-First: R.
Author-X-Name-Last: Ranaivoson
Author-Name: R. Randrianarivelo
Author-X-Name-First: R.
Author-X-Name-Last: Randrianarivelo
Author-Name: N. Rabemanantsoa
Author-X-Name-First: N.
Author-X-Name-Last: Rabemanantsoa
Author-Name: I. Ralimanana
Author-X-Name-First: I.
Author-X-Name-Last: Ralimanana
Title: Effect of transaction costs on market participation among smallholder cassava farmers in Central Madagascar
Abstract:
High transaction costs deter entry of small farmers into the market. With the data from 240 smallholder cassava farmers in Central Madagascar, this study identified strategies to promote successful smallholder commercialization. The coefficients for membership of cooperatives, native of community and farming experience, have a direct relationship with decision to participate in the market and which is significant at 1% level and road condition to the nearest town is good at 10% level. The coefficients for age, distance to the nearest town and distance from the farm to the market have an indirect relationship with decision to participate in the market and significant at 5, 10 and 1% levels, respectively. The results also show that the coefficients for personal means of transportation and marketing experience have a direct relationship with decision to sell cassava off-farm and at 10 and 1% level of significance, respectively, while distance to the nearest town and distance from the farm to the market had an indirect relationship with decision to sell off-farm at 5% level of significance each and cost of transportation at 1% level. The study raises policy issues which might reduce these transaction costs by providing more market outlets, better rural infrastructure and also bulking centres.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1143597
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1143597
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1143597
Template-Type: ReDIF-Article 1.0
Author-Name: D. Balios
Author-X-Name-First: D.
Author-X-Name-Last: Balios
Author-Name: N. Daskalakis
Author-X-Name-First: N.
Author-X-Name-Last: Daskalakis
Author-Name: N. Eriotis
Author-X-Name-First: N.
Author-X-Name-Last: Eriotis
Author-Name: D. Vasiliou
Author-X-Name-First: D.
Author-X-Name-Last: Vasiliou
Title: SMEs capital structure determinants during severe economic crisis: The case of Greece
Abstract:
The objective of this paper was to explore whether and how the main capital structure determinants of SMEs affected capital structure determination in different ways during the years of economic crisis. We used panel data of 8,052 SMEs operating in Greece during 2009–2012. We found that the effect of capital structure determinants on leverage does not change in an environment of economic crisis; larger SMEs continued to show higher debt ratios, the relationship between profitability and tangibility of assets with leverage continued to be negative, and growth was positively related to leverage.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1145535
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1145535
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1145535
Template-Type: ReDIF-Article 1.0
Author-Name: Winston Moore
Author-X-Name-First: Winston
Author-X-Name-Last: Moore
Author-Name: Jeremy Stephen
Author-X-Name-First: Jeremy
Author-X-Name-Last: Stephen
Author-Name: Caroline Elliott
Author-X-Name-First: Caroline
Author-X-Name-Last: Elliott
Title: Should cryptocurrencies be included in the portfolio of international reserves held by central banks?
Abstract:
In most countries, the central bank is required to hold reserve assets as a means of providing credibility for the value of the fiat currency. These assets can be in the form of gold, foreign exchange or some other internationally recognised reserve asset and are held to permit the country to engage in international transactions. Within recent years, cryptocurrencies have been increasingly utilised for international transactions, and it is possible that the use of these cryptocurrencies might expand in the future. This paper therefore examines the potential role of digital currency balances as part of the portfolio of external assets held by a central bank. Using the case of Barbados, the paper also provides a simulation of the effect holding some proportion of their asset-base would have had on the stability of the foreign reserves as well as the return on the portfolio of assets.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1147119
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1147119
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1147119
Template-Type: ReDIF-Article 1.0
Author-Name: D.O. Olayungbo
Author-X-Name-First: D.O.
Author-X-Name-Last: Olayungbo
Author-Name: A.E. Akinlo
Author-X-Name-First: A.E.
Author-X-Name-Last: Akinlo
Title: Insurance penetration and economic growth in Africa: Dynamic effects analysis using Bayesian TVP-VAR approach
Abstract:
This paper examines the dynamic interactions between insurance and economic growth in eight African countries for the period of 1970–2013. Insurance demand is measured by insurance penetration which accounts for income differences across the sample countries. A Bayesian Time Varying Parameter Vector Auto regression (TVP-VAR) model with stochastic volatility is used to analyze the short run and the long run among the variables of interest. Using insurance penetration as a measure of insurance to economic growth, we find positive relationship for Egypt, while short-run negative and long-run positive effects are found for Kenya, Mauritius, and South Africa. On the contrary, negative effects are found for Algeria, Nigeria, Tunisia, and Zimbabwe. Implementation of sound financial reforms and wide insurance coverage are proposed recommendations for insurance development in the selected African countries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1150390
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1150390
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1150390
Template-Type: ReDIF-Article 1.0
Author-Name: Siala Bouaziz Souha
Author-X-Name-First: Siala Bouaziz
Author-X-Name-Last: Souha
Author-Name: Jarboui Anis
Author-X-Name-First: Jarboui
Author-X-Name-Last: Anis
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Corporate governance and firm characteristics as explanatory factors of shareholder activism: Validation through the French context
Abstract:
This study deals with the major determinants of company shareholder activism investigated with according to a set of SBF 120 listed firms. Based on a sample of 77 companies, observed over the period 2008–2012, we are led to conclude that some firm governance characteristics do appear to affect shareholding activism. In addition, it has been revealed that the presence of institutional investors, ownership concentration, leaders’ presence in the capital, control structure, leadership change, firm growth as well as leverage level appear to have a significant influence on the probability of activism to take place.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1150407
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1150407
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1150407
Template-Type: ReDIF-Article 1.0
Author-Name: Senior Editors
Author-X-Name-First: Senior
Author-X-Name-Last: Editors
Title: Acknowledgement of Reviewers
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1150669
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1150669
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1150669
Template-Type: ReDIF-Article 1.0
Author-Name: Yu Hsing
Author-X-Name-First: Yu
Author-X-Name-Last: Hsing
Title: Determinants of the ZAR/USD exchange rate and policy implications: A simultaneous-equation model
Abstract:
This paper examines the determinants of the South African rand/US dollar (ZAR/USD) exchange rate based on demand and supply analysis. Applying the EGARCH method, the paper finds that the ZAR/USD exchange rate is positively associated with the South African government bond yield, US real GDP, the US stock price and the South African inflation rate and negatively influenced by the 10-year US government bond yield, South African real GDP, the South African stock price, and the US inflation rate. The adoption of a free floating exchange rate regime has reduced the value of the rand vs. the US dollar.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1151131
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1151131
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1151131
Template-Type: ReDIF-Article 1.0
Author-Name: Caroline Elliott
Author-X-Name-First: Caroline
Author-X-Name-Last: Elliott
Author-Name: Vudayagi Balasubramanyam
Author-X-Name-First: Vudayagi
Author-X-Name-Last: Balasubramanyam
Title: Assessing students: Real-world analyses underpinned by economic theory
Abstract:
Having highlighted the importance of designing assessments for university economics students that link technical material with practical applications, the paper outlines three such assessments that have been successfully applied with postgraduate and third year undergraduate-level students. The assessments ask students to use their knowledge of economic theories and empirical analyses to propose and debate policy positions or to analyse the strategy decisions of real firms.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1151171
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1151171
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1151171
Template-Type: ReDIF-Article 1.0
Author-Name: Steve Cook
Author-X-Name-First: Steve
Author-X-Name-Last: Cook
Title: Modern econometrics: Structuring delivery and assessment
Abstract:
This paper provides a discussion of a recently introduced final-year econometrics module designed to capture methodological debates, advances in technology and increased data availability via a structure emphasising the practical nature of econometrics. The justification for the provision of such a module is presented clearly, with further support for its proposal from the broader educational literature provided also. Evaluation of the module shows its success in terms of student satisfaction, student learning and progress and staff satisfaction. Consequently, it is suggested that colleagues should be encouraged to develop similar modules emphasising the relevance of the material they cover in a topical manner exploiting all available technological resources as appropriate.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1152705
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1152705
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1152705
Template-Type: ReDIF-Article 1.0
Author-Name: Cosimo Magazzino
Author-X-Name-First: Cosimo
Author-X-Name-Last: Magazzino
Title: The relationship between real GDP, CO2 emissions, and energy use in the GCC countries: A time series approach
Abstract:
This paper examines the relationship among real GDP, CO2 emissions, and energy use in the six Gulf Cooperation Council (GCC) countries. Using annual data for the years 1960–2013, stationarity, structural breaks, and cointegration tests have been conducted. The empirical evidence strongly supports the presence of unit roots. Cointegration tests reveal the existence of a clear long-run relationship only for Oman. Granger causality analysis shows that for three GCC countries (Kuwait, Oman, and Qatar) the predominance of the “growth hypothesis” emerges, since energy use drives the real GDP. Moreover, only for Saudi Arabia a clear long-run relation has not been discovered. Finally, the results of the variance decompositions and impulse response functions broadly confirm our previous empirical findings. Our results significantly reject the assumption that energy is neutral for growth. Notwithstanding, since the causality results are different for the six GCC countries, unified energy policies would not be the good recipe for the whole area.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1152729
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1152729
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1152729
Template-Type: ReDIF-Article 1.0
Author-Name: Chinazaekpere Nwani
Author-X-Name-First: Chinazaekpere
Author-X-Name-Last: Nwani
Author-Name: Jacob Bassey Orie
Author-X-Name-First: Jacob
Author-X-Name-Last: Bassey Orie
Title: Economic growth in oil-exporting countries: Do stock market and banking sector development matter? Evidence from Nigeria
Abstract:
This study empirically examines the independent effects of stock market and banking sector development on economic growth in Nigeria over the period 1981–2014 using the autoregressive distributed lag (ARDL) approach to co-integration analysis. Controlling for the possible effects of crude oil price and trade openness on economic activities in Nigeria, this study found both stock market and banking sector development insignificant in influencing economic growth in Nigeria. In general, the results highlight the weakness of the Nigerian financial sector in stimulating economic growth through resource mobilisation and allocation and the dominant role of the oil sector in economic activities in Nigeria.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1153872
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1153872
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1153872
Template-Type: ReDIF-Article 1.0
Author-Name: Duncan Watson
Author-X-Name-First: Duncan
Author-X-Name-Last: Watson
Author-Name: Louise Parker
Author-X-Name-First: Louise
Author-X-Name-Last: Parker
Title: The hullaballoo over e-learning? Technology and pluralism in economics
Abstract:
E-learning vs. face-to-face delivery: this binary opposition has governed much of the existing pedagogical research concerning technological innovation, as educationists are pressured to prioritise efficiency and the cost-effectiveness of traditional teaching methods. This paper rejects such a false dichotomy, proffering the alternative that can be found in blended learning methods. It is through the meticulous splicing of e-learning and traditional lectures that the individual economics lecturer is freed to deliver a pluralist perspective. “Contest and controversy; orthodoxy and heterodoxy; critique and reject”: technology provides the vehicle for economics education to break free of the constraints of monist teaching methods and ensures that economics students can fully engage in the discipline’s vibrant debates.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1159813
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1159813
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1159813
Template-Type: ReDIF-Article 1.0
Author-Name: Serge Svizzero
Author-X-Name-First: Serge
Author-X-Name-Last: Svizzero
Author-Name: Clement A. Tisdell
Author-X-Name-First: Clement A.
Author-X-Name-Last: Tisdell
Author-Name: Duncan Watson
Author-X-Name-First: Duncan
Author-X-Name-Last: Watson
Title: Economic evolution, diversity of societies and stages of economic development: A critique of theories applied to hunters and gatherers and their successors
Abstract:
Theories of the economic evolution of societies and their diversity are critically examined, paying particular attention to the evolution of hunter-gatherer societies. An interdisciplinary approach drawing on anthropology and economics is adopted. Currently, three main stereotypes of the nature of hunter-gatherer societies exist. While these indicate that they were diverse, they fail to capture the full extent of their diversity. It is argued that this diversity increased with the passage of time and was shaped by the varied local eco-geographic conditions in which these societies evolved. This raises the question of whether this development had the same basis as speciation in the biological theory of natural selection. This is discussed and then particular attention is given to Adam Smith’s vision of the economic evolution of human societies. In conclusion, it is hypothesized that the evolutionary path of modern economies and societies has diverged from that of prehistoric societies—they have become less diverse. Modern societies may also have become more ultrasocial, a process which accelerated following the commencement of agriculture.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1161322
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1161322
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1161322
Template-Type: ReDIF-Article 1.0
Author-Name: Sahar Loukil
Author-X-Name-First: Sahar
Author-X-Name-Last: Loukil
Author-Name: Anis Jarboui
Author-X-Name-First: Anis
Author-X-Name-Last: Jarboui
Title: Empirical determinants of relationship lending
Abstract:
We study the determinants of the incidence of relationship lending. For our study, we combine established insights from the study of Elsas with empirical banking relationship lending literature. We relate loan contract and borrower characteristics to self-assessments of Tunisian banks with respect to the existence of close relationship. Using detailed loan contract information from Tunisian banks and a questionnaire addressed to loan officers, we report the first comprehensive evidence on the development of relationship lending. We find that access to information, the ability to influence the manager, and the solvency of the company are relevant factors. While the exclusivity and the duration of the relationship, classic measures of the existence of close ties with the bank, are not determining factors. So these proxy measures should be used with caution in future empirical works.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1163773
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1163773
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1163773
Template-Type: ReDIF-Article 1.0
Author-Name: Bruce Morley
Author-X-Name-First: Bruce
Author-X-Name-Last: Morley
Title: Teaching empirical finance courses: A project on portfolio management
Abstract:
The aim of this article was to assess the use of a group-based project for an empirical finance type of course. It examines the outline of the project, the methodology the students are encouraged to follow and how the course is assessed. This approach enables the students to apply many of the techniques learnt on this course and other courses such as econometrics, to determine an optimal portfolio of assets given their view on the risks in the economy. The emphasis is on risk management through portfolio diversification and the use of a simple hedge strategy. The overall aim was to introduce the students to the basics of portfolio management, as many work in this industry for their industrial placements and when they graduate. The main contribution to the literature is through the analysis of an empirically based portfolio management project. The feedback from the students suggests they felt that they had learnt useful concepts and information, in an enjoyable exercise.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1167157
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1167157
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1167157
Template-Type: ReDIF-Article 1.0
Author-Name: Salvatore J. Terregrossa
Author-X-Name-First: Salvatore J.
Author-X-Name-Last: Terregrossa
Author-Name: Veysel Eraslan
Author-X-Name-First: Veysel
Author-X-Name-Last: Eraslan
Title: An analysis of the relation between return and beta for portfolios of Turkish equities
Abstract:
The present study investigates the possible existence of a systematic relation between beta and excess-return for portfolios of Turkish equities. In the process, no systematic relation is found between beta and realized portfolio excess-return, in an unconditional sense. However, the study does find a systematic relation between realized portfolio excess-return and beta, conditioned upon the sign of realized market-portfolio excess-return. Moreover, an even stronger systematic relation is found between realized portfolio excess-return and beta, conditioned not only upon the sign, but also the magnitude of realized market-portfolio excess-return, with the estimation of the security market plane (SMP) model. The study has several useful implications for portfolio managers. Firstly, the empirical findings strongly suggest that employment of the SMP model may generate more accurate estimations of expected asset-return, compared with straightforward application of the capital asset pricing model (CAPM). Enhanced accuracy of expected asset-return, in turn, may lead to more accurate appraisals of asset value, resulting in more profitable investment opportunities and decisions. Employment of the SMP model may thus lead to enhanced efficient-portfolio development, by leading to construction of portfolios with greater expected-return, for a given class of quantifiable-risk.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1168501
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1168501
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1168501
Template-Type: ReDIF-Article 1.0
Author-Name: Saida Daly
Author-X-Name-First: Saida
Author-X-Name-Last: Daly
Author-Name: Mohamed Frikha
Author-X-Name-First: Mohamed
Author-X-Name-Last: Frikha
Title: Banks and economic growth in developing countries: What about Islamic banks?
Abstract:
Islamic banks (IBs) have a significant role in the growth of gross domestic product of the developing countries. The Islamic participatory schemes integrate the assets of lenders and borrowers. They allow enable IBs to lend on a longer term basis to create projects with higher risk-return profiles and, thus, to support economic growth. Our investigation examines the contribution of Islamic finance in economic growth. Using a panel data-set, we compare between IBs and conventional banks in their adding to economic growth. We studied a sample of 120 banks between 2005 and 2012. By means of three ordinary least-square regressions, our empirical investigation reveals that the development of non-usurious banks supports economic growth. Moreover, the cooperation between the two financing modes improves economic growth. The integration of this new funding never neglected the role of the conventional method of financing. The practice of IBs is also away from their theoretical mode in terms of participation results.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1168728
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1168728
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1168728
Template-Type: ReDIF-Article 1.0
Author-Name: B.C. Okoye
Author-X-Name-First: B.C.
Author-X-Name-Last: Okoye
Author-Name: A. Abass
Author-X-Name-First: A.
Author-X-Name-Last: Abass
Author-Name: B. Bachwenkizi
Author-X-Name-First: B.
Author-X-Name-Last: Bachwenkizi
Author-Name: G. Asumugha
Author-X-Name-First: G.
Author-X-Name-Last: Asumugha
Author-Name: B. Alenkhe
Author-X-Name-First: B.
Author-X-Name-Last: Alenkhe
Author-Name: R. Ranaivoson
Author-X-Name-First: R.
Author-X-Name-Last: Ranaivoson
Author-Name: R. Randrianarivelo
Author-X-Name-First: R.
Author-X-Name-Last: Randrianarivelo
Author-Name: N. Rabemanantsoa
Author-X-Name-First: N.
Author-X-Name-Last: Rabemanantsoa
Author-Name: I. Ralimanana
Author-X-Name-First: I.
Author-X-Name-Last: Ralimanana
Title: Corrigendum
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1169640
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1169640
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1169640
Template-Type: ReDIF-Article 1.0
Author-Name: David F. Hendry
Author-X-Name-First: David F.
Author-X-Name-Last: Hendry
Author-Name: Grayham E. Mizon
Author-X-Name-First: Grayham E.
Author-X-Name-Last: Mizon
Title: Improving the teaching of econometrics
Abstract:
We recommend a major shift in the Econometrics curriculum for both graduate and undergraduate teaching. It is essential to include a range of topics that are still rarely addressed in such teaching, but are now vital for understanding and conducting empirical macroeconomic research. We focus on a new approach to macro-econometrics teaching, since even undergraduate econometrics courses must include analytical methods for time series that exhibit both evolution from stochastic trends and abrupt changes from location shifts, and so confront the “non-stationarity revolution”. The complexity and size of the resulting equation specifications, formulated to include all theory-based variables, their lags and possibly non-linear functional forms, as well as potential breaks and rival candidate variables, places model selection for models of changing economic data at the centre of teaching. To illustrate our proposed new curriculum, we draw on a large UK macroeconomics database over 1860–2011. We discuss how we reached our present approach, and how the teaching of macro-econometrics, and econometrics in general, can be improved by nesting so-called “theory-driven” and “data-driven” approaches. In our methodology, the theory-model’s parameter estimates are unaffected by selection when the theory is complete and correct, so nothing is lost, whereas when the theory is incomplete or incorrect, improved empirical models can be discovered from the data. Recent software like Autometrics facilitates both the teaching and the implementation of econometrics, supported by simulation tools to examine operational performance, designed to be feasibly presented live in the classroom.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1170096
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1170096
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1170096
Template-Type: ReDIF-Article 1.0
Author-Name: Aliyu Alhaji Jibrilla
Author-X-Name-First: Aliyu
Author-X-Name-Last: Alhaji Jibrilla
Title: Fiscal sustainability in the presence of structural breaks: Does overconfidence on resource exports hurt government’s ability to finance debt? Evidence from Nigeria
Abstract:
The sustainability of the Nigerian fiscal deficit along with the role of the dynamics of government revenues and spending in adjusting the size of the deficit is examined using annual data from 1961 to 2014. After allowing for structural breaks, the study finds evidence of a cointegration relation between the government revenues and spending. The results did not indicate the presence of asymmetries in either the threshold autoregression or momentum threshold autoregression specifications of the country’s budgetary adjustment process. Interestingly, the size of the long run slope parameter appears to be significantly less than one, thus offering support for the soft budget strategy, which also suggests that the government might face difficulties in financing its debts in the long run. Lastly, the short run and long run Granger causality results, while providing evidence in support of the fiscal synchronization hypothesis, also raise some important issues, particularly on the strength of budget deficit sustainability in the country.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1170317
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1170317
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1170317
Template-Type: ReDIF-Article 1.0
Author-Name: Lamia Jamel
Author-X-Name-First: Lamia
Author-X-Name-Last: Jamel
Author-Name: Abdelkader Derbali
Author-X-Name-First: Abdelkader
Author-X-Name-Last: Derbali
Title: Do energy consumption and economic growth lead to environmental degradation? Evidence from Asian economies
Abstract:
The main purpose of this study is to investigate empirically the impact of energy consumption and economic growth on the environmental degradation as measured by CO2 emissions. We utilize the cointegration test, the fully modified OLS, and the panel causality to examine the causality between environmental pollution and economic aggregates from a panel data of eight Asian countries during the period 1991–2013. We find that the cointegration tests confirm long run relationship among environmental degradation and energy consumption and economic growth along with financial development, trade openness, capital stocks, and urbanization as control variables. In addition, FMOLS results confirm that economic growth and energy consumption have a positive and significant impact on environmental degradation. Besides, panel causality through VECM verifies that bidirectional causal connection is found between energy consumption and economic growth and environmental degradation.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1170653
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1170653
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1170653
Template-Type: ReDIF-Article 1.0
Author-Name: Der-Yuan Yang
Author-X-Name-First: Der-Yuan
Author-X-Name-Last: Yang
Author-Name: Chen-Hsun Lee
Author-X-Name-First: Chen-Hsun
Author-X-Name-Last: Lee
Title: The solar and lunar divide and the impact on Taiwan’s stock returns
Abstract:
Under the influence of the western world, the solar New Year celebration seems to have fascinated everyone in Taiwan with the lunar New Year festivity showing much less vigor. This paper examines the impact of the solar and lunar New Years on the stock market of Taiwan, showing that the lunar effect outshines the solar one, but the magnitude is decreasing for both as the years go by. In addition, this effect is more significant in the year of horse.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1177153
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1177153
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1177153
Template-Type: ReDIF-Article 1.0
Author-Name: David G. McMillan
Author-X-Name-First: David G.
Author-X-Name-Last: McMillan
Title: Stock return predictability and market integration: The role of global and local information
Abstract:
This paper examines the predictability of a range of international stock markets where we allow the presence of both local and global predictive factors. Recent research has argued that US returns have predictive power for international stock returns. We expand this line of research, following work on market integration, to include a more general definition of the global factor, based on principal components analysis. Results identify three global expected returns factors, one related to the major stock markets of the US, UK and Asia and one related to the other markets analysed. The third component is related to dividend growth. A single dominant realised returns factor is also noted. A forecasting exercise comparing the principal components based factors to a US return factor and local market only factors, as well as the historical mean benchmark finds supportive evidence for the former approach. It is hoped that the results from this paper will be informative on three counts. First, to academics interested in understanding the dynamics asset price movement. Second, to market participants who aim to time the market and engage in portfolio and risk management. Third, to those (policy makers and others) who are interested in linkages across international markets and the nature and degree of integration.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1178363
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1178363
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1178363
Template-Type: ReDIF-Article 1.0
Author-Name: Akinori Tomohara
Author-X-Name-First: Akinori
Author-X-Name-Last: Tomohara
Author-Name: Akihiko Ohno
Author-X-Name-First: Akihiko
Author-X-Name-Last: Ohno
Title: Domains of reciprocity beyond monetary compensation: How do non-pecuniary factors affect effort and shirking?
Abstract:
This empirical study examines how sources of reciprocity are related to work motivation by distinguishing positive and negative work attitudes in practical working environments. We move away from the unidimensional perspective of monetary compensation and investigate employees’ reciprocal behaviors, together with non-pecuniary aspects of work relations such as human relationships and company management. The results show that positive reciprocity, represented by effort, is fundamentally distinct from negative reciprocity, represented by shirking, when examining the multi-dimensional sources of reciprocity. Additionally, our analyses reveal that non-pecuniary factors in the working environment have a relatively large degree of association with work motivation, even when compared to monetary compensation. Our results complement those from controlled laboratory experiments.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1178884
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1178884
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1178884
Template-Type: ReDIF-Article 1.0
Author-Name: S. Cook
Author-X-Name-First: S.
Author-X-Name-Last: Cook
Author-Name: C. Elliott
Author-X-Name-First: C.
Author-X-Name-Last: Elliott
Title: Innovations in Economics Education: An Introduction to Economic and Econometric Tools for Teaching and Learning
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1180038
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1180038
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1180038
Template-Type: ReDIF-Article 1.0
Author-Name: Chinazaekpere Nwani
Author-X-Name-First: Chinazaekpere
Author-X-Name-Last: Nwani
Author-Name: Eugene Iheanacho
Author-X-Name-First: Eugene
Author-X-Name-Last: Iheanacho
Author-Name: Chijioke Okogbue
Author-X-Name-First: Chijioke
Author-X-Name-Last: Okogbue
Title: Oil price and the development of financial intermediation in developing oil-exporting countries: Evidence from Nigeria
Abstract:
This study examines the relationship between crude oil price and financial sector intermediary development in Nigeria over the period 1975–2011, using the autoregressive distributed lag approach to cointegration analysis. Four measures of financial intermediary development are used including an index of financial intermediary development constructed from three indicators of financial intermediary development using principal component analysis. The results show that crude oil price is a key driver of financial intermediary development in Nigeria. A positive and significant long run relationship between financial intermediary development and crude oil price coexists with a negative short run relationship. The results show that even if we control for economic growth, inflation and trade openness, crude oil price still has significant influence on the development of financial intermediation in Nigeria. The findings of this study have important policy implications for financial intermediary development in Nigeria and other developing oil-exporting countries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1185237
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1185237
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1185237
Template-Type: ReDIF-Article 1.0
Author-Name: K. Moses Tule
Author-X-Name-First: K. Moses
Author-X-Name-Last: Tule
Author-Name: O. Taiwo Ajilore
Author-X-Name-First: O. Taiwo
Author-X-Name-Last: Ajilore
Title: On the stability of the money multiplier in Nigeria: Co-integration analyses with regime shifts in banking system liquidity
Abstract:
The study hypothesized the existence of regime shifts in the conduct of monetary policy, occasioned by changing liquidity conditions in the domestic banking system in Nigeria. Within the context of this prognosis, the study tests the stability of the money multiplier, utilizing methodological procedures that allow for the explicit consideration of regime shift bias in the specification of the model and the empirical estimation. The study found the existence of a stable long run relationship between broad money and the monetary base, confirming that the necessary condition for monetary control within a multiplier frame work is satisfied for Nigeria. Also, the spate of quantitative easing by the Central Bank of Nigeria to ameliorate adverse liquidity conditions and the lingering effects of the global financial crises occasioned a structural break in monetary policy, determined endogenously to have occurred in November 2009.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1187780
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1187780
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1187780
Template-Type: ReDIF-Article 1.0
Author-Name: Samuel Asumadu-Sarkodie
Author-X-Name-First: Samuel
Author-X-Name-Last: Asumadu-Sarkodie
Author-Name: Phebe Asantewaa Owusu
Author-X-Name-First: Phebe Asantewaa
Author-X-Name-Last: Owusu
Title: The casual nexus between child mortality rate, fertility rate, GDP, household final consumption expenditure, and food production index
Abstract:
In this study, the causal nexus between child mortality rate, fertility rate, GDP, household final consumption expenditure, and food production index in Ghana was investigated spanning from 1971 to 2013 using the Autoregressive and Distributed Lag (ARDL) method. The study tested for unit root, ARDL bounds cointegration test, ARDL long-run elasticities, Granger causality, and Variance Decomposition Analysis using Cholesky technique. There was evidence of long-run equilibrium relationship running from fertility rate, food production index, GDP, and household final consumption expenditure to the mortality rate. There was evidence of a bidirectional causality running from household final consumption expenditure to fertility rate. Evidence from the Variance Decomposition Analysis shows that, almost 6% of future fluctuations in mortality rate are due to shocks in the food production index, while 2% of future fluctuations in mortality rate are due to shocks in fertility rate. Evidence from the study shows that the increasing levels of social determinants like Gross Domestic Product and Household final consumption expenditure will help reduce child mortality rates in Ghana. In order to reduce child mortality rates among children under-5, infants and vulnerable in Ghana, there is the need to end hunger and ensure access to safe and nutritious food.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1191985
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1191985
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1191985
Template-Type: ReDIF-Article 1.0
Author-Name: Prosper Ebruvwiyo Edoja
Author-X-Name-First: Prosper Ebruvwiyo
Author-X-Name-Last: Edoja
Author-Name: Goodness C. Aye
Author-X-Name-First: Goodness C.
Author-X-Name-Last: Aye
Author-Name: Orefi Abu
Author-X-Name-First: Orefi
Author-X-Name-Last: Abu
Title: Dynamic relationship among CO2 emission, agricultural productivity and food security in Nigeria
Abstract:
The study analyzed the dynamic relationship among CO2 emission (CE), agricultural productivity (AGP), and food security (FS) in Nigeria. The study used annual time series data spanning from 1961 to 2010. Results based on Augmented Dickey and Fuller and Phillip and Perron tests showed that the series are integrated of order one, I(1). Johansen cointegration test was employed to examine the long run relationship. Results show there is no long run relationship among the three variables. Evidence based on the VAR estimates and the impulse response functions shows that there is a negative and significant short run relationship between CO2 and AGP and between CO2 and FS. Also the variance decomposition analyses showed that over time, CE contributed about 23 and 22 percent to the variation in AGP and FS, respectively. Further, analysis based on Granger causality test indicated that there was a unidirectional causality from CE to AGP and also from CE to FS. Policies that will assist in the mitigation of CE including investment in research and development, cap and trade system, carbon tax policy, adoption of clean power plan, and other regulatory measures are recommended.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1204809
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1204809
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1204809
Template-Type: ReDIF-Article 1.0
Author-Name: Chikashi Tsuji
Author-X-Name-First: Chikashi
Author-X-Name-Last: Tsuji
Title: Did the expectations channel work? Evidence from quantitative easing in Japan, 2001–06
Abstract:
The Japanese economy experienced a prolonged period of quantitative easing (QE) over the five years from March 2001 to March 2006. The purpose of this paper is to evaluate the direct and exclusive effects of this rather unconventional monetary policy on financial markets, economic activity, and labor markets in Japan empirically by employing exactly the same testing period with the QE period in most of our examinations. Using a range of variables, we first estimate vector error correction models (VECMs) that consider the cointegrating relations between the Japanese monetary base and other variables in our data-set. We also use Markov-switching dynamic regression (MSDR) models, Bayesian vector autoregressive (VAR) models, and causality analyses to test for robustness. Together, all the above analyses consistently provide a number of interesting findings. First, QE lowered short- and medium-term credit spreads and improved Japanese credit market conditions. Second, QE increased stock prices in Japan and improved market expectations. Third, the QE policy recovered labor market conditions and economic productivity in Japan. Finally, additional analyses of fund flows and economic survey data suggest that the primary transmission channel of this period of Japanese QE policy was the expectations channel.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1210996
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1210996
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1210996
Template-Type: ReDIF-Article 1.0
Author-Name: Yukiko Konno
Author-X-Name-First: Yukiko
Author-X-Name-Last: Konno
Author-Name: Yuki Itoh
Author-X-Name-First: Yuki
Author-X-Name-Last: Itoh
Title: An alternative to the standardized approach for assessing credit risk under the Basel Accords
Abstract:
The current standardized approach for assessing credit risk under Basel III depends on ratings assigned by credit rating agencies (CRAs). However, this approach presents three problems. First, the definitions of ratings used by CRAs to assess the likelihood of default and recovery rates are not uniform. Second, because CRAs assign ratings according to through-the-cycle ratings, their ratings are less accurate in predicting near-term defaults and react slowly to credit events. Third, CRAs have assigned ratings to few Japanese companies. To improve the standardized approach under Basel III, we propose a new method for the evaluation of credit risk without CRAs. We analyse the influence of companies’ financial and non-financial attributes on default and how a default probability model is constructed using annual reports of companies listed on the Tokyo Stock Exchange spanning fiscal 2003–2009. Results indicate that our model predicts default as accurately as CRAs.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1220119
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1220119
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1220119
Template-Type: ReDIF-Article 1.0
Author-Name: Chikashi Tsuji
Author-X-Name-First: Chikashi
Author-X-Name-Last: Tsuji
Title: Does the fear gauge predict downside risk more accurately than econometric models? Evidence from the US stock market
Abstract:
This paper empirically compares the usefulness of information included in the volatility index (VIX) against several generalized autoregressive conditional heteroskedasticity (GARCH) models for predicting downside risk in the US stock market. Our main findings are as follows. First, using the univariate logit and quantile regression models, we reveal that the previous day’s VIX and the forecast S&P 500 volatilities from GARCH, exponential GARCH (EGARCH), power GARCH (PGARCH), and threshold GARCH (TGARCH) models have statistically significant predictive power for large declines in the S&P 500. Second, direct comparisons with the multiple logit and quantile regression models demonstrate that the volatility forecasts from the EGARCH, PGARCH, and TGARCH models dominate the predictive power of the previous day’s VIX; and we also clarify that the predictive power of volatility forecasts from the EGARCH and TGARCH models is much stronger. Third, our additional tests further suggest that the forecast VIX, the forecast volatility of VIX, and the forecast volatility of the first log differences of VIX cannot outperform the S&P 500 volatility forecasts from econometric models in predicting US stock market downside risk. Fourth, our vector-half (VECH), Baba–Engle–Kraft–Kroner (BEKK), dynamic conditional correlation (DCC), and asymmetric DCC (ADCC) multivariate GARCH (MGARCH) analyses demonstrate that the time-varying correlations between the previous day’s VIX and the volatility forecasts from the EGARCH or TGARCH models are weaker than the correlations of volatility forecasts from the EGARCH and TGARCH models. Finally, our VECH-, BEKK-, DCC-, and ADCC-MGARCH analyses further clarify almost perfect correlations around the US Lehman Brothers bankruptcy across all three volatility series. The key contribution of this paper is that it clarifies the superiority of volatility forecasts using econometric models compared with VIX in predicting the US stock market downside risk. The primary implications of our results are the importance of developing effective technical models and the need to use econometric model volatility forecasts in practice.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1220711
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1220711
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1220711
Template-Type: ReDIF-Article 1.0
Author-Name: Tomohito Kamai
Author-X-Name-First: Tomohito
Author-X-Name-Last: Kamai
Author-Name: Yuichiro Kanazawa
Author-X-Name-First: Yuichiro
Author-X-Name-Last: Kanazawa
Title: Is product with a special feature still rewarding? The case of the Japanese yogurt market
Abstract:
Manufacturers of packaged consumer goods strive to develop a new product with a special feature that could provide additional value to consumers. However, it is less clear whether such an effort is still rewarding in terms of margin if manufacturers are losing power to retailers as some have argued. To investigate this issue, we conduct an economic analysis in the Japanese yogurt market incorporating strategic interaction between manufacturers and a retailer as well as between manufacturers by extending the framework employed in the earlier literature to suit the retailer Stackelberg game which can reflect the possible power shift from manufacturers to retailers. We find (1) the manufacturers’ margins on special featured brands are larger than those on the others; (2) however, the manufacturer producing such brands is not able to leverage these brands to exert bargaining power over the retailer; and (3) the retailer obtains as large margins as the manufacturers on these brands. In the course of this research, we successfully portray the symmetrical relationship between manufacturer and retailer Stackelberg games, whereby the vertical Nash game is located in the midpoint of those two games.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1221231
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1221231
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1221231
Template-Type: ReDIF-Article 1.0
Author-Name: Nicolas Afflatet
Author-X-Name-First: Nicolas
Author-X-Name-Last: Afflatet
Author-Name: Stephanos Papadamou
Author-X-Name-First: Stephanos
Author-X-Name-Last: Papadamou
Title: Public debt and borrowing: Are governments disciplined by financial markets?
Abstract:
With the announcement to intervene on financial markets to restore the monetary transmission mechanism, the ECB has attenuated the pressure of the markets on the endangered peripheral countries of the Eurozone. Critics argue that by eliminating the markets’ disciplining interest mechanism, governments in the crisis countries will not carry out reforms and consolidate their budgets. This kind of interplay between public deficit policy and financial markets is commonly discussed under the notion of Market Discipline Hypothesis. The hypothesis’ second half suggests that governments react to rising interest rates by adjusting their deficit policy. Based on panel data for the European Union, different models are tested to investigate if governments react to rising interest rates. The results indicate that governments do raise their primary surpluses when they perceive the rising interest rates in their budgets. Governments react quite quickly to changing interest rates, although there seems to be some backlash in the medium-run.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1225346
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1225346
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1225346
Template-Type: ReDIF-Article 1.0
Author-Name: Moradeyo Adebanjo Otitoju
Author-X-Name-First: Moradeyo Adebanjo
Author-X-Name-Last: Otitoju
Author-Name: Dennis D. Ochimana
Author-X-Name-First: Dennis D.
Author-X-Name-Last: Ochimana
Title: Determinants of farmers’ access to fertilizer under fertilizer task force distribution system in Kogi State, Nigeria
Abstract:
This study investigated the determinants of farmers’ access to fertilizer under Fertilizer Task Force Distribution System in Kogi State, Nigeria. A multi-stage random technique was used to select 160 farmers for the study. Probit model analysis on the factors that influence farmers’ access to fertilizer showed that age of the farmers, farm size (negative), distance to procurement centers, and social participation (positive) significantly influenced the probability of farmers’ access to fertilizer. Effective strategies of task force in the procurement and distribution of fertilizer perceived by the respondents among others are: distribution of fertilizer through local government agricultural offices, subsidy at source including transportation subsidy to delivery points, and promotion of subsidies for the poor farmers, development of private agro-dealers network. It is envisaged that these factors could serve as a guide to policy-makers regarding procurement and distribution of fertilizer to enhance farmers’ access and crop productivity in Nigeria.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1225347
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1225347
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1225347
Template-Type: ReDIF-Article 1.0
Author-Name: Ferdaws Ezzi
Author-X-Name-First: Ferdaws
Author-X-Name-Last: Ezzi
Author-Name: Mouhamed Ali Azouzi
Author-X-Name-First: Mouhamed Ali
Author-X-Name-Last: Azouzi
Author-Name: Anis Jarboui
Author-X-Name-First: Anis
Author-X-Name-Last: Jarboui
Title: Does CEO emotional intelligence affect the performance of the diversifiable companies?
Abstract:
This article scrutinizes the leader’s emotional intelligence effect on the enterprises’ performance (diversification is the main strategy). After the theoretical discussion which approaches our subject matter, we propose our research assumptions. Thus, this research attempts to answer our central question: How can emotional intelligence affect the performance of Tunisian enterprises (diversifiable companies)? Our methodology consists of two parts. The first is used to identify the data sample selection and the second is devoted to the results interpretation. The main contribution of this work is to explain how the behavioral finance (we speak about emotional intelligence) allows to present answers regarding performance of companies (which the strategy the adopted is the diversification). The results obtained from the linear regressions made on a sample of the show well the significant and positive CEO emotional intelligent on the financial, social and environmental performance.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1230958
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1230958
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1230958
Template-Type: ReDIF-Article 1.0
Author-Name: Shelia M. Kennison
Author-X-Name-First: Shelia M.
Author-X-Name-Last: Kennison
Author-Name: Erin E. Wood
Author-X-Name-First: Erin E.
Author-X-Name-Last: Wood
Author-Name: Jennifer Byrd-Craven
Author-X-Name-First: Jennifer
Author-X-Name-Last: Byrd-Craven
Author-Name: Megan L. Downing
Author-X-Name-First: Megan L.
Author-X-Name-Last: Downing
Title: Financial and ethical risk-taking by young adults: A role for family dynamics during childhood
Abstract:
The research tested the hypothesis that childhood relationships with parents were related to risk-taking by young adults. Prior research has shown that risk-taking by young children is related to their interactions with mothers and fathers. Few studies have examined how family relationships during childhood are related to risk-taking by young adults. We assessed risk-taking using the domain-specific risk-taking scale (DOSPERT), which measures five domains of risk-taking: ethical, financial, health, recreational, and social. We also assessed sensation-seeking, a personality trait that has been shown to be a predictor of risk-taking and family dynamics, using a measure that quantifies positive and negative childhood relationships with each parent. The three key results were (1) negative mother interactions predicted men’s financial risk-taking; (2) negative father interactions and disinhibition predicted men’s ethical risk-taking; and (3) women’s ethical risk-taking was predicted by negative father interactions, low positive mother interactions, and boredom susceptibility. Implications for identifying young adults most at-risk for ethical and financial risk-taking are discussed.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1232225
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1232225
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1232225
Template-Type: ReDIF-Article 1.0
Author-Name: David J. Moore
Author-X-Name-First: David J.
Author-X-Name-Last: Moore
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: A look at the actual cost of capital of US firms
Abstract:
The capital asset pricing model (CAPM) receives both criticism and widespread adoption by practitioners and academics as the weighted average cost of capital (WACC) equity component. This study introduces two new costs of equity measures to address CAPM criticisms and provide new perspective on WACC estimates. The firm-based measure focuses on firm–investor cash flows while the market-based measure focuses solely on actual market returns. This study applies its firm and market-based WACC measures, along with the traditional CAPM-based WACC measure, to a broad sector-based cross section from 1972 to 2015. Results show that traditional CAPM-based WACC estimates consistently lie between the new firm and market-based WACC estimates. The central positioning of CAPM WACC supports its use as a conservative hurdle rate estimate for firms and a conservative expected return estimate for investors relative to actual returns.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1233628
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1233628
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1233628
Template-Type: ReDIF-Article 1.0
Author-Name: Lukman Oyeyinka Oyelami
Author-X-Name-First: Lukman Oyeyinka
Author-X-Name-Last: Oyelami
Author-Name: P.A. Olomola
Author-X-Name-First: P.A.
Author-X-Name-Last: Olomola
Title: External shocks and macroeconomic responses in Nigeria: A global VAR approach
Abstract:
This study investigates the macroeconomic responses of Nigerian economy to external shock between 1986 and 2014. Specifically, we examine the effect of oil price shocks and macroeconomic shocks from developed trading partners on Nigerian macroeconomic performances in order to establish pattern of reactions to these shocks in the country. We employ global vector autoregression (GVAR) comprising of the US, EU, China, Japan and Nigeria as the reference country. The adoption as of this method of estimation is necessitated by its capability to effectively model complex high-dimensional system and also offers adequate tools to deal with the curse of dimensionality that can arise from a study of this nature. Having critically examined the econometric properties of our GVAR model, the results from our estimation based on impulse response function show that oil price shocks have direct effect on real gross domestic product and exchange rate in Nigeria but variables like inflation and short-term interest rate do not show immediate response to the shocks. The results also indicate that macroeconomic variables such as short-term interest and inflation show immediate responses to shocks to counterpart variables in developed countries. Based on this, the study concludes that Nigerian economy is vulnerable to external shocks and such shocks are not limited to oil price shocks. Other form of shocks such as growth spillover and financial shocks from developed countries are also relevant in shaping the macroeconomic performances in Nigeria.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1239317
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1239317
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1239317
Template-Type: ReDIF-Article 1.0
Author-Name: J. Szolgayová
Author-X-Name-First: J.
Author-X-Name-Last: Szolgayová
Author-Name: S. Fuss
Author-X-Name-First: S.
Author-X-Name-Last: Fuss
Author-Name: T. Kaminski
Author-X-Name-First: T.
Author-X-Name-Last: Kaminski
Author-Name: M. Scholze
Author-X-Name-First: M.
Author-X-Name-Last: Scholze
Author-Name: M. Gusti
Author-X-Name-First: M.
Author-X-Name-Last: Gusti
Author-Name: M. Heimann
Author-X-Name-First: M.
Author-X-Name-Last: Heimann
Author-Name: M. Tavoni
Author-X-Name-First: M.
Author-X-Name-Last: Tavoni
Title: The benefits of investing into improved carbon flux monitoring
Abstract:
Operationalizing a Global Carbon Observing and Analysis System (www.geocarbon.net) would provide a sound basis for monitoring actual carbon fluxes and thus getting quantities right when pricing carbon – be it in a cap-and-trade scheme or under a tax regime. However, such monitoring systems are expensive and—especially in times of economic weakness—budgets for science and environmental policy are under particular scrutiny. In this study, we attempt to demonstrate the magnitude of benefits of improved information about actual carbon fluxes. Such information enables better-informed policy-making and thus paves the way for a more secure investment environment when decarbonizing the energy sector. The numerical results provide a robust indication of a positive social value of improving carbon monitoring systems when compared to their cost, especially for the more ambitious climate policies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1239672
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1239672
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1239672
Template-Type: ReDIF-Article 1.0
Author-Name: Gary Smith
Author-X-Name-First: Gary
Author-X-Name-Last: Smith
Title: Overreaction of Dow stocks
Abstract:
Several studies have found mean reversion in monthly stock returns over long horizons. However, these studies can be challenged for several reasons, including the neglect or possible misspecification of risk premia. The current paper analyzes daily Dow returns over short horizons, which obviates the most serious issues in long-horizon studies using monthly data. There is strong evidence of overreaction in that large positive and (especially) negative returns tend to be followed by persistent, substantial, and statistically persuasive reversals over the next 10 days.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1251831
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1251831
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1251831
Template-Type: ReDIF-Article 1.0
Author-Name: Ibrahim Bakari Hassan
Author-X-Name-First: Ibrahim Bakari
Author-X-Name-Last: Hassan
Title: International capital mobility in West Africa: A panel cointegration approach
Abstract:
The study investigates the status of international capital mobility in West Africa using the saving retention coefficient of Feldstein–Horioka hypothesis. The hypothesis is predicated on the fact that, with perfect capital mobility, domestic investment does not depends on domestic savings but depends on the pool of international savings. Panel data on domestic savings and domestic investments of 13 West African countries, spanning from 1980 to 2011 are used to run a series of long-run relations. After establishing the presence of cointegration relationship between the two variables, the saving retention coefficient is estimated using the pooled mean group (PMG), fully modified OLS (FMOLS) and the dynamic OLS (DOLS). The results from these long-run estimators show low value of saving retention coefficient, signifying low association between domestic savings and domestic investment and hence higher capital mobility in West Africa. The result also confirmed that the Feldstein–Horioka puzzle does not hold for West Africa. However, the presence of free and higher capital mobility in the continent could be a signal that the use of monetary policy in domestic economic stabilization is increasingly becoming ineffective, especially in the long-run. The finding suggests the establishment of monetary union in the region.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1256023
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1256023
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1256023
Template-Type: ReDIF-Article 1.0
Author-Name: Adedoyin Isola Lawal
Author-X-Name-First: Adedoyin Isola
Author-X-Name-Last: Lawal
Author-Name: Tony I. Nwanji
Author-X-Name-First: Tony I.
Author-X-Name-Last: Nwanji
Author-Name: Abiola Asaleye
Author-X-Name-First: Abiola
Author-X-Name-Last: Asaleye
Author-Name: Victor Ahmed
Author-X-Name-First: Victor
Author-X-Name-Last: Ahmed
Title: Economic growth, financial development and trade openness in Nigeria: An application of the ARDL bound testing approach
Abstract:
For over a decade now, various efforts have been put in place by various governments of the developing economies to promote economic growth, financial development and expand trade with mixed results. The ability of financial development and/or trade openness to influence economic growth in the developing economies has been a subject of hot debate and remains inconclusive. While a number of scholars are of the view that compelling cointegration exists among each of these constructs, another set of substantial authors have documented that economic growth, trade openness and financial development do evolve independent of each other. Drawing from four financial developments–growth nexus theories, this study used the ARDL bound estimation techniques to examine the existence of cointegration among economic growth, financial development and trade openness in Nigeria. We intend to know what policy instruments need to be manipulated so as to achieve economic growth and financial stability. Our results show that a two-way cointegration exists between economic growth and financial development, on the one hand, as well as between economic growth and trade openness, on the other hand. We therefore recommend that in order to achieve economic growth, policy-makers should pursue strong financial development and increase trade openness.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1258810
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1258810
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1258810
Template-Type: ReDIF-Article 1.0
Author-Name: Bård Misund
Author-X-Name-First: Bård
Author-X-Name-Last: Misund
Title: Vertical integration and value-relevance: Empirical evidence from oil and gas producers
Abstract:
Oil and gas exploration companies (E&Ps) exhibit large variations in earnings due to volatile oil and gas prices. Furthermore, their primary asset, oil and gas reserves, is accumulated through highly risky exploration activities. In contrast, integrated oil and gas companies display lower variability in their earnings due a more diversified asset base. The literature suggests that companies with higher earnings volatility and higher levels of intangibles among their assets should have lower value relevance of accounting information than companies with higher levels of tangible assets on their balance sheets. For that reason, E&P companies should have lower value relevance than integrated companies. Contrary to expectations, we do not find lower value relevance for E&Ps earnings than integrated oil and gas companies. In fact, the results suggest that the presence of supplementary estimates for oil and gas reserves values mitigate the potential problem associated with the presence of intangible assets experienced in other industries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1264107
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1264107
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1264107
Template-Type: ReDIF-Article 1.0
Author-Name: Frank Asche
Author-X-Name-First: Frank
Author-X-Name-Last: Asche
Author-Name: Bård Misund
Author-X-Name-First: Bård
Author-X-Name-Last: Misund
Title: Who’s a major? A novel approach to peer group selection: Empirical evidence from oil and gas companies
Abstract:
This study presents a novel approach to selecting comparable companies in equity valuation. While valuation multiples is probably the most common valuation method in practice, discounted cash flow and residual income valuation models are advocated by academics. A key aspect in valuation by multiples is peer group selection. In this paper, we examine the usefulness of econometric techniques in peer-group selection for the largest companies in the international oil and gas sector. Using Chow tests, we are able to identify firms with similar relationships between valuation multiples and relevant value drivers. These results of our study suggest that analysts and investors should, when carrying out valuations, be careful in selecting the companies that comprise the peer groups. Comparable company selection could be carried out using econometric techniques that select companies on the basis of similarities in the relation between financial information and market valuation, instead of being based purely on analysts’ subjective judgments.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1264538
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1264538
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1264538
Template-Type: ReDIF-Article 1.0
Author-Name: Lidija Dedi
Author-X-Name-First: Lidija
Author-X-Name-Last: Dedi
Author-Name: Burhan F. Yavas
Author-X-Name-First: Burhan F.
Author-X-Name-Last: Yavas
Title: Return and volatility spillovers in equity markets: An investigation using various GARCH methodologies
Abstract:
This paper investigates linkages among equity market returns and volatility spillovers in the following countries: Germany, United Kingdom, China, Russia, and Turkey. MARMA, GARCH, GARCH-in-mean, and exponential GARCH (EGARCH) methodologies are applied to daily data on country exchange-traded funds (ETF) based on the MSCI indices from 31 March 2011 to 11 March 2016. The results of the analysis show the existence of significant co-movements of returns among the countries in the sample. ETF returns in Germany, UK, and Russia affect returns in all of the other sample countries. Implications of these findings are explored in terms of portfolio diversification. In addition, the highest volatilities are exhibited by Russia and Turkey. On the other hand, the UK and the Chinese markets have the lowest volatilities. Also, there is a strong evidence of volatility spillovers. All of the countries in the sample, with the exception of UK and Turkey, experience volatility spillovers from other markets. Finally, because of the risk-return trade-off, we analyzed the effect of volatility of the market on its returns and found that only in the UK volatility of the market had a positive effect on its future returns: that an increase in volatility leads to a rise in future ETF returns in the UK.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1266788
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1266788
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1266788
Template-Type: ReDIF-Article 1.0
Author-Name: Musa H. Ahmed
Author-X-Name-First: Musa H.
Author-X-Name-Last: Ahmed
Author-Name: Hiwot M. Mesfin
Author-X-Name-First: Hiwot M.
Author-X-Name-Last: Mesfin
Author-Name: Seltene Abady
Author-X-Name-First: Seltene
Author-X-Name-Last: Abady
Author-Name: Wendmagegn Mesfin
Author-X-Name-First: Wendmagegn
Author-X-Name-Last: Mesfin
Author-Name: Amare Kebede
Author-X-Name-First: Amare
Author-X-Name-Last: Kebede
Title: Adoption of improved groundnut seed and its impact on rural households’ welfare in Eastern Ethiopia
Abstract:
This study has evaluated the impact of adoption of improved groundnut seed on the well-being of the farmers of Eastern Ethiopia using a cross-sectional data collected from 301 sample households. To address this objective, both descriptive and econometric analysis methods were employed. In the econometric analysis, Propensity Score Matching was used to measure the impact of adoption of improved groundnut seeds on well-being measured as expenditure per adult equivalent. The results of the study have indicated that adoption of improved groundnut seeds has a positive and significant impact on the welfare of the farmers. Therefore, socioeconomic variables should be addressed to improve the adoption of improved groundnut seeds, which in turn increases the welfare of groundnut producing farmers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 4
Year: 2016
Month: 12
X-DOI: 10.1080/23322039.2016.1268747
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1268747
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Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1268747
Template-Type: ReDIF-Article 1.0
Author-Name: Manel Gharbi
Author-X-Name-First: Manel
Author-X-Name-Last: Gharbi
Author-Name: Anis Jarboui
Author-X-Name-First: Anis
Author-X-Name-Last: Jarboui
Title: Institutional investors’ role in diversifying orientation decision across Tunisian companies
Abstract:
The present work’s major objective consists in examining the impact of institutional investors’ presence on corporate diversification decision. For this sake, a theoretical framework based on the corporate governance contractual approach has been advanced highlighting the idea that the presence of institutional enjoys a diversification-oriented strategic decision. For this purpose, a model is used and applied to Tunisian firms’ sample observed over the period 2011–2013. In fact, the study maintains that the presence of institutional investors helps in directly influencing corporate strategic decisions. The reached results, conducted on a sample of 111 Tunisian commercial companies and service-providing firms, appear to reveal the persistence of a significant impact of the institutional investors on diversification decision.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2016.1244873
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1244873
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1244873
Template-Type: ReDIF-Article 1.0
Author-Name: Nusrat Farah
Author-X-Name-First: Nusrat
Author-X-Name-Last: Farah
Author-Name: Mukti P. Upadhyay
Author-X-Name-First: Mukti P.
Author-X-Name-Last: Upadhyay
Title: How are school dropouts related to household characteristics? Analysis of survey data from Bangladesh
Abstract:
Human capital accumulation is one of the key drivers of economic growth especially in developing countries that are trying to catch up in per capita income with the developed world. A high dropout rate of children from school can significantly impede growth. This paper presents evidence on school dropout rate being affected by household characteristics and social background. We investigate dropouts by using a large data-set from the Bangladesh Demographic and Health Survey, 2011. A fractional logit model, a beta regression model, and for comparison a simple OLS model all indicate our empirical strategy to be fairly robust. The large incidence of households having a child quitting school to enter the labor market also allows us to study the dropout using a probit model. We find many interesting results. Children from poor families with less educated parents drop out sooner with a lasting effect on educational outcomes. Households that have more than three children or more than five members also experience greater quit rates. Richer and richest categories of households have the lowest dropouts. Those facing a costly commute to school or having no access to electricity also quit earlier. We also present evidence on several other factors with important policy implications. Our results suggest that any strategy that seeks to encourage human capital accumulation must simultaneously address the school dropout rate through a combination of such factors as promotion of female education and expansion of credit for small businesses.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2016.1268746
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1268746
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1268746
Template-Type: ReDIF-Article 1.0
Author-Name: Maria-Teresa Bosch-Badia
Author-X-Name-First: Maria-Teresa
Author-X-Name-Last: Bosch-Badia
Author-Name: Joan Montllor-Serrats
Author-X-Name-First: Joan
Author-X-Name-Last: Montllor-Serrats
Author-Name: Maria-Antonia Tarrazon-Rodon
Author-X-Name-First: Maria-Antonia
Author-X-Name-Last: Tarrazon-Rodon
Title: Analysing assets’ performance inside a portfolio: From crossed beta to the net risk premium ratio
Abstract:
This paper is focused on enlarging the performance inside a portfolio that provides the Treynor ratio by relating portfolio weights with performance indicators. Intuition suggests that the higher the weight of an asset, the higher should be its expected performance. These weights, and the information that we can obtain from their analysis, are not only relevant for investors but also for corporate managers. Nevertheless, the available performance indicators are not linked to portfolio weights. In order to fulfil this gap we answer three questions: which is the minimum risk premium that justifies holding an asset in long position? How can we analyse if the performance of an asset justifies the budget’s weight invested in it? And, how can we apply ex-post optimisation to performance analysis? Methodologically, we centre the analysis on the definition of crossed beta and the net risk premium ratio that stems from it. The latter fulfils the axioms of risk/reward performance measures. The three answers to the questions are related to the net risk premium. The analysis in developed for the Mean-Variance and Mean-Gini models. The empirical illustration, based on DJIA assets, that completes the paper shows how the analysis of portfolio weights provides relevant information about the performance of assets.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2016.1270251
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1270251
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1270251
Template-Type: ReDIF-Article 1.0
Author-Name: Burçak Polat
Author-X-Name-First: Burçak
Author-X-Name-Last: Polat
Title: Rate of return on foreign investment income and employment labour protection: A panel analysis of thirty OECD countries
Abstract:
Scholars argue that multinational corporations tend to locate their investments in countries with lower employment protections to avoid potential future exit costs if an unfavourable event occurs. Yet, empirical results are highly inconsistent. The main objective of this study is to examine the causal relationship between rate of return on foreign investment income and employment labour protection (ELP) by employing one-step system generalized method of moments system. Strict ELP affects location choice of investments through the profit maximization appetite of foreign investors. Thus, contrary to previous studies investigating the effect of labour standards on foreign investment inflows, this study deals relationship between rate of return on foreign investment income and ELP in the host country. The study found robust evidence that ELP has no significant effect on rate of return on investment income; however, market size, GDP growth rate, openness, investment profile and inflation do indeed have a positive effect. The important implication is that the reductions in employment protection rules do not affect the location choice of foreign investors through the cost–benefit analysis on their investments.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2016.1273588
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1273588
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1273588
Template-Type: ReDIF-Article 1.0
Author-Name: Abderrazak Dhaoui
Author-X-Name-First: Abderrazak
Author-X-Name-Last: Dhaoui
Author-Name: Sami Bacha
Author-X-Name-First: Sami
Author-X-Name-Last: Bacha
Title: Investor emotional biases and trading volume’s asymmetric response: A non-linear ARDL approach tested in S&P500 stock market
Abstract:
This paper investigates the dynamic linkages between trading volume and investors sentiments for the S&P500 stock exchange. Two sentiment indicators are considered, the overconfidence and the net optimism-pessimism indicator. Non-linear dynamic approach, namely the asymmetric autoregressive distributed lag (NARDL) model is used to capture the long-term and short-term non-linear connections between the investor sentiment and the stock market liquidity. Empirical findings suggested an asymmetric long-term market liquidity reaction to investor sentiment. In the short-term, the stock market liquidity react rapidly and asymmetrically to changes in overconfidence sentiment, while the optimism and pessimism sentiment has insignificant short-term impact on trading volume.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2016.1274225
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1274225
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1274225
Template-Type: ReDIF-Article 1.0
Author-Name: Panagiotis Mantalos
Author-X-Name-First: Panagiotis
Author-X-Name-Last: Mantalos
Title: Robust critical values for unit root tests for series with conditional heteroscedasticity errors: An application of the simple NoVaS transformation
Abstract:
In this paper, we introduce a set of critical values for unit root tests that are robust in the presence of conditional heteroscedasticity errors using the normalizing and variance-stabilizing transformation (NoVaS) and examine their properties using Monte Carlo methods. In terms of the size of the test, our analysis reveals that unit root tests with NoVaS-modified critical values have actual sizes close to the nominal size. For the power of the test, we find that unit root tests with NoVaS-modified critical values either have the same power as, or slightly better than, tests using conventional Dickey–Fuller critical values across the sample range considered.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2016.1274282
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1274282
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1274282
Template-Type: ReDIF-Article 1.0
Author-Name: Geremew Worku Kassie
Author-X-Name-First: Geremew Worku
Author-X-Name-Last: Kassie
Title: The Nexus between livelihood diversification and farmland management strategies in rural Ethiopia
Abstract:
The purpose of this study was to determine whether or not livelihood diversification strategies are significant predictors of rural households’ farmland management practices. To this end, the two-limit Tobit econometric model was employed to analyse the nexus between livelihood diversification and farmland management. The study incorporated 151 farm households in Gozamin District, East Gojjam, in Ethiopia. A survey questionnaire was used to gather data. Both descriptive and inferential statistics were used as methods of data analysis. The result indicated that livelihood diversification, measured by the inverse Herfindahl–Hirschman diversity index, has a positive and significant effect on sustainable land management activities. Besides, farm households who participated in agricultural extension packages and those engaged in farm cooperatives and in non-farm wage employment activities joined significantly more in sustainable rural land management practices. The integrated rural livelihood and sustainable land management strategy that can help jointly maximise the farm household livelihood and the land management practices is required. Rural livelihood development policies need to promote and adapt rural institutions like farm cooperatives and comprehensive agricultural extension services.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2016.1275087
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1275087
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1275087
Template-Type: ReDIF-Article 1.0
Author-Name: Seng Sothan
Author-X-Name-First: Seng
Author-X-Name-Last: Sothan
Title: Causality between foreign direct investment and economic growth for Cambodia
Abstract:
The relationship between foreign direct investment (FDI) and economic growth in recipient economies remains one of the hottest debates. As confirmed in the literature, many studies support the growth impact of FDI, but some do not. Cambodia, a war-torn economy, also depends on FDI as a driver of economic growth. In addition, the causal relationship between FDI and growth in Cambodia is not fully known. Therefore, this paper is an attempt to examine the causal link between the two variables over the period 1980–2014, using Granger causality test based on the vector error correction model. The empirical results provide strong evidence on the causal impact of FDI on Cambodia’s economic growth (GDP). However, the study does not confirm causality to run from GDP to FDI. This can be concluded that the growth impact of FDI is sufficiently supported in Cambodia.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2016.1277860
File-URL: http://hdl.handle.net/10.1080/23322039.2016.1277860
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1277860
Template-Type: ReDIF-Article 1.0
Author-Name: Hai Yue Liu
Author-X-Name-First: Hai Yue
Author-X-Name-Last: Liu
Author-Name: Xiao Lan Chen
Author-X-Name-First: Xiao Lan
Author-X-Name-Last: Chen
Title: The imported price, inflation and exchange rate pass-through in China
Abstract:
This paper considers the effect of exchange rate (ER) level on China’s domestic prices during the period of 2003–2012. We examine China’s consumer price index (CPI), import price index (IPI) and producer price index (PPI) by using time series vector error correction analysis. The main finding of the paper is that ER pass-through has had a limited but growing effect on domestic prices and will continue to do so. ER regime change that was announced by Chinese government in 2005 led to an increased sensitivity of ER pass-through to domestic prices.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1279814
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1279814
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1279814
Template-Type: ReDIF-Article 1.0
Author-Name: Solomon Abadi Dirar
Author-X-Name-First: Solomon
Author-X-Name-Last: Abadi Dirar
Author-Name: Tekeste Berhanu
Author-X-Name-First: Tekeste
Author-X-Name-Last: Berhanu
Author-Name: Dereje Getachew
Author-X-Name-First: Dereje
Author-X-Name-Last: Getachew
Author-Name: Hossein Azadi
Author-X-Name-First: Hossein
Author-X-Name-Last: Azadi
Title: Financial product development and members’ voluntary saving behavior in saving and credit cooperatives in Tigray: A case study in Endamohoni Woreda
Abstract:
This survey study aimed to analyze the financial product development and members’ saving behavior in saving and credit cooperative societies (SACCOs) in the Endamohoni Woreda district in Tigary, Ethiopia. Using cluster random sampling, the study was conducted in four SACCOs and selected 96 members from the SACCOs. Data were collected using structured questionnaire and focus group discussion. Binary logistic regression was employed to identify and analyze the determinants of members’ voluntary savings. Results showed that voluntary savings are significantly affected by age, marital status, educational level, number of dependents, access to training, household size, safety, and years of membership in SACCOs. The results also showed that the SACCOs provide a very limited range of financial products to their members. Yet, the survey indicated that the members have access to other formal financial institutions, other than their own SACCOs given that their access to loans was easier and service delivery was faster in those financial institutions than the SACCOs. Therefore, the SACCOs and the concerned bodies regarding the development promotion of SACCOs need to take into consideration the aforementioned factors when designing policies and strategies that aim at enhancing voluntary savings of the SACCOs’ members.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1279864
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1279864
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1279864
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Joffe
Author-X-Name-First: Michael
Author-X-Name-Last: Joffe
Title: Causal theories, models and evidence in economics—some reflections from the natural sciences
Abstract:
Models have been extensively analysed in economic methodology, notably their degree of ability to provide explanations. This paper takes a complementary, comparative approach, examining theory development in the natural sciences. Examples show how diverse types of evidence combine with causal hypotheses to generate empirically based causal theories—a cumulative process occurring over a long timescale. Models are typically nested within this broader theory. This could be a good model for research in economics, providing a methodology that ensures good correspondence with the target system—especially as economics research is largely empirical, and has effective methods for causal inference. This paper analyses the key features of three successful theories in the natural sciences, and draws out some lessons that may be useful to economists. Some examples of good practice in economics are noted, e.g. involving money and banking, and the growth of the state. On the other hand, the widespread pre-crisis use of dynamic stochastic general equilibrium (DSGE) models that ignored the financial sector raises the question, how to realise what has been omitted? Nesting models in an empirically based causal theory could solve this. Furthermore, some phenomena have clear explanations, but mainstream theory obscures them, as with the Lucas puzzle about the direction of international capital flows. And, the prevailing theories about capitalist growth do not explain the basic evidence on its temporal and spatial distribution. Economics could beneficially learn from the natural sciences.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1280983
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1280983
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1280983
Template-Type: ReDIF-Article 1.0
Author-Name: Burçak Polat
Author-X-Name-First: Burçak
Author-X-Name-Last: Polat
Title: FDI entry mode choice and ownership structure in Turkish market: A firm-level analysis
Abstract:
The choice of a foreign firm’s entry mode into a host country is a strategic decision which impacts its future survival and success in other countries. By employing multinomial logit regression, this study aims to investigate the impact of the firm’s level of financial data on the entry mode decisions of investors and their ownership structure in Turkey from 2005 to 2012. The empirical findings have revealed that larger firms with high rate of profitability ratios are more likely to choose the full-ownership mode over others. On the other hand, a higher rate of return on equity increases the probability of investors choosing the shared-ownership mode.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1283762
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1283762
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1283762
Template-Type: ReDIF-Article 1.0
Author-Name: Senior Editors
Author-X-Name-First: Senior
Author-X-Name-Last: Editors
Title: Acknowledgement of Reviewers
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1285646
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1285646
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1285646
Template-Type: ReDIF-Article 1.0
Author-Name: Khalid M. Kisswani
Author-X-Name-First: Khalid M.
Author-X-Name-Last: Kisswani
Author-Name: Mohammad I. Elian
Author-X-Name-First: Mohammad I.
Author-X-Name-Last: Elian
Title: Exploring the nexus between oil prices and sectoral stock prices: Nonlinear evidence from Kuwait stock exchange
Abstract:
This paper investigates the relationship between oil prices (Brent and West Texas Intermediate (WTI)) and Kuwait Stock Exchange (KSE) prices at the sector level. In a nonlinear autoregressive distributed lag (NARDL) model, ten major sectors in Kuwait are studied using daily data from 3 January 2000 to 9 December 2015 for some sectors, and 14 May 2012 to 9 December 2015 for others. The findings show asymmetric long run effects between oil prices and some Kuwait sectoral stock prices. For these sectors, the empirical results offer evidence of short run asymmetric effect in case of WTI price measure, but no evidence of asymmetry was found in case of Brent price.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1286061
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1286061
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1286061
Template-Type: ReDIF-Article 1.0
Author-Name: Md. Noman Siddikee
Author-X-Name-First: Md. Noman
Author-X-Name-Last: Siddikee
Author-Name: Mohammad Mafizur Rahman
Author-X-Name-First: Mohammad Mafizur
Author-X-Name-Last: Rahman
Title: Effect of catastrophic disaster in financial market contagion
Abstract:
The study examined the contagion effect of financial market volatility from Australian capital market to Indian, New Zealand, Hong Kong, Chinese, Taiwan, and Japanese capital markets due to Australian catastrophe. In the first stage, we employed two-variable vector autoregression (VAR) model for calculating the residuals of the daily index return. In the second stage, we used adjusted correlation coefficient for detecting the significant increase in correlation coefficient of the VAR residuals after the catastrophes. Finally, Fishers r to z transformation was used for identifying contagion. After Victoria bushfire, a significant increase in the adjusted correlation coefficient of Australia with India and Hong Kong and their respective z > +1.96 validates contagion. The adjusted correlation coefficient of Australia with China and Japan increased after the Victoria bushfire but the z < +1.96 with (p > 0.05) does not confirm contagion, but rather exposed the persistence of high economic linkage. Apart from this, a significant decrease in the correlation coefficients with New Zealand is evident with corresponding z < −1.96 and (p < 0.05) advocates low economic linkage among them. After New South Wales (NSW) bushfire, contagion persists only between Australia and Hong Kong and the economic linkage of Australia and Taiwan has notably increased. The negative z score with (p > 0.05) confirms absence of contagion effect in New Zealand, India, and Japan after shocks. The findings of the study recommend the Hong Kong and Indian investors to carefully examine the catastrophe-sensitive industry before taking major investment decisions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1288772
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1288772
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1288772
Template-Type: ReDIF-Article 1.0
Author-Name: Lubna Zia
Author-X-Name-First: Lubna
Author-X-Name-Last: Zia
Author-Name: Muzammal Ilyas Sindhu
Author-X-Name-First: Muzammal
Author-X-Name-Last: Ilyas Sindhu
Author-Name: Shujahat Haider Hashmi
Author-X-Name-First: Shujahat
Author-X-Name-Last: Haider Hashmi
Title: Testing overconfidence bias in Pakistani stock market
Abstract:
Excessive trading phenomenon is contrary to the concept of traditional finance that is based on the rational expectation theorem and efficient market hypothesis. Therefore, this study is aimed at exploring the existence of overconfidence behavior in the stock market. The market-wide panel VAR model is used to investigate the lead–lag relationship between stock returns and turnover. Our results suggest that investors are overconfident in Pakistani stock market because turnover depends directly upon stock returns. The findings have important implications for investors and brokers for developing appropriate trading strategy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1289656
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1289656
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1289656
Template-Type: ReDIF-Article 1.0
Author-Name: Waheed Akhter
Author-X-Name-First: Waheed
Author-X-Name-Last: Akhter
Author-Name: Saad Ullah Khan
Author-X-Name-First: Saad Ullah
Author-X-Name-Last: Khan
Title: Determinants of Takāful and conventional insurance demand: A regional analysis
Abstract:
In this study, we focused on analysing and differentiating the determinants of conventional insurance and Takāful demand across ASEAN and Middle East Regions. We used panel data econometrics on a sample of 14 Asian countries having both conventional insurance and Takāful over the period 2005–2014. We applied fixed and random effect regression models to assess the impact of macroeconomic and demographic factors on conventional insurance and Takāful demand. Income and financial sector were found to have significant positive impact on insurance demand across all regions. On the other hand, dependency ratio was found to be negatively affecting Takāful demand across all regions while inflation shows positive impact. Urbanization was found to be significant positive impact on both conventional insurance and Takāful demand. Financial sector development positively triggers the insurance and Takāful demand across ASEAN region, while it triggers conventional insurance demand only in Middle East Region. Education shows negative impact on Takāful demand across both regions while it shows positive impact on insurance demand in Middle East. The study recognises the key role of urbanization and education in creating awareness to enhance Takāful demand in large populated countries of ASEAN and South Asia.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1291150
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1291150
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1291150
Template-Type: ReDIF-Article 1.0
Author-Name: Mohammed Ziaul Hoque
Author-X-Name-First: Mohammed Ziaul
Author-X-Name-Last: Hoque
Title: Mental budgeting and the financial management of small and medium entrepreneurs
Abstract:
The present study examines the influences of mental budgeting on the financial management of SMEs, via a survey of SME owners’ practices regarding various issues in financial management. The samples of 201 SMEs were randomly selected from the city of Chittagong, Bangladesh and interviewed using a structured questionnaire and the data have been analysed using descriptive statistics, principal component analysis and ordinal logistic regression. The results of the study show that own savings and loans from relatives are the major sources of the business capital with micro-credit coming in the second place. The earnings from existing business were mostly used to meet family expenditures. The results also show that Mental Budgeting (MB) and its determinants like other sources of income over existing business, never spending more than a fixed amount, having an overview of checking balance, long-term future orientation and financial product knowledge have significant influences on the financial management of SMEs. However, no evidences of several aspects were found in the same field.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1291474
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1291474
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1291474
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Kwame Nkegbe
Author-X-Name-First: Paul Kwame
Author-X-Name-Last: Nkegbe
Author-Name: Naasegnibe Kuunibe
Author-X-Name-First: Naasegnibe
Author-X-Name-Last: Kuunibe
Author-Name: Samuel Sekyi
Author-X-Name-First: Samuel
Author-X-Name-Last: Sekyi
Title: Poverty and malaria morbidity in the Jirapa District of Ghana: A count regression approach
Abstract:
Malaria potentially affects everyone in the tropics and sub-tropics, however, the poor and vulnerable are worse affected mainly due to the socio-economic constraints that confront them. In Ghana, the Upper West Region, which is the poorest, is one of the worse affected in terms of malaria burden. Given social and economic factors directly relate to malaria morbidity, global malaria control strategy unfortunately has not particularly targeted the effects of socio-economic deprivation on the disease morbidity and control. This study investigates the linkages between poverty and malaria morbidity using count data models, with Jirapa District in the Upper West Region of Ghana as the study area. Empirical results confirm the presence of poverty in the study area as more than half of households depend on heads whose incomes are below the poverty line of US$1 per day and that significant relationships exist between poverty and education on the one hand and malaria morbidity on the other, since gender and level of education of household head, and household poverty situation are significant determinants of malaria morbidity. The study thus recommends that policies aimed at reducing and/or eradicating malaria should include measures to increase income earning capacity of households in the study area.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1293472
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1293472
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1293472
Template-Type: ReDIF-Article 1.0
Author-Name: Daphne Sobolev
Author-X-Name-First: Daphne
Author-X-Name-Last: Sobolev
Author-Name: Bryan Chan
Author-X-Name-First: Bryan
Author-X-Name-Last: Chan
Author-Name: Nigel Harvey
Author-X-Name-First: Nigel
Author-X-Name-Last: Harvey
Title: Buy, sell, or hold? A sense-making account of factors influencing trading decisions
Abstract:
We investigated the effects of news valence, the direction of trends in graphically presented price series, and the culture and personality of traders in a financial trading task. Participants were given 12 virtual shares of financial assets and asked to use price graphs and news items to maximize their returns by buying, selling, or holding each one. In making their decisions, they were influenced by properties of both news items and price series but they relied more on the former. Western participants had lower trading latencies and lower return dispersions than Eastern participants. Those with greater openness to experience had lower trading latencies. Participants bought more shares when they forecast that prices would rise but failed to sell more when they forecast that they would fall. These findings are all consistent with the view that people trading assets try to make sense of information by incorporating it within a coherent narrative.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1295618
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1295618
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1295618
Template-Type: ReDIF-Article 1.0
Author-Name: Wiem Ben Jabra
Author-X-Name-First: Wiem
Author-X-Name-Last: Ben Jabra
Author-Name: Zouheir Mighri
Author-X-Name-First: Zouheir
Author-X-Name-Last: Mighri
Author-Name: Faysal Mansouri
Author-X-Name-First: Faysal
Author-X-Name-Last: Mansouri
Title: Determinants of European bank risk during financial crisis
Abstract:
This paper examines the determinants of European bank risk-taking during major financial crisis. Using a sample of banks from 26 countries over the period 2005–2015, we examine the nature of the relationship between bank risk, bank characteristics, regulatory, institutional and macroeconomic variables. We use a dynamic panel data modeling structure to capture the potential discrepancies in risk-taking behavior. We subdivide our sample into two sub-samples (East Europe and West Europe countries). We show that macroeconomic and regulatory variables seem to have non-negligible impact on bank risk-taking attitudes. We document that the relationship between bank risk, internal and external factors differs across samples.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1298420
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1298420
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1298420
Template-Type: ReDIF-Article 1.0
Author-Name: M.S. Konovalova
Author-X-Name-First: M.S.
Author-X-Name-Last: Konovalova
Author-Name: A.G. Maksimov
Author-X-Name-First: A.G.
Author-X-Name-Last: Maksimov
Title: On sensitivity of industries and companies to the state of economy
Abstract:
Cyclicality in industries and companies is scrutinized in the paper. Cyclical industry/firm is that which parameters (in particular, value added by industry and economic value added) have high correlation with the parameter reflecting economic cycles (in particular, GNP). The theoretic approval for the thesis that durable goods industries are more cyclical than nondurable ones is already provided. The aim of the research is to conduct an empirical analysis of cyclicality of Canadian and Russian industries in terms of the aforementioned statement and cyclicality of Russian companies as components of industrial structure. According to the results, the extents of cyclicality of durable and nondurable goods industries in Canada are equal. The theoretical thesis under consideration is correct for the industrial structure of Russia: durable goods industries in Russia are more cyclical than nondurable ones. Moreover, Russian companies also comply with the aforementioned statement. In addition to this, the effect of asymmetrical reaction of industries and companies on expansion and contraction happening in the economy as well as a role of company’s management in regulation of the extent of cyclicality of a company are considered in the paper.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1299074
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1299074
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1299074
Template-Type: ReDIF-Article 1.0
Author-Name: Andrey Aistov
Author-X-Name-First: Andrey
Author-X-Name-Last: Aistov
Title: Time distributed difference-in-differences estimates of return to training
Abstract:
This work is devoted to estimating the individual return to worker’s professional training. The research is based on the personnel records of Russian metallurgical enterprise (2006–2010). The main factors that distinguish this paper from others are the following: (I) We focused on the internal labour market, concluding that it has common peculiarities of wage setting concerned with training as an open labour market. (II) We show that mobility-friendly training programs give high returns, and not only in transition economies. (III) We suggest controlling for mobility by choosing a corresponding control group. (IV) We use a robust new specification that is reactive to different dynamics of the dependent variable in treated and control groups in difference-in-differences estimates. (V) We compared three different kinds of training and our conclusions could have practical application. The best way to raise personal earnings is on-the-job training. The internal mobility caused by retraining courses has the same impact on workers as if they lacked retraining. The wages of workers trained in the same field grow randomly for a few months before and after training. Nevertheless it is difficult to prove the causal effect of this kind of training on wage growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1300978
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1300978
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1300978
Template-Type: ReDIF-Article 1.0
Author-Name: Levon Kazaryan
Author-X-Name-First: Levon
Author-X-Name-Last: Kazaryan
Author-Name: Gregory Kantorovich
Author-X-Name-First: Gregory
Author-X-Name-Last: Kantorovich
Title: Taking into account the rate of convergence in CLT under Risk evaluation on financial markets
Abstract:
This paper examines “fat tails puzzle” in the financial markets. Ignoring the rate of convergence in Central Limit Theorem (CLT) provides the “fat tail” uncertainty. In this paper, we provide a review of the empirical results obtained “fat tails puzzle” using innovative method of Yuri Gabovich based on the rate of convergence in CLT to the normal distribution, which is called G-bounds. Constructed G-bounds evaluate risk in the financial markets more carefully than models based on Gaussian distributions. This statement was tested on the 24 financial markets exploring their stock indexes. Besides, this has tested Weak-Form Market Efficiency for investigated markets. As a result, we found out the negative correlation between the weak effectiveness of the stock market and the thickness of the left tail of the profitability density function. Therefore, the closer the risk of losses on the stock market to the corresponding risk of loss for a normal distribution, the higher the probability that the market is weak effective. For non-effective markets, the probability of large losses is much higher than for a weak effective.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1302870
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1302870
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1302870
Template-Type: ReDIF-Article 1.0
Author-Name: Yaroslav Murashov
Author-X-Name-First: Yaroslav
Author-X-Name-Last: Murashov
Author-Name: Tatiana Ratnikova
Author-X-Name-First: Tatiana
Author-X-Name-Last: Ratnikova
Title: Estimation of the Russian informal economy size on the household budget survey data
Abstract:
In the paper, we make an attempt to estimate the size of informal economy on the base of micro-data. Two main approaches are described and compared. They are implemented on the base of an RLMS sample for 2012. The first method, called single equation approach, is based on the specific category of household expenditures and the arbitrarily defined household type (self-employed or employee). The second method allows to obtain the results for income under-report for both wage income and self-employment income, and uses information on all the household current consumption categories. The single equation model is restricted to one expenditure category and two types of households, although it enables to perform the estimation on different subsamples of households with various socioeconomic characteristics. The comparison of the system of equations approach with single equation is made concerning the scale of informal economy and the role of wage-income under-report, which is possible to obtain through the system.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1307642
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1307642
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1307642
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Zia Ur Rehman
Author-X-Name-First: Muhammad
Author-X-Name-Last: Zia Ur Rehman
Author-Name: Zain ul Abidin
Author-X-Name-First: Zain
Author-X-Name-Last: ul Abidin
Author-Name: Faisal Rizwan
Author-X-Name-First: Faisal
Author-X-Name-Last: Rizwan
Author-Name: Zaheer Abbas
Author-X-Name-First: Zaheer
Author-X-Name-Last: Abbas
Author-Name: Sajjad Ahmad Baig
Author-X-Name-First: Sajjad Ahmad
Author-X-Name-Last: Baig
Title: How investor sentiments spillover from developed countries to developing countries?
Abstract:
This paper applies a sentiment index to check the influence of regional developed countries like Japan and Germany on the sentiments in regional developing countries like Pakistan and Turkey, respectively. The index has been created using a principal component approach with modified proxies. The results indicate that there is a significant influence of developed markets on developing markets also the sentiment index created in this study is good indicator regarding the return pattern of the stock exchange. This study has followed the footsteps of previous studies for methodology and the time period which is used ranged from 29 December 2004 to 31 December 2014. The weekly data has been collected with Wednesday prices so to avoid the white noise, start-of-the week and end-of-the week effect.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1309096
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1309096
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1309096
Template-Type: ReDIF-Article 1.0
Author-Name: Y. Kopnova
Author-X-Name-First: Y.
Author-X-Name-Last: Kopnova
Title: A statistical analysis of the social and environmental risks of the international trade in virtual water
Abstract:
This work develops a statistical methodology of analysis of the international trade in virtual water in the context of sustainable evolution. Using the example of agriculture, the impact of the flows of virtual water in the composition of products using indicators related to social and environmental risks was investigated. In the analysis data from websites of World Bank and the World trade organization for the period from 1996 to 2012 were used. The methodology was based on the toolkit of econometric modelling. The analysis showed the presence of stable groups of countries, including the groups of mainly exporting and mainly importing agricultural products. The share of the third group of countries with the varying sign of the balance of export and import amounted to only 30%. The factors influencing the formation of groups, in particular, were the role of water resources in terms of their scale and efficiency of use. The study of the impact of export and import of agricultural products on the indicators related to environmental and social risks identified significant problematic dependencies. The overall pattern for the three groups was that the countries with more intense trade flows had a lower rating of ecological sustainability.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1310416
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1310416
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1310416
Template-Type: ReDIF-Article 1.0
Author-Name: Irfan Ali
Author-X-Name-First: Irfan
Author-X-Name-Last: Ali
Author-Name: Waheed Akhter
Author-X-Name-First: Waheed
Author-X-Name-Last: Akhter
Author-Name: Namrah Ashraf
Author-X-Name-First: Namrah
Author-X-Name-Last: Ashraf
Title: Impact of Muslim Holy Days on Asian stock markets: An empirical evidence
Abstract:
This study investigated the impact of Muslim Holy Days on daily stock returns of Asian financial markets for a period of 2001–2014. These markets include Pakistan, Bahrain, Saudi Arabia, and Turkey. The study has tried to isolate the effect of Gregorian calendar anomalies from Muslim Holy Days to certify that the documented effect is actually a result of Muslim Holy Days rather than Gregorian calendar anomalies. Pooled fixed/random effect Panel Regression is used to check the underlined effect. The results reveal that Eid-ul-Fitr is the only Holy day, which has significant positive effect on stock returns of Asian markets, while all other Holy Days have no effect. Friday is the only Gregorian calendar anomaly, which exists in Asian markets. These results provide support to the fact that both Islamic and Gregorian calendar anomalies exist in Asian markets.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1311096
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1311096
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1311096
Template-Type: ReDIF-Article 1.0
Author-Name: Evgenii V. Gilenko
Author-X-Name-First: Evgenii V.
Author-X-Name-Last: Gilenko
Author-Name: Elena A. Mironova
Author-X-Name-First: Elena A.
Author-X-Name-Last: Mironova
Title: Modern claim frequency and claim severity models: An application to the Russian motor own damage insurance market
Abstract:
During 2012–2015, the motor insurance in Russia received considerable attention both from the parts of the Russian government and from the insurance business. This was caused, in particular, by significant losses from the side of insurance companies that occurred during 2012–2013. Experts explain these losses not only by the effects of inflation or by the changes in Russian insurance legislation, but also by the incomplete set of factors that has been used by insurance companies for tariff calculation. This research analyses the factors that influence claim frequency and claim severity in the Russian motor own damage (MOD) insurance to assess the efficiency of the existing set of factors used for MOD insurance tariff calculations. To this end, we employ the appropriate claim frequency and claim severity models on the data provided by one of the leading St. Petersburg (Russia) insurance companies for the period of 2012–2013. The results of our calculations, organized within a resampling framework, show that additional factors may indeed be worth taking into account in the MOD insurance tariff calculation.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1311097
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1311097
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1311097
Template-Type: ReDIF-Article 1.0
Author-Name: Gholamhossein Mahdavi
Author-X-Name-First: Gholamhossein
Author-X-Name-Last: Mahdavi
Author-Name: Abbas Ali Daryaei
Author-X-Name-First: Abbas Ali
Author-X-Name-Last: Daryaei
Title: Audit firm, retain or rotation? (client and audit firm perspectives)
Abstract:
The purpose of this study is providing a framework for understanding the role of audit firm rotation in client expected value. And to explain the principles of client choice by auditor via specified models. We formalize this idea through stakeholder theory. Results show that the owners’ expected outcome is increase in the level of reporting quality, all else held equal. Also client selection is a decrease in function with regard to the factors affecting it. Like the number of sub-branches, probability of good selection, probability of good perceived in a branch point, stages ahead and taking account of investigative intuition. We propose that retain-rotation audit firm vs. good or bad selection client relationship developed based on bid and ask process. Drawing on our analytical framework, we provide directions for further opportunities for research of client and audit firm.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1313559
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1313559
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1313559
Template-Type: ReDIF-Article 1.0
Author-Name: Sarah Khan
Author-X-Name-First: Sarah
Author-X-Name-Last: Khan
Author-Name: Waheed Akhter
Author-X-Name-First: Waheed
Author-X-Name-Last: Akhter
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Service quality and the moderating effect of Shari’ah perception on client satisfaction: A comparison of Islamic and conventional microfinance in Pakistan
Abstract:
Microfinance is an emerging concept which is improving the socioeconomic status of customers. This study assesses customer satisfaction of clients of Islamic and conventional microfinance providers using a sample of 578 clients i.e. 289 from each side. Akhuwat and Kashf (Islamic microfinance) and RCDS and DAMEN (conventional microfinance) are selected. The correlation, regression, ANOVA, and interaction tests are used for testing the relationship of Shari’ah perception as moderator between service quality and client satisfaction. The results indicate that Shari’ah perception acts as a strong moderator in case of Islamic microfinance whereas it is a weak moderator in case of conventional microfinance. The study concludes that Shari’ah perception is playing a vital role in enhancing the customer satisfaction in Islamic microfinance. It has important implications for policy-makers and Islamic microfinance providers to design Shari’ah awareness programs to enhance the Shari’ah perception of low income population.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1315206
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1315206
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1315206
Template-Type: ReDIF-Article 1.0
Author-Name: Fitriya Fauzi
Author-X-Name-First: Fitriya
Author-X-Name-Last: Fauzi
Author-Name: Abdul Basyith
Author-X-Name-First: Abdul
Author-X-Name-Last: Basyith
Author-Name: Dani Foo
Author-X-Name-First: Dani
Author-X-Name-Last: Foo
Title: Committee on board: Does it matter? A study of Indonesian Sharia-listed firms
Abstract:
The committee on board includes audit committee and nomination committee that currently has been questioned as to whether the firm value is also affected by the committees’ performance that has been the subject of attention. Apparently, this study is the first to attempt providing an evidence of committees’ role on to the extent of its contribution to firm value in the context of Indonesian Sharia-listed firms as the establishment of Islamic-compliance firms is currently experiencing an upward trend in many countries. Hence it is enticing to examine the impact of committee on board as part of corporate governance mechanisms on firm value in the Indonesian Sharia-listed firms. Using an Indonesian Sharia-listed firms which counts for 30 firms in the quarterly period of 2009 to 2015, this study employs a 720 balanced panel, using Generalized Least Square. The results reveal that the audit committee and the nomination committee have a significant impact on firm value (Tobin’s Q). The non-significant result for ROA suggesting that the mixed measured of book and market is viewed more reliable for investors as it indicates the overall performance measure. Meanwhile the result of the number of audit committee meeting yielded no significant impact on firm value; this may be due to no restrictions on the number of positions of audit committee serves in firms, therefore, the auditor may be manifold in some companies which can be overlapping. Further, the number of audit committee only meets the regulations and yet the transparency is still far beyond.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1316547
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1316547
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1316547
Template-Type: ReDIF-Article 1.0
Author-Name: Kenichi Shimamoto
Author-X-Name-First: Kenichi
Author-X-Name-Last: Shimamoto
Title: Decomposition analysis of the pollution intensities in the case of the United Kingdom
Abstract:
This paper examines the changes to pollution intensities (SO2, NOx, CO and CO2) of the United Kingdom, by using the Divisia index decomposition technique. The paper decomposes the drivers of the changes in pollution intensities into not only technology contribution and composition contribution but also into physical capital intensity contribution. This is because an increase in physical capital will lead to further use of energy and resources, which will further impact the environment. Compared to past studies, this paper extends the analysis to each industrial sector and includes more focused policy implications. The results find that the aggregate pollution intensity has declined during the period examined. As for SO2 and NOx, the technology effect was the largest contributor for the decline in aggregate pollution intensity, during a period where economic instruments such as pollution taxes were not yet effectively applied to combat environmental issues, but major environmental statutory frameworks to regulate air pollution were developed along with voluntary measures such as environment management systems. On the other hand, concerning CO and CO2 over the same time period observed, the contribution of technology effect for the aggregate intensity was small, compared with SO2, and NOx, which implies that economic instruments such as emission trading may be necessary for these pollutant.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1316553
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1316553
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1316553
Template-Type: ReDIF-Article 1.0
Author-Name: Marina Maniati
Author-X-Name-First: Marina
Author-X-Name-Last: Maniati
Author-Name: Evangelos Sambracos
Author-X-Name-First: Evangelos
Author-X-Name-Last: Sambracos
Title: Decision-making process in shipping finance: A stochastic approach
Abstract:
Shipping markets irregularity due to high-level volatility of freight rates and asset prices increases the risk of banks’ invalid financial strategy. Risk is further increased due to the heterogeneous shipping market, despite the regulations set by the Basel Convention. Consistent with the above, the present work contributes to the existing methodological aspects of bank’s financial strategy on shipping finance by enhancing the role of the credibility theory, which balances the individual bank policy with the market as a whole. This has been primarily forwarded on by the analysis of the operational environment’s internal factors of an individual bank combined with the whole shipping banks’ loans portfolio by estimating the credibility factor to the decision of the bank to either increase or decrease financing in the relevant market. The important factors extracted from the principal components analysis are linked with interest income on loan and operating profit accounts. The final model predicts that the optimal decision is positive driven by both the aforementioned dependent variables, while the interest income on loan variable has more influence compared with that of the operating profit variable. In the absence of the influence of the dependent variables, the bank’s decision strategy matches the market’s strategy by 77% that decreases as the dependent variables increase their influence.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1317083
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1317083
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1317083
Template-Type: ReDIF-Article 1.0
Author-Name: Geeta Duppati
Author-X-Name-First: Geeta
Author-X-Name-Last: Duppati
Author-Name: Albert Sune
Author-X-Name-First: Albert
Author-X-Name-Last: Sune
Author-Name: Navajyoti Samanta
Author-X-Name-First: Navajyoti
Author-X-Name-Last: Samanta
Title: Corporate governance, research and development volatility and firm performance - Evidence from Spain and Ireland
Abstract:
The present study sheds light on the comparative experiences of the two countries originating from differing legal systems and describes how their codes and practices affect the publicly listed firms’ performance. It investigates the linkages between Research and Development (R&D) expenditures, Board characteristics and firm performance using a sample of Irish and Spanish firms for the period 2005–2014. To do this, the study uses ROA and Tobin’s Q as proxies for financial performance; and board size, non-executive directors, female representation and CEO duality as board structure characteristics; and R&D expenditure volatility, employing different techniques that include OLS, fixed effects model and Quantile regression model. The difference-in-difference model is used to verify the significance of robustness of relationships considering the global financial crisis as an exogenous shock. The descriptive statistics suggests a comparability of boards’ independence for the Spanish- and Irish-listed firms. Although the Spanish firms are less dual than Irish firms, the results are comparable on the association between CEO duality and firm performance. The findings of Spanish-listed firms on the relationship between increase and decrease in the R&D expenditures volatility and performance support the creative–destructive perspective that suggests effective governance in funding allocation to R&D.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1317117
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1317117
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1317117
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Surajo Sanusi
Author-X-Name-First: Muhammad Surajo
Author-X-Name-Last: Sanusi
Title: Investigating the sources of Black’s leverage effect in oil and gas stocks
Abstract:
The Black’s leverage effect hypothesis postulates that a negative stock return innovation increases the financial leverage of a firm since the value of equity decreases at a given level of debt, which, in turn, creates a higher equity return volatility in the future. The paper is aimed at investigating the authenticity of the Black’s leverage effect hypothesis and the relationship between negative stock returns and the financial leverage of the UK oil and gas stocks from 2004 to 2015. For each stock, exponential generalised autoregressive conditional heteroscedasticity model was estimated using Fama–French–Carhart 4-factor asset pricing model to extract the difference between the effects of negative and positive stock return innovations, regarded as leverage effect. The leverage effect parameter was further regressed on the financial leverage ratios of the book value of long-term debt to total assets, interest expenses to total assets and long-term debt to market value of equity to examine whether variation in the leverage parameter was as a result of variation in the firm’s financial leverage. The findings of the study show that Fama-French-Carhart four risk factors of market, size effect, value and momentum were significant in the stock returns of most of the oil and gas companies. The mixed results in the significance level of the factors were attributed to the differences in individual firm characteristics. An evidence of leverage effect was also found in all the oil and gas stock returns but no evidence to suggest it was derived from the changes in the financial leverage of the companies. The implication of these findings for financial managers in the oil and gas industry was that while asset pricing frameworks such as CAPM and its extensions are relevant in determining oil stock returns, the level of gearing is irrelevant, albeit it has been recognised as one of the determinants of the firm’s level of risk.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1318812
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1318812
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1318812
Template-Type: ReDIF-Article 1.0
Author-Name: M. Kateregga
Author-X-Name-First: M.
Author-X-Name-Last: Kateregga
Author-Name: S. Mataramvura
Author-X-Name-First: S.
Author-X-Name-Last: Mataramvura
Author-Name: D. Taylor
Author-X-Name-First: D.
Author-X-Name-Last: Taylor
Title: Parameter estimation for stable distributions with application to commodity futures log-returns
Abstract:
This paper explores the theory behind the rich and robust family of α$ \alpha $-stable distributions to estimate parameters from financial asset log-returns data. We discuss four-parameter estimation methods including the quantiles, logarithmic moments method, maximum likelihood (ML), and the empirical characteristics function (ECF) method. The contribution of the paper is two-fold: first, we discuss the above parametric approaches and investigate their performance through error analysis. Moreover, we argue that the ECF performs better than the ML over a wide range of shape parameter values, α$ \alpha $ including values closest to 0 and 2 and that the ECF has a better convergence rate than the ML. Secondly, we compare the t location-scale distribution to the general stable distribution and show that the former fails to capture skewness which might exist in the data. This is observed through applying the ECF to commodity futures log-returns data to obtain the skewness parameter.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1318813
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1318813
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1318813
Template-Type: ReDIF-Article 1.0
Author-Name: Joaquim Ramos Silva
Author-X-Name-First: Joaquim Ramos
Author-X-Name-Last: Silva
Author-Name: Carla Regina Ferreira Freire Guimarães
Author-X-Name-First: Carla Regina Ferreira
Author-X-Name-Last: Freire Guimarães
Title: Wage differentials in Brazil: Tourism vs. other service sectors
Abstract:
This study aims to analyse the wage differentials between the Brazilian tourism and non-tourism service sectors. The statistics originate from micro-data for the year of 2012, published by the National Household Sample Survey, and released by the Brazilian Institute of Geography and Statistics. Using an econometric model, based on an updated version of the Oaxaca-Blinder decomposition, it was possible to measure wage differentials between workers in both sectors. We report that returns in the non-tourism sector were higher than that of the tourism sector, and also conclude that in the Brazilian service sector, the wage gap is derived from differences in worker characteristics, to the detriment of the tourism industry. Moreover, variables such as schooling and age proved to have weight for the explanation of the wage differential, the latter being taken as a proxy of experience in the labour market.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1319606
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1319606
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1319606
Template-Type: ReDIF-Article 1.0
Author-Name: Dziri Houda
Author-X-Name-First: Dziri
Author-X-Name-Last: Houda
Author-Name: Jarboui Anis
Author-X-Name-First: Jarboui
Author-X-Name-Last: Anis
Title: The venture capitalist’s cognitive approach: Validation through the Tunisian context
Abstract:
This study is aimed to examine the major determinants of cognitive approach investigated with according to a set of 150 firms financed by Tunisian venture capital agencies observed over the period 2010–2015. We are led to conclude that some venture capitalist’s characters do appear to affect the cognitive contribution within funded firms. In addition, it has been revealed that the manager’s share held, the venture capitalist’ participation in the capital and the firm age appear to have a significant influence on the cognitive approach adopted by the venture capital.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1323371
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1323371
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1323371
Template-Type: ReDIF-Article 1.0
Author-Name: Abdul Rehman
Author-X-Name-First: Abdul
Author-X-Name-Last: Rehman
Author-Name: Luan Jingdong
Author-X-Name-First: Luan
Author-X-Name-Last: Jingdong
Title: An econometric analysis of major Chinese food crops: An empirical study
Abstract:
The basic objective of this study was to investigate and explore the relationship between major food crops of China and their relationship with agricultural gross domestic product (GDP) using an econometric analysis. Agriculture is considered an important sector of the Chinese economy as it accounted for about 10% of GDP. The total agricultural land of China covers 36% of the area of the world. In order to highlight the actual performance of the agricultural production and the output of major food crops, this study explored the relationship between agricultural GDP and the major crops output including wheat, cotton, rice, sugarcane, corn, and tubers in China over the period of 35 years from 1980 to 2015. The time series data were collected from the China Bureau of Statistics, Ministry of Agriculture China and various publications. Crop data were analyzed using the Ordinary Least Square Method and Augmented Dickey Fuller test and results were interpreted using the Johansen co-integration test. Our study found that output of wheat, cotton, sugarcane, corn, and tubers has positive and significant relation with the agricultural gross domestic product of China, while the output of rice crop has a negative but no significant relation with agricultural GDP of China. The study suggests that the Government of China should start new funding schemes for the development and better production of rice crops.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1323372
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1323372
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1323372
Template-Type: ReDIF-Article 1.0
Author-Name: Samuel Kwaku Agyei
Author-X-Name-First: Samuel Kwaku
Author-X-Name-Last: Agyei
Title: Explaining public investment dynamics in Sub-Saharan Africa: The role of country governance structures
Abstract:
This paper assesses the contribution of country governance structures to resolving the unsettled crowding-in–crowding-out hypothesis of public and private investments and arresting the recent fall of public investment in Sub-Saharan Africa (SSA). Within an Arellano-Bond Dynamic Panel Framework, we estimate a derived accelerator model that allows for inclusion of country governance structures (control of corruption, political stability, rule of law, governance effectiveness, voice and accountability and regulatory quality) in a public investment model. The results, based on data from SSA, suggest that country governance structures that control corruption, ensure political stability, regulatory quality and rule of law enhance public investment in SSA. But the presence of these governance structures does not curtail the crowding out effect of private investment on public investment. Thus, policies directed at improving public investment in SSA should target governance structures in addition to the conventional factors.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1323987
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1323987
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1323987
Template-Type: ReDIF-Article 1.0
Author-Name: Anupam Dutta
Author-X-Name-First: Anupam
Author-X-Name-Last: Dutta
Author-Name: Md Hasib Noor
Author-X-Name-First: Md
Author-X-Name-Last: Hasib Noor
Title: Oil and non-energy commodity markets: An empirical analysis of volatility spillovers and hedging effectiveness
Abstract:
Although a large number of empirical papers have examined the price spillover in global oil and non-energy commodity markets, very little is known about the volatility transmission between these two markets. The present study aims to conceal this gap by investigating the volatility cross effects between oil and three different non-energy commodity markets. Using the bivariate VAR-GARCH models, we do not find any evidence of volatility linkage between oil and agricultural product markets during the sample period used. We, however, document that oil market sends volatility to both metal and non-energy aggregate markets. This finding is not surprising, since petroleum-related products are one of the major production inputs in metal industries and hence the production process of metals largely depends on the crude oil market. Since various financial assets are traded on the basis of commodity markets, our results are beneficial for portfolio diversification and hedging decisions. Policy-makers could also use the findings of this research to reduce the impact of oil price uncertainty on metal and agricultural markets.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1324555
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1324555
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1324555
Template-Type: ReDIF-Article 1.0
Author-Name: Fitriya Fauzi
Author-X-Name-First: Fitriya
Author-X-Name-Last: Fauzi
Author-Name: Abdul Basyith
Author-X-Name-First: Abdul
Author-X-Name-Last: Basyith
Author-Name: Poh-Ling Ho
Author-X-Name-First: Poh-Ling
Author-X-Name-Last: Ho
Title: Women on boardroom: Does it create risk?
Abstract:
This study examines the impact of the women existence on corporate board. It is believed that the existence of women on board adds more value to the company as more women bring different perspectives on the decision-making process and the company’s strategic plans. Using Islamic listed-firms in the Indonesian Stock exchange, this study employs 7-year panel data comprising 840 observations from 2009 to 2015 quarterly data of 30 listed-firms that comply with Islamic law. Generalized Least Square is employed in this study and the results revealed that the presence of female CEOs has lowered the firm’s risk for all risk proxies. Female CEOs having a higher academic qualification, overseas qualification, and business degree tends to lower the firm’s risk. The result also indicates that the younger the age of female CEOs and the longer tenure of the female CEOs, the lower the firm’s risk. Furthermore, more female directors on boardroom have a significant impact on firm’s risk as the higher the number of female directors the lower the firm’s risk (CR and FCF). In addition, female chief financial officer tends to lower the firm’s risk as they are believed to be more conservative in dealing with the financial issues.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1325117
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1325117
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1325117
Template-Type: ReDIF-Article 1.0
Author-Name: R.J. Powell
Author-X-Name-First: R.J.
Author-X-Name-Last: Powell
Title: New perspectives on bank risk in Malaysia
Abstract:
Stable banks in individual ASEAN countries are essential to the economic stability of the ASEAN region as these countries move towards the goal of greater financial integration in the region. This study comprehensively explores bank risk in Malaysia as compared to the ASEAN region over an 18-year period which includes the Asian and Global Financial Crises. Metrics used include non-performing loans (NPLs), conditional distance to default (CDD which focuses on tail risk of asset volatility and is the authors own measure of bank default based on an extension to the Merton distance to default (DD) model) and a tail risk (TR) measure being the difference between DD and CDD asset volatility. DD is usually applied to corporate customers of banks but has been applied in the literature to banks themselves, which is the approach used for CDD in this study. Multiple regression analysis is undertaken to assess the impact of CDD on returns. The regression and default results are compared between small and large banks. Malaysian banks were found to have consistently lower risk than the ASEAN region, with smaller Malaysian banks exhibiting greater risk than larger banks during non-crisis periods, but to a lesser degree during crisis periods.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1326217
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1326217
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1326217
Template-Type: ReDIF-Article 1.0
Author-Name: Mussa Juma
Author-X-Name-First: Mussa
Author-X-Name-Last: Juma
Author-Name: Min Cherng Lee
Author-X-Name-First: Min Cherng
Author-X-Name-Last: Lee
Author-Name: Seong Tah Chin
Author-X-Name-First: Seong Tah
Author-X-Name-Last: Chin
Author-Name: Kian Wah Liew
Author-X-Name-First: Kian Wah
Author-X-Name-Last: Liew
Title: Evaluation of variable annuity guarantees with the effect of jumps in the asset price process
Abstract:
Financial crisis in 2007–2008 have caused losses to life insurance companies issuing variable annuities with guarantees. This is partly due to failure of variable annuity (VA) issuers to anticipate the large variations in asset prices during the financial crisis times in their pricing framework and also setting a higher guaranteed rate. This study aims to investigate the pricing of the guaranteed minimum death and accumulation benefits embedded in flexible premium VA. We compare the prices from calibrated Black–Scholes model to that of calibrated jump-diffusion model. Although both models assume constant volatility, the fact that Black–Scholes model ignores abnormal asset price changes due to jumps is likely to under-price the VA. We also conduct a case study to analyse the impact on guarantee fees for different stock market performance and regional mortality rates.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1326218
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1326218
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1326218
Template-Type: ReDIF-Article 1.0
Author-Name: Mohd Naim Bin Mohd Johari
Author-X-Name-First: Mohd Naim Bin Mohd
Author-X-Name-Last: Johari
Author-Name: Adem Kilicman
Author-X-Name-First: Adem
Author-X-Name-Last: Kilicman
Title: Hopf bifurcation in an open monetary economic system: Taylor vs. inflation targeting rules (Malaysian case)
Abstract:
The main objectives of this research are to analyze the trends of expectations condition within Malaysian economic system and investigate the existence of Hopf bifurcation in the economic dynamical system’s policy in order to examine the existence of periodic solutions. The study uses two types of monetary policy rules which are namely: Taylor rule and inflation targeting rule. The results reveal that the patterns of expectations condition for Malaysia economic system from 2004 until 2014 are quite similar except for exchange rate case. Furthermore, it shows that Hopf bifurcation occurs within the policy’s variables in both forms of rules in Malaysian open economic system.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1327184
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1327184
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1327184
Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad Enamul Hoque
Author-X-Name-First: Mohammad Enamul
Author-X-Name-Last: Hoque
Author-Name: Noor Azuddin Yakob
Author-X-Name-First: Noor Azuddin
Author-X-Name-Last: Yakob
Title: Revisiting stock market development and economic growth nexus: The moderating role of foreign capital inflows and exchange rates
Abstract:
This study re-examines the stock market development and economic growth nexus. Also, examine the moderating role of foreign capital inflows and exchange rate on the relationship between stock market development and economic growth of Malaysia during 1981–2016. This study applies Granger test, ARDL (with bound testing) approach, and multivariate regression approach to examine extent and direction of the relationships among variabels, empirically. Granger causality test suggests that there are unidirectional effects of stock market development to Malaysian economic growth. Using the bound test for co-integration, this study finds there is a long run association between stock market development and economic growth. However, ARDL model reports that, in the short run and long run, stock market promotes the economic growth of Malaysia which is consistent with Granger causality test. Aditionally, foreign capital inflows and exchange rate has significant positive and negative moderating effects, respectively, on the relationship between stock market development and economic growth. Nevertheless, when both foreign capital inflows and exchange rate interact with each other, there is a joint positive effect on the relationship between stock market development and economic growth. Therefore, Malaysian policy-makers should consider both foreign capital inflows and exchange rate in formulating the economic policy. Moreover, special attention should be given on the external debt, which constitutes a significant proportion of foreign capital inflows, because of its negative impact on economic growth. At the same time, foreign direct investments with flexible exchange rate should be encouraged to foster both stock market and economic growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1329975
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1329975
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1329975
Template-Type: ReDIF-Article 1.0
Author-Name: Noureddine Benlagha
Author-X-Name-First: Noureddine
Author-X-Name-Last: Benlagha
Author-Name: Imen Karaa
Author-X-Name-First: Imen
Author-X-Name-Last: Karaa
Title: Evidence of adverse selection in automobile insurance market: A seemingly unrelated probit modelling
Abstract:
The present paper investigates the adverse selection problem by examining the relationship between accident occurrences and deductible choice utilizing a seemingly unrelated probit model that allows for best controls for unobserved heterogeneity and endogeneity. While this microeconometric analysis does not consider a multivariate model and considers only two types of contracts, namely, those with high and low deductibles, it does suggest important implications from applying a recursive bivariate probit. We employ new cross-sectional data on a Tunisian insurance portfolio containing 31,125 policyholders. The results support some evidence for residual adverse selection in the studied insurance portfolio. Moreover, the results suggest the presence of a wealth effect in the decision of the contract choice.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1330303
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1330303
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1330303
Template-Type: ReDIF-Article 1.0
Author-Name: Yaya Keho
Author-X-Name-First: Yaya
Author-X-Name-Last: Keho
Title: The impact of trade openness on economic growth: The case of Cote d’Ivoire
Abstract:
The relationship between trade openness and economic growth has been extensively investigated yielding to mixed and inconclusive results. This might be attributed to the omission of the role of capital stock and labor in the trade-growth nexus. This paper examines the impact of trade openness on economic growth for Cote d’Ivoire over the period 1965–2014 in a multivariate framework including capital stock, labor and trade openness as regressors. It uses the Autoregressive Distributed Lag bounds test to cointegration and the Toda and Yamamoto Granger causality tests. The results show that trade openness has positive effects on economic growth both in the short and long run. Furthermore, they reveal a positive and strong complementary relationship between trade openness and capital formation in promoting economic growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1332820
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1332820
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1332820
Template-Type: ReDIF-Article 1.0
Author-Name: Cenk Ufuk Yıldıran
Author-X-Name-First: Cenk Ufuk
Author-X-Name-Last: Yıldıran
Author-Name: Abdurrahman Fettahoğlu
Author-X-Name-First: Abdurrahman
Author-X-Name-Last: Fettahoğlu
Title: Forecasting USDTRY rate by ARIMA method
Abstract:
This paper conducts a USDTRY rate forecast by ARIMA method using 3,069 daily observations between the dates of 3 January 2005 and 8 March 2017 and generates both long-term and short-term models. Existing works related to USDTRY rate forecast using ARIMA method generate static models, and none of them conduct multi-step prediction or out of sample fit. The work described in this paper, however, applies dynamic model generation and conducts multi-step ahead prediction for out of sample observations. In forecasts performed in this work for USDTRY rate, the short-term ARIMAs outperform the long-term ARIMAs in predicting accuracy. Specifically, for the short-term ARIMAs appropriate specification is raised as ARIMA (2,1,0); on the other hand, for the long-term ARIMAs, the best order is emerged as ARIMA (0,1,1).
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1335968
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1335968
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1335968
Template-Type: ReDIF-Article 1.0
Author-Name: K. Moses Tule
Author-X-Name-First: K. Moses
Author-X-Name-Last: Tule
Author-Name: Eunice Ngozi Egbuna
Author-X-Name-First: Eunice Ngozi
Author-X-Name-Last: Egbuna
Author-Name: Eme Dada
Author-X-Name-First: Eme
Author-X-Name-Last: Dada
Author-Name: Godday Uwawunkonye Ebuh
Author-X-Name-First: Godday Uwawunkonye
Author-X-Name-Last: Ebuh
Title: A dynamic fragmentation of the misery index in Nigeria
Abstract:
This study adopts a dynamic approach to compute the level of economic distress in Nigeria. Quarterly series from 2002Q1 to 2016Q4 were utilized in computing the index. Leveraging on the expectations-augmented Phillips curve and Okun’s law, the results obtained indicate a minimum and maximum misery values of 16.92% (2007Q3) and 53.42% (2016Q4), respectively, with an average value of 31.49% over the study horizon. The index recorded a skewness of 0.31% indicating moderate level of asymmetry and a kurtosis of 3.26% indicating that the index is leptokurtically distributed with an approximate standard deviation of 8.00%. This implies the presence of appreciable level of volatility. A plot of crude oil price with the misery index overall shows that as price increased, the misery index decreased but in some instances, increase in crude oil price was consistent with increased misery. The persistent insecurity and militancy activities may have accounted for the observed puzzling co-movement. The computation also indicates that decrease in expected variation in inflation, results in increased unemployment by 61.0 per cent decrease in the variation in expected inflation associated with a unit change in the variation between the potential and actual rates of unemployment over the study horizon, which confirms theoretical expectations. On the whole, the results suggest that economic well-being in Nigeria has worsened over the years, especially between 2013Q3 and 2016Q4. The study, therefore, recommends sustained policies aimed at diversifying the revenue base of the economy away from heavy dependence on crude oil. This has the capacity to obviate the hardship occasioned by the fall in oil price and reduction in oil production.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1336295
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1336295
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1336295
Template-Type: ReDIF-Article 1.0
Author-Name: Foluso A. Akinsola
Author-X-Name-First: Foluso A.
Author-X-Name-Last: Akinsola
Author-Name: Nicholas M. Odhiambo
Author-X-Name-First: Nicholas M.
Author-X-Name-Last: Odhiambo
Title: The impact of financial liberalization on economic growth in sub-Saharan Africa
Abstract:
This study examines the impact of financial liberalization on economic growth, given the discrepancy and the gap in the literature, using a sample of 30 sub-Saharan African (SSA) countries. The study applies a dynamic panel estimation to examine the special role of financial liberalization and banking crises on economic growth in SSA. The linear generalized method of moments is estimated according to the Arellano and Bover approach. We also examine whether differences in income levels across countries in sub-Saharan Africa will affect the relative impact of financial liberalization in SSA. Our findings indicate that the coefficient of the financial liberalization variable is positive and significant for SSA. However, the financial liberalization dummy sign changed to negative for low-income countries, even though it was statistically insignificant. The results also show that there is a negative relationship between a banking crisis and economic growth, showing that the period of a banking crisis can drastically affect economic growth in sub-Saharan Africa. Considering the crucial role played by most financial intermediaries in developing countries, the results have some implications for different African countries, especially countries whose economies are still undergoing financial reforms.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1338851
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1338851
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1338851
Template-Type: ReDIF-Article 1.0
Author-Name: Felix Kwame Aveh
Author-X-Name-First: Felix Kwame
Author-X-Name-Last: Aveh
Author-Name: Dadson Awunyo-Vitor
Author-X-Name-First: Dadson
Author-X-Name-Last: Awunyo-Vitor
Title: Firm-specific determinants of stock prices in an emerging capital market: Evidence from Ghana Stock Exchange
Abstract:
This study seeks to examine the influence of firm-specific determinants of stock prices in an emerging market with particular reference to firms listed on the Ghana Stock Exchange. The study employs a data-set from all listed firms on the Ghana Stock Exchange from 2008 to 2014. The study used panel regression analysis to analyse the data. In general, the study found that accounting information, specifically earning per share, return on equity, book value and market capitalization of the firms, is relevant in explaining stock prices after the adoption of International Financial Reporting Standards (IFRS) in Ghana. This study contributes to the ongoing debate on the firm-specific factors influencing share price in an emerging market with particular reference to Ghana Stock Exchange. It is recommended that the Directors of the firms listed on the Ghana Stock Exchange introduce policies which would have a positive impact on their return on equity and earnings per share to significantly influence their stock prices positively.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1339385
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1339385
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1339385
Template-Type: ReDIF-Article 1.0
Author-Name: Zeng-Hua Lu
Author-X-Name-First: Zeng-Hua
Author-X-Name-Last: Lu
Author-Name: Alec Zuo
Author-X-Name-First: Alec
Author-X-Name-Last: Zuo
Title: Child disability, welfare payments, marital status and mothers’ labor supply: Evidence from Australia
Abstract:
This paper studies the effects of child disability on mothers’ participation in the labor force using Australian data. We formulate a bivariate Probit model in which mothers’ employment and welfare recipient status are treated as the dependent variables and child disability is responsible for the both dependent variables. Several propositions concerning the impacts of child disability on Australian mothers’ participation in the labor force are tested. Our testing procedure involves one-sided restrictions under the null or alternative hypotheses. Our main findings are as follows. A more severe child disability imposes greater restrictions on single mothers’ participation in the labor force. Single mothers are less likely than mothers with a partner to participate in the labor force in the event of a child health shock. There is some evidence of the disincentive effect of welfare payments in encouraging mothers’ participation in the labor force, particularly for single mothers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1339769
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1339769
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1339769
Template-Type: ReDIF-Article 1.0
Author-Name: Sultan Sikandar Mirza
Author-X-Name-First: Sultan Sikandar
Author-X-Name-Last: Mirza
Author-Name: Khalil Jebran
Author-X-Name-First: Khalil
Author-X-Name-Last: Jebran
Author-Name: Yu Yan
Author-X-Name-First: Yu
Author-X-Name-Last: Yan
Author-Name: Amjad Iqbal
Author-X-Name-First: Amjad
Author-X-Name-Last: Iqbal
Title: Financing behavior of firms in tranquil and crisis period: Evidence from China
Abstract:
This study investigates the financing behavior of Chinese firms in tranquil and crisis situation over the period 2002–2014. We divide the sample into three sub-periods; pre-crisis, during-crisis, and post-crisis. The results indicate some noteworthy findings as this study incorporates firm and country-level factors. We find that the firms’ financing choice depends on the market conditions. The results show that Chinese firms have significantly decreased their dependence on leverage after the eruption of global financial crisis. Furthermore, we find that financial crisis of 2007–2008 has significantly affected the explanatory power of all factors. Moreover, profitability, size, and liquidity are important factors determining capital structure of the firm in financial crisis period.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1339770
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1339770
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1339770
Template-Type: ReDIF-Article 1.0
Author-Name: Antti Fredriksson
Author-X-Name-First: Antti
Author-X-Name-Last: Fredriksson
Author-Name: Daniela Maresch
Author-X-Name-First: Daniela
Author-X-Name-Last: Maresch
Author-Name: Andrea Moro
Author-X-Name-First: Andrea
Author-X-Name-Last: Moro
Title: Much ado about nothing? Interest and non-interest products and services: Their impact on small banks’ margins
Abstract:
We investigate the impact of interest and non-interest products and services on the margin a bank can derive from a specific customer. The analysis is based on 4,277 observations of relationships between small cooperative banks and small and medium-sized enterprises (SME) in Finland from 2001 to 2005. The results show that only long-term loans significantly contribute to the bank’s margin, whereas short-term loans as well as other additional products and services do not affect the bank’s margin, and cash management services even seem to reduce the bank’s margin. The findings suggest that small cooperative banks did concentrate on their core business during the first years of this millennium, i.e. lending, instead of diversifying their activities to increase their margin. However, by taking only financial considerations into account, small cooperative banks might forget about the non-financial impacts of their decisions, which may involve a considerable loss of information about SMEs.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1339771
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1339771
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1339771
Template-Type: ReDIF-Article 1.0
Author-Name: Enrique Benavides Rosales
Author-X-Name-First: Enrique
Author-X-Name-Last: Benavides Rosales
Title: Time-series and cross-sectional momentum and contrarian strategies within the commodity futures markets
Abstract:
The aim within this paper is to analyze the difference between momentum and contrarian portfolios constructed under the cross-sectional and time-series analysis, within the commodity futures markets. The returns indicate that the contrarian portfolios are the most profitable, as well as it’s observed that they perform better within the cross-sectional analysis. The correlation of the best portfolios within other markets is also examined, and the results confirm that they are indeed a good investment tool for diversifying a portfolio with different assets. Within a pre- and post-2008 global crisis point of view, the findings suggest that, for the contrarian portfolios, the results are stronger during the pre-crisis period, although during the post-crisis period the portfolios preserve the positive returns. Additionally, it’s perceived that the first and second subsequent years after a crash or crisis year are usually highly profitable within the cross-sectional and time-series contrarian portfolios.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1339772
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1339772
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1339772
Template-Type: ReDIF-Article 1.0
Author-Name: Lamia Jamel
Author-X-Name-First: Lamia
Author-X-Name-Last: Jamel
Author-Name: Samir Maktouf
Author-X-Name-First: Samir
Author-X-Name-Last: Maktouf
Title: The nexus between economic growth, financial development, trade openness, and CO2 emissions in European countries
Abstract:
In this paper, we empirically investigate the causal nexus between economic growth (GDP), CO2 emissions (environmental degradation), financial development, and trade openness using the ordinary least squares technique for a yearly panel data of 40 European economies, during the period of study from 1985 to 2014. To examine this causal link, we utilize the Cobb–Douglas production function. The empirical findings point to a bidirectional Granger causal linkage among GDP and pollution, GDP and financial sector development, GDP and trade openness, financial sector development and trade openness, and trade openness and pollution in the case of European economies. From the causal link between GDP and environmental pollutants, we validate the existence/confirm the validity of the environmental Kuznets curve hypothesis. Also, we confirm/bear out the feedback suggestion of the bidirectional causality among trade openness and financial sector development. Besides, we find the neutrality hypothesis linking carbon emissions and financial sector development inflows. We find the presence of the bidirectional nexus between GDP and financial sector development and among GDP and trade openness in the European economies. Finally, panel causality verifies that bidirectional causal connection is found between economic growth, environmental degradation (CO2), financial development, and trade openness.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1341456
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1341456
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1341456
Template-Type: ReDIF-Article 1.0
Author-Name: Hamid Baghestani
Author-X-Name-First: Hamid
Author-X-Name-Last: Baghestani
Title: Do US consumer survey data help beat the random walk in forecasting mortgage rates?
Abstract:
In line with term structure theory, empirical studies suggest that it is difficult to beat the random walk in forecasting long-term interest rates. We ask whether consumer survey data on both mortgage interest rates and expected inflation help beat the random walk in forecasting the 30-year fixed rate mortgage. Using the vector autoregressive (VAR) modeling framework with the mortgage rate and consumer survey data as variables, we generate the mortgage rate forecasts for 1988–2016. Our forecast evaluation test results indicate that the VAR forecasts generally embody useful predictive information above and beyond that contained in the random walk forecasts for 2008–2016. The evidence is weaker for 1988–2007 in the sense that the VAR forecasts fail to outperform the random walk (but still contain distinct useful predictive information). In line with the notion that consumers are “economically” rational, our findings suggest that consumer survey data have become more informative due to the uncertainty created by the 2008 financial crisis.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1343017
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1343017
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1343017
Template-Type: ReDIF-Article 1.0
Author-Name: Rihab Bedoui
Author-X-Name-First: Rihab
Author-X-Name-Last: Bedoui
Author-Name: Houda BenMabrouk
Author-X-Name-First: Houda
Author-X-Name-Last: BenMabrouk
Title: CAPM with various utility functions: Theoretical developments and application to international data
Abstract:
This paper presents an extension of the Capital Assets Pricing Model (hereafter CAPM) where various utility functions are applied. Specifically, we propose an overall CAPM beta that accounts for the higher order moments and reflects the investor preferences and attitudes toward risk. We particularly develop CAPM betas for different classes of utility function: the negative exponential utility function, power utility function or “Constant Relative Risk Aversion (CRRA) Utilities” and hyperbolic utility function or “HARA Utilities” (hyperbolic absolute risk aversion). In order to validate our theoretical results, we analyze the impact of investors’ preferences on the valuation equation. Applying the International CAPM, the results indicate that our utilities-based betas differ largely from the traditional CAPM betas. Moreover, the results confirm the importance of higher order moments on the pricing equation. Finally, the results both empirically and theoretically post to the consistent effect of the risk aversion degree on our utilities-based CAPM.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1343230
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1343230
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1343230
Template-Type: ReDIF-Article 1.0
Author-Name: Bouteska Ahmed
Author-X-Name-First: Bouteska
Author-X-Name-Last: Ahmed
Author-Name: Regaieg Boutheina
Author-X-Name-First: Regaieg
Author-X-Name-Last: Boutheina
Title: The accuracy of financial analysts’ earnings forecasts and the Tunisian market reliance with time
Abstract:
Unlike previous studies which have examined the role of financial analysts in developed economies, the aim of this paper is to investigate whether following the Tunisian stock market opening, both the analyst forecast accuracy and the market’s reliance on analyst forecasts, increase with time. This study is based on the hypothesis that accuracy is expected to increase over time as analysts exert more effort and gain valuable forecasting experience, and also that the reliance on analyst forecasts should increase with time as the market opens and investors become more sophisticated. The methodology employs bi-annual panel data for Tunisian stock market from 2010 to 2015. Our results are consistent with the expectations. First, results generally confirm that both the accuracy and the higher quality of analyst earnings forecasts are increasing with time. Second, we find evidence that earnings expectations are not mainly based on analyst forecast in the first sub-period (2010–2012). However, these findings are reversed in the second sub-period (2013–2015) and for the whole period (2010–2015) as analyst forecast better explain returns and exhibit greater relative information content.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1345186
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1345186
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1345186
Template-Type: ReDIF-Article 1.0
Author-Name: Geoffrey Steeves
Author-X-Name-First: Geoffrey
Author-X-Name-Last: Steeves
Author-Name: Newton da Costa
Author-X-Name-First: Newton
Author-X-Name-Last: da Costa
Author-Name: Caroline Elliott
Author-X-Name-First: Caroline
Author-X-Name-Last: Elliott
Title: Shareholder response to mass shootings in the United States firearms industry
Abstract:
Mass shootings are an all too common event in the United States. While these tragedies are universally condemned, the extent to which they affect markets is less understood. Using event study methodology, this study analyzes how three publicly traded small arms companies, Smith & Wesson, Sturm Ruger, and the Brazilian manufacturer Taurus, react in the aftermath of six mass shootings from 2007 to 2013. Taurus is included in the sample given its heavy dependence on the US market, as well as to increase sample size given the dearth of publicly traded arms companies worldwide. The aggregate results suggest that these events do significantly disrupt returns in the arms industry, suggesting that shareholders are influenced by these events. The evidence for market disruptions is particularly strong when the sample is limited to the deadliest Virginia Tech and Sandy Hook shootings.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1345600
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1345600
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1345600
Template-Type: ReDIF-Article 1.0
Author-Name: Ansari Saleh Ahmar
Author-X-Name-First: Ansari Saleh
Author-X-Name-Last: Ahmar
Author-Name: Abdul Rahman
Author-X-Name-First: Abdul
Author-X-Name-Last: Rahman
Author-Name: Andi Nurani Mangkawani Arifin
Author-X-Name-First: Andi Nurani Mangkawani
Author-X-Name-Last: Arifin
Author-Name: Alfatih Abqary Ahmar
Author-X-Name-First: Alfatih Abqary
Author-X-Name-Last: Ahmar
Title: Predicting movement of stock of “Y” using Sutte Indicator
Abstract:
The aim of this study is to apply technical analysis Sutte Indicator at stock market that will assist in the decision-making process in investment to buy or sell stocks. This study took data from Stock of “Y” which listed in the NasdaqGS from the period 18 May 2012 to 30 August 2016. The performance of the Sutte Indicator can be checked with comparison with Moving Average Convergence/Divergence and Simple Moving Average. For comparison of the reliability of prediction, we can use the mean absolute percentage error, mean absolute deviation, and mean of square error.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1347123
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1347123
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1347123
Template-Type: ReDIF-Article 1.0
Author-Name: Florence Nakazi
Author-X-Name-First: Florence
Author-X-Name-Last: Nakazi
Author-Name: Paul Aseete
Author-X-Name-First: Paul
Author-X-Name-Last: Aseete
Author-Name: Enid Katungi
Author-X-Name-First: Enid
Author-X-Name-Last: Katungi
Author-Name: Michael Adrogu Ugen
Author-X-Name-First: Michael
Author-X-Name-Last: Adrogu Ugen
Title: The potential and limits of farmers’ groups as catalysts of women leaders
Abstract:
The Women’s Empowerment in Agriculture Index revealed weak leadership and influence of women in the community as indicators of women’s political disempowerment. Collective action through farmer groups can be an important strategy for women members to strengthen their political power. The study horns in to analyze the potential group characteristics that can act as catalysts to the number of leadership positions that women occupy. The study uses data from 65 farmers’ groups in central Uganda. Tobit regression model was used to assess the group factors that influence the proportion of positions women held in groups. The study found that groups had an average of 5 leadership positions and women strong leadership skills lie in being treasurers (70%). Number of households represented (10.7%), record keeping (27.9%), proportion of both youth (19.4%), and women (69.7%), number of economic activities (2.9%) were the key factors that influence the proportion of women in group leadership. The findings are useful in guiding development interventions that use group-based approaches in agricultural production and marketing.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1348326
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1348326
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1348326
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Nakosteen
Author-X-Name-First: Robert
Author-X-Name-Last: Nakosteen
Author-Name: Michael Zimmer
Author-X-Name-First: Michael
Author-X-Name-Last: Zimmer
Title: Marriage dissolution among American men, 2003–2010: The roles of measured earnings and latent selection
Abstract:
Research in the economics of the family has established that economic incentives play a significant role in the process of marriage formation and dissolution. This paper distinguishes between two aspects of husbands’ earnings in the process of divorce. On one hand, measured earnings might exert a direct effect on the stability of marriage. On the other hand, some husbands possess unobserved traits that might simultaneously affect their earnings growth and their propensities to terminate their marriages. This research utilizes data from the United States Current Population Survey for years 2003 through 2010, and is based on samples of initially married men at two points in time. We seek first to examine whether marriage dissolution occurs in the presence of correlation between unobserved factors present in both earnings during the first period and the subsequent decision to divorce. Second, we look for an explicit role of earnings per se in the divorce decision. Results of the study provide support for significant effects in both dimensions. Increases in observed earnings result a tendency to stabilize marriages. Controlling for observed earnings, however, there is evidence that men with strong unmeasured earnings attributes possess latent propensities to dissolve their marriages.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1348327
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1348327
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1348327
Template-Type: ReDIF-Article 1.0
Author-Name: Teboho Jeremiah Mosikari
Author-X-Name-First: Teboho Jeremiah
Author-X-Name-Last: Mosikari
Author-Name: Joel Hinaunye Eita
Author-X-Name-First: Joel Hinaunye
Author-X-Name-Last: Eita
Title: Empirical test of the Ricardian Equivalence in the Kingdom of Lesotho
Abstract:
The objective of this paper is to test the existence of Ricardian Equivalence in Lesotho using annual data for two sample periods, 1980–2014 and 1988–2014. This proposition is important and has crucial implications for tax policy. Household consumption, government debt, government expenditure, GDP per capita, population growth and inflation are variables which are used for this analysis. The study used ARDL cointegration approach to investigate the relationship between these variables. The study found that there is long run equilibrium relationship among the variables in two sample periods. The results show that an increase in government debt or government expenditure will decrease household consumption per capita. This implies that the Ricardian Equivalence does hold for Lesotho. The results also imply that fiscal policy is an ineffective tool to stabilize the economy. Lesotho has limited fiscal flexibility, and it will be difficult or challenging to increase private consumption and economic growth, particularly during economic downturn.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1351674
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1351674
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1351674
Template-Type: ReDIF-Article 1.0
Author-Name: Peterson Owusu Junior
Author-X-Name-First: Peterson
Author-X-Name-Last: Owusu Junior
Author-Name: Anokye M. Adam
Author-X-Name-First: Anokye M.
Author-X-Name-Last: Adam
Author-Name: George Tweneboah
Author-X-Name-First: George
Author-X-Name-Last: Tweneboah
Title: Co-movement of real exchange rates in the West African Monetary Zone
Abstract:
In three different ways of lead–lag causal relationship, covariance/correlation and coherence, we apply the wavelets analysis via the Continuous Morlet Wavelet Transform to delineate the significant frequency–time domain lead–lag relationships for the West African Monetary Zone member countries for real US dollar exchange rates and their absolute log returns from January 2001 to April 2015. The results indicate that lead–lag associations at different periodicities vary across the countries. No one country comes off as leading conveniently for both real and absolute returns of the exchange rates. Our results corroborate other evidences of non-convergence of exchange rates in the monetary zone, which hinders the eventual implementation of the single currency in the ECOWAS region.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1351807
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1351807
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1351807
Template-Type: ReDIF-Article 1.0
Author-Name: Ahmed Tukur Umar
Author-X-Name-First: Ahmed
Author-X-Name-Last: Tukur Umar
Author-Name: Moh’d Shahwahid Hajj Othman
Author-X-Name-First: Moh’d Shahwahid
Author-X-Name-Last: Hajj Othman
Title: Causes and consequences of crude oil pipeline vandalism in the Niger delta region of Nigeria: A confirmatory factor analysis approach
Abstract:
Significant number of crude oil pipeline vandalism in the Niger delta region of Nigeria were carried out by the militant groups on the pretext for a better environmental management and development of the region. This research work examined the relation between socioeconomic, institutional factors and pipeline vandalism using confirmatory factor analysis (CFA). The CFA is a superior model of analysis since it establishes a better mathematical relationship between observed and unobserved variables compared to other models previously used by other studies such as correlation analysis, ordinary least squares and descriptive statistics. The study involved 269 respondents who were selected from the Niger delta region using purposive and simple random sampling techniques. The results from the study show the existence of a significant and positive relationship between poor management, poor governance, legal, and environmental degradation while significant but negative relationship between marginalization and pipeline vandalism. The study recommends the need for institutional reform through improvement in infrastructural provision, effective governance among others. Unlike other previous studies, our results show no significant relationship between poverty, unemployment and vandalism.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1353199
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1353199
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1353199
Template-Type: ReDIF-Article 1.0
Author-Name: Lingbing Feng
Author-X-Name-First: Lingbing
Author-X-Name-Last: Feng
Author-Name: Yanlin Shi
Author-X-Name-First: Yanlin
Author-X-Name-Last: Shi
Title: A simulation study on the distributions of disturbances in the GARCH model
Abstract:
Generalized autoregressive conditional heteroskedastic (GARCH) model is a standard approach to study the volatility behaviour of financial time series. The original specification of GARCH model is developed based on Normal distribution for the disturbances, which cannot accommodate fat-tailed properties commonly existing in financial time series. Consequently, the resulting estimates are not efficient. Traditionally, the Student’s t-distribution and General Error Distribution (GED) are used alternatively to solve this problem. However, a recent study points out that those alternative distributions lack stability under aggregation. This leaves the appropriate choice of the distribution of disturbances in the GARCH model still an open question. In this paper, we present the theoretical features and desirability of the tempered stable distribution. Further, we conduct a series of simulation studies to demonstrate that the GARCH model with this distribution consistently outperforms those with the Normal, Student-t and GED distributions. This result is robust with empirical evidence of the S&P 500 daily return. Therefore, we argue that the tempered stable distribution could be a widely useful tool for modelling the financial volatility in general contexts with a GARCH-type specification.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1355503
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1355503
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1355503
Template-Type: ReDIF-Article 1.0
Author-Name: Prasenjit Chakrabarti
Author-X-Name-First: Prasenjit
Author-X-Name-Last: Chakrabarti
Author-Name: K. Kiran Kumar
Author-X-Name-First: K.
Author-X-Name-Last: Kiran Kumar
Title: Does behavioural theory explain return-implied volatility relationship? Evidence from India
Abstract:
The study investigates whether behavioural theory is a superior explanation for short-term return–volatility relationship than traditional leverage and volatility feedback hypotheses. Using VAR and quantile regression frameworks, the study shows that behavioural theory explains the relationship better than the leverage and feedback hypotheses. The study supports that behavioural biases (representative, affect, extrapolation heuristics, etc.) exist among market participants, and these biases cause India Volatility Index (India VIX) to be an efficient hedge for extreme negative market movements.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1355521
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1355521
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1355521
Template-Type: ReDIF-Article 1.0
Author-Name: M.T. Magombeyi
Author-X-Name-First: M.T.
Author-X-Name-Last: Magombeyi
Author-Name: N.M. Odhiambo
Author-X-Name-First: N.M.
Author-X-Name-Last: Odhiambo
Title: Causal relationship between FDI and poverty reduction in South Africa
Abstract:
This study investigates the causal relationship between poverty reduction and foreign direct investment (FDI) inflows in South Africa using time-series data from 1980 to 2014. The main objective of this study is to establish the direction of causality between FDI and poverty reduction, which is important to policy-makers as it identifies which variable to target first. Gross domestic product is included as an intermittent variable giving a trivariate framework. Employing the autoregressive distributed lag (ARDL) bounds testing approach to cointegration and ECM-based causality tests, the results from this study reveal a distinct unidirectional causality from poverty reduction to FDI in both the short run and the long run when poverty reduction is measured by life expectancy and infant mortality rate. However, the study failed to find any causality, irrespective of the time considered, when poverty reduction is measured by household consumption expenditure. It can be concluded therefore, that the causal relationship between FDI and poverty reduction is sensitive to the proxy used to measure the level of poverty reduction.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1357901
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1357901
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1357901
Template-Type: ReDIF-Article 1.0
Author-Name: Ivivi J. Mwaniki
Author-X-Name-First: Ivivi J.
Author-X-Name-Last: Mwaniki
Title: On skewed, leptokurtic returns and pentanomial lattice option valuation via minimal entropy martingale measure
Abstract:
This article develops, a lattice-based approach for pricing contingent claims when parameters governing the logs of the underlying asset dynamics are modelled by generalized hyperbolic distribution and normal inverse Gaussian distribution. The pentanomial lattice is constructed using a moment matching procedure. Moment generating functions of generalized hyperbolic distribution and normal inverse Gaussian distribution are utilized to compute probabilities and jump parameters under historical measure P$ { \mathbb P } $. Minimal entropy martingale measure (MEMM) is used to value European call option with a view of comparing the results with some of the existing benchmark model such as Black Scholes model. Empirical data from S&P500 index, RUTSELL2000 index and RUI1000 index are used to demonstrate how the model works. There is a significant difference especially for long term maturity (six months and above) type of contracts, the proposed model outperform the benchmark model, while performing poorly at short term contracts. Pentanomial NIG models seems to outperform the other models especially for long dated maturities.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1358894
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1358894
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1358894
Template-Type: ReDIF-Article 1.0
Author-Name: Ntokozo Patrick Nzimande
Author-X-Name-First: Ntokozo Patrick
Author-X-Name-Last: Nzimande
Author-Name: Harold Ngalawa
Author-X-Name-First: Harold
Author-X-Name-Last: Ngalawa
Title: The endogeneity of business cycle synchronisation in SADC: A GMM approach
Abstract:
Studies often conclude that the proposed Southern African Development Community monetary union would be disastrous and not optimal for all member countries. This is because of the observed low, and sometimes negative business cycle correlation amongst member countries. However, it has been demonstrated that the degree of synchronisation is not irrevocably fixed and is endogenous to certain economic factors. This study, therefore, sets out to investigate factors influencing business cycle synchronisation in the SADC region. More precisely, the study employs a generalised method of moments to investigate the influence of trade integration, financial integration, fiscal policy convergence, monetary policy similarity and oil prices (a proxy for global common shocks) on the degree of business cycle synchronisation. To conduct our analysis, we use data covering the period 1994–2014. In addition, we employ bilateral data as a way of getting around the problem of unavailability of aggregated regional data. The study finds trade, fiscal policy convergence and monetary policy similarity to have a sanguine impact on the degree of business cycle synchronisation. In addition, owing to their procyclical behaviour, it is observed that financial flows lead to diverging business cycles. Furthermore, the study finds that oil prices exert a negative impact on business cycle comovement in the SADC region. The study results have far-reaching policy implications for the proposed SADC monetary union. It is implied in the study findings that by stimulating trade and ensuring coherence in macroeconomic policies, SADC can move closer to being an optimal currency area.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1358914
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1358914
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1358914
Template-Type: ReDIF-Article 1.0
Author-Name: Bernard Njindan Iyke
Author-X-Name-First: Bernard
Author-X-Name-Last: Njindan Iyke
Author-Name: Sin-Yu Ho
Author-X-Name-First: Sin-Yu
Author-X-Name-Last: Ho
Title: Exchange rate uncertainty and domestic investment in Ghana
Abstract:
The impact of exchange rate uncertainty on domestic investment remains a topical issue in international finance. The existing studies based on macro- or micro-level data have produced mixed findings leaving the issue widely open for further investigation. We revisit this issue at the macro-level by differentiating the short-run impacts of exchange rate uncertainty from long-run impacts. Using annual data for Ghana covering the period 1980–2015, we found that exchange rate uncertainty has differential impacts on domestic investment in the short run. That is, while the current level of uncertainty enhances investment, previous levels of uncertainty dampen investment. In the long run, exchange rate uncertainty has a positive impact on domestic investment. These findings are robust to alternative specifications of our model.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1362157
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1362157
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1362157
Template-Type: ReDIF-Article 1.0
Author-Name: George Okello Candiya Bongomin
Author-X-Name-First: George
Author-X-Name-Last: Okello Candiya Bongomin
Author-Name: Joseph Mpeera Ntayi
Author-X-Name-First: Joseph
Author-X-Name-Last: Mpeera Ntayi
Author-Name: John C. Munene
Author-X-Name-First: John C.
Author-X-Name-Last: Munene
Author-Name: Charles Malinga Akol
Author-X-Name-First: Charles
Author-X-Name-Last: Malinga Akol
Title: Financial intermediation and financial inclusion of poor households: Mediating role of social networks in rural Uganda
Abstract:
The paper examined the mediating role of social networks in the relationship between financial intermediation and financial inclusion of poor households in rural Uganda. The paper used SPSS (statistical package for social scientist) and applied MedGraph program (Excel version 13), Sobel test, and Kenny & Baron guideline to test for the mediating role of social networks in the relationship between financial intermediation and financial inclusion. Quantitative data were collected from a total sample of 400 poor households living in rural Uganda who were randomly selected for this study. The findings revealed that social networks partially mediate in the relationship between financial intermediation and financial inclusion of poor households in rural Uganda. Besides, social networks and financial intermediation have significant and positive impacts on financial inclusion of poor households in rural Uganda. This implies that some effects of financial intermediation on financial inclusion go through social networks to cause an impact on financial inclusion of poor households in rural Uganda. Therefore, financial institutions such as banks and microfinance institutions should develop financial products and services that promote social networking among poor households in rural Uganda. In addition, they should advocate for participation by poor households in existing village associations and social organizations so as to develop wide social networks. This will help them to gain access to scarce and vital information about available financial services like credit.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1362184
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1362184
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1362184
Template-Type: ReDIF-Article 1.0
Author-Name: Vinodh Madhavan
Author-X-Name-First: Vinodh
Author-X-Name-Last: Madhavan
Title: How interrelated are MIST equity markets with the developed stock markets of the world?
Abstract:
This study explores the long-run and short-term relationship between the Mexico, Indonesia, South Korea, and Turkey (MIST) equity markets and the developed stock markets such as US, UK, Germany, Japan, Hong Kong, and Singapore. To start with, the author employs static bivariate and multivariate Johansen cointegration tests to test for long-run relationship between each of MIST equity markets and the developed stock markets. Subsequently, the author employs the recursive multivariate Johansen cointegration tests to garner a better understanding of the evolution of extent of integration between MIST and the developed stock markets. Static and Recursive Johansen Test findings reveal lack of consistent cointegrating relationship between MIST and developed markets (DM). Consequently, MIST equity markets do offer portfolio diversification avenues for international investors. On the short-term front, the time-varying correlations for each MIST-DM pair of stock indices were examined using the Dynamic Conditional Correlation (DCC) specification of the Multivariate GARCH. Of all the developed stock markets considered for this study, Mexico is found to exhibit high DCC with US and least amount of DCC with Japan while Indonesia is found to exhibit high DCC with Singapore and Hong Kong and least amount of DCC with US. Lastly, when it comes to South Korea, it exhibits the least amount of DCC with US and high DCC with Hong Kong, Singapore, and Japan.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1362822
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1362822
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1362822
Template-Type: ReDIF-Article 1.0
Author-Name: Shahrin Saaid Shaharuddin
Author-X-Name-First: Shahrin Saaid
Author-X-Name-Last: Shaharuddin
Author-Name: Wee-Yeap Lau
Author-X-Name-First: Wee-Yeap
Author-X-Name-Last: Lau
Author-Name: Rubi Ahmad
Author-X-Name-First: Rubi
Author-X-Name-Last: Ahmad
Title: New Islamic equity style indices: Constructing and testing the efficacy of information transmission
Abstract:
The non-existence of commercially available Islamic Equity Style Indices from index providers such as MSCI especially on small value and small growth stocks motivates us to construct our new indices. Firstly, various index construction methods are compared. Secondly, this paper describes in detail the process of index construction and finally, the new indices are tested using out-of-sample forecast and trading strategies. Notably, our results show Large Growth (LG) and Large Value (LV) indices have more efficacy compared to Small Growth (SG) and Small Value (SV) stocks. From the perspective of Islamic financial market, the creation of Islamic equity style index enables new strategies which focus on size, value, and smart beta. In addition, the out-of-sample VAR forecast indicates that LG and LV indices are the best candidates for creating a new benchmark for portfolio diversification. Furthermore, by applying simple trading strategies and selecting Islamic value and small market capitalization stocks, our evidence shows that Islamic equity style indices have benefits for investors and fund managers. To the best of authors’ knowledge, this paper is the first attempt to create non-commercially available Islamic equity style indices.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1363355
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1363355
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1363355
Template-Type: ReDIF-Article 1.0
Author-Name: Futeri Jazeilya Md Fadzil
Author-X-Name-First: Futeri Jazeilya
Author-X-Name-Last: Md Fadzil
Author-Name: John G. O’Hara
Author-X-Name-First: John G.
Author-X-Name-Last: O’Hara
Author-Name: Wing Lon Ng
Author-X-Name-First: Wing Lon
Author-X-Name-Last: Ng
Title: Cross-sectional volatility index as a proxy for the VIX in an Asian market
Abstract:
We present a cross-sectional volatility index (CSV) applied to an Asian market as an alternative to the VIX. One problem with the construction of a VIX-styled index is that it depends on the price of calls and puts, however, the CSV index may be applied to measure the volatility when no derivatives market exists. We formulate this volatility index based on observable and model-free volatility measures. We provide a statistical argument to support that an equally weighted measure of average idiosyncratic variance would forecast market return and show that this measure displays a sizable correlation with economic uncertainty.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1364011
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1364011
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1364011
Template-Type: ReDIF-Article 1.0
Author-Name: Chiara Benazzoli
Author-X-Name-First: Chiara
Author-X-Name-Last: Benazzoli
Author-Name: Luca Di Persio
Author-X-Name-First: Luca
Author-X-Name-Last: Di Persio
Title: Optimal execution strategy in liquidity framework
Abstract:
A trader wishes to execute a given number of shares of an illiquid asset. Since the asset price also depends on the trading behaviour, the trader main aim is to find the execution strategy that minimizes the related expected costs. We solve this problem in a discrete time framework, by modeling the asset price dynamic as an arithmetic random walk with drift and volatility both modeled as Markov stochastic processes. The market impact is assumed to follow a Markov process. We found the unique execution strategy minimizing the implementation shortfall when short selling is allowed. This optimal strategy is given as solution of a forward-backward system of stochastic equations depending on conditional expectations of future values of model parameters. In the opposite case, namely when short selling is prohibited, we numerically obtain the solution for the associated Bellman equation that an optimal trading strategy must satisfy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1364902
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1364902
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1364902
Template-Type: ReDIF-Article 1.0
Author-Name: Eric Fosu Oteng-Abayie
Author-X-Name-First: Eric Fosu
Author-X-Name-Last: Oteng-Abayie
Title: Technical efficiency and total factor productivity of rural banks in Ghana
Abstract:
This study sought to estimate the level of technical efficiency and total factor productivity of RCBs in Ghana using Stochastic Frontier Analysis (SFA). The total factor productivity (TFP) was decomposed into efficiency change and technical change over the study period. Quarterly data spanning 2009 to 2012 was sourced from the ARB-Apex Bank for a sample of 107 out of 137 RCBs in Ghana. The findings suggested that RCBs have room to improve on their technical efficiency and total factor productivity levels. Technical efficiency change, on average, was the main source of total factor productivity change during the period. The results suggest the shifting of the RCBs production frontier causing improvement in the TFP. The finding implies that efforts to improve efficiency and productivity of RCBs must be focused on improving the operational environment through rigorous efficiency analysis and monitoring by the regulator and management boards. The findings on the relative efficiencies also have implications for investment decision by prospective investors.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1366088
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1366088
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1366088
Template-Type: ReDIF-Article 1.0
Author-Name: K.K. Moseki
Author-X-Name-First: K.K.
Author-X-Name-Last: Moseki
Author-Name: K.S. Madhava Rao
Author-X-Name-First: K.S.
Author-X-Name-Last: Madhava Rao
Title: Analysing stock market data—Market sentiment approach and its measures
Abstract:
This paper states that market sentiments are central to any financial data analysis. A vivid distinction is made between studying financial data in terms of the concept of volatility and in rapport to analysing financial data in terms of market sentiments. The former is an existing approach that is extensively used and the latter is a proposed tactic. Methods of devising constructs for defining relative and absolute market sentiments are also discussed. Patterns of market sentiments in terms of the model parameters are discussed and a few new measures that capture the hypothesized market sentiments are proposed. As an application of the proposed line of approach, this study analyses weekly market sentiments that govern Domestic Company Indices of Botswana Stock Exchange.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1367147
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1367147
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1367147
Template-Type: ReDIF-Article 1.0
Author-Name: Abbas Ali Chandio
Author-X-Name-First: Abbas Ali
Author-X-Name-Last: Chandio
Author-Name: Yuansheng Jiang
Author-X-Name-First: Yuansheng
Author-X-Name-Last: Jiang
Author-Name: Feng Wei
Author-X-Name-First: Feng
Author-X-Name-Last: Wei
Author-Name: Abdul Rehman
Author-X-Name-First: Abdul
Author-X-Name-Last: Rehman
Author-Name: Dan Liu
Author-X-Name-First: Dan
Author-X-Name-Last: Liu
Title: Famers’ access to credit: Does collateral matter or cash flow matter?—Evidence from Sindh, Pakistan
Abstract:
Credit is highly demanded in different parts of the world, mainly for capital requirement to improve land, purchase of main agricultural inputs including fertilizers, seeds, pesticides, and purchase of farm machinery. The purpose of this study was to examine the farmers’ access to credit: does collateral matter or cash flow matter?—evidence from Sindh province of Pakistan. The random sampling technique was used to collected data from 300 rural households through a face-to-face interview. To find the important factors affecting access to credit in Sindh province of Pakistan, we performed descriptive statistics and probit regression model. The results of probit regression model showed that gender, household size, educational level, farming experience, farm size, income, and availability of collateral have positive effect on farmers’ access to credit, while age has a negative and statistically insignificant effect on the farmers’ access to credit. Therefore, this study recommended that institutional sources of credit (such as the ZTBL and other Commercial Banks) should improve their loaning schemes to better suit the diversified needs of small farmers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1369383
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1369383
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1369383
Template-Type: ReDIF-Article 1.0
Author-Name: Ibrahim Bakari Hassan
Author-X-Name-First: Ibrahim Bakari
Author-X-Name-Last: Hassan
Author-Name: M. Azali
Author-X-Name-First: M.
Author-X-Name-Last: Azali
Author-Name: Lee Chin
Author-X-Name-First: Lee
Author-X-Name-Last: Chin
Author-Name: Wan N.W. Azman-Saini
Author-X-Name-First: Wan N.W.
Author-X-Name-Last: Azman-Saini
Title: Macroeconomic linkages and international shock transmissions in East Asia: A global vector autoregressive approach
Abstract:
The growing interdependency among East Asian countries means that there is concern not only on the way their macroeconomic variables are linked across borders, but also on the way shocks are transmitted as a consequence. This paper investigates the effect of macroeconomic linkages on international shock transmissions in selected East Asian countries. Global Vector Autoregressive model (GVAR) is used on the quarterly data of real output, inflation, equity prices, exchange rates, and short-term interest rate over the period 1979Q2–2013Q1. The result generally shows that the focus countries are more linked to global economy through equity markets, real output, and exchange rates, signifying more tendencies for contagion effects in the same way. On the other hand, result from the dynamic analysis, shows that China contributes highest shock transmission in the real sector, whereas US is the highest in the equity market. For the exchange rate; within-regional shock transmission is found to be highest. The dominance of China in the real sector implies the possibility of business cycle synchronization in the region, especially if China is triggered; however, the insignificance currency-shock transmission between China and the rest of the East Asian countries contradicts one important criterion for optimum currency area. This means that China could vanguard the economic regionalism if its currency market is more developed and liberalized. More still, the dominance of US in capital market and second to China in the real sector explained the strategic importance of US in the global economy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1370772
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1370772
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1370772
Template-Type: ReDIF-Article 1.0
Author-Name: Feng Sun
Author-X-Name-First: Feng
Author-X-Name-Last: Sun
Author-Name: Cheng Liu
Author-X-Name-First: Cheng
Author-X-Name-Last: Liu
Author-Name: Xiaoguang Zhou
Author-X-Name-First: Xiaoguang
Author-X-Name-Last: Zhou
Title: Analysis of industry risk premium with MVS three dimensions vector factor model
Abstract:
It is very important to identify deviation mechanism of price volatility of an industry asset and the affecting factors, and it is important to give the reasonable explanation and measurement to the abnormality of price volatility of the industry asset. This paper adopts heterogeneous panel and exploratory factor analysis methods, measuring industry risk by industry risk premium index, and constructs an industry MVS three dimensions vector factor model to analyze the factors consistent and affecting extent to industry risk. Furthermore, this paper analyzes simultaneously the linkage effect and working mechanism of multi-industries risks and gives an empirical research to determinants mechanism affecting industry risk.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1374814
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1374814
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1374814
Template-Type: ReDIF-Article 1.0
Author-Name: Goodness C. Aye
Author-X-Name-First: Goodness C.
Author-X-Name-Last: Aye
Author-Name: Prosper Ebruvwiyo Edoja
Author-X-Name-First: Prosper Ebruvwiyo
Author-X-Name-Last: Edoja
Title: Effect of economic growth on CO2 emission in developing countries: Evidence from a dynamic panel threshold model
Abstract:
This study investigated the effect of economic growth on CO2 emission using the dynamic panel threshold framework. The analysis is based on data from a panel of 31 developing countries. The results indicate that economic growth has negative effect on CO2 emission in the low growth regime but positive effect in the high growth regime with the marginal effect being higher in the high growth regime. Thus our finding provides no support for the Environmental Kuznets Curve (EKC) hypothesis; rather a U-shaped relationship is established. Energy consumption and population were also found to exert positive and significant effect on CO2 emission. Including financial development indicator in the model did not change the conclusion about EKC hypothesis. Employing panel causality methods, there is evidence of significant causal relationship between CO2 emission, economic growth, energy consumption and financial development. The findings emphasize the need for transformation of low carbon technologies aimed at reducing emissions and sustainable economic growth. This may include energy efficiency and switch away from non-renewable energy to renewable energy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1379239
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1379239
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1379239
Template-Type: ReDIF-Article 1.0
Author-Name: Ayse Y. Evrensel
Author-X-Name-First: Ayse Y.
Author-X-Name-Last: Evrensel
Author-Name: Tiffany Minx
Author-X-Name-First: Tiffany
Author-X-Name-Last: Minx
Title: An institutional approach to the decline of the Ottoman Empire
Abstract:
This paper examines the selected Ottoman institutions during the so-called rise (fourteenth through sixteenth centuries) and identifies the institutional characteristics that may have led to the eventual fall of the Empire in 1918. We propose three criteria based on which the Ottoman institutions are selected. First, there should be nominal accounts of the institution. Second, the institution has to be present during the rise of the Empire. Third, the institution should allow the investigation of whether changes in it led to increased power sharing between the sultan and a larger segment of the society. As a result, the paper identifies three institutions: succession structure, power structure, and the identity of the Ottoman elites and the landownership-military-public finance triangle. Our conclusion is that the weaknesses in the mentioned institutions were fundamental enough to make the Empire vulnerable. Additionally, the examination of these institutions leads to the identification of even more fundamental characteristics of the Ottomans, such as their aversion toward Turkish Muslims and commerce as well as their oblivious attitude toward technological innovations.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1380248
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1380248
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1380248
Template-Type: ReDIF-Article 1.0
Author-Name: Po-Keng Cheng
Author-X-Name-First: Po-Keng
Author-X-Name-Last: Cheng
Author-Name: Young Shin Kim
Author-X-Name-First: Young Shin
Author-X-Name-Last: Kim
Title: Speculative bubbles and crashes： Fundamentalists and positive‐feedback trading
Abstract:
In this paper, we develop and examine a simple interactive agent‐based model, where the distribution of returns generated from the model takes into account two stylized facts about financial markets： fat tails and volatility clustering. Our results indicate that the risk tolerance of fundamentalists and the relative funding rate of positive‐feedback traders versus fundamentalists are key factors determining the path of price fluctuations. Fundamentalists are more able to dominate the market when they are more willing than positive‐feedback traders to take risks. In addition, more crises occur as positive‐feedback traders face higher funding costs compared to fundamentalists. Our model suggests that fundamentalists cause heavier tails, and positive‐feedback traders cause the formation of speculative bubbles. Our model also indicates that traders’ attitudes toward risk vary across time and market. The generally low level of risk bearing by fundamentalists could explain the frequent occurrence of bubbles.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1381370
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1381370
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1381370
Template-Type: ReDIF-Article 1.0
Author-Name: M. Kateregga
Author-X-Name-First: M.
Author-X-Name-Last: Kateregga
Author-Name: S. Mataramvura
Author-X-Name-First: S.
Author-X-Name-Last: Mataramvura
Author-Name: D. Taylor
Author-X-Name-First: D.
Author-X-Name-Last: Taylor
Author-Name: Xibin Zhang
Author-X-Name-First: Xibin
Author-X-Name-Last: Zhang
Title: Bismut–Elworthy–Li formula for subordinated Brownian motion applied to hedging financial derivatives
Abstract:
The objective of the paper is to extend the results in Fournié, Lasry, Lions, Lebuchoux, and Touzi (1999), Cass and Fritz (2007) for continuous processes to jump processes based on the Bismut–Elworthy–Li (BEL) formula in Elworthy and Li (1994). We construct a jump process using a subordinated Brownian motion where the subordinator is an inverse α$ \alpha $-stable process (Lt)t≥0$ (L_t)_{t \ge 0} $ with (0,1]$ (0,\, 1] $. The results are derived using Malliavin integration by parts formula. We derive representation formulas for computing financial Greeks and show that in the event when Lt≡t$ L_t \equiv t $, we retrieve the results in Fournié et al. (1999). The purpose is to by-pass the derivative of an (irregular) pay-off function in a jump-type market by introducing a weight term in form of an integral with respect to subordinated Brownian motion. Using MonteCarlo techniques, we estimate financial Greeks for a digital option and show that the BEL formula still performs better for a discontinuous pay-off in a jump asset model setting and that the finite-difference methods are better for continuous pay-offs in a similar setting. In summary, the motivation and contribution of this paper demonstrates that the Malliavin integration by parts representation formula holds for subordinated Brownian motion and, this representation is useful in developing simple and tractable hedging strategies (the Greeks) in jump-type derivatives market as opposed to more complex jump models.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1384125
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1384125
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1384125
Template-Type: ReDIF-Article 1.0
Author-Name: Youzong Xu
Author-X-Name-First: Youzong
Author-X-Name-Last: Xu
Author-Name: Bo Li
Author-X-Name-First: Bo
Author-X-Name-Last: Li
Title: Behavioral heterogeneity and financial markets: Locked/crossed quotes under informationally efficient pricing
Abstract:
Market professionals and regulators have been concerned by locked/crossed quotes (negative quoted spreads) for years. To ease the concerns that locked/crossed quotes may cause confusion or instability in financial markets and to promote market efficiency, the Securities and Exchange Commission implemented rules that ban locked/crossed quotes. We consider a competitive financial market that does not contain the factors considered by market professionals and regulators consider as the origins of locked/crossed quotes. We find that if there are at least three types of traders in this financial market, locked/crossed quotes can arise naturally under efficient pricing. These locked/crossed quotes reflect information transmitted in financial markets, facilitating price discovery. Hence, regulations banning locked/crossed quotes are inappropriate, as these regulations may harm the efficiency of price discovery.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1384524
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1384524
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1384524
Template-Type: ReDIF-Article 1.0
Author-Name: Kwame Mireku
Author-X-Name-First: Kwame
Author-X-Name-Last: Mireku
Author-Name: Ellen Animah Agyei
Author-X-Name-First: Ellen
Author-X-Name-Last: Animah Agyei
Author-Name: Daniel Domeher
Author-X-Name-First: Daniel
Author-X-Name-Last: Domeher
Title: Trade openness and economic growth volatility: An empirical investigation
Abstract:
This paper investigated the impact of trade openness on economic growth volatility of Ghana from 1970 to 2013, using cointegration and error correction techniques. Our findings show that both the long and short run economic growth volatility is positively influenced by changes in trade openness. Volatility in domestic credit to private sector, shocks after the economic liberalization and financial openness contributed negative to economic growth volatility in the short run. The major policy implication of our paper is that developing economies should take into consideration their own realities in their trade policies to limit economic growth volatility.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1385438
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1385438
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1385438
Template-Type: ReDIF-Article 1.0
Author-Name: Tuan Nguyen
Author-X-Name-First: Tuan
Author-X-Name-Last: Nguyen
Author-Name: An Nguyen
Author-X-Name-First: An
Author-X-Name-Last: Nguyen
Author-Name: Stuart Locke
Author-X-Name-First: Stuart
Author-X-Name-Last: Locke
Author-Name: Krishna Reddy
Author-X-Name-First: Krishna
Author-X-Name-Last: Reddy
Title: Does the human capital of board directors add value to firms? Evidence from an Asian market
Abstract:
This paper investigates the effect of the human capital of directors on the financial performance of Vietnamese-listed companies. The dynamic system generalised method of moments (system GMM) estimator is used to examine a panel data-set consisting of 315 firm-year observations over a four-year period from 2008 to 2011. In line with resource dependence theory, we report that the human capital of directors appears to have a positive influence upon a firm’s financial performance. To the best of our knowledge, this study is the first work on the topic of human capital of directors and firm performance for publicly listed companies in Vietnam. This study, by applying a dynamic longitudinal modelling approach, extends the nascent literature on board human capital as well as more generally to the corporate governance literature by providing robust empirical evidence showing that the general human capital of board directors may add value to firms. Our finding, therefore, supports the efforts made by Vietnamese policy-makers in setting up qualification standards as well as skills diversity for the boards.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1385439
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1385439
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1385439
Template-Type: ReDIF-Article 1.0
Author-Name: Bård Misund
Author-X-Name-First: Bård
Author-X-Name-Last: Misund
Author-Name: Petter Osmundsen
Author-X-Name-First: Petter
Author-X-Name-Last: Osmundsen
Title: Valuation of proved vs. probable oil and gas reserves
Abstract:
Oil and gas reserves are the most important assets of oil and gas companies. A source of confusion for investors in oil companies, is that reserves quantities and values are uncertain estimates. Reserves are typically classified according to probabilities of recovery from underground reservoirs. All US-listed companies are required to disclose proved reserves but not probable reserves, thus leaving out potentially important information for investors and financial analysts. This study addresses the impact on market valuation of various classifications of reserves amounts. Using a data sample of 94 companies that do disclose information on probable reserves, we compare the relation between three classifications of reserves and oil company returns. While we find that information on probable reserves do not have an impact on stock returns measured over the entire time period, this is not the case since 2009, coinciding with the onset of the shale gas revolution.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1385443
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1385443
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1385443
Template-Type: ReDIF-Article 1.0
Author-Name: Abdoulganiour Almame Tinta
Author-X-Name-First: Abdoulganiour Almame
Author-X-Name-Last: Tinta
Title: The determinants of participation in global value chains: The case of ECOWAS
Abstract:
Regional integration is the strategy adopted at the continental level to strengthen Africa’s development. However, the different regional blocs already established on the continent face many challenges. Based on the economic integration of the ECOWAS (Economic Community of West African States) region, this research analyzes the role of participation to Global Value Chain (GVC) in international trade as a crucial factor. Using a gravity model with Panel using fixed effects, the findings show that intra-regional trade is not significant in the explanation of the trade openness degree of countries but an increase in backward integration to GVC raises trade openness. The results also indicate how the competitiveness of trade structure and the structural factors related to countries affect the performance of GVCs. Intra-regional trade must further be inserted in the production of final goods which involves the maximum number of countries for the intermediate steps.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1389252
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1389252
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1389252
Template-Type: ReDIF-Article 1.0
Author-Name: Geeta Duppati
Author-X-Name-First: Geeta
Author-X-Name-Last: Duppati
Author-Name: Yang (Greg) Hou
Author-X-Name-First: Yang (Greg)
Author-X-Name-Last: Hou
Author-Name: Frank Scrimgeour
Author-X-Name-First: Frank
Author-X-Name-Last: Scrimgeour
Title: The dynamics of price discovery for cross-listed stocks evidence from US and Chinese markets
Abstract:
Purpose: This study examines how, and to what extent the trading of the cross-listed China-backed ADRs on the New York Stock Exchange (NYSE) contributes to the information flow and price discovery for the corresponding cross-listed stocks on the Shanghai Stock exchange (SSE). Design/methodology/approach: The study utilizes the information share, Granger causality test, Vector error correction model, Permanent–Temporary Gonzalo–Granger (PT/GG) method and Bivariate DCC-EGARCH model to examine the price discovery dynamics across the cross-listed stocks. Findings: The Granger causality tests show that there is two-way transmission on feedback between the Chinese and US markets. The effects from NYSE to SSE are larger than the other way round. The Bivariate DCC-EGARCH model test results indicate the volatility spill over from NYSE is larger from the SSE. Practical implications: Results suggest that in contrast to previous studies that showed very little contribution to price discovery by Chinese ADRs on the NYSE, the present study indicates that the contribution to price-discovery of Chinese ADRs on NYSE has increased relative to the past, suggesting the importance of changing time frames and economic situations. Originality/value: The study differentiates between long-term and short-term price discovery effects and finds that home country bias persists in the long term and in the short term the information from the Cross-listed China-backed ADRs on the New York Stock Exchange (NYSE) affects price discovery for SSE stocks.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1389675
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1389675
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1389675
Template-Type: ReDIF-Article 1.0
Author-Name: Patrik Hultberg
Author-X-Name-First: Patrik
Author-X-Name-Last: Hultberg
Author-Name: David Santandreu Calonge
Author-X-Name-First: David Santandreu
Author-X-Name-Last: Calonge
Author-Name: Seong-Hee Kim
Author-X-Name-First: Seong-Hee
Author-X-Name-Last: Kim
Title: Education policy in South Korea: A contemporary model of human capital accumulation?
Abstract:
We argue that South Korean families with children are today overinvesting in the level of education due to their high levels of expenditures on private after-school tutoring programs. This situation has evolved due to a combination of factors: a changing labor market, increasing housing and debt payments, as well as an educational “arms race” among Korean families with children. These changes are exacerbating both economic and social issues in Korean society, but are increasingly difficult to address due to issues of complementarity and coordination failures related to educational expenditures. Korea might be inexorably falling into a surprising “education trap.”
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1389804
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1389804
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1389804
Template-Type: ReDIF-Article 1.0
Author-Name: Sajid Mohy Ul Din
Author-X-Name-First: Sajid Mohy
Author-X-Name-Last: Ul Din
Author-Name: Arpah Abu-Bakar
Author-X-Name-First: Arpah
Author-X-Name-Last: Abu-Bakar
Author-Name: Angappan Regupathi
Author-X-Name-First: Angappan
Author-X-Name-Last: Regupathi
Title: Does insurance promote economic growth: A comparative study of developed and emerging/developing economies
Abstract:
This paper examines the relationship between insurance and economic growth in 20 countries for the period 2006–2015. Insurance activity is measured through three distinctive proxies such as net written premiums, penetration and density. The Hausman statistics confirmed that fixed effect model is appropriate for this data-set. This study found a positive and a significant relationship between life insurance, measured through net written premiums and density, and economic growth for developed countries while the same is true for developing countries when insurance is measured through penetration proxy. The results also reveal that non-life insurance has statistically significant, for all three proxies, relationship with economic growth for developing countries whereas, in case of developed countries, the results are only significant when insurance density is used as a proxy for insurance. Moreover, the role of non-life insurance is more significant for developing countries as compared to developed countries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1390029
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1390029
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1390029
Template-Type: ReDIF-Article 1.0
Author-Name: Ume Habibah
Author-X-Name-First: Ume
Author-X-Name-Last: Habibah
Author-Name: Suresh Rajput
Author-X-Name-First: Suresh
Author-X-Name-Last: Rajput
Author-Name: Ranjeeta Sadhwani
Author-X-Name-First: Ranjeeta
Author-X-Name-Last: Sadhwani
Title: Stock market return predictability: Google pessimistic sentiments versus fear gauge
Abstract:
This study aims at comparing Google Search Volume Indices (GSVIs—including market crash and bear market) and VIX (Investor Fear Gauge Index) in terms of explaining the S&P 500 returns. The VIX is found a more robust predictor of stock market returns than Google indices, and it does granger cause the GSVIs more robustly. In addition, in vector auto-regression model, VIX has more prominent effect of its past values on both Google indices. Finally, using the autoregressive distributed lag (ARDL) and nonlinear ARDL models, contrary to prior literature, we find significant symmetric negative relationship between changes in VIX and S&P 500 returns.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1390897
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1390897
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1390897
Template-Type: ReDIF-Article 1.0
Author-Name: Mauro Ribeiro de Oliveira
Author-X-Name-First: Mauro
Author-X-Name-Last: Ribeiro de Oliveira
Author-Name: Fernando Moreira
Author-X-Name-First: Fernando
Author-X-Name-Last: Moreira
Author-Name: Francisco Louzada
Author-X-Name-First: Francisco
Author-X-Name-Last: Louzada
Title: The zero-inflated promotion cure rate model applied to financial data on time-to-default
Abstract:
In this paper, we extend the promotion cure rate model studied in Yakovlev and Tsodikov (1996) and Chen et al. (1999) by incorporating an excess of zeros in the modeling. Despite relating covariates to the cure fraction, the current approach does not enable us to relate covariates to the fraction of zeros. The presence of excess of zeros in credit risk survival data stems from a group of loans that became defaulted shortly after the granting process. Through our proposal, all survival data available of customers is modeled with a multinomial logistic link for the three classes of banking customers: (i) individual with an event at the starting time (zero time), (ii) non-susceptible for the event, or (iii) susceptible for the event. The model parameter estimation is reached by the maximum likelihood estimation procedure and Monte Carlo simulations are carried out to assess its finite sample performance.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1395950
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1395950
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1395950
Template-Type: ReDIF-Article 1.0
Author-Name: Dengjun Zhang
Author-X-Name-First: Dengjun
Author-X-Name-Last: Zhang
Author-Name: Jinghua Xie
Author-X-Name-First: Jinghua
Author-X-Name-Last: Xie
Title: Investment and revenue cap under incentive regulation: The case study of the Norwegian electricity distributors
Abstract:
Electricity distribution operators are regulated as monopolies around the world. Incentive regulation is further applied to relate their allowed revenues (revenue cap) to cost efficiency and investment. Incentive regulation varies cross countries and has evolved over time for individual countries. Norway is one of the first countries reforming the network distributors by incentive regulation. Using the long time series data, we evaluated the impact of the Norwegian regulation regimes on firms’ investment. The panel data model includes common time-varying factors to control firm heterogeneity. The cross-section dependence test is further employed to test the relationship between investment and revenue cap in different regulation regimes. The empirical findings confirm a dynamic pattern of investment behavior between regimes, in terms of both the unobserved common factors and the cross-section dependence between investment and revenue cap. This study provides an interesting solution for incentive evaluation and contributes to the management accounting literature in terms of econometric techniques.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1400900
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1400900
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1400900
Template-Type: ReDIF-Article 1.0
Author-Name: Thai-Ha Le
Author-X-Name-First: Thai-Ha
Author-X-Name-Last: Le
Title: Does economic distance affect the flows of trade and foreign direct investment? Evidence from Vietnam
Abstract:
This study examines the effect of relative economic distance (RED) between countries on bilateral foreign trade and foreign direct investment (FDI), using Vietnam as a case study. The difference in per-capita GDP is used as proxy for the RED between Vietnam and her partner countries. Modified gravity models are estimated using the procedure of panel-corrected standard errors (PCSE). The results indicate that there is a feedback and significantly positive relationship between Vietnam’s trade and FDI inflows. The economic distance between Vietnam and her partner countries has a significantly positive influence on the country’s bilateral trade and FDI inflows.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1403108
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1403108
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1403108
Template-Type: ReDIF-Article 1.0
Author-Name: Crentsil Kofi Agyekum
Author-X-Name-First: Crentsil Kofi
Author-X-Name-Last: Agyekum
Author-Name: Haifeng Huang
Author-X-Name-First: Haifeng
Author-X-Name-Last: Huang
Author-Name: Jianshu Chen
Author-X-Name-First: Jianshu
Author-X-Name-Last: Chen
Title: The impact of the Chinese cornstarch futures on spot market and corn futures market
Abstract:
This article investigates price transmission mechanism and volatility impact between Chinese cornstarch futures market and relevant markets through Johansen cointegration test, VEC model and GARCH model. The empirical results indicated that the Chinese cornstarch futures price could guide cornstarch spot price uni-directionally and there are long-term cointegration relationships between them. There is a co-integration and bi-directional lead relationship between cornstarch futures price and corn futures price. The launch of cornstarch futures market can slightly reduce volatility of domestic corn futures market. However, the launch of cornstarch futures market has no significant impact on the spot market.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1405580
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1405580
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1405580
Template-Type: ReDIF-Article 1.0
Author-Name: Mohammed Issah
Author-X-Name-First: Mohammed
Author-X-Name-Last: Issah
Author-Name: Samuel Antwi
Author-X-Name-First: Samuel
Author-X-Name-Last: Antwi
Title: Role of macroeconomic variables on firms’ performance: Evidence from the UK
Abstract:
The purpose of this study is to investigate the role of macroeconomic conditions and predict the base performance of a firm as represented by Return on Asset (ROA) and macroeconomic variables. The predictor variables used in the construction of the models were selected using PCA. For the full sample and the industry-specific sample of data, the regression model evaluated the significance of macroeconomic factors based on t-statistics and the R2 test. The results of the study are promising. The full sample and five out of six industry variable models incorporating lead–lag relationships have an R2 between 0.79 and 0.95. For the full sample, the results of this study indicate that macroeconomic conditions should be incorporated when predicting firms’ performance. For the industry-specific models, the empirical results present a mixed picture of the effect of macroeconomic factors and the lagged ROA on firm performance and the same conclusion for full sample cannot be reached easily when looking at the industry specific results. The results of this paper provide a compelling argument that firm performance is a function of the prior year ROA, and macro-economic variables and that macroeconomic variables and prior year ROA can have impact on future firm performance measure by ROA.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1405581
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1405581
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1405581
Template-Type: ReDIF-Article 1.0
Author-Name: Bård Misund
Author-X-Name-First: Bård
Author-X-Name-Last: Misund
Title: Accounting method choice and market valuation in the extractive industries
Abstract:
For more than 40 years, oil and gas companies have been able to choose between two competing methods for accounting for exploration activities. The implication is that two otherwise identical companies can report substantially different earnings depending on chosen method. This situation, where oil and gas company managers have discretion to choose between different accounting methods, has transpired because of intense lobbyism towards accounting standard setters by oil and gas companies in favour of one of the methods. The existence of two accounting methods is concerning since investors will struggle to uncover the true underlying performance of oil and gas companies. We conjecture that investors will resort to operating cash flows to evaluate oil company financial performance since cash flows are less affected by managers’ discretion than earnings are. In this study, we investigate the relevance to investors of earnings versus cash flow for oil and gas companies. Our results show that cash flow measures, but not earnings, are significantly associated with oil company returns. These findings suggest that the financial markets lack confidence in oil company earnings, irrespective of accounting method used, and investors therefore prefer cash flows as measures of underlying financial performance.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1408944
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1408944
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1408944
Template-Type: ReDIF-Article 1.0
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Replication studies
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1410940
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1410940
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1410940
Template-Type: ReDIF-Article 1.0
Author-Name: Maximilian-Benedikt Herwarth Kohn
Author-X-Name-First: Maximilian-Benedikt
Author-X-Name-Last: Herwarth Kohn
Author-Name: Pedro L. Valls Pereira
Author-X-Name-First: Pedro L.
Author-X-Name-Last: Valls Pereira
Title: Speculative bubbles and contagion: Analysis of volatility’s clusters during the DotCom bubble based on the dynamic conditional correlation model
Abstract:
Reviewing the definition and measurement of speculative bubbles in context of contagion, this paper analyses the DotCom bubble in American and European equity markets using the dynamic conditional correlation (DCC) model proposed as on one hand as an econometrics explanation and on the other hand the behavioral finance as an psychological explanation. Contagion is defined in this context as the statistical break in the computed DCCs as measured by the shifts in their means and medians. Even it is astonishing, that the contagion is lower during price bubbles, the main finding indicates the presence of contagion in the different indices among those two continents and prove the presence of structural changes during financial crisis.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1411453
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1411453
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1411453
Template-Type: ReDIF-Article 1.0
Author-Name: Gang He
Author-X-Name-First: Gang
Author-X-Name-Last: He
Author-Name: Shuzhen Zhu
Author-X-Name-First: Shuzhen
Author-X-Name-Last: Zhu
Author-Name: Haifeng Gu
Author-X-Name-First: Haifeng
Author-X-Name-Last: Gu
Title: On the construction of Chinese stock market investor sentiment index
Abstract:
Measuring investor sentiment has become one of the most widely examined areas in behavioral finance. For the purpose of measuring investor sentiment more accurately, we classify the investor sentiment proxy into six market dimensions for the first time, and construct the investor sentiment monitoring index system. By using PCA method and excluding macroeconomic factors, we construct comprehensive investor sentiment index in Chinese stock market. Our results show this index as a good prediction ability to stock market.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1412230
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1412230
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1412230
Template-Type: ReDIF-Article 1.0
Author-Name: Gideon Danso-Abbeam
Author-X-Name-First: Gideon
Author-X-Name-Last: Danso-Abbeam
Author-Name: Joshua Antwi Bosiako
Author-X-Name-First: Joshua Antwi
Author-X-Name-Last: Bosiako
Author-Name: Dennis Sedem Ehiakpor
Author-X-Name-First: Dennis Sedem
Author-X-Name-Last: Ehiakpor
Author-Name: Franklin Nantui Mabe
Author-X-Name-First: Franklin Nantui
Author-X-Name-Last: Mabe
Title: Adoption of improved maize variety among farm households in the northern region of Ghana
Abstract:
This study aims to identify the determinants of adoption of improved maize variety (IMV) among farmers in the northern region of Ghana and subsequently assess the factors influencing the intensity of IMV adoption. The study used two econometric techniques to address its objectives. Firstly, a multinomial logit was employed to identify factors affecting the adoption of IMV. Secondly, Tobit regression was used to analyze the determinants of the intensity of IMV adoption. A fractional regression model through the procedure proposed by Papke and Wooldridge was also used to test the robustness of the results obtained from the Tobit model. Results from the study revealed that variables such as the age of the household head, household size, level of experience, farm workshop attendance, the number of years in formal education, access to agricultural credit, membership of a farmer-based organization, availability of labor and extension contacts influence the adoption of IMV. Moreover, variables such as years in formal education, household size, distance to farm plots, attendance of demonstration fields, membership of a farmer-based organization, farm size, and previous income are significant determinants of the intensity of IMV adoption. The study has implications for achieving food security and poverty reduction through agricultural productivity growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1416896
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1416896
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1416896
Template-Type: ReDIF-Article 1.0
Author-Name: Dong-Jin Pyo
Author-X-Name-First: Dong-Jin
Author-X-Name-Last: Pyo
Title: A multi-factor model of heterogeneous traders in a dynamic stock market
Abstract:
This study develops an agent-based computational stock market model in which each trader’s buying and selling decisions are endogenously determined by multiple factors: namely, firm profitability, past stock price movement, and imitation of other traders. Each trader can switch from being a buyer to a seller, and vice versa, depending on market conditions. Simulation findings imply liquidity in the stock market decreases as more traders try to behave in a similar way to other traders. Stock return volatility is increasing in memory length when the information set of a trader includes only the fundamental of stock. On the other hand, when all traders consider only the past stock price movement, stock prices undergo boom and bust cycles with the occasional no-trade states. Furthermore, when traders consider three factors equally, the stock return is characterized by more pronounced fat-tail property and lower volatility.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1416902
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1416902
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1416902
Template-Type: ReDIF-Article 1.0
Author-Name: Jacinta Chan Phooi M’ng
Author-X-Name-First: Jacinta Chan Phooi
Author-X-Name-Last: M’ng
Author-Name: Mahfuzur Rahman
Author-X-Name-First: Mahfuzur
Author-X-Name-Last: Rahman
Author-Name: Selvam Sannacy
Author-X-Name-First: Selvam
Author-X-Name-Last: Sannacy
Title: The determinants of capital structure: Evidence from public listed companies in Malaysia, Singapore and Thailand
Abstract:
We investigate the determinants of capital structure of public listed companies on Bursa Malaysia, Singapore Stock Exchange and Thailand Stock Exchange from 2004 to 2013. We also investigate how firm-specific factors such as profitability, firm size, tangibility of assets and depreciation to total assets along with the macroeconomic factor such as inflation influence the capital structure decisions of public listed companies. Our findings support capital structure theories such as trade-off and pecking order theories and are consistent with prior empirical studies. We find all the factors examined in this study provide strong explanatory power for the capital structure decisions of the sampled public listed companies across all three countries. We find profitability has a significant negative influence on capital structure for Malaysia and Singapore but insignificant for Thailand. While, firm size has a significant positive influence on capital structure for all countries. Our findings also suggest that tangibility of assets has a significant positive influence on capital structure for Malaysia and Singapore while insignificant for Thailand. The depreciation to total assets indicates a negative influence on capital structure across all the three countries. Our study should be of interest to top managers who wish to have optimal capital structure to improve the firm performance.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1418609
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1418609
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1418609
Template-Type: ReDIF-Article 1.0
Author-Name: Tony Nchokoe Matlasedi
Author-X-Name-First: Tony Nchokoe
Author-X-Name-Last: Matlasedi
Title: The influence of the real effective exchange rate and relative prices on South Africa’s import demand function: An ARDL approach
Abstract:
This paper analyses the influence of the real effective exchange rate (REER) and relative prices on South Africa’s import demand function both in the long run and the short run. The ARDL bounds testing approach is employed to test the long-run relationship hypothesis. The estimation of both the long-run and short-run import demand models is based on the ARDL error correction methodology. All the tests are applied to South Africa’s secondary quarterly data covering the period 1980Q1–2014Q4. Real GDP and Foreign reserves were also added to the models as control variables. The Bounds test proved cointegration and the results show that in the long run, South Africa’s import demand is negatively related to the REER, while being positively related to Real GDP (used as a proxy for national income) and relative prices. The coefficient of the relative price variable is greater than 1 in absolute terms, thus also confirming the Marshal Lerner condition. In the short run, import demand is found to be negatively related to the REER, while being positively related to Real GDP, relative prices and the stock of foreign reserves. The result gives hope that a policy aimed at depreciating the currency may help bring down the surge in import demand.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1419778
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1419778
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1419778
Template-Type: ReDIF-Article 1.0
Author-Name: Tariq Aziz
Author-X-Name-First: Tariq
Author-X-Name-Last: Aziz
Author-Name: Valeed Ahmad Ansari
Author-X-Name-First: Valeed Ahmad
Author-X-Name-Last: Ansari
Title: Idiosyncratic volatility and stock returns: Indian evidence
Abstract:
This paper examines the idiosyncratic volatility (IV) puzzle in the Indian stock market for the period 1999–2014. Univariate and bivariate sorting, as well as cross-section regressions, suggest a positive relation between idiosyncratic volatility and future stock returns. However, this relation is sensitive to the choices of portfolio weighting schemes, types of stocks (small, medium, and large), model specifications, and sample periods. Additionally, this study also contests the assumption that the relation between stock returns and predictor variables (including IV) remains same across different points of the conditional distribution and argues that an insignificant relation at the mean level may be significant at the extreme quantiles of the conditional distribution.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1420998
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1420998
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1420998
Template-Type: ReDIF-Article 1.0
Author-Name: M. Kateregga
Author-X-Name-First: M.
Author-X-Name-Last: Kateregga
Author-Name: S. Mataramvura
Author-X-Name-First: S.
Author-X-Name-Last: Mataramvura
Author-Name: D. Taylor
Author-X-Name-First: D.
Author-X-Name-Last: Taylor
Title: Erratum
Journal: Cogent Economics & Finance
Issue: 1
Volume: 5
Year: 2017
Month: 1
X-DOI: 10.1080/23322039.2017.1427023
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1427023
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Handle: RePEc:taf:oaefxx:v:5:y:2017:i:1:p:1427023
Template-Type: ReDIF-Article 1.0
Author-Name: John Fry
Author-X-Name-First: John
Author-X-Name-Last: Fry
Author-Name: McMillan David
Author-X-Name-First: McMillan
Author-X-Name-Last: David
Title: Stochastic modelling for financial bubbles and policy
Abstract:
In this paper, we draw upon the close relationship between statistical physics and mathematical finance to develop a suite of models for financial bubbles and crashes. By modifying previous approaches, we are able to derive novel analytical formulae for evaluation problems and for the expected timing of future change points. In particular, we help to explain why previous approaches have systematically overstated the timing of changes in market regime. The list of potential empirical applications is deep and wide ranging, and includes contemporary housing bubbles, the Eurozone crisis and the Crash of 2008.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2014.1002152
File-URL: http://hdl.handle.net/10.1080/23322039.2014.1002152
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1002152
Template-Type: ReDIF-Article 1.0
Author-Name: Nobuyoshi Yamori
Author-X-Name-First: Nobuyoshi
Author-X-Name-Last: Yamori
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Japanese SMEs and the credit guarantee system after the global financial crisis
Abstract:
This paper provides a brief explanation of the Japanese public credit guarantee system and analyzes what role it played during the global financial crisis. The author conducted a questionnaire survey of small and medium-sized enterprises (SMEs) in Aichi Prefecture, the prefecture most seriously hit by the crisis, in collaboration with the Aichi-ken Credit Guarantee Corporation. Using the survey, which provides valuable information about the usage of the credit guarantee program, this paper finds that the credit guarantee system was effective in protecting the economy from collapsing. The system was so generous that now almost all SMEs want it to remain unchanged. However, as the generous system brings heavy financial burdens on the Japanese government and, more seriously, discourages firms and banks from improving their efficiencies, the author insists that reforms, such as limiting the target and the guarantee coverage, are inevitable.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2014.1002600
File-URL: http://hdl.handle.net/10.1080/23322039.2014.1002600
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1002600
Template-Type: ReDIF-Article 1.0
Author-Name: Philippe Adair
Author-X-Name-First: Philippe
Author-X-Name-Last: Adair
Author-Name: Mohamed Adaskou
Author-X-Name-First: Mohamed
Author-X-Name-Last: Adaskou
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Trade-off-theory vs. pecking order theory and the determinants of corporate leverage: Evidence from a panel data analysis upon French SMEs (2002–2010)
Abstract:
We test the assumptions of trade-off theory (TOT) and pecking order theory (POT) regarding corporate leverage. The dependent variable being the debt ratio, we apply a linear model upon a balanced panel data-set of 2,370 French SMEs over the period 2002–2010. In accordance to TOT, trade credit acts as a signal to creditors who have no private information about the firm and access to credit relies on guarantees. The relationship between corporate leverage and the profitability of SMEs as well as growth opportunities support POT. However, the relationship between corporate leverage and the age of SMEs, as well as their size, remains inconclusive with respect to both theories.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1006477
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1006477
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1006477
Template-Type: ReDIF-Article 1.0
Author-Name: Francisco Javier Sáez-Fernández
Author-X-Name-First: Francisco Javier
Author-X-Name-Last: Sáez-Fernández
Author-Name: Andrés J. Picazo-Tadeo
Author-X-Name-First: Andrés J.
Author-X-Name-Last: Picazo-Tadeo
Author-Name: Mercedes Beltrán-Esteve
Author-X-Name-First: Mercedes
Author-X-Name-Last: Beltrán-Esteve
Author-Name: Caroline Elliott
Author-X-Name-First: Caroline
Author-X-Name-Last: Elliott
Title: Assessing the performance of the Latin American and Caribbean banking industry: Are domestic and foreign banks so different?
Abstract:
This paper studies the relative performance of domestic and foreign banks in the Latin American and Caribbean banking industry. Data Envelopment Analysis is used to compute technical efficiency scores for the years 2001 and 2013. Our main contribution is twofold. On the one hand, we assess performance at the level of the management of specific production factors. On the other hand, we distinguish program efficiency from managerial efficiency, which allows us to evaluate whether the differences in technical efficiency between national and foreign banks are due to the use of different technologies (program efficiency) or, conversely, differences in the managerial capacities of managers in both categories of banks (managerial efficiency). The results show that foreign banks are more efficient than domestic ones, and provide evidence that the greater efficiency of foreign banks is mostly due to the superior technology they use.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1006976
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1006976
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1006976
Template-Type: ReDIF-Article 1.0
Author-Name: Chu V. Nguyen
Author-X-Name-First: Chu V.
Author-X-Name-Last: Nguyen
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: The Vietnamese lending rate, policy-related rate, and monetary policy post-1997 Asian financial crisis
Abstract:
Asymmetries in the Vietnamese lending central bank’s policy-related rate spread were documented. Empirical results revealed that the spread adjusts to the threshold faster when the central bank’s policy-related rates decrease relative to the lending rates than when the central bank’s policy-related rates move in the opposite direction. Additionally, the empirical findings indicate that Vietnamese commercial banks exhibit competitive rate setting behavior which may be attributable to graft maximization by bank’s management. The results also show bidirectional Granger causality between the Vietnamese lending rate and the central bank’s policy-related rate, indicating that the lending rate and the central bank’s policy-related rate affect each other’s movements. These results suggest that monetary authority can use its countercyclical monetary policy instruments to achieve its macroeconomics objectives. However, the estimation results of the GARCH (2, 3)-in-Mean model suggest that they should intervene more frequently and by small policy measures to minimize the conditional variance of the spread to minimize the magnitude of the cycle of the lending rate.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1007808
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1007808
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1007808
Template-Type: ReDIF-Article 1.0
Author-Name: Laurent Bouvier
Author-X-Name-First: Laurent
Author-X-Name-Last: Bouvier
Author-Name: Tahir M. Nisar
Author-X-Name-First: Tahir M.
Author-X-Name-Last: Nisar
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Design and impacts of securitized leveraged buyouts
Abstract:
Private equity investors have traditionally used innovative financial methods in structuring their leveraged buyouts (LBO) deals. In recent years, they have frequently employed securitization to raise funds on the back of their acquisitions’ operating assets. A distinctive feature of these transactions is that they aim to enhance the securitizing LBO’s debt pay capacity through a set of structural enhancements including operating debt covenants. Operating covenants—supported by legal security arrangements—mitigate an LBO’s financial and operating risks and improve its cash generation potential. We test this hypothesis by examining changes in the operating income of Hertz LBO. The results show that, within the operating framework adopted by Hertz LBO, securitization improved the transaction’s debt service capacity.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1009307
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1009307
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1009307
Template-Type: ReDIF-Article 1.0
Author-Name: Daniela Federici
Author-X-Name-First: Daniela
Author-X-Name-Last: Federici
Author-Name: Valentino Parisi
Author-X-Name-First: Valentino
Author-X-Name-Last: Parisi
Author-Name: Caroline Elliott
Author-X-Name-First: Caroline
Author-X-Name-Last: Elliott
Title: Do corporate taxes reduce investments? Evidence from Italian firm-level panel data
Abstract:
This paper uses an Italian firm-level panel data-set over the period 1994–2006 to investigate the nexus between corporate taxation and investment. Studying the effects of corporate taxation on investment at the micro level has two advantages. Firstly, investment is free of aggregation biases and secondly, the firm-level dimension allows asking whether the effects of corporate taxation differ across firms with different characteristics. In the empirical analysis, we employ a Generalized Method of Moments estimator, which permits us to handle not only the dynamic structure of the model and of the predetermined or endogenous explanatory variables, but also firm-specific factors, heteroskedasticity, and autocorrelation of individual observations. We find that corporate taxes distort investment decisions. The results are robust to the inclusion of many controls.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1012435
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1012435
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1012435
Template-Type: ReDIF-Article 1.0
Author-Name: Yoichi Tsuchiya
Author-X-Name-First: Yoichi
Author-X-Name-Last: Tsuchiya
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Linkages among commodity futures prices in the recent financial crisis: An application of cointegration tests with a structural break
Abstract:
In this study, we investigate the existence of long-term co-movements among the prices of commodity futures contracts. We use a cointegration test, which accounts for the presence of a structural break. We show that while there is a long-term relationship among agricultural and among non-agricultural commodity futures prices when a structural break is taken into account, there is no such relationship without allowing for a structural break. We also show that these break points, in fact, occur a few months before the recent global financial crisis. Although the previous literature broadly casts doubt on such price co-movements, our results confirm that market performance improved during the sample period.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1012436
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1012436
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1012436
Template-Type: ReDIF-Article 1.0
Author-Name: Jacques A. Schnabel
Author-X-Name-First: Jacques A.
Author-X-Name-Last: Schnabel
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: The underinvestment problem under conglomeration
Abstract:
This theoretical paper explores whether the underinvestment problem is aggravated or ameliorated by the formation of a pure conglomerate. It establishes that the answer depends critically on the volatility of corporate assets. If volatility is low, conglomeration ameliorates the underinvestment problem, whereas if volatility is high, conglomeration aggravates the underinvestment problem. These analytical results are then invoked as a potential explanation for the ambiguous conclusions of empirical studies that delve into the existence of a conglomerate discount.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1012452
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1012452
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1012452
Template-Type: ReDIF-Article 1.0
Author-Name: Naresh Kumar Sharma
Author-X-Name-First: Naresh Kumar
Author-X-Name-Last: Sharma
Author-Name: Motilal Bicchal
Author-X-Name-First: Motilal
Author-X-Name-Last: Bicchal
Author-Name: Caroline Elliott
Author-X-Name-First: Caroline
Author-X-Name-Last: Elliott
Title: Measuring core inflation in India: An asymmetric trimmed mean approach
Abstract:
The paper seeks to obtain an optimal asymmetric trimmed mean-based core inflation measure in the class of trimmed mean measures when the distribution of price changes is leptokurtic and skewed to the right for any given period. Several estimators based on asymmetric trimmed mean approach are constructed and estimates generated by use of these estimators are evaluated on the basis of certain established empirical criteria. The paper also provides the method of trimmed mean expression “in terms of percentile score.” This study uses 69 monthly price indices which are constituent components of Wholesale Price Index for the period, April 1994 to April 2009, with 1993–1994 as the base year. Results of the study indicate that an optimally trimmed estimator is found when we trim 29.5% from the left-hand tail and 20.5% from the right-hand tail of the distribution of price changes.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1014252
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1014252
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1014252
Template-Type: ReDIF-Article 1.0
Author-Name: Kazumine Kondo
Author-X-Name-First: Kazumine
Author-X-Name-Last: Kondo
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Cross-prefecture expansion of regional banks in Japan and its effects on lending-based income
Abstract:
This paper examines whether Japanese regional banks entering the banking market in other prefectures, including neighboring prefectures, can increase their lending-based income. To stimulate local economies and support local small- and medium-sized enterprises, the current Japanese Government’s policies for regional banks require these banks to engage in region-based relationship banking practices. In this study, three lending-based income measures were used as dependent variables, and estimation was made using panel data from Japanese regional banks. As a result, it was determined that regional banks that enter markets in other prefectures experience positive effects in all three lending-based income measures. Moreover, it was determined that regional banks whose headquarters are located in non-urban areas derive greater benefit from their loan businesses upon entry into other prefectures, including neighboring prefectures, where economic activity is more vibrant than regional banks whose headquarters are located in urban areas.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1017947
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1017947
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1017947
Template-Type: ReDIF-Article 1.0
Author-Name: Agha Jahanzeb
Author-X-Name-First: Agha
Author-X-Name-Last: Jahanzeb
Author-Name: Norkhairul Hafiz Bajuri
Author-X-Name-First: Norkhairul Hafiz
Author-X-Name-Last: Bajuri
Author-Name: Aisha Ghori
Author-X-Name-First: Aisha
Author-X-Name-Last: Ghori
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Market power versus capital structure determinants: Do they impact leverage?
Abstract:
The purpose of this study is to investigate the association between market power and capital structure. This study will further provide a logical explanation towards the factors affecting capital structure. This study analysed 176 non-financial Pakistani companies listed on Karachi Stock Exchange over the period of 2003–2012. Capital structure has been tried to investigate with a different perspective by investigating its association with market power. It has been seen that there is a significant and positive relation between market power and capital structure. Size and liquidity remained significantly negative with capital structure, whereas profitability and dividend payout remained significantly positive with capital structure. To the best of authors’ knowledge, this is the first study that investigates the relationship between market power and capital structure in any developing economy by employing the data of non-financial Pakistani firms.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1017948
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1017948
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1017948
Template-Type: ReDIF-Article 1.0
Author-Name: Boriss Siliverstovs
Author-X-Name-First: Boriss
Author-X-Name-Last: Siliverstovs
Author-Name: Ulrich Thiessen
Author-X-Name-First: Ulrich
Author-X-Name-Last: Thiessen
Author-Name: Caroline Elliott
Author-X-Name-First: Caroline
Author-X-Name-Last: Elliott
Title: Incentive effects of fiscal federalism: Evidence for France
Abstract:
This paper provides an empirical analysis on the question whether equalization payments across regions and transfers from the central government stimulate regional growth or impede it. Using a panel of 22 French regions from 2002 to 2008, we find that regional economic growth is positively affected by the fiscal equalization system. We employ two indicators of this system: the transfer volume measure (approximated by either tax revenues in other regions or transfers to regions) and the marginal retention rate. Our main finding is that the transfer volume effect is positive for growth in both donor and recipient regions. Hence, we do not find any evidence that regional governments in France allocate transfers inefficiently. This finding contradicts previous empirical studies for federal countries that tend to find adverse incentive effects of fiscal equalization on regional governments and growth. A major explanation behind this result could be that the volume of the transfers in France may appear to be relatively moderate, i.e. small enough to avoid adverse effects.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1017949
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1017949
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1017949
Template-Type: ReDIF-Article 1.0
Author-Name: Peng Cheng
Author-X-Name-First: Peng
Author-X-Name-Last: Cheng
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Do initial reserves signal long-term IPO stock performance?
Abstract:
This research examines the long-run Initial Public Offerings (IPO) stock performance of a large Chinese sample, and in particular the relationship between initial reserves (capital reserves and revenue reserves immediately after the IPO) and long-run IPO stock performance. In general, Chinese IPOs do not underperform the market/industry benchmarks, but they significantly underperform their size-matched industry peers. More importantly, Chinese IPO firms tend to issue a large amount of bonus shares (also called as a ‘capitalization issue’, i.e. capitalization of the reserves) after the IPO. Consistent with bonus share signaling hypothesis, Chinese IPO firms exhibit increased operating/stock performance subsequent to bonus issues. Interestingly, the size of the initial reserves is positively associated with long-run IPO stock performance. This research adds another piece of empirical evidence to the literature whether IPOs underperform in the long run, by confirming that the choice of performance measures and benchmarks could affect the conclusion on the IPO long-run performance. Further, it discovers that size of initial reserves could signal superior IPO stock performance in the long run.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1018697
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1018697
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1018697
Template-Type: ReDIF-Article 1.0
Author-Name: Jayanthi Thennakoon
Author-X-Name-First: Jayanthi
Author-X-Name-Last: Thennakoon
Author-Name: Jagath Dissanayake
Author-X-Name-First: Jagath
Author-X-Name-Last: Dissanayake
Author-Name: Xibin Zhang
Author-X-Name-First: Xibin
Author-X-Name-Last: Zhang
Title: Trade openness, income, and role of institutions: A revisit using heterogeneous panel data models
Abstract:
The positive association between trade openness and income has been debated over years due to serious estimation flaws prevailing in the cross-country empirical trade literature. The present paper contributes to this debate by re-examining the long-run relationship between trade openness and income per capita focusing on role of institutions. It does so by estimating a heterogeneous panel data model with 97 countries over the period 1980–2012 taking unobserved common factors into consideration. Our method is a more appropriate approach to estimate this relationship given the potential cross-section dependence and parameter heterogeneity associated with cross-country growth regressions. The results have found evidence to suggest that trade openness is positively and significantly associated with income per capita even after controlling for parameter heterogeneity, cross-section dependence and possible endogeneity. Results further suggest that better quality institutions complement the effects on income underscoring the significance of institutions in benefiting more from trade openness. This study provides more reliable estimates to support the claim that trade openness has significant and robust role on economic growth and development.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1020031
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1020031
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1020031
Template-Type: ReDIF-Article 1.0
Author-Name: Naranchimeg Mijid
Author-X-Name-First: Naranchimeg
Author-X-Name-Last: Mijid
Author-Name: Caroline Elliott
Author-X-Name-First: Caroline
Author-X-Name-Last: Elliott
Title: Gender differences in Type 1 credit rationing of small businesses in the US
Abstract:
This paper explores Type 1 credit rationing by gender using data from the 1998 and 2003 Survey of Small Business Finances (SSBF). Type 1 credit rationing occurs when borrowers receive a smaller loan than they requested. We use two measures of Type 1 credit rationing to examine whether it is related to gender discrimination in lending. Our results show that women business owners are not likely to be Type 1 rationed. However, newer female-owned firms receive significantly lower loan amounts than requested compared to their male-owned counterparts. We also find that less experienced women receive significantly lower loan amounts compared to less experienced men.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1021553
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1021553
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1021553
Template-Type: ReDIF-Article 1.0
Author-Name: Johannes M. Lehner
Author-X-Name-First: Johannes M.
Author-X-Name-Last: Lehner
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Making sense in asset markets: Strategies for Implicit Organizations
Abstract:
While asset markets are traditionally left to economic inquiry, the paper shows that there is both a legal possibility and an incentive for organizing within such markets and for exercising market share-based strategic maneuvering. It proposes, based on sensemaking theory, Implicit Organizations in asset markets to exploit equivocality for momentum trading strategies. An Implicit Organization fulfills the criteria of an organization, while maintaining the image of a perfect market. Its members coordinate via market signals and fixed investment time windows to ensure positive returns to strategic maneuvering in asset markets. In support of hypotheses derived from sensemaking theory, results of empirical studies from two different investment contexts (Xetra and NYSE) provide evidence that equivocal analysts’ recommendations predict investment returns after a fixed time period.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1024022
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1024022
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1024022
Template-Type: ReDIF-Article 1.0
Author-Name: Emanuel R. Leao
Author-X-Name-First: Emanuel R.
Author-X-Name-Last: Leao
Author-Name: Sergio C. Lagoa
Author-X-Name-First: Sergio C.
Author-X-Name-Last: Lagoa
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: A contribution to the study of the German treasury bills market
Abstract:
We study the yields in the German treasury bills market. We take a detailed look at the yield banks require to buy treasury bills in the primary market, and we also examine the yield households and nonbank firms demand to buy these bills in the secondary market. We use data from real world tenders to show that the bids set by banks are in accordance with the predictions of our theoretical framework. In particular, we show that current monetary policy and the market’s expectations regarding the future path of monetary policy can be used to define an interval in which the bids from banks lie. Our theoretical predictions for the secondary market also match the data.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1024927
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1024927
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1024927
Template-Type: ReDIF-Article 1.0
Author-Name: John Chiwuzulum Odozi
Author-X-Name-First: John Chiwuzulum
Author-X-Name-Last: Odozi
Author-Name: Caroline Elliott
Author-X-Name-First: Caroline
Author-X-Name-Last: Elliott
Title: Cross border trade in grain between Nigeria and neighbouring Niger: Risk management assessment along Sokoto Illela-Konni border land
Abstract:
Grain is an important marketable commodity that is hampered by risk of interrelated dimensions, particularly in borderlands of West Africa. Assessing the extent of risk in borderlands can be valuable for policy-makers and likely to contribute to increased regional trade through effective management. Risk management along the grain supply chain was investigated. The methodology was qualitative using desk review of literature and field survey and interviews. While the survey revealed evidence of substantial volume of grain exchange, most of the traders indicated transportation, high taxes and low production of grain as the most important risk factors limiting trade. Production was found to be limited by low access to agricultural insurance, fertilizer, irrigation and credit. Although farmers had access to production information, market information was inadequate. While public grain reserve exists to manage price risk; the capacity was insignificant compared to the magnitude of grain trade in the region. The guaranteed minimum grain price was not collectively determined but by government and their contractors.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1029250
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1029250
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1029250
Template-Type: ReDIF-Article 1.0
Author-Name: Garoui Nassreddine
Author-X-Name-First: Garoui
Author-X-Name-Last: Nassreddine
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Financial information disclosure
Abstract:
The purpose of this paper is to examine determinants of financial information disclosure by Tunisian companies. The methodology is based on qualitative approach, using the cognitive mapping technique. To take into account the specificities of the Tunisian economic, we felt that it is essential to conduct a qualitative analysis in the light of which we can identify the factors motivating the disclosure of financial information. The qualitative analysis is based on the census via a set of cases carried out in several Tunisian companies to understand their perceptions regarding the determinants of financial disclosure.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1038208
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1038208
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1038208
Template-Type: ReDIF-Article 1.0
Author-Name: Alhaji Jibrilla Aliyu
Author-X-Name-First: Alhaji
Author-X-Name-Last: Jibrilla Aliyu
Author-Name: Shehu Mohammed Tijjani
Author-X-Name-First: Shehu
Author-X-Name-Last: Mohammed Tijjani
Author-Name: Caroline Elliott
Author-X-Name-First: Caroline
Author-X-Name-Last: Elliott
Title: Asymmetric cointegration between exchange rate and trade balance in Nigeria
Abstract:
This paper empirically examines the long-run pass through of the official exchange rates into trade balance in Nigeria by means of threshold cointegration and asymmetric error correction modeling. The study provides evidence for non-linear cointegration between our variables of interest. The estimated asymmetric error correction models provide new evidence for slower transmission of exchange rate depreciations into the country’s trade balance, which in turn appears to offer partial support for the Dutch disease hypothesis. This finding suggests that policy-makers cannot hope to use currency devaluation to improve the trade balance. It is recommended that policy-makers focus attention on diversification of the economy away from dependence on crude oil exports into productive manufacturing and non-oil exports, which will be vital in making the economy more competitive.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1045213
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1045213
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1045213
Template-Type: ReDIF-Article 1.0
Author-Name: Kenneth E. Scislaw
Author-X-Name-First: Kenneth E.
Author-X-Name-Last: Scislaw
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: The value premium within and across GICS industry sectors in a pre-financial collapse sample
Abstract:
A portfolio manager employing a top-down/bottom-up method who seeks to capture the value premium long promised in academic literature would want to first determine whether the premium exists across industries and not just observed in firm-specific book-to-market (BE/ME) relationships. Next, the investor would want to know if BE/ME characteristics are stable across these defined homogeneous groups or whether there is considerable variation. Results show that certain industries appear to have a natural or structural tendency to reflect either a high or low BE/ME characteristic. Results also shows that growth-oriented industry BE/ME characteristics appear to be more stable than value-oriented industries over time. Moreover, stocks from growth-oriented industries tend to cluster at high rates in the lowest BE/ME quintile, while stocks from value-oriented industries appear more evenly distributed across middle BE/ME quintiles over time. Value stocks found in growth sectors outperform value stocks in value sectors, contrary to prior published results. The January premium exists both within and across Global Industry Classification Standard industry sectors, but the value premium is not subsumed by the January effect in either analysis.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1045214
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1045214
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1045214
Template-Type: ReDIF-Article 1.0
Author-Name: Ivan K. Cohen
Author-X-Name-First: Ivan K.
Author-X-Name-Last: Cohen
Author-Name: Fabrizio Ferretti
Author-X-Name-First: Fabrizio
Author-X-Name-Last: Ferretti
Author-Name: Bryan McIntosh
Author-X-Name-First: Bryan
Author-X-Name-Last: McIntosh
Author-Name: Caroline Elliott
Author-X-Name-First: Caroline
Author-X-Name-Last: Elliott
Title: A simple framework for analysing the impact of economic growth on non-communicable diseases
Abstract:
Non-communicable diseases (NCDs) are currently the leading cause of death worldwide. In this paper, we examine the channels through which economic growth affects NCDs’ epidemiology. Following a production function approach, we develop a basic technique to break up the impact of economic growth on NCDs into three fundamental components: (1) a resource effect; (2) a behaviour effect; and (3) a knowledge effect. We demonstrate that each of these effects can be measured as the product of two elasticities, the output and income elasticity of the three leading factors influencing the frequency of NCDs in any population: health care, health-related behaviours and lifestyle, and medical knowledge.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1045215
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1045215
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1045215
Template-Type: ReDIF-Article 1.0
Author-Name: Jurgen A. Doornik
Author-X-Name-First: Jurgen A.
Author-X-Name-Last: Doornik
Author-Name: David F. Hendry
Author-X-Name-First: David F.
Author-X-Name-Last: Hendry
Author-Name: Steve Cook
Author-X-Name-First: Steve
Author-X-Name-Last: Cook
Title: Statistical model selection with “Big Data”
Abstract:
Big Data offer potential benefits for statistical modelling, but confront problems including an excess of false positives, mistaking correlations for causes, ignoring sampling biases and selecting by inappropriate methods. We consider the many important requirements when searching for a data-based relationship using Big Data, and the possible role of Autometrics in that context. Paramount considerations include embedding relationships in general initial models, possibly restricting the number of variables to be selected over by non-statistical criteria (the formulation problem), using good quality data on all variables, analyzed with tight significance levels by a powerful selection procedure, retaining available theory insights (the selection problem) while testing for relationships being well specified and invariant to shifts in explanatory variables (the evaluation problem), using a viable approach that resolves the computational problem of immense numbers of possible models.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1045216
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1045216
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1045216
Template-Type: ReDIF-Article 1.0
Author-Name: Eduardo Pol
Author-X-Name-First: Eduardo
Author-X-Name-Last: Pol
Author-Name: Steve Cook
Author-X-Name-First: Steve
Author-X-Name-Last: Cook
Title: A theorem on the methodology of positive economics
Abstract:
It has long been recognized that the Milton Friedman’s 1953 essay on economic methodology (or F53, for short) displays open-ended unclarities. For example, the notion of “unrealistic assumption” plays a role of absolutely fundamental importance in his methodological framework, but the term itself was never unambiguously defined in any of the Friedman’s contributions to the economics discipline. As a result, F53 is appealing and liberating because the choice of premises in economic theorizing is not subject to any constraints concerning the degree of realisticness (or unrealisticness) of the assumptions. The question: “Does the methodology of positive economics prevent the overlapping between economics and science fiction?” comes very naturally, indeed. In this paper, we show the following theorem: the Friedman’s methodology of positive economics does not exclude science fiction. This theorem is a positive statement, and consequently, it does not involve value judgements. However, it throws a wrench on the formulation of economic policy based on surreal models.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1054142
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1054142
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1054142
Template-Type: ReDIF-Article 1.0
Author-Name: Gábor Regős
Author-X-Name-First: Gábor
Author-X-Name-Last: Regős
Author-Name: Xibin Zhang
Author-X-Name-First: Xibin
Author-X-Name-Last: Zhang
Title: Modeling the exchange rate using price levels and country risk
Abstract:
This paper builds two factor discrete time models in order to investigate the effect of sovereign risk on the nominal exchange rates in a Markov switching framework. The empirical section of the paper uses seven currencies from Chile, the Czech Republic, Hungary, Iceland, Japan, Korea, and Mexico. To measure the sovereign risk, we use the credit rating agencies’ ratings classes as proxy variable. In the empirical part, four different versions of the model are calibrated and their in-sample and out-of-sample data will be analyzed leading to the conclusion that none of the four versions dominates the others. As an additional result, it is revealed that risk has significant effect on the nominal exchange rates.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1056928
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1056928
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1056928
Template-Type: ReDIF-Article 1.0
Author-Name: Prity Sinha
Author-X-Name-First: Prity
Author-X-Name-Last: Sinha
Author-Name: Brinda Viswanathan
Author-X-Name-First: Brinda
Author-X-Name-Last: Viswanathan
Author-Name: Badri Narayanan
Author-X-Name-First: Badri
Author-X-Name-Last: Narayanan
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Financial market and growth: Evidence from post-reforms India
Abstract:
A significant boom occurred in the Indian financial market and growth in the post-liberalization era. This motivates us to analyze the impact of stock market and credit market (two components of financial market) for the growth of financial market. This paper attempts to show the linkage between stock and credit markets and their impact on the Indian economy taking the period after post-liberalization. The period of analysis is from 1994 to 2010; we identify the three variables as stationary and find a relationship between the financial market and gross domestic product (GDP) and a long-run effect of lagged differences in credit market on GDP. It has been inferred that stock market development has larger and more significant long-run mutual effects on economic growth than credit market development in India.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1057417
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1057417
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1057417
Template-Type: ReDIF-Article 1.0
Author-Name: Amari Mouna
Author-X-Name-First: Amari
Author-X-Name-Last: Mouna
Author-Name: Jarboui Anis
Author-X-Name-First: Jarboui
Author-X-Name-Last: Anis
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: The factors forming investor’s failure: Is financial literacy a matter? Viewing test by cognitive mapping technique
Abstract:
The objective of this paper is to apply cognitive map-related techniques to extract causal knowledge from a specific problem domain. This paper proposes to draw an average cognitive map in order to identify the failure factors of the Tunisian small investors. Our paper extends traditional and behavioral finance and previous research by proposing a new approach to building an average cognitive map for the explanation of small investors’ failure in the stock market.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1057923
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1057923
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1057923
Template-Type: ReDIF-Article 1.0
Author-Name: Bowon Kim
Author-X-Name-First: Bowon
Author-X-Name-Last: Kim
Author-Name: Jeong Eun Sim
Author-X-Name-First: Jeong Eun
Author-X-Name-Last: Sim
Author-Name: Caroline Elliott
Author-X-Name-First: Caroline
Author-X-Name-Last: Elliott
Title: Impacts of government and market on firm’s efforts to reduce pollution
Abstract:
We examine how the government and the market affect firm’s pollution abatement efforts, i.e. firm’s efforts to reduce its pollution emission. The way for the government to control firm’s pollution is to impose penalty, whereas the consumers (the market) make their purchasing decision by taking into account the pollution, i.e. the demand is affected by the stock of pollution. In effect, we consider two forces, government penalty and consumer’s sensitivity to pollution, as primary factors to control firm’s pollution and analyze their interaction in relation to the firm’s pollution reduction efforts. The analysis suggests as follows. The government penalty and the consumer’s awareness are substitutes either (1) when the market size is relatively large or (2) when the market is relatively small, but the government penalty is relatively heavy. On the contrary, the two factors are complements when the market size is relatively small and the government penalty is relatively light. We discuss managerial and economic implications of the analysis results.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1062634
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1062634
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1062634
Template-Type: ReDIF-Article 1.0
Author-Name: Fernando Gómez-Bezares
Author-X-Name-First: Fernando
Author-X-Name-Last: Gómez-Bezares
Author-Name: Fernando R. Gómez-Bezares
Author-X-Name-First: Fernando R.
Author-X-Name-Last: Gómez-Bezares
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Don’t use quotients to calculate performance
Abstract:
Quotients, ratios, are among the most applied tools for measuring performance of mutual funds and investment portfolios, the Jensen index being an exception to the general rule. In this paper, we show some problems that arise when quotients are applied, closely related to their statistical meaning, which is too often forgotten. We also raise some advantages of the use of linear penalization, introducing a little known methodology for performance measurement. With this purpose, this paper’s approach is comprehensive: we conceptually analyze performance indexes’ geometric and statistical meaning, complementing this with a numerical example and empirical testing that confirm our view. This paper’s main contribution is to demonstrate and empirically test how the use of quotients to measure performance may create problems due to their denominators, which may be solved by applying linear penalization.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1065584
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1065584
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1065584
Template-Type: ReDIF-Article 1.0
Author-Name: Anupam Dutta
Author-X-Name-First: Anupam
Author-X-Name-Last: Dutta
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Improved calendar time approach for measuring long-run anomalies
Abstract:
Although a large number of recent studies employ the buy-and-hold abnormal return (BHAR) methodology and the calendar time portfolio approach to investigate the long-run anomalies, each of the methods is a subject to criticisms. In this paper, we show that a recently introduced calendar time methodology, known as Standardized Calendar Time Approach (SCTA),, controls well for heteroscedasticity problem which occurs in calendar time methodology due to varying portfolio compositions. In addition, we document that SCTA has higher power than the BHAR methodology and the Fama–French three-factor model while detecting the long-run abnormal stock returns. Moreover, when investigating the long-term performance of Canadian initial public offerings, we report that the market period (i.e. the hot and cold period markets) does not have any significant impact on calendar time abnormal returns based on SCTA.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1065948
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1065948
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1065948
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Adusei
Author-X-Name-First: Michael
Author-X-Name-Last: Adusei
Author-Name: Caroline Elliott
Author-X-Name-First: Caroline
Author-X-Name-Last: Elliott
Title: Bank profitability: Insights from the rural banking industry in Ghana
Abstract:
This paper analyzes the profitability of 112 rural banks (special unit banks created to promote rural financial intermediation in Ghana). The results generally show that bank size, funding risk, diversification, liquidity risk, and bank stability are significant predictors of rural bank profitability. Whereas an improvement in the funding risk of a rural bank in a particular period portends a drop in its profitability in the future, an improvement in the size, diversification, liquidity risk, and stability of a rural bank signifies an improvement in the future profitability of the bank.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1078270
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1078270
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1078270
Template-Type: ReDIF-Article 1.0
Author-Name: Nelson Mango
Author-X-Name-First: Nelson
Author-X-Name-Last: Mango
Author-Name: Lawrence Mapemba
Author-X-Name-First: Lawrence
Author-X-Name-Last: Mapemba
Author-Name: Hardwick Tchale
Author-X-Name-First: Hardwick
Author-X-Name-Last: Tchale
Author-Name: Clifton Makate
Author-X-Name-First: Clifton
Author-X-Name-Last: Makate
Author-Name: Nothando Dunjana
Author-X-Name-First: Nothando
Author-X-Name-Last: Dunjana
Author-Name: Mark Lundy
Author-X-Name-First: Mark
Author-X-Name-Last: Lundy
Title: Comparative analysis of tomato value chain competitiveness in selected areas of Malawi and Mozambique
Abstract:
This paper discusses tomato value chain performance in Malawi and Mozambique using data collected from a market study commissioned by the International Centre for Tropical Agriculture as part of a regional research on conservation agriculture in maize-based farming systems in Sub-Saharan Africa. The results show that Malawi has a slightly higher competitive advantage in the production of tomato compared to Mozambique. Malawi’s relative competitiveness in tomato is mainly due to slightly higher productivity and the cost advantage in labor (low wages) and irrigation costs. The paper proposes policy implications aimed at raising the productivity and trade competitiveness of tomato, as this will ensure the overall productivity of the maize-based smallholder farming systems in the two countries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1088429
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1088429
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1088429
Template-Type: ReDIF-Article 1.0
Author-Name: Maali Kachouri Ben Saad
Author-X-Name-First: Maali
Author-X-Name-Last: Kachouri Ben Saad
Author-Name: Anis Jarboui
Author-X-Name-First: Anis
Author-X-Name-Last: Jarboui
Title: Does corporate governance affect financial communication transparency? Empirical evidence in the Tunisian context
Abstract:
The present study is focused on investigating the relationship between intentional governance mechanisms (Directors’ boards, Ownership structure and audit quality) and financial communication transparency. For this purpose, a model is used and applied to Tunisian firms’ sample observed over the period 2006–2013. The achieved results reveal that intentional governance mechanisms are positively related to a higher transparency level noticeable in financial communication (voluntary disclosure and quality information). In addition, empirical tests indicate that financial communication transparency is highly dependent on the board size, ownership concentration, as well as on audit quality.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1090944
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1090944
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1090944
Template-Type: ReDIF-Article 1.0
Author-Name: Bryan McIntosh
Author-X-Name-First: Bryan
Author-X-Name-Last: McIntosh
Author-Name: Fabrizio Ferretti
Author-X-Name-First: Fabrizio
Author-X-Name-Last: Ferretti
Title: Pandora box: The eurozone and the euro crisis
Abstract:
The global economy has experienced considerable turbulence since 2007. The financial crisis has been viewed as the trigger for a prolonged period of economic decline. This decline remains an issue for all member states of the European Union, the eurozone and beyond. We argue genesis of this crisis lies in the integration negotiations of 1991, ratified in 1992. These produced a flawed economic model within the eurozone. Given the seeds of decay were planted at origin; we argue the solution can be found through a reconstructed eurozone via looser integration, where countries less equipped to deal with the realities of closer integration will be economically independent.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1092860
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1092860
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1092860
Template-Type: ReDIF-Article 1.0
Author-Name: Adam Hoffer
Author-X-Name-First: Adam
Author-X-Name-Last: Hoffer
Title: A classroom game to teach the principles of money and banking
Abstract:
This paper describes how to implement and run a game for teaching the principles of money and banking to an undergraduate economics class. The game primarily deals with the market for loanable funds, but numerous extensions are provided to cover topics such as monetary policy, the tools of the Federal Reserve, shifts in the equilibrium of the market for loanable funds, and the quantity theory of money. The experiment can be used in principles, intermediate macroeconomics, or money and banking courses. The experiment takes approximately 45 minutes to run, depending on class size, and requires no computers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1095448
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1095448
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1095448
Template-Type: ReDIF-Article 1.0
Author-Name: Nikolaos Antonakakis
Author-X-Name-First: Nikolaos
Author-X-Name-Last: Antonakakis
Author-Name: Gabriele Tondl
Author-X-Name-First: Gabriele
Author-X-Name-Last: Tondl
Title: Robust determinants of OECD FDI in developing countries: Insights from Bayesian model averaging
Abstract:
In this paper, we examine the determinants of outward FDI from four major OECD investors, namely, the US, Germany, France, and the Netherlands, to 129 developing countries classified under five regions over the period 1995–2008. Our goal is to distinguish whether the motivation for FDI differs among these investors in developing countries. Rather than relying on specific theories of FDI determinants, we examine them all simultaneously by employing Bayesian model averaging (BMA). This approach permits us to select the most appropriate model (or combination of models) that governs FDI allocation and to distinguish robust FDI determinants. We find that no single theory governs the decision of OECD FDI in developing countries but a combination of theories. In particular, OECD investors search for destinations with whom they have established intensive trade relations and that offer a qualified labor force. Low wages and attractive tax rates are robust investment criteria too, and a considerable share of FDI is still resource-driven. Overall, investors show fairly similar strategies in the five developing regions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1095851
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1095851
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1095851
Template-Type: ReDIF-Article 1.0
Author-Name: Hairong Mu
Author-X-Name-First: Hairong
Author-X-Name-Last: Mu
Author-Name: Dimitrios Paparas
Author-X-Name-First: Dimitrios
Author-X-Name-Last: Paparas
Title: Incorporating the advantages of clickers and mobile devices to teach Economics to non-economists
Abstract:
In the twenty-first century, teaching practitioners in higher education (HE) have found themselves confronted with more challenges to help students engage in learning. Particularly, one of the main problems with the traditional lecture format to teach non-economists economics is that students tend to lack interest in the subject and therefore have a low level of engagement. Student response systems (i.e. “clickers”) have been used in classes for about 20 years and become more popular on many college campuses. Many studies reveal that clicker technology offers great promise in increasing students’ participation and engagement in lectures. Meanwhile, thanks to fast development of mobile technology, personal mobile devices can be integrated with clicker systems into teaching and learning with improved features. The programme we used and found as a very useful interactive teaching tool for learning is called Kahoot!. This paper offers a brief guidance on how to use Kahoot! to encourage active learning and engage non-economics majors in learning economics. Meanwhile, the existing relevant literature with regard to the use of clickers in HE is highlighted. In addition, the effectiveness of using Kahoot! in teaching economics to non-economists is evaluated by a student survey.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1099802
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1099802
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1099802
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Adusei
Author-X-Name-First: Michael
Author-X-Name-Last: Adusei
Title: The impact of bank size and funding risk on bank stability
Abstract:
Does bank size significantly explain the variations in bank stability? Does bank funding risk significantly impact bank stability? This paper addresses these two questions with data from the rural banking industry in Ghana. Controlling for credit risk, liquidity risk, diversification in the business model, profitability, inflation, financial structure and gross domestic product, the results suggest that an increase in the size of a rural bank results in an increase in its stability. The results also show that funding risk positively impacts bank stability. The positive relationship between size and bank stability has important repercussions for the current debate on whether or not to constrain bank size to insulate the financial system from future crisis. The positive relationship between funding risk and bank stability also has important implications for the current debate on funding of retail banks.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1111489
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1111489
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1111489
Template-Type: ReDIF-Article 1.0
Author-Name: Abhijit Sharma
Author-X-Name-First: Abhijit
Author-X-Name-Last: Sharma
Title: Use of Bloomberg Professional in support of finance and economics teaching
Abstract:
This paper evaluates the use of specialist software within university trading rooms in order to enable students to experience a simulated environment which allows them to gain an appreciation of “real life” decision-making within the finance and banking industry and become familiar with real-time data. An important additional aim of trading room-based instruction is to encourage responsible financial decision-making. Our analysis focuses on business schools within the United Kingdom and provides a detailed illustration of use of such resources, in particular, as deployed at the Bradford University School of Management. We provide a critical overview of the main challenges involved in making effective use of a trading room. We also offer recommendations to other academics to enable productive and appropriate use of resources such as Bloomberg Professional in order to enhance the student learning experience and to facilitate the development of valuable skills.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1115618
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1115618
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1115618
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Guest
Author-X-Name-First: Jonathan
Author-X-Name-Last: Guest
Title: Reflections on ten years of using economics games and experiments in teaching
Abstract:
In this paper, the author reflects on his 10 years’ experience of using games and experiments and in the process develops a type of practitioner’s guide. The existing quantitative and qualitative evidence on the impact of using games on student learning is reviewed. On balance, a positive effect, on measures of attainment, is found in the literature. Given these findings, it is surprising that there is also evidence in the UK and US that they are not widely used. Some factors are discussed that might deter tutors from employing them. Unsurprisingly, one of these is the additional cost, which might make the use of online games seem more attractive, given the way results can be automatically recorded. However, some relatively low-cost paper-based games were found to have significant advantages. In particular, they appear to facilitate social interaction which has a positive impact on student motivation and learning. One popular and effective paper-based game is discussed in some detail. A number of recommendations are provided on how to implement the game in order to maximise the learning benefits it can provide. Some ideas on how to maximise the learning benefits from using games more generally are also considered.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1115619
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1115619
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1115619
Template-Type: ReDIF-Article 1.0
Author-Name: Robert O’Neill
Author-X-Name-First: Robert
Author-X-Name-Last: O’Neill
Title: Teaching Index Numbers to economists
Abstract:
Economic statistics are frequently reported in the form of index numbers. This article considers how the field of Index Numbers should be approached in the teaching of a general economic degree. While the topic finds a natural home in statistics modules, it is emphasised that the area can also be referred to in the teaching of other areas of economics. It is also emphasised that the differences between Index Numbers theory and the practice of compiling economic statistics such as inflation can help students gain a better understanding of applied economic statistics. Methods for assessing learning in the area are also considered and available material to support teaching is also summarised.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1115625
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1115625
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1115625
Template-Type: ReDIF-Article 1.0
Author-Name: Nelson Mango
Author-X-Name-First: Nelson
Author-X-Name-Last: Mango
Author-Name: Clifton Makate
Author-X-Name-First: Clifton
Author-X-Name-Last: Makate
Author-Name: Benjamin Hanyani-Mlambo
Author-X-Name-First: Benjamin
Author-X-Name-Last: Hanyani-Mlambo
Author-Name: Shephard Siziba
Author-X-Name-First: Shephard
Author-X-Name-Last: Siziba
Author-Name: Mark Lundy
Author-X-Name-First: Mark
Author-X-Name-Last: Lundy
Author-Name: Caroline Elliott
Author-X-Name-First: Caroline
Author-X-Name-Last: Elliott
Title: A stochastic frontier analysis of technical efficiency in smallholder maize production in Zimbabwe: The post-fast-track land reform outlook
Abstract:
This article analyses the technical efficiency of maize production in Zimbabwe’s smallholder farming communities following the fast-track land reform of the year 2000 with a view of highlighting key entry points for policy. Using a randomly selected sample of 522 smallholder maize producers, a stochastic frontier production model was applied, using a linearised Cobb–Douglas production function to determine the production elasticity coefficients of inputs, technical efficiency and the determinants of efficiency. The study finds that maize output responds positively to increases in inorganic fertilisers, seed quantity, the use of labour and the area planted. The technical efficiency analysis suggests that about 90% of farmers in the sample are between 60 and 75% efficient, with an average efficiency in the sample of 65%. The significant determinants of technical efficiency were the gender of the household head, household size, frequency of extension visits, farm size and the farming region. The results imply that the average efficiency of maize production could be improved by 35% through better use of existing resources and technology. The results highlight the need for government and private sector assistance in improving efficiency by promoting access to productive resources and ensuring better and more reliable agricultural extension services.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1117189
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1117189
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1117189
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Middleditch
Author-X-Name-First: Paul
Author-X-Name-Last: Middleditch
Author-Name: Will Moindrot
Author-X-Name-First: Will
Author-X-Name-Last: Moindrot
Title: Using classroom response systems for creative interaction and engagement with students
Abstract:
Recent changes to the landscape of higher education and the student environment generally has brought renewed focus on the need for pedagogical innovation. The importance of student satisfaction and the accompanying rising expectations of the technologically savvy generation of students have brought significant challenges to an academic community already busied with the pedagogically sound delivery of undergraduate taught courses. This new environment has inevitably led to a demand for tools that can assist convenors to meet those challenges without overburdening already tight workloads. This paper presents evidence on the innovative use of one such tool in the form of an over web classroom response system, introduced with the aim of meeting the challenges of the new era in higher education. We suggest that the use of this type of technology can increase student satisfaction and enjoyment as a driver for creative engagement.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1119368
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1119368
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1119368
Template-Type: ReDIF-Article 1.0
Author-Name: Anupam Dutta
Author-X-Name-First: Anupam
Author-X-Name-Last: Dutta
Title: Have the anomalies following share buybacks disappeared?
Abstract:
Although several empirical studies report significant positive long-run abnormal stock returns following share buybacks, a recent event study paper claims that such anomalies have disappeared in the most recent decade and this disappearance of abnormal performance is not sensitive to the methods used. The present paper makes an attempt to investigate this claim using 63 Indian share buybacks which took place between July 2008 and June 2012. We consider the application of several event study methods and our findings are a bit mixed. We conclude that the long-run anomalies following stock repurchases in India are still sensitive to the employed methodologies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1119461
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1119461
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1119461
Template-Type: ReDIF-Article 1.0
Author-Name: Guglielmo Volpe
Author-X-Name-First: Guglielmo
Author-X-Name-Last: Volpe
Title: Case teaching in economics: History, practice and evidence
Abstract:
Case studies are, normally, real-world problems that might include relevant or irrelevant data, correct or incorrect analysis and that require some sort of interpretation or solution. The use of case studies has been a common feature of undergraduate studies in business and law for a long time. In recent years, the so-called “case method” has become quite popular in economics education as well since it is believed to help the development to three key objectives in economics education: the mastering of economics principles, the application of principles to reality and the systematic analysis of policy issues. Coupled with student-centred approaches to learning, the case method can prove a very effective method in helping students to achieve a deeper understanding of both economic theory and policy analysis. The article provides an account of how case studies can be effectively used in economics teaching and reviews the empirical evidence on the effectiveness of the approach.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1120977
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1120977
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1120977
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Danquah
Author-X-Name-First: Michael
Author-X-Name-Last: Danquah
Author-Name: Peter Quartey
Author-X-Name-First: Peter
Author-X-Name-Last: Quartey
Title: Examining the determinants of efficiency using a latent class stochastic frontier model
Abstract:
In this study, we combine the latent class stochastic frontier model with the complex time decay model to form a single-stage approach that accounts for unobserved technological differences to estimate efficiency and the determinants of efficiency. In this way, we contribute to the literature by estimating “pure” efficiency and determinants of productive units based on the class structure. An application of this proposed model is presented using data on the Ghanaian banking system. Our results show that inefficiency effects on the productive unit are specific to the class structure of the productive unit and therefore assuming a common technology for all productive units as is in the popular Battese and Coelli model used extensively in the literature may be misleading. The study therefore provides useful empirical evidence on the importance of accounting for unobserved technological differences across productive units. A policy based on the identified classes of the productive unit enables a more accurate and effectual measures to address efficiency challenges within the banking industry, thereby promoting financial sector development and economic growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2015.1124741
File-URL: http://hdl.handle.net/10.1080/23322039.2015.1124741
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1124741
Template-Type: ReDIF-Article 1.0
Author-Name: David Gray
Author-X-Name-First: David
Author-X-Name-Last: Gray
Author-Name: Caroline Elliott
Author-X-Name-First: Caroline
Author-X-Name-Last: Elliott
Title: Are prices of New dwellings different? A spectral analysis of UK property vintages
Abstract:
The work makes two contributions to the literature on dynamic house prices. First, a house price ripple in cycles from Modern to Older dwellings is revealed and, second, as New housing is shown to have lower volatility than the other two. Using spectral analysis, it is argued that there is a 7½-year repeat buyer-second-hand cycle and a five year, first time buyer-New housing cycle, common to three house price vintages. These cycles reinforce each other every 15 years, which corresponds with a Minsky super-cycle in housing finance. The equity of the owner–occupier is fortified by higher house prices whereas New builds extract embedded equity from the market. Through programmes like Help-to-Buy 1, Government should support builders and facilitate market access to FTBs. However, to address the greater price instability that should follow, Government should impose a capital gains tax on the house seller.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 3
Year: 2015
Month: 12
X-DOI: 10.1080/23322039.2014.993860
File-URL: http://hdl.handle.net/10.1080/23322039.2014.993860
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Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:993860
Template-Type: ReDIF-Article 1.0
Author-Name: Iqbal Thonse Hawaldar
Author-X-Name-First: Iqbal Thonse
Author-X-Name-Last: Hawaldar
Author-Name: K.R. Naveen Kumar
Author-X-Name-First: K.R.
Author-X-Name-Last: Naveen Kumar
Author-Name: T. Mallikarjunappa
Author-X-Name-First: T.
Author-X-Name-Last: Mallikarjunappa
Title: Pricing and performance of IPOs: Evidence from Indian stock market
Abstract:
This study examines listing day performance of IPOs, book-built and fixed-price IPOs, post-listing aftermarket performance of IPOs, book-built and fixed-price IPOs in the Indian stock market. We examine pricing as well as long run performance of 464 (365 book-built IPOs and 99 fixed-price IPOs) Indian IPOs that went public between 2001 and 2011. The study covers 15 years from the financial year 2001 to 2015. Analysis of the results reveals that compared to fixed-price IPOs, book-built IPOs are underpriced by lesser magnitude. Moreover, book-built IPOs are associated with negative cumulative average abnormal returns (CAARs) up to five years and beyond, the negative CAARs associated with fixed-price IPOs turn positive after one and one-half year and continue to be positive thereafter.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2017.1420350
File-URL: http://hdl.handle.net/10.1080/23322039.2017.1420350
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1420350
Template-Type: ReDIF-Article 1.0
Author-Name: B. Rajesh Kumar
Author-X-Name-First: B.
Author-X-Name-Last: Rajesh Kumar
Author-Name: K.S. Sujit
Author-X-Name-First: K.S.
Author-X-Name-Last: Sujit
Title: Determinants of dividends among Indian firms—An empirical study
Abstract:
The study aims to understand the determinants of dividend trends of Indian firms. The study was based on a sample of 31,234 firms representing 15 different industry sectors. Construction materials, machinery and transportation equipment sectors were the most dividend intensive sectors in India. Partial least square structural equation modeling methodology (PLS SEM) was employed to examine the determinants of the dividend intensity of Indian firms. Different schemes of path models were tested and the results show that the higher the financial leverage, the lower is the propensity to pay dividends. Firms with high intangibles are expected to have higher agency costs. High growth firms have low dividend payout policies. Dividend intensity of firms is directly related to the size of firm. Higher the R&D intensity of the firms, greater is the dividend intensity of the firms. Firms with higher agency costs tend to have higher dividend intensity. Higher agency costs lead to lower cash flows for Indian firms. Firms with higher liquidity tend to pay more dividends. Profitable firms tend to have higher dividend intensity.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1423895
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1423895
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1423895
Template-Type: ReDIF-Article 1.0
Author-Name: Ludan Theron
Author-X-Name-First: Ludan
Author-X-Name-Last: Theron
Author-Name: Gary van Vuuren
Author-X-Name-First: Gary
Author-X-Name-Last: van Vuuren
Title: The maximum diversification investment strategy: A portfolio performance comparison
Abstract:
The efficacy of four different portfolio allocation strategies is evaluated according to their absolute returns during different economic conditions over a period of 10 years. A comparison is drawn between the Most Diversified portfolio (MD) and three alternatives; a Minimum Variance portfolio, an Equally-Weighted portfolio and a Tangent (or Maximum Sharpe ratio) portfolio. The aim is to assess portfolio performance using cumulative returns, the Sharpe ratio and the daily volatilities of each portfolio. The four asset allocation methods are governed by multiple constraints. Although previous work has shown that MD portfolios exhibit greater diversification and a higher Sharpe ratio than other investment strategies, this was not found using developed market index data.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1427533
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1427533
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1427533
Template-Type: ReDIF-Article 1.0
Author-Name: Truong Hong Trinh
Author-X-Name-First: Truong Hong
Author-X-Name-Last: Trinh
Title: Towards a paradigm on the value
Abstract:
This paper explores the value concept to understand the notions of value and price that form the base of value theories. Since value is more appreciate than utility in explaining value creation and value distribution in the today’s society and economy, the theory of value is amended to conduct value creation and market behavior in the economy. From the theoretical base, the value added approach is used for GDP measurement that unifies with both the expenditure approach and the income approach. The study result indicates that there is a value balance between the firm and the customer, and the relationship between value balance and market equilibrium. The paper contributes a new paradigm on the value that provides a clearer understanding on value creation and market behavior in the economy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1429094
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1429094
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1429094
Template-Type: ReDIF-Article 1.0
Author-Name: K.K. Moseki
Author-X-Name-First: K.K.
Author-X-Name-Last: Moseki
Author-Name: K.S. M. Rao
Author-X-Name-First: K.S. M.
Author-X-Name-Last: Rao
Title: Empirical measures of symmetry of market sentiments
Abstract:
The analysis of asset return series of equity prices and stock indices is a well-researched problem tackled by economists, business and financial analysts in the last few decades. It has captured the fancy of financial economists, global and local portfolio investment consultants, foreign investment institutions and the trading man in the street. In this paper a strong case is made to follow a new approach for any investor to foray into an unknown stock market. This approach is the market sentiment approach. We introduce the concept of market sentiments, their definitions and different constructs one may propose vis-a-vis asset return series. We formulate several concepts of symmetry of market sentiments and propose empirical measures to validate such types of symmetric market sentiments. The efficacies of these measures are evaluated using extensive simulation studies and the efficient measures are identified. As an application, we explore the nature of absolute market sentiments that prevailed in weekly mean asset returns of two domestic companies registered in Botswana Stock Exchange during the trading period: 4 January 2016 to 30 December 2016. Our analysis indicates that both companies are characterised by the presence of complete symmetric absolute market sentiments.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1430113
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1430113
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1430113
Template-Type: ReDIF-Article 1.0
Author-Name: Li Zhang
Author-X-Name-First: Li
Author-X-Name-Last: Zhang
Author-Name: Jiafure Wang
Author-X-Name-First: Jiafure
Author-X-Name-Last: Wang
Title: Research on the relationship between relational capital and relational rent
Abstract:
Background: With the development of world economic globalization and the advent of the sharing economy era, the competition is not existed between individual enterprises any more, while upgraded to be the competition and cooperation among partners. It is difficult for enterprises to obtain excessive profits only by internal resources and their own management. Therefore, they need to break through the limitation of internal resources and abilities to create new forms of excessive profits with their partners. Purpose: The purpose of this research, under theoretical frameworks of social capital and relational view, is to study the relationship between relational capital, which is an intangible resource, and relational rent as to find more theoretical basis for the cooperative enterprises. Research design, data, and methodology: Based on the analysis of the relevant literature, this research comes up with the idea that the formation of relational capital (including the approaches of trust and commitment) is via capital rent (involving Relational-specific Assets、Knowledge sharing Routines、Complementary Resources、Effective Governance) and then further puts forward the hypothesis and conceptual model of “relational capital” affecting “relational rent”. The current study selected Chinese manufacture industry as a sample frame and collected data from 304 respondents. Data were analyzed using structural equation model to test the hypotheses. Results: Through empirical study, it was found that trust and commitment have significant effects on knowledge sharing, complementary resources and co-governance, and there is no remarkable effect on the relationship-specific investment.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1431091
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1431091
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1431091
Template-Type: ReDIF-Article 1.0
Author-Name: Ling Jong
Author-X-Name-First: Ling
Author-X-Name-Last: Jong
Author-Name: Poh-Ling Ho
Author-X-Name-First: Poh-Ling
Author-X-Name-Last: Ho
Title: Inside the family firms: The impact of family and institutional ownership on executive remuneration
Abstract:
This study empirically examines the impact of ownership structure on executive remuneration of listed family firms in Malaysia. Fixed effects model as the panel analysis of 279-listed family firms from 2010 to 2014 shows that institutional investors could not represent the minority shareholders’ interest in curbing the expropriation via executive remuneration by the controlling family shareholders. When the firm CEOs are non-family directors, both domestic and foreign institutional investors could exert a significant negative impact on executive remuneration. Thus, this study provides a theoretical contribution by affirming that the Type-II agency conflict between controlling shareholders and minority shareholders in family firms is ameliorated when the firm CEOs have no family relationship with the controlling shareholders. In addition, this study also unveils that domestic and foreign institutional investors have a different impact on the executive remuneration, where the governance role of the former prevails over the latter. The findings of this study would be useful for the policy-makers and regulators such as Securities Commission Malaysia and Minority Shareholder Watchdog Group to assess the expropriation issue and corporate governance in family firms.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1432095
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1432095
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1432095
Template-Type: ReDIF-Article 1.0
Author-Name: Amith Vikram Megaravalli
Author-X-Name-First: Amith Vikram
Author-X-Name-Last: Megaravalli
Author-Name: Gabriele Sampagnaro
Author-X-Name-First: Gabriele
Author-X-Name-Last: Sampagnaro
Title: Macroeconomic indicators and their impact on stock markets in ASIAN 3: A pooled mean group approach
Abstract:
The objective of this paper is to examine the long-run and the short-run relationship between India, China and Japanese stock markets and key macroeconomic variables such as exchange rates and inflation (proxied by consumer price index) of ASIAN 3 economies (India, China and Japan). Monthly time series data spanning the period from 2008 January to November 2016 has been used. The unit root test, the cointegration test, Granger causality test and pooled mean group estimator have been applied to derive the long-run and short-run statistical dynamics. The findings of pooled estimated results of ASIAN 3 countries show that exchange rate has a positive and significant long-run effect on stock markets while the inflation has a negative and insignificant long-run effect. In the short run, there is no statistically significant relationship between macroeconomic variables and stock markets. This study emphasises on the impact of macroeconomic variables on the stock market performance of a developing economy (India and China) and developed economy (Japan).
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1432450
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1432450
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1432450
Template-Type: ReDIF-Article 1.0
Author-Name: Senior Editors
Author-X-Name-First: Senior
Author-X-Name-Last: Editors
Title: Acknowledgement of reviewers
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1433606
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1433606
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1433606
Template-Type: ReDIF-Article 1.0
Author-Name: Edmund H. Mantell
Author-X-Name-First: Edmund H.
Author-X-Name-Last: Mantell
Title: Searching for a partner on the internet and analogous decision-making problems
Abstract:
Information technologies supporting online dating create an enormous expansion of the population of potential partners. However, such a large population offers too much information, too many choices, too many potential (and potentially unsatisfying) partners. The importance of conducting a search efficiently is imperative. This paper applies the economic theory of decision-making under uncertainty to analyze the optimizing behavior of rational adults who use internet dating sites. The analysis applies expected utility to a randomly distributed population of candidates. The main result derives conditions that must be satisfied by a searcher who allocates his time efficiently. The result is based, in part, on an assumption that the behavior of the searcher is guided by his recognition of adverse selection and “cheap talk.” The analytical results can be applied to search-and-action scenarios totally unrelated to a search for a romantic partner. These include such diverse scenarios as the deployment of military drones searching for a target or a search for a home or a search for an employment opportunity.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1435442
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1435442
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1435442
Template-Type: ReDIF-Article 1.0
Author-Name: Deepak Kumar Behera
Author-X-Name-First: Deepak Kumar
Author-X-Name-Last: Behera
Author-Name: Umakant Dash
Author-X-Name-First: Umakant
Author-X-Name-Last: Dash
Title: The impact of macroeconomic policies on the growth of public health expenditure: An empirical assessment from the Indian states
Abstract:
The impact assessment of macroeconomic policies on public health expenditure is very relevant in Indian economy because of tax reform, fiscal consolidation, and expenditure policy reform. These have been undertaken after economic liberalization in order to sustain a high economic growth. Despite the several fiscal policy initiatives, there is a persistent slowing down of growth in public health expenditure and a huge disparity in the allocation of budget toward health care among the Indian states. Using the period 1990–2014, the study examines the dynamic relationships between public health expenditure and macroeconomic factors (economic growth, domestic revenue, domestic debt, fiscal balance, and central government transfer) of 15 major states of India. Our empirical result shows that state’s revenue (i.e. tax revenue and indirect tax) and central transfer (i.e. tax devolution) are the major public providers for financing the health care of Indian states. Other sources of revenue of the government, namely non-tax revenue and direct tax show no impact on public health expenditure in the short run, while it shows a positive impact in the long run. As a consequence, we find that economic growth and fiscal balance lead to a favorable impact on public health expenditure in the long run. The result suggests the improvement in revenue collection, increase in the tax base and the efficient utilization of central grants would generate fiscal space in the economy, and thereby the government can allocate more funds toward public health care.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1435443
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1435443
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1435443
Template-Type: ReDIF-Article 1.0
Author-Name: Souha El Khanji
Author-X-Name-First: Souha
Author-X-Name-Last: El Khanji
Title: An empirical exploration of relationships between official development assistance (ODA) and advances in water and sanitation subsectors
Abstract:
This paper explores aid effectiveness by studying the effect of aid, aid volatility, and key development indicators, focusing on safe access to water and sanitation (W&S) in both urban and rural areas. Despite the importance of official development assistance (ODA) for these two subsectors, little global attention is given to its importance and its connectivity with different socio economic factors. In this study, we focus on the countries that receive aid for water and sanitation. We find that aid does have a discernible impact on access to W&S, particularly in rural areas, but that this impact is reduced by aid volatility, there is a clear evidence that ODA for water and sanitation lacks the appropriate orientation, and is not targeting most of the areas that are really in need.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1437661
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1437661
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1437661
Template-Type: ReDIF-Article 1.0
Author-Name: Rajibur Reza
Author-X-Name-First: Rajibur
Author-X-Name-Last: Reza
Author-Name: Gurudeo Anand Tularam
Author-X-Name-First: Gurudeo Anand
Author-X-Name-Last: Tularam
Author-Name: Bin Li
Author-X-Name-First: Bin
Author-X-Name-Last: Li
Title: Returns and volatility of water investments
Abstract:
This study analyzes the stock returns and volatility of the global water industry in different (full, pre-GFC, GFC and post-GFC) periods. The study estimates ARMA (1, 1)-GARCH (1, 1) and EGARCH (1, 1) models on the World Water index (WOWAX), S-Network Global Water Index (S-Net), S&P Global Water Index (S&P), and MSCI ACWI Water Utilities Index (MSCI ACWI), the Asia, Europe, Latin America and US water markets, Pictet Global Water Fund (Pictet), and KBC Eco Water Fund (KBC Eco) for the period 2004–2014. In this study, the EGARCH (1, 1) model results suggest the existence of persistence of volatility from four water indices, four water markets and two water funds in different periods and asymmetric volatility (leverage) for Asia and US, S-Net and Pictet in full, pre-GFC and GFC periods and for WOWAX in GFC and post-GFC periods. The WOWAX is not highly correlated with water markets and water funds, which suggests that it may provide a possible opportunity for portfolio diversification in different periods.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1438724
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1438724
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1438724
Template-Type: ReDIF-Article 1.0
Author-Name: Farkhanda Ilmas
Author-X-Name-First: Farkhanda
Author-X-Name-Last: Ilmas
Author-Name: Samya Tahir
Author-X-Name-First: Samya
Author-X-Name-Last: Tahir
Author-Name: Muhammad Asrar-ul-Haq
Author-X-Name-First: Muhammad
Author-X-Name-Last: Asrar-ul-Haq
Title: Ownership structure and debt structure as determinants of discretionary accruals: An empirical study of Pakistan
Abstract:
Financial statements are the main source of financial reporting. The basic role of financial reporting is to effectively communicate financial information to outsiders in a timely and credible manner. Firstly this study used different models to evaluate the value of accruals and then presents most reliable results which have been concluded from modified Jones 1995. In order to examine the relationship, sample of nonfinancial listed companies of Karachi Stock Exchange from 2008 to 2014 would be used to run the regression. The results are consistent with said hypothesis, measures, and methodologies. The results demonstrate that discretionary variables decrease gradually with the percentage increases in the blockholders on its significant level. Further our results indicate that financial institutional and nonfinancial institutional ownership has positive but significant influence on discretionary accruals. Finding of analysis proves that short-term liabilities have a positive and meaningful impact on earnings management activities while long-term obligations have a negative and significant impact on discretionary accruals. Results reveal that in Pakistan, creditors of firms are interested in monitoring the activities in long-term debt, and this scenario restricts management less toward earnings management.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1439254
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1439254
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1439254
Template-Type: ReDIF-Article 1.0
Author-Name: Gaurav Gupta
Author-X-Name-First: Gaurav
Author-X-Name-Last: Gupta
Author-Name: Jitendra Mahakud
Author-X-Name-First: Jitendra
Author-X-Name-Last: Mahakud
Author-Name: Byomakesh Debata
Author-X-Name-First: Byomakesh
Author-X-Name-Last: Debata
Title: Impact of CEO’s characteristics on investment decisions of Indian listed firms: Does crisis make any difference?
Abstract:
Using a sample of listed Indian manufacturing companies, this study examines the role of chief executive officer’s (CEO’s) personal characteristics like age, tenure, education, and career experience in the determination of investment decisions of the firm. The dynamic panel data model estimation, more specifically the system generalized method of moments estimation results reveal a negative relation between CEO’s age and corporate investment. CEO’s financial education is positively associated with investment decisions. The investment cash flow sensitivity analysis posits that CEO’s age and financial education reduce the sensitivity of investment with respect to cash flow. The results are robust across different periods, defined on the basis of crises. In times of financial crisis, we document that firm’s liquidity and age, CEO’s career experience and tenure turn out to be significant determinants of corporate investment. This paper provides an out-of-sample evidence of the role of CEO’s personal characteristics on the determination of corporate investment, which is an unexplored issue from an emerging market perspective.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1439258
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1439258
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1439258
Template-Type: ReDIF-Article 1.0
Author-Name: Rosa Maria Fernandez
Author-X-Name-First: Rosa Maria
Author-X-Name-Last: Fernandez
Title: Interactions of regional and national environmental policies: The case of Spain
Abstract:
This paper uses a new approach to the concept of green budgeting within the context of green economy to analyse the different factors influencing the lack of consistency on environmental policies in Spain. It appears that structural issues have prevented Spain from becoming a real green economy, and thus from taking the right measures that could lead it into a sustainable growth path. This case study is presented as example of failure to integrate environmental issues in policy-making, with political factors being one of the main variables under analysis. A quantitative analysis on the approach to public environmental budget management during the period prior to the recent economic crisis is conducted at national and regional levels. Some of the findings are consistent with other European countries but some distinctive structural issues are also identified.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1442092
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1442092
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1442092
Template-Type: ReDIF-Article 1.0
Author-Name: Justin Doran
Author-X-Name-First: Justin
Author-X-Name-Last: Doran
Author-Name: Nóirín McCarthy
Author-X-Name-First: Nóirín
Author-X-Name-Last: McCarthy
Author-Name: Marie O’Connor
Author-X-Name-First: Marie
Author-X-Name-Last: O’Connor
Title: The role of entrepreneurship in stimulating economic growth in developed and developing countries
Abstract:
This paper analyses whether different measure of entrepreneurship can explain economic growth. It utilises 14 difference indicators of entrepreneurship to analyse the contribution of entrepreneurial activity, aspirations, and attitudes to Gross Domestic Product (GDP) per capita. It also examines whether the importance of entrepreneurship varies across high-income and middle/low-income countries. An unbalanced panel of 55 countries over the time period 2004–2011 is used. Fourteen different indicators of entrepreneurship are utilised and are condensed into three components using principle components analysis. Regression analysis is then used to assess whether these three different components of entrepreneurship drive economic growth. The results indicate that entrepreneurial attitudes are found to stimulate GDP per capita in high-income countries while entrepreneurial activity is found to have a negative effect in middle/low-income economies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1442093
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1442093
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1442093
Template-Type: ReDIF-Article 1.0
Author-Name: Ping Xiang
Author-X-Name-First: Ping
Author-X-Name-Last: Xiang
Author-Name: Lu Qu
Author-X-Name-First: Lu
Author-X-Name-Last: Qu
Title: The influential factors for the performance of Chinese enterprises’ international takeovers
Abstract:
In recent years, Chinese enterprises’ overseas mergers and acquisitions have become increasingly active. The method of overseas mergers and acquisitions can be regarded as a low-cost and good-effect way for the growth of Chinese enterprises, except their own accumulations. However, compared with the firms in western countries, Chinese enterprises’ overseas mergers and acquisitions can be affected by three factors: the ownership of acquiring enterprise, the types of target industries and the previous experience. In addition, Chinese and foreign scholars do not have a consistent conclusion for the enterprises’ performance, which is after their overseas mergers and acquisitions. Therefore, the study of the influential factors for Chinese enterprises’ overseas acquisitions is useful to the practice. This paper firstly analyzes the theoretical background of influential factors for the performance of overseas mergers. Then, this paper tests the three hypotheses of the influential factors. At last, this paper puts forward some effective suggestions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1442631
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1442631
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1442631
Template-Type: ReDIF-Article 1.0
Author-Name: Bård Misund
Author-X-Name-First: Bård
Author-X-Name-Last: Misund
Title: Exploration vs. acquisition of oil and gas reserves: Effect on stock returns
Abstract:
This paper examines how oil and gas companies’ reserves growth affects their share price returns. In particular we examine three issues affecting the relation between reserves changes and oil and gas firm returns. First, we examine if investors value reserves replacement as a result of exploration activities differently to reserves growth through acquisitions. In the second analysis, we test if reserves replacement of oil reserves impacts stock returns differently than changes in gas reserves do. Third, we examine the impact of the Shale gas revolution and the subsequent oil and gas price divergence on the association between returns and replacement of oil versus gas reserves. The results suggest that investors seem to be indifferent to reserves replacement strategy (exploration or acquisition). However, we find that changes in oil reserves impact oil and gas company returns differently than changes in gas reserves does. Moreover, we find that there has been a structural shift in the relation between returns and changes in gas reserves (but not changes in oil reserves) after 2008, coinciding with the Shale gas revolution and the break in the oil-gas price link. This latter result can be relevant for understanding the impact of the recent fall in oil prices on investor valuation of oil and gas reserves.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1443368
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1443368
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1443368
Template-Type: ReDIF-Article 1.0
Author-Name: M. Kannadhasan
Author-X-Name-First: M.
Author-X-Name-Last: Kannadhasan
Author-Name: Bhanu Pratap Singh Thakur
Author-X-Name-First: Bhanu Pratap Singh
Author-X-Name-Last: Thakur
Author-Name: C.P. Gupta
Author-X-Name-First: C.P.
Author-X-Name-Last: Gupta
Author-Name: Parikshit Charan
Author-X-Name-First: Parikshit
Author-X-Name-Last: Charan
Title: Testing capital structure theories using error correction models: Evidence from China, India, and South Africa
Abstract:
The objective of this study is to empirically examine the capital structure theories that can explain the capital structure choice made by the firms that are operating in China, India, and South Africa. The study tests the capital structure theories as a stand-alone basis as well as an integrated framework of nested models using advanced dynamic panel data methods with a data-set of 1,183 firms with 12,187 firm-year observations spanning the period 1999–2016. Findings suggest that the firms adjust toward target leverage very quickly and trade-off theory explains the firms’ capital structure choice better than pecking order theory in the stand-alone model as well as the model nesting these two theories. This study contributes to the empirical literature of capital structure in the following way. First, this study uses error correction framework as a general specification of the widely used partial adjustment model. Second, the study uses advanced panel data estimators to estimate partial adjustment model and error correction model. Finally, the different specifications are tested using a large data-set of firms in China, India, and South Africa that has not been done so far.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1443369
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1443369
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1443369
Template-Type: ReDIF-Article 1.0
Author-Name: Fang Wang
Author-X-Name-First: Fang
Author-X-Name-Last: Wang
Author-Name: Xu Zheng
Author-X-Name-First: Xu
Author-X-Name-Last: Zheng
Title: The comparison of the hedonic, repeat sales, and hybrid models: Evidence from the Chinese paintings market
Abstract:
With the objective of evaluating the accuracy of price index models, we adopt a series of techniques to compares the performances of the hedonic, repeat sales, and hybrid models based on the data from the Chinese most representative painter, Qi Baishi during the period from 2000 to 2016. When applying the mean squared error (MSE) technique, the repeat sales model outperforms alternative models. However, according to the correlations and width confidence intervals, the hybrid model provides the most reliable estimates of price indices. The study also shows that the repeat sales model obtains relatively a lower total return estimate as well as a higher volatility than other two models. Our findings have important implications in identifying the precision of index models and provide supplements to art investment studies..
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1443372
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1443372
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1443372
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Author-Name: Oyakhilome Wallace Ibhagui
Author-X-Name-First: Oyakhilome Wallace
Author-X-Name-Last: Ibhagui
Title: External debt and current account adjustments: The role of trade openness
Abstract:
In this paper, we examine the various links among external debt, trade openness and current account in Sub-Saharan Africa, utilizing an approach that highlights current account from the perspective of saving and investment. We explore whether external debt aids the subsequent adjustment process of current account deficits in SSA. We also examine the role of openness in the adjustment process. Empirical analysis using large panel data samples of Sub-Saharan African countries between 1985 and 2013 shows that external debt mostly sets the tone for the subsequent adjustment of current account deficits in SSA. However, the current account deficits of countries with high openness expand significantly from increases in external debt. The results are robust to different time periods and econometric estimation techniques, the inclusion of other current account determinants as control variables and consideration of endogeneity.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1446247
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1446247
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1446247
Template-Type: ReDIF-Article 1.0
Author-Name: Takehisa Kumakawa
Author-X-Name-First: Takehisa
Author-X-Name-Last: Kumakawa
Title: Cooperation in a common pool resource game: Strategic behavior and a sense of intimacy
Abstract:
This study experimentally investigates two possible reasons for cooperative investment decisions in common pool resource games with two players. One reason is strategic behavior: subjects, who are allowed to interact with their partners repeatedly, attempt to build a long-term relationship and elicit cooperation from their partners. Another reason is a sense of intimacy: as the pairings of subjects are fixed throughout the experiment, subjects develop a sense of intimacy with their partners and make decisions by considering their benefit. The results suggest that cooperative decisions can be explained almost solely by subjects’ strategic behaviors; however, the hypothesis that a sense of intimacy governed cooperative investment was not supported.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1446654
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1446654
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1446654
Template-Type: ReDIF-Article 1.0
Author-Name: Jagadish Prasad Bist
Author-X-Name-First: Jagadish Prasad
Author-X-Name-Last: Bist
Title: Financial development and economic growth: Evidence from a panel of 16 African and non-African low-income countries
Abstract:
This paper aims to investigate the long-run relationship between financial development and economic growth using panel unit root and panel cointegration analysis in 16 selected low-income countries for the period of 20 years from 1995 to 2014. The long-run relationship has been estimated using fully modified and dynamic OLS techniques. The results show that there exists a cross-sectional dependence across the countries. The Pedroni’s panel cointegration analysis provides clear support for the hypothesis that there exists a long-run cointegrating relationship between financial development and economic growth. The long-run panel estimates indicate that financial development has a positive and significant impact on economic growth. For the robustness of the results, this paper has also performed time-series analysis on a single country basis. The results also show the positive impact of financial development on economic growth in the majority of the countries. Likewise, it is found that flow of credit to the private sector is very low in this region of the world. Thus, one of the important policy implications of this study finding is that policy-makers should give more emphasis on the policies that provide a favourable environment for private sector to grow.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1449780
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1449780
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1449780
Template-Type: ReDIF-Article 1.0
Author-Name: Sin-Yu Ho
Author-X-Name-First: Sin-Yu
Author-X-Name-Last: Ho
Author-Name: N.M. Odhiambo
Author-X-Name-First: N.M.
Author-X-Name-Last: Odhiambo
Title: Analysing the macroeconomic drivers of stock market development in the Philippines
Abstract:
This paper analyses the macroeconomic drivers of stock market development in the Philippines during the period 2001Q4–2016Q4. In particular, the paper examines the impact of banking sector development, inflation rate, exchange rate, economic growth, trade openness and stock market liquidity on the development of the Philippine stock market. Theoretical and empirical literature reveals diverse views on the relationship between each determinant and stock market development. In addition, the Philippine stock market has experienced remarkable growth in recent decades. However, there is no similar study on this country in the literature. The paper, therefore, enriches the literature by investigating the macroeconomic drivers of stock market development in the Philippines using the ARDL bounds testing procedure. The results show that trade openness has had a negative impact on Philippine stock market development in the long run, whereas banking sector development and the exchange rate have had positive impacts on the development of the Philippine stock market in the short run. These findings are robust to alternative specifications of the model.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1451265
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1451265
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1451265
Template-Type: ReDIF-Article 1.0
Author-Name: Sanjay Sehgal
Author-X-Name-First: Sanjay
Author-X-Name-Last: Sehgal
Author-Name: Piyush Pandey
Author-X-Name-First: Piyush
Author-X-Name-Last: Pandey
Author-Name: Florent Deisting
Author-X-Name-First: Florent
Author-X-Name-Last: Deisting
Title: Time varying integration amongst the South Asian equity markets: An empirical study
Abstract:
In this paper, we examine the dynamic nature of equity market integration for the South Asian countries. The daily data for local equity indices are used from 6 January 2004 to 31 March 2015. Copula GARCH models and Diebold and Yilmaz methodology have been employed to study the inter-temporal process of equity market integration. Empirical results show that the sample countries of the region exhibit very little or no levels of integration between them. Equity portfolio flows within the South Asian region reconfirms this trend for low integration in the region. Further, trend analysis of the fundamental determinants of financial integration for the SAARC countries was performed and the same was compared with its neighbouring regional economic bloc in Asia i.e. ASEAN + 6. It indicated that SAARC countries have to show sincere political commitment and require collaboration in efforts of policy realignment to work on their governance parameters, improve on their trade linkages and trade tariffs and develop their equity market infrastructure to achieve higher levels of financial integration. The paper contributes to the International Finance literature, especially dealing with regional economic blocs and has important implications for policy-makers, portfolio managers and academia.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1452328
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1452328
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1452328
Template-Type: ReDIF-Article 1.0
Author-Name: Inyong Shin
Author-X-Name-First: Inyong
Author-X-Name-Last: Shin
Title: Could pension system make us happier?
Abstract:
This paper analyzes the effect of public pension system on lifespan and happiness level using optimal longevity model. This paper found the following. Public pension system can make life expectancy longer, however, the extension of lifespan caused by the public pension, not by own decision, cannot make happiness level higher. Under the government budget constraint, the public pension system cannot make the happiness level higher comparing to private savings. This paper concludes that the compulsory public pension system should be reconsidered because it does not contribute to well-being but raises various problems like aging population and income inequality.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1452342
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1452342
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1452342
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Author-Name: Chadi Azmeh
Author-X-Name-First: Chadi
Author-X-Name-Last: Azmeh
Title: Foreign bank entry and financial development: New evidence on the cherry picking and foreign bank’s informational disadvantage phenomena in the MENA countries
Abstract:
This study investigates the impact of foreign banks entry on financial development in the MENA countries. We use the relative number of foreign banks as proxy for foreign banks entry, and liquid liabilities and claims on private sector as share of GDP as proxies for the financial development. We find a positive long-term and significant effect of foreign banks entry on the size and activity of financial development. We also find that the effect of foreign banks entry depends on the time period and the level of economic development. This result seems to suggest that MENA countries should not be taken as one group when studying the impact of financial sector reform on financial development. The impact of foreign bank entry is positive for the 10 richest MENA countries, while it is negative (but not statistically significant) or negligible for the group of less developed MENA countries. The last result indicates that there is a cherry picking phenomenon in less developed MENA countries. The negative effect of foreign banks cherry picking is diminished over time, since the period 2005-2014 show more positive impact of foreign bank entry on financial development, than the period 1995-2004. This result gives evidence that foreign banks need time to overcome informational disadvantage caused by geographical and cultural distance, to expand their lending into soft information borrowers, and to realize the expected positive effect of its entry on financial development in poorest MENA countries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1452343
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1452343
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1452343
Template-Type: ReDIF-Article 1.0
Author-Name: Yasmine Souissi
Author-X-Name-First: Yasmine
Author-X-Name-Last: Souissi
Author-Name: Anis Jarboui
Author-X-Name-First: Anis
Author-X-Name-Last: Jarboui
Title: Does CEO emotional bias affect performance?
Abstract:
This article is focused on tackling the issue of the impact of the bank CEO’s emotional bias on the Tunisian banks’ performance level while accounting for the mediating role of the control systems. In this regard, an empirical study has been set up through a questionnaire undertaken as an appropriately fit data collection method administered to a sample of 100 CEOs of Tunisian banks. Actually, the present research is intended to help in reflecting an original approach, since it serves to highlight the behavioral aspects’ crucial role in explaining the performance level within the framework of the organizational architecture theory. To the best of our knowledge, this work represents a pioneering study that deals with exploring such a research area within the Tunisian context. Indeed, the achieved results reveal with no doubt that the behavioral dimension constitutes a central aspect in the organizational architecture as it helps greatly in reflecting the intermingling of the incentive aspect with the evaluation system with respect to the accounts manager.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1453452
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1453452
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1453452
Template-Type: ReDIF-Article 1.0
Author-Name: Law Teck Poh
Author-X-Name-First: Law Teck
Author-X-Name-Last: Poh
Author-Name: Adem Kilicman
Author-X-Name-First: Adem
Author-X-Name-Last: Kilicman
Author-Name: Siti Nur Iqmal Ibrahim
Author-X-Name-First: Siti Nur Iqmal
Author-X-Name-Last: Ibrahim
Title: On intellectual capital and financial performances of banks in Malaysia
Abstract:
The purpose of the study is to consider and measure the intellectual capital towards the financial performances of the local banks in Malaysia. The study will implement the Value Added Intellectual Coefficient (VAIC) method to evaluate the financial performances of the ten local banks in Malaysia. The study will determine how the intellectual capital influences the financial performances of banks in terms of two periods which are latest six years from 2011 to 2016 and the past ten years from 2007 to 2016. The regression analysis results to indicate that the components of intellectual capital have their influences towards the bank’s financial performances indicators. Over the six years and ten years periods, Capital Employed Efficiency has the significant relationship on Return on Assets. For the Return on Equity, Human Capital Efficiency (HCE) has the significant relationship over the latest six years while Structural Capital Efficiency (SCE) has the significant relationship over the ten years. Then, SCE has the significant relationship towards the Leverage (LEV) for the latest six years compare to the past ten years whereby HCE has the significant relationship towards the LEV. These results determine that the banks need to focus on the three components of intellectual capital whereby all the three efficiencies have the influences to enhance the best financial performances in Malaysia’s banking sector.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1453574
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1453574
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1453574
Template-Type: ReDIF-Article 1.0
Author-Name: Wajiha Haq
Author-X-Name-First: Wajiha
Author-X-Name-Last: Haq
Author-Name: Noor Azina Ismail
Author-X-Name-First: Noor Azina
Author-X-Name-Last: Ismail
Author-Name: NurulHuda Mohd Satar
Author-X-Name-First: NurulHuda Mohd
Author-X-Name-Last: Satar
Title: Household debt in different age cohorts: A multilevel study
Abstract:
There is a need to identify household debt behaviour in different age cohorts even in countries without prominent household debt problems so that the measures for vulnerable groups can be made. Authors used multilevel mixed effect analysis to test the effect of age and other variables on demand of debt. A national representative survey data of HIES (2001–2013) based on stratified sampling design was used. Household debt in mature workers was higher than youth whereas debt of older people was not significantly different from other cohorts. Education and household size positively affect the demand for debt. This study contributed to existing literature by exploring the demand for debt in different age cohorts, taking into account other socio-economic variables. The design of debt products should be such that mature workers should not accumulate a high level of debt.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1455406
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1455406
Template-Type: ReDIF-Article 1.0
Author-Name: Hamid Baghestani
Author-X-Name-First: Hamid
Author-X-Name-Last: Baghestani
Title: On accuracy of survey forecasts of US mortgage spread
Abstract:
The cyclical variation behavior of the mortgage spread has motivated some studies to investigate its relationship to economic activity. Indeed, recent empirical findings indicate that the mortgage spread is a determinant/predictor of economic activity. We define the mortgage spread as the difference between the 30-year mortgage and 10-year Treasury rates and ask whether the Blue Chip (consensus) forecasts of these series are accurate for 1988–2015. Our findings indicate that the Blue Chip forecasts of both the 30-year mortgage and 10-year Treasury rates are biased, fail to outperform the random walk benchmark, and are directionally inaccurate. However, the Blue Chip forecasts of the mortgage spread are generally unbiased, outperform the random walk benchmark, and are directionally accurate—thus of value to a user. Given such evidence, a natural extension for future research is to explore whether the predictive information content of Blue Chip forecasts of the mortgage spread is a better predictor of output growth and whether it helps improve Blue Chip forecasts of output growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1457467
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1457467
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Template-Type: ReDIF-Article 1.0
Author-Name: Idi Jackson Mdoe
Author-X-Name-First: Idi Jackson
Author-X-Name-Last: Mdoe
Author-Name: George Kariuki Kinyanjui
Author-X-Name-First: George Kariuki
Author-X-Name-Last: Kinyanjui
Title: Mobile telephony, social networks and credit access: Evidence from MSMEs in Kenya
Abstract:
Access to credit by micro, small and medium enterprises is key for growth and employment. However, it is hindered by information asymmetry. We investigated the effect of mobile telephony and social networks (group networks) on the probability of access to credit by Micro, Small and Medium enterprises in Kenya. Our analysis employed cross-sectional data, the 2016 FinAccess Household Survey infographics sheet. The analysis assumed a limited dependent variable modelling. Our analysis revealed that micro-, small- and medium-sized enterprises with owners who currently have mobile banking, mobile money and group participation, respectively, have 8.8, 6.05 and 1.97 percentage points higher chance of receiving formal credit. In terms of informal credit, the analysis revealed that below five groups participation in an extra group by the MSME owner increases the probability of accessing informal credit by 6.26 percentage points. As policy measures, our analysis implies that owners of MSMEs should participate in groups and take up mobile money and banking to further their MSMEs chances of accessing formal and informal credit. In addition, the findings imply that money lenders should create strategies to tap MSMEs reputation created by groups and mobile telephony.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1459339
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1459339
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1459339
Template-Type: ReDIF-Article 1.0
Author-Name: Abhisek Sur
Author-X-Name-First: Abhisek
Author-X-Name-Last: Sur
Author-Name: Amarendu Nandy
Author-X-Name-First: Amarendu
Author-X-Name-Last: Nandy
Title: FDI, technical efficiency and spillovers: Evidence from Indian automobile industry
Abstract:
Most emerging market economies intend to attract foreign direct investment (FDI), expecting that efficiency spillovers from FDI positively influence the productivity of domestic firms. The Indian automobile industry has been a key beneficiary of FDI, ever since the economy opened up since the early 1990s. Employing a stochastic frontier analysis (SFA), this paper first compares the technical efficiency of foreign firms (FFs) vis-à-vis domestic firms (DFs) in the Indian automobile industry for the period 2001–2014. Second, the paper identifies the key determinants, which explain the differences in technical efficiency between FFs and DFs. Finally, the paper analyses the transmission of spillovers from FFs to DFs in terms of competition, demonstration, and information effects. The results reveal higher technical efficiency (TE) of foreign firms over the domestic firms; that younger firms, both domestic and foreign, were relatively more efficient; and domestic automobile firms did not benefit from exporting activities, mainly due to their inward-orientation. The analysis in this paper suggests that the spillover effects is prominent only through demonstration effect. The competition and information effects are not significant channels for transmission of spillovers from foreign to domestic firms in the Indian automobile industry.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1460026
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1460026
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1460026
Template-Type: ReDIF-Article 1.0
Author-Name: Camara Kwasi Obeng
Author-X-Name-First: Camara
Author-X-Name-Last: Kwasi Obeng
Title: Is the effect of exchange rate volatility on export diversification symmetric or asymmetric? Evidence from Ghana
Abstract:
Exchange rate volatility has been identified as one of the drivers of export diversification. Previous studies have assumed a symmetric relationship between the two variables. However, because volatility could be positive or negative and economic agents react to these changes differently, recent studies argue for the adoption of an asymmetric approach to the study of the relationship between the two variables. This study employed the partial sum process to create two variables to replace exchange rate volatility (Positive and negative variables) and utilized the Linear Autoregressive Distributed Lag (ARDL) and Nonlinear Autoregressive Distributed Lag (NARDL) techniques to investigate asymmetric effects of exchange rate volatility on export diversification in Ghana for the period 1983 to 2015. The results indicate that exchange rate volatility has asymmetric relationship with export diversification in Ghana. The study revealed that other drivers of export diversification in Ghana are income, investment, infrastructure, openness, and inflation. The paper recommends that the Central Bank should strengthen its efforts at stabilizing the exchange value of the cedi.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1460027
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1460027
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1460027
Template-Type: ReDIF-Article 1.0
Author-Name: Samuel Kwaku Agyei
Author-X-Name-First: Samuel Kwaku
Author-X-Name-Last: Agyei
Title: Culture, financial literacy, and SME performance in Ghana
Abstract:
This study extends the literature on financial literacy and cultural (Catholicism or Protestantism) beliefs to SME performance in a developing economy setting. Two basic questions motivated the study: (1) does culture influence financial literacy?; and (2) does culture mediate the relationship between financial literacy and firm performance in Ghana? The results, from 300 randomly sampled SME-Owners and based on Ordinary Least Squares and Logit regressions, suggest that cultural values militate against financial knowledge acquisition. Furthermore, Protestant beliefs strengthen the probability that SMEs would take advantage of growth opportunities due to financial literacy. Thus, the study concludes that the relationship between financial literacy and SME growth is cultural-context dependent. The study recommends that (1) religious bodies should inculcate financial education in their teachings; (2) financial literacy training programmes for SME-Owners should be tailored to meet their needs; and (3) cultural beliefs of SME-Owners should be of prime consideration in designing financial literacy programmes.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1463813
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1463813
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1463813
Template-Type: ReDIF-Article 1.0
Author-Name: Muyanja Ssenyonga Jameaba
Author-X-Name-First: Muyanja Ssenyonga
Author-X-Name-Last: Jameaba
Title: Deposit insurance and financial intermediation: The case of Indonesia Deposit Insurance Corporation
Abstract:
The article analyzes the impact of the establishment of the Indonesia Deposit Insurance Corporation (IDIC) on financial intermediation in Indonesia. The research uses technical analysis and multiple regression data analysis techniques. Results indicated that in the immediacy of IDIC establishment risk aversion increased among savers and banks alike, as reflected by a shift in the composition of bank deposits from time deposits and demand deposits to savings deposits and rising levels of Bank Indonesia certificates held by banks, respectively. However, increase in bank soundness, coupled with confidence in IDIC effectiveness, while mitigates risk-aversion behavior, it seems to have created opportunity for moral hazard in the banking system. Savers’ behavior is no longer driven by consideration of whether or not the potential custodians of their deposits are sound or other, but expected return (interest rate on deposits offered). The same applies to banks, which no longer consider risk-free Bank Indonesia certificates as a good investment. Risk-taking behavior by savers and banks alike seems to be strengthened by expectations of future government intervention for systemically important banks, raising fears of too systemically important to fail problem and continued political intervention in IDIC policymaking. Overall, IDIC establishment by bolstering public confidence in the banking system has reduced the possibility of a repeat of highly destabilizing runs on banks, hence has contributed to better financial intermediation and financial stability. However, rising moral hazard means that future bailouts are still unavoidable.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1468231
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1468231
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1468231
Template-Type: ReDIF-Article 1.0
Author-Name: Abduallah Al-Mutairi
Author-X-Name-First: Abduallah
Author-X-Name-Last: Al-Mutairi
Author-Name: Kamal Naser
Author-X-Name-First: Kamal
Author-X-Name-Last: Naser
Author-Name: Muna Saeid
Author-X-Name-First: Muna
Author-X-Name-Last: Saeid
Title: Capital budgeting practices by non-financial companies listed on Kuwait Stock Exchange (KSE)
Abstract:
Purpose—The purpose of this study is to investigate various aspects of capital budgeting techniques adopted by Kuwaiti non-financial companies listed on the Kuwait Stock Exchange (KSE). Design/methodology/approach—A questionnaire is used to collect data from Chief Executive Officers (CEOs), Chief Financial Officers (CFOs) and other managers of manufacturing, service and real estate companies listed on the KSE. Findings—The result of the analysis unveiled that top management and people who used the assets are the main sources of capital budgeting ideas. The analysis also unveiled that net present value and profitability index are the most frequently used capital budgeting techniques and the choice of the technique is determined by the nature of the project under assessment, and the academic and professional capabilities of corporate staff. The analysis further demonstrated that factors such as uncertainty about the outcome of the capital budgeting techniques and lack of required data and information to use capital budgeting techniques could prevent Kuwaiti non-financial companies from adopting capital budgeting techniques. Finally, the analysis disclosed that non-financial factors such as strategic planning, corporate image, employees’ capabilities and environment protection are taken into consideration when making capital budgeting decisions. Practical implications—Kuwaiti companies either possess technology or have the required resources to install advanced technology to assist them in employing sophisticated capital budgeting techniques that take into account inflation and risk. This would ensure more accurate results and minimize uncertainty about the outcome of the capital budgeting decisions. Originality/value—This study is based on primary data collected directly from non-financial companies listed on the KSE.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1468232
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1468232
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1468232
Template-Type: ReDIF-Article 1.0
Author-Name: Goodness C. Aye
Author-X-Name-First: Goodness C.
Author-X-Name-Last: Aye
Title: Causality between economic policy uncertainty and real housing returns in emerging economies: A cross-sample validation approach
Abstract:
This paper examines whether economic policy uncertainty (EPU) causes real housing returns in 8 emerging economies for which EPU data are available namely: Brazil, Chile, China, India, Ireland, Russia, South Africa and South Korea. Quarterly data were used for the analysis. The study uses cross-sample validation (CSV) Granger causality approach which obviates the need to partition the data into an in-sample and out-of-sample periods when limited data are available as in this study. Results based on the CSV full sample period indicate no evidence of economic policy uncertainty Granger causing real housing returns except for Chile and China. However, based on CSV rolling window results, there is evidence of time varying causality in all the countries except India. The implications of these findings are drawn.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1473708
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1473708
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1473708
Template-Type: ReDIF-Article 1.0
Author-Name: Muneer Shaik
Author-X-Name-First: Muneer
Author-X-Name-Last: Shaik
Author-Name: S. Maheswaran
Author-X-Name-First: S.
Author-X-Name-Last: Maheswaran
Title: Expected lifetime range ratio to find mean reversion: Evidence from Indian stock market
Abstract:
We use the expected lifetime range (ELR) ratio based on the extreme values of asset prices to detect the presence of mean reversion in stock returns. We find that the actual cross-sectional average of the ELR ratio is significantly less than its bootstrap means, thereby indicating a considerable amount of mean reversion. We argue that ELR ratio is more conclusive in detecting mean reversion when compared to the traditional Lo and MacKinlay variance ratio variance ratio. On the empirical side, we find that mean reversion is a robust feature among the constituents of India’s BSE SENSEX stock index.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1475926
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1475926
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1475926
Template-Type: ReDIF-Article 1.0
Author-Name: Christian K. Tipoy
Author-X-Name-First: Christian K.
Author-X-Name-Last: Tipoy
Author-Name: Marthinus C. Breitenbach
Author-X-Name-First: Marthinus C.
Author-X-Name-Last: Breitenbach
Author-Name: Mulatu F. Zerihun
Author-X-Name-First: Mulatu F.
Author-X-Name-Last: Zerihun
Title: Exchange rate misalignment and economic growth: On the possible transmission channels for emerging economies
Abstract:
Despite the large body of work that exists on the impact of exchange rate undervaluation on economic growth, only a mere literature focuses on the potential transmission mechanisms. There are authors who consider the size of the tradable sector as the operative channel through which undervaluation impacts economic growth. This is due to poor contracting environment and market failures that are prominent in the tradable sector as bad institutions “tax” tradables more than non-tradables. We look at this issue in this article for a set of emerging economies using annual data from 1970 to 2014. We find that the size of the tradable sector is indeed the operative channel through which undervaluation impacts growth. We have ruled out that bad institutions “tax” tradables more than non-tradables. Our results, robust to different undervaluation indexes, highlight instead the importance of total factor productivity surge induced by an undervaluation in increasing growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1476016
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1476016
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1476016
Template-Type: ReDIF-Article 1.0
Author-Name: Williams Agyemang-Duah
Author-X-Name-First: Williams
Author-X-Name-Last: Agyemang-Duah
Author-Name: Evans Kafui Gbedoho
Author-X-Name-First: Evans
Author-X-Name-Last: Kafui Gbedoho
Author-Name: Prince Peprah
Author-X-Name-First: Prince
Author-X-Name-Last: Peprah
Author-Name: Francis Arthur
Author-X-Name-First: Francis
Author-X-Name-Last: Arthur
Author-Name: Augustus Kweku Sobeng
Author-X-Name-First: Augustus
Author-X-Name-Last: Kweku Sobeng
Author-Name: Joshua Okyere
Author-X-Name-First: Joshua
Author-X-Name-Last: Okyere
Author-Name: Jennifer Mengba Dokbila
Author-X-Name-First: Jennifer
Author-X-Name-Last: Mengba Dokbila
Title: Reducing poverty through fiscal decentralization in Ghana and beyond: A review
Abstract:
The unfinished agenda in the theory and practice of fiscal decentralization is how fiscal decentralization affects the universal plague of poverty reduction in developing economies. Focusing on developing economies especially Ghana, and also employing secondary sources of information, this paper made an attempt to provide a holistic review of the concept of fiscal decentralization and its effects on poverty reduction from the optimist and pessimist views. The paper affirmed that fiscal decentralization has the potential for poverty reduction when it is characterized by greater financial autonomy of the local units with proper budgetary allocation, prioritization, accountability and responsiveness. Accountability and proper regulation may reduce some institutional setbacks such as corruption from the system. We, therefore, recommended for a more effective, efficient, and transparent institutional and legal framework to ensure effective fiscal transfer between the central and local governments in order to eliminate various lapses associated with fiscal decentralization as highlighted by the pessimists.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1476035
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1476035
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1476035
Template-Type: ReDIF-Article 1.0
Author-Name: M. T. Magombeyi
Author-X-Name-First: M. T.
Author-X-Name-Last: Magombeyi
Author-Name: N. M. Odhiambo
Author-X-Name-First: N. M.
Author-X-Name-Last: Odhiambo
Title: FDI inflows and poverty reduction in Botswana: an empirical investigation
Abstract:
This study investigates the impact of foreign direct investment (FDI) inflows on poverty reduction in Botswana from 1980 to 2014. The main objective of this study is to establish whether FDI plays a positive role in poverty reduction. The study employs autoregressive distributed lag (ARDL) bounds test approach to co-integration and the error correction model to investigate the relationship. To ensure robustness, the study uses three poverty reduction proxies which are household consumption expenditure (Pov1), infant mortality rate (Pov2), and life expectancy (Pov3). The findings from this study revealed that FDI has a positive impact on poverty reduction in the short run and a negative impact in the long run when life expectancy is used as a poverty reduction measure. When infant mortality rate is used as a poverty reduction proxy, an insignificant relationship is registered in both the long run and the short run. A negative impact of FDI on poverty reduction is confirmed in the short run when household consumption expenditure is used as a poverty reduction proxy, while in the long run an insignificant relationship is reported. The study concludes that the impact of FDI on poverty reduction is sensitive to the poverty reduction proxy used.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1480302
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1480302
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1480302
Template-Type: ReDIF-Article 1.0
Author-Name: John Kagochi
Author-X-Name-First: John
Author-X-Name-Last: Kagochi
Author-Name: Nazif Durmaz
Author-X-Name-First: Nazif
Author-X-Name-Last: Durmaz
Title: Assessing RTAs inter-regional trade enhancement in Sub-Saharan Africa
Abstract:
Regional Trade Agreements (RTAs) have been advocated as one way of securing trade liberalization by the IMF and World Bank. The study uses the gravity model of bilateral trade flows to empirically investigate the effects of RTAs on intra-regional trade on a set of 46 Sub-Saharan African (SSA) countries during 1995–2011 period. Our results indicate that three of the four selected RTAs have positive and statistically significant effect on the trade among the sub-Saharan African countries. Other included variables including distance, common language, shared border, shared colonial links, and common currency are found to be important determinants of trade among SSA countries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1482662
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1482662
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1482662
Template-Type: ReDIF-Article 1.0
Author-Name: Abd Halim Ahmad
Author-X-Name-First: Abd Halim
Author-X-Name-Last: Ahmad
Author-Name: Nur Adiana Hiau Abdullah
Author-X-Name-First: Nur Adiana
Author-X-Name-Last: Hiau Abdullah
Author-Name: Kamarun Nisham Taufil Mohd
Author-X-Name-First: Kamarun Nisham
Author-X-Name-Last: Taufil Mohd
Title: Market reactions to financial distress announcements: Do political connections matter?
Abstract:
We examined market reactions to the financial distress announcements of listed firms in Malaysia. We investigated whether the market differentiates between the politically connected and non-politically connected vis-a-vis the outcomes at the time of the announcements. There is evidence of differing reactions to announcements by politically connected and non-connected firms. Investors react more negatively to the non-politically connected firms as compared to the politically connected ones. In addition, in the event of emergence from financial distress, the losses of politically connected firms were lower than for the non-politically connected firms.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1483304
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1483304
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1483304
Template-Type: ReDIF-Article 1.0
Author-Name: Nisar Ahmad
Author-X-Name-First: Nisar
Author-X-Name-Last: Ahmad
Author-Name: Mian Sajid Nazir
Author-X-Name-First: Mian Sajid
Author-X-Name-Last: Nazir
Author-Name: Bilal Nafees
Author-X-Name-First: Bilal
Author-X-Name-Last: Nafees
Title: Impact of financial development and credit information sharing on the use of trade credit: Empirical evidence from Pakistan
Abstract:
Pakistan is an emerging economy and characterized by a less developed financial system where trade credit is extensively used by listed manufacturing firms (LMFs). This study is focused to investigate the effect of financial development (FD) and credit information sharing (CIS) on the trade credit used by LMFs. For this purpose, dynamic panel model is estimated by applying system GMM (two-step) estimator on the financial data of 327 manufacturing firms listed in PSX Pakistan for the period 2005–2015. Results of the study reveal that FD and CIS have significant effect on the use of trade credit by LMFs in Pakistan. It is found that increase in financial depth increases the supply of funds to the private sector, and resultantly suppliers provide more trade credit to LMFs. While in response to increase in the lending rate, suppliers reduce the transfer of costly funds to LMFs through trade credit. Furthermore, negative relationship between CIS and the use of trade credit is in accordance with the substitution hypothesis. Results of the study have practical implications for the managers of firms and policy makers alike.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1483466
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1483466
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1483466
Template-Type: ReDIF-Article 1.0
Author-Name: Abdulrahman Alrabiah
Author-X-Name-First: Abdulrahman
Author-X-Name-Last: Alrabiah
Title: Optimal regulation of banking system’s advanced credit risk management by unified computational representation of business processes across the entire banking system
Abstract:
The impetus for this paper came after the financial crisis of 2007–2008, its global consequences and specifically how incomplete information “information asymmetry” between local banks and regulators extremely affected the banking sector. Financial institutions and regulators are—from a technical point of view–not yet fully integrated and standardised. The inaccuracy in banks’ data and the long (quarterly) intervals between reports to the regulators leads to delayed interventions by local supervisory regulators. Most regional banks use an internal ratings-based approach (IRB) that allows them to use their own methods to calculate credit risks, which makes it difficult for regulators to verify and validate the banks’ data without a standardised procedure and the benefit of fully automated connectivity for the regulatory reporting system through sophisticated IT tools. The importance of this issue, for the central banks, motivates the researcher to investigate and seek technology solutions in the interests of maximising the technical efficiency of the regulatory banking system. This paper is focused on the banking regulatory reporting system that uses IRB approach to evaluate credit risk. Due to the importance and the sensitivity of IRB approach on the banking credit risk assessments, a case study is examined and a tailored regulatory reporting system framework is proposed. The proposed framework integrates a private cloud computing network with standardised, automated and integrated features that would provide regulators and practitioners with a new method to enhance the regulatory reporting system.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1486685
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1486685
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1486685
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Saqib Irshad
Author-X-Name-First: Muhammad Saqib
Author-X-Name-Last: Irshad
Author-Name: Qi Xin
Author-X-Name-First: Qi
Author-X-Name-Last: Xin
Author-Name: Hamza Arshad
Author-X-Name-First: Hamza
Author-X-Name-Last: Arshad
Title: Competitiveness of Pakistani rice in international market and export potential with global world: A panel gravity approach
Abstract:
Rice is an important source for foreign exchange earnings for Pakistan’s economy, keeping this fact in mind, this study is to calculate competitiveness of rice export of Pakistan in international market compared to largest exporter countries and this article is the first empirical attempt using a panel-gravity approach by employing PPML technique and to find out potential countries for Pakistani rice export to 144 countries over the period 2003–2016. The outcomes of this study revealed that as compared to other major exporters of rice in the international market, Pakistan had high competitive and comparative advantage in the exportation and production of rice. We confirm the positive relationship between rice export of Pakistan and the main components of the gravity model, GDP of Pakistan and trading partner, the difference in income, common border, and WTO membership and an inverse relationship with distance, exchange rates and trade agreement. The results for rice export potential suggest Pakistan still has plenty of rice export potential with 109 countries and as such Pakistan can possibly reduce and gain foreign exchange earnings to reduce the trade deficit by targeting these countries. So as to utilize the potential benefits of rice exports, policy makers need to reinforce the competitiveness in rice sector of Pakistan.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1486690
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1486690
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1486690
Template-Type: ReDIF-Article 1.0
Author-Name: Otuo Serebour Agyemang
Author-X-Name-First: Otuo Serebour
Author-X-Name-Last: Agyemang
Author-Name: John Gartchie Gatsi
Author-X-Name-First: John Gartchie
Author-X-Name-Last: Gatsi
Author-Name: Abraham Ansong
Author-X-Name-First: Abraham
Author-X-Name-Last: Ansong
Title: Institutional structures and financial market development in Africa
Abstract:
Our paper examines the relationship between institutional structures and the level of financial markets development in Africa. Our paper contributes to the extant literature by using other financial market development variables—ease of access to loans and venture capital availability—that have not before been used to analyzed how institutional structures influence the level of financial markets development in the context of Africa. We employ a two-step generalized method of moment estimator with corrected standard errors to examine this. We demonstrate that a high-quality institutional environment is relevant in explaining ease of access to loans and venture capital availability in Africa. Based on these results, our paper argues that good institutional structures could help stimulate the level of financial markets development in Africa. However, to attain this feat, African governments need to strengthen institutions through effective enforcement of laws to foster compliance in a specifically definite manner-by fashioning out costs for non-compliance
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1488342
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1488342
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1488342
Template-Type: ReDIF-Article 1.0
Author-Name: Darmawati Muchtar
Author-X-Name-First: Darmawati
Author-X-Name-Last: Muchtar
Author-Name: Fauzias Mat Nor
Author-X-Name-First: Fauzias
Author-X-Name-Last: Mat Nor
Author-Name: Wahyuddin Albra
Author-X-Name-First: Wahyuddin
Author-X-Name-Last: Albra
Author-Name: Muhammad Arifai
Author-X-Name-First: Muhammad
Author-X-Name-Last: Arifai
Author-Name: Ansari Saleh Ahmar
Author-X-Name-First: Ansari Saleh
Author-X-Name-Last: Ahmar
Title: Dynamic performance of Indonesian public companies: An analysis of financial decision behavior
Abstract:
The purpose of this research is to investigate the effects of financial decision behavior on firm performance of Indonesian public companies using panel data. The dynamic generalized method of moment is utilized in this study. The results show that firm performance is dynamic in nature, which indicates that last year performance affects current performance significantly. Empirical result of financial decision behavior shows that investment, leverage, and dividend per share (DPS) have significant impact on firm performance. Specifically, investment has negative impact on firm performance. Meanwhile leverage has negative effects on return on assets (ROA), but positively affects Tobin’s Q. Moreover, DPS positively affects ROA and Tobin’s Q. This finding suggests that investment decision of Indonesian firms is overinvestment, indicated with higher investment affects firm performance negatively. Similarly with leverage, the finding reveals that Indonesian public companies borrowed external fund more than they required (overleverage). The positive effect of DPS on firm performance implies that dividends payout to shareholders create good signal to the market, in which managers uses dividend to deliver private information to the market. However, based on the coefficient of financial decision variables, the impact is more on the market performance and less on the accounting performance.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1488343
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1488343
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1488343
Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad Enamul Hoque
Author-X-Name-First: Mohammad Enamul
Author-X-Name-Last: Hoque
Author-Name: Tahmina Akhter
Author-X-Name-First: Tahmina
Author-X-Name-Last: Akhter
Author-Name: Noor Azuddin Yakob
Author-X-Name-First: Noor Azuddin
Author-X-Name-Last: Yakob
Title: Revisiting endogeneity among foreign direct investment, economic growth and stock market development: Moderating role of political instability
Abstract:
This study investigates the endogeneity among foreign direct investment, economic growth, and stock market development, along with the moderating role of political instability on the relationship among foreign direct investment, economic growth, and stock market development. The study employs selected macroeconomic variables data for the period of 1993–2016 with Auto Regressive Distributed Lag (ARDL) system and hierarchical regression approach for hypothesis testing. This study discovers that there are short-run and long-run association among economic growth, foreign direct investment, and stock market development. In the long run, only unidirectional relationship exists among economic growth, foreign direct investment, and stock market development. However, in the short-run, bidirectional relationship is evident between economic growth and stock market development. This study reveals that foreign direct investment partially mediates the relationship between economic growth and stock market development; and political instability negatively moderates the economic growth and stock market development nexus, the foreign direct investment and stock market development nexus, and the economic growth and foreign direct investment nexus. Therefore, this study suggests that political stability is a must for Bangladesh to achieve stock market development, to increase the foreign direct investment inflows, and to achieve long term sustainable growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1492311
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1492311
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1492311
Template-Type: ReDIF-Article 1.0
Author-Name: LJ Basson
Author-X-Name-First: LJ
Author-X-Name-Last: Basson
Author-Name: Lee van den Berg
Author-X-Name-First: Lee
Author-X-Name-Last: van den Berg
Author-Name: Gary van Vuuren
Author-X-Name-First: Gary
Author-X-Name-Last: van Vuuren
Title: Performance of two zero-cost derivative strategies under different market conditions
Abstract:
Zero-cost collars are option-based strategies which—by matching prices received and paid for the component derivatives—provide costless protection for stock or index investments. The investors’ risk appetite determines a return floor by selecting a relevant put strike and the associated call strike (reverse-engineered from the [known] call value) establishes the index return’s cap. Increasing the floor increases the cap and vice versa. A butterfly strategy involves the purchase of two call options and the sale of two put options. By choosing appropriate strikes, this assembly may also be structured such that it provides a costless investment strategy. Rolling strategies involve the purchase and later sale of the derivative components at a chosen frequency (usually monthly): but the literature has, to date, not explored the potential outcomes for such procedures. Using recent historical data, the effect of different strategy maturities and strike prices on potential index returns (from several jurisdictions) are investigated. The more profitable strategy is strongly influenced by the prevailing market conditions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1492893
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1492893
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1492893
Template-Type: ReDIF-Article 1.0
Author-Name: Inderjit Kaur
Author-X-Name-First: Inderjit
Author-X-Name-Last: Kaur
Title: Effect of mutual funds characteristics on their performance and trading strategy: A dynamic panel approach
Abstract:
Investors search for criteria that are systematically related to performance of mutual funds so as to maximize their personal return. The present study is on effect of selected fund characteristics on performance of the mutual funds. The data on Indian equity mutual funds for the period 2004–2013 was utilized for the purpose. The dynamic panel data is estimated with the most efficient estimator system-Generalized Method of Moment (sys-GMM). The results show that past year’s performance, flow to funds, and cash ratio explained the fund performance measured with conditional Carhart alpha. Thus, earlier documented non-persistence in the performance of mutual funds could be due to not considering the dynamic effect of lagged dependent variable. Further, we examined whether mutual fund characteristics systematically affect the naïve beta strategies followed by mutual funds. The findings show that fund characteristics such size, expense ratio, portfolio turnover ratio, and age affect trading strategy of mutual funds. The study has implications for investors of mutual funds as they can optimize their portfolio return with a strategy based on past one-year risk adjusted conditional Carhart alpha. Further, mutual fund ranking firms can consider conditional Carhart alpha as one of the criteria to rank mutual funds.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1493019
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1493019
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1493019
Template-Type: ReDIF-Article 1.0
Author-Name: Mohamed Nejib Ouertani
Author-X-Name-First: Mohamed Nejib
Author-X-Name-Last: Ouertani
Author-Name: Nader Naifar
Author-X-Name-First: Nader
Author-X-Name-Last: Naifar
Author-Name: Hedi Ben Haddad
Author-X-Name-First: Hedi
Author-X-Name-Last: Ben Haddad
Title: Assessing government spending efficiency and explaining inefficiency scores: DEA-bootstrap analysis in the case of Saudi Arabia
Abstract:
The recent Saudi Arabia’s “Vision 2030” including the National Transformation Plan has renewed the debate on the efficiency of government spending. The aim of this paper was twofold. First, to measure the relative efficiency of Saudi Arabia’s public spending over the period 1988–2013 using non-parametric approach. Second, to explain the inefficiency scores using a DEA-Bootstrap analysis by incorporating environmental variables. The empirical results show that, on average, the public spending is inefficient, implying that Saudi Arabia can improve their performance on health, education and infrastructure without increasing spending. The empirical explanation of the inefficiency scores using a DEA-Bootstrap analysis shows that the unemployment and broad money negatively impact government expenditure mainly in the case of infrastructure and health. Our findings can be useful for policymakers in order to set out a structural adjustment plan to improve the efficiency level for education, health and infrastructure expenditures.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1493666
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1493666
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1493666
Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Olorunfemi Akande
Author-X-Name-First: Joseph Olorunfemi
Author-X-Name-Last: Akande
Title: Do competition, regulation and stability matter for efficiency in Sub-Saharan African banking sectors?
Abstract:
The excessive cost of financial intermediation in the Sub-Saharan African banking sectors motivates the investigation of whether competition, regulation and stability matter for efficiency in the banking system. Data from 440 commercial banks for the periods 2006–2015 were collected and analysed by seven-variable panel structural vector autoregressive model. There was evidence to show that efficiency responds positively and significantly to shocks in capital, liquidity and asset quality regulations and competition. However, the results reveal all the variables responding to one standard deviation shock in efficiency, suggesting that while the variables matter for efficiency, they all also require efficiency for their effective operation. Hence, the conclusion is that efficiency is central to the effective running of the banking system.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1493667
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1493667
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1493667
Template-Type: ReDIF-Article 1.0
Author-Name: Dadson Awunyo-Vitor
Author-X-Name-First: Dadson
Author-X-Name-Last: Awunyo-Vitor
Author-Name: Solomon Samanhyia
Author-X-Name-First: Solomon
Author-X-Name-Last: Samanhyia
Author-Name: Elijah Addo Bonney
Author-X-Name-First: Elijah
Author-X-Name-Last: Addo Bonney
Title: Do oil prices influence economic growth in Ghana? An empirical analysis
Abstract:
The study examined the causal linkage between oil price change and economic growth. The study made use of secondary data that were extracted from World Development Indicators and International Financial Statistics. Descriptive statistics, unit root test, Johansen cointegration test and Granger causality test were employed to analyse the data. The results of the study revealed that there exists an inverse relationship between oil price change and economic growth in Ghana. However, the effect of oil price change on economic growth is statistically insignificant in the long run. The result of the Granger causality similarly revealed a unidirectional causality between oil prices and economic. In conclusion, the variation in oil price has no effect on the growth of the Ghanaian economy; hence, policies to influence economic growth should be independently pursued of oil price changes.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1496551
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1496551
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1496551
Template-Type: ReDIF-Article 1.0
Author-Name: Derick Taylor Adu
Author-X-Name-First: Derick Taylor
Author-X-Name-Last: Adu
Author-Name: Elisha Kwaku Denkyirah
Author-X-Name-First: Elisha Kwaku
Author-X-Name-Last: Denkyirah
Title: Foreign aid— real exchange rate Nexus: Empirical evidence from Ghana
Abstract:
The contentious effect of foreign aid on real exchange rate in developing countries leading to Dutch disease necessitates further research since its impact can only be determined empirically. Using annual data gathered from the World Bank Development Index database with reference period of 1980 to 2016, we test the Dutch disease hypothesis by empirically examining the effect of foreign aid on real exchange rate in Ghana. Contrary to the findings of studies which establish non-existence of Dutch disease in Ghana, the empirical results of this study reveal otherwise, both in the short-run and long-run. To mitigate Dutch disease menace in Ghana, it is important that the country utilize its ideal productive capacity to cushion its aid-induced increased demand.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1499184
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1499184
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1499184
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Saqib Irshad
Author-X-Name-First: Muhammad Saqib
Author-X-Name-Last: Irshad
Author-Name: Qi Xin
Author-X-Name-First: Qi
Author-X-Name-Last: Xin
Author-Name: Zhang Hui
Author-X-Name-First: Zhang
Author-X-Name-Last: Hui
Author-Name: Hamza Arshad
Author-X-Name-First: Hamza
Author-X-Name-Last: Arshad
Title: An empirical analysis of Pakistan’s bilateral trade and trade potential with China: A gravity model approach
Abstract:
The decades-long history of friendly relationship in both countries bore the fruits in the form of Pakistan–China free-trade agreement (PCFTA) in 2006. This paper aims to estimate Pakistan’s bilateral trade potential with China by employing gravity model of trade in a panel data set covering the period 1992–2015. In an attempt to obtain unbiased results we have utilized various estimation methods as suggested by the recent empirical literature on gravity equation to acquire the maximum variation in results. The results from EGLS, REM, two-stage EGLS, GMM, Tobit and PPML have shown that Pakistan’ bilateral trade with all FTA partner countries is positively affected by GDPs, religion, WTO, trade openness in both countries and the common border; whereas negatively affected by geographical distance and inflation. It is also stated that common language and (Trade Agreements) PTA found to be pessimistically exaggerated bilateral trade of Pakistan with FTA partners. The overall PTA effect is negative and highly significant albeit we have found immense trade potential of Pakistan in case of China by most of the estimation techniques. The industry of Pakistan and exporters should adopt new measures to boost and diversify the exports to China and to bring about a reasonable equality in mutual trading relations.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1504409
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1504409
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1504409
Template-Type: ReDIF-Article 1.0
Author-Name: Sin-Yu Ho
Author-X-Name-First: Sin-Yu
Author-X-Name-Last: Ho
Title: Determinants of economic growth in Hong Kong: The role of stock market development
Abstract:
We assessed the impact of stock market development on growth in Hong Kong for the period 1986Q2 to 2015Q4. By constructing a composite index of stock market development and controlling for the key determinants of growth, we found stock market development to promote growth both in the short and long run. We further constructed an alternative index of stock market development and found this conclusion to be robust. Our findings are broadly consistent with the growth experience of Hong Kong. Policies meant to promote stock market development may enhance growth in Hong Kong as well.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1510718
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1510718
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1510718
Template-Type: ReDIF-Article 1.0
Author-Name: Thu Phan
Author-X-Name-First: Thu
Author-X-Name-Last: Phan
Author-Name: Kevin Daly
Author-X-Name-First: Kevin
Author-X-Name-Last: Daly
Author-Name: Anh-Tuan Doan
Author-X-Name-First: Anh-Tuan
Author-X-Name-Last: Doan
Title: The effects of risks and environmental factors on bank cost efficiency: A study in East Asia and Pacific region
Abstract:
The interrelationship between risks and bank efficiency has received much attention in banking literature for years, especially after the Asian financial crisis in 1997 and the global financial crisis (GFC) in 2008. This study collected and analyzed the data of 247 banks of 12 developed and developing economies in East Asia and Pacific area over the 2003–2012 period to find the empirical evidence for that relationships. Using a stochastic frontier approach (SFA) to estimate bank cost efficiency, we found that there are significant relationships among risks, cost efficiency and environmental factors, but they are in different levels when comparing between developed and developing economies, or between the periods of pre- and post-2008 financial crisis.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1510719
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1510719
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1510719
Template-Type: ReDIF-Article 1.0
Author-Name: M. Kateregga
Author-X-Name-First: M.
Author-X-Name-Last: Kateregga
Author-Name: S. Mataramvura
Author-X-Name-First: S.
Author-X-Name-Last: Mataramvura
Author-Name: D. Taylor
Author-X-Name-First: D.
Author-X-Name-Last: Taylor
Title: Subordinated affine structure models for commodity future prices
Abstract:
To date the existence of jumps in different sectors of the financial market is certain and the commodity market is no exception. While there are various models in literature on how to capture these jumps, we restrict ourselves to using subordinated Brownian motion by an α-stable process, α ∈ (0,1), as the source of randomness in the spot price model to determine commodity future prices, a concept which is not new either. However, the key feature in our pricing approach is the new simple technique derived from our novel theory for subordinated affine structure models. Different from existing filtering methods for models with latent variables, we show that the commodity future price under a one factor model with a subordinated random source driver, can be expressed in terms of the subordinator which can then be reduced to the latent regression models commonly used in population dynamics with their parameters easily estimated using the expectation maximisation method. In our case, the underlying joint probability distribution is a combination of the Gaussian and stable densities.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1512360
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1512360
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1512360
Template-Type: ReDIF-Article 1.0
Author-Name: Calvin Mudzingiri
Author-X-Name-First: Calvin
Author-X-Name-Last: Mudzingiri
Author-Name: John W. Muteba Mwamba
Author-X-Name-First: John W.
Author-X-Name-Last: Muteba Mwamba
Author-Name: Jacobus Nicolaas Keyser
Author-X-Name-First: Jacobus Nicolaas
Author-X-Name-Last: Keyser
Title: Financial behavior, confidence, risk preferences and financial literacy of university students
Abstract:
This study investigates determinants of financial behavior (FB) of university students at a university in South Africa. It examines whether financial behavior, confidence, time preferences, risk preferences and financial literacy perceptions of university students differ by financial literacy level. Data were gathered via a questionnaire that included personal information, FB, financial perceptions and financial knowledge responses as well as a multiple price list (MPL) risk preferences and time preferences experiment tasks. A convenient total sample of 191 students (females = 53%) participated in the study. A t-test analysis showed that FB, risk preferences, confidence levels, time preferences and financial literacy perceptions of university students significantly differed by financial literacy level. Our results show that university students with low financial literacy levels are more overconfident, risk loving and impatient; such FB is synonymous with major causes of financial crises across the world. An OLS regression model analysis showed that the risk preferences index, financial literacy perception index and confidence significantly influenced the FB of categorized university students. The risk preference index significantly influenced debt FB of categorized university students. In order to understand the FB of university students, one should take cognizance of their preferences, financial knowledge, confidence and personal characteristics.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1512366
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1512366
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1512366
Template-Type: ReDIF-Article 1.0
Author-Name: Hany Abdel-Latif
Author-X-Name-First: Hany
Author-X-Name-Last: Abdel-Latif
Author-Name: Rehab A. Osman
Author-X-Name-First: Rehab A.
Author-X-Name-Last: Osman
Author-Name: Heba Ahmed
Author-X-Name-First: Heba
Author-X-Name-Last: Ahmed
Title: Asymmetric impacts of oil price shocks on government expenditures: Evidence from Saudi Arabia
Abstract:
This paper investigates the effect of oil price shocks on government expenditures on the health and education sectors in Saudi Arabia. Using a quarterly dataset 1990Q1–2017Q2 and employing a non-linear autoregressive distributed lag (NARDL) model, our research shows evidence of a non-linear relationship between oil prices and government expenditures in Saudi Arabia, where a negative oil price shock would have a statistically significant different impact in the long run compared to a positive shock. We build upon our empirical findings and draw some policy recommendations for Vision 2030 of Saudi Arabia.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1512835
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1512835
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1512835
Template-Type: ReDIF-Article 1.0
Author-Name: Hannu Piekkola
Author-X-Name-First: Hannu
Author-X-Name-Last: Piekkola
Title: Internationalization via export growth and specialization in Finnish regions
Abstract:
Finnish regions increased their exports in special industries from 1999 to 2013. This internationalization of industries in regions is measured by the adjusted Balassa’s revealed comparative advantage index. It has been shown that innovation potential has not increased, even though R&D drives specialization and leads to an increase in exports and an improvement in trade balance. The growth of other intangible capital, such as organizational capital (management and marketing capital) and information and communication technology (ICT), has concentrated in the greater Helsinki area, but products and services are also targeted to domestic markets and depend on imports rather than promoting exports. The physical capital investment among the physical intensive firms has substituted imports rather than affecting exports. In a small open economy such as Finland’s, all these trends, together with foreign firms not being more export-oriented than domestic firms, call for a new industrial policy to promote R&D on a wide scale and continue regional specialization, thereby maintaining competitiveness and export growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1514574
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1514574
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1514574
Template-Type: ReDIF-Article 1.0
Author-Name: Hummera saleem
Author-X-Name-First: Hummera
Author-X-Name-Last: saleem
Author-Name: Wen Jiandong
Author-X-Name-First: Wen
Author-X-Name-Last: Jiandong
Author-Name: Muhammad Bilal Khan
Author-X-Name-First: Muhammad Bilal
Author-X-Name-Last: Khan
Title: The impact of economic policy uncertainty on the innovation in China: Empirical evidence from autoregressive distributed lag bounds tests
Abstract:
This study is the first attempt to scrutinize the causal relationship between economic policy uncertainty (EPU) and innovation in the case of China, using the autoregressive distributed lag (ARDL) approach to co-integration approach of innovation accounting for causality analysis. The empirical findings show that EPU can negatively affect innovation. EPU indicates a significantly negative impact on innovation as well as on the gross domestic product (GDP) growth rate. The combined results based on ARDL, innovation accounting approach (IAA) (variance decompositions and impulse response functions), and fully modified ordinary least square (FMOLS) raise an important point that calls for attention. The point is relating to the causality running from EPU to innovation. The future of China is uncertain, so when the economic uncertainty is higher, it lowers the value of future activities of the economy of China.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1514929
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1514929
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1514929
Template-Type: ReDIF-Article 1.0
Author-Name: Thobeka Ncanywa
Author-X-Name-First: Thobeka
Author-X-Name-Last: Ncanywa
Author-Name: Marius Mamokgaetji Masoga
Author-X-Name-First: Marius Mamokgaetji
Author-X-Name-Last: Masoga
Title: Can public debt stimulate public investment and economic growth in South Africa?
Abstract:
South Africa is a developing country faced with diverse challenges like high unemployment, poverty, inequality and low economic growth. In an attempt to address these issues, government can embark on borrowing and incur public debt. Countries that run large persistent public debt signal negative perceptions to investors as the debt might lead to credit risk posed by currency weakness and credit downgrades. The study investigated if public debt can influence public investment and ultimately economic growth. The autoregressive distributive lag, Granger causality, impulse response function and variance decomposition were applied to achieve the objectives. The cointegration test has found the existence of long-run relationship among the investigated variables. It turns out that in the long run there is a negative relationship between public debt and investment. Since there is direct link between investment and economic growth, there is an inverse relationship in the public debt economic growth nexus. The error correction mechanism confirmed that the system can adjust to equilibrium at a speed of 17%. There is bi-directional Granger causality relationship between public debt and economic growth. The impulse response function has found that, one standard deviation shock in public debt inversely affect economic growth. Variance decomposition results indicate that a shock to public debt account for 16.39% fluctuations in economic growth. It is recommended that a capital scarce country be encouraged to borrow so that more capital can be accumulated. However, the later stage of borrowing marked with high level of debt will lead to subdued growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1516483
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1516483
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1516483
Template-Type: ReDIF-Article 1.0
Author-Name: Komla Amega
Author-X-Name-First: Komla
Author-X-Name-Last: Amega
Title: Remittances, education and health in Sub-Saharan Africa
Abstract:
This study investigates the effects of remittances on education and health outcomes using a 5-year interval data on 46 Sub-Saharan African (SSA) countries from 1975 to 2014. Employing system GMM, remittances were found to significantly improve education and health in SSA. It was also established that improving education impacts positively on health and the reverse was also true.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1516488
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1516488
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1516488
Template-Type: ReDIF-Article 1.0
Author-Name: Md Reza Sultanuzzaman
Author-X-Name-First: Md Reza
Author-X-Name-Last: Sultanuzzaman
Author-Name: Hongzhong Fan
Author-X-Name-First: Hongzhong
Author-X-Name-Last: Fan
Author-Name: Mahamud Akash
Author-X-Name-First: Mahamud
Author-X-Name-Last: Akash
Author-Name: Banban Wang
Author-X-Name-First: Banban
Author-X-Name-Last: Wang
Author-Name: Uddin Sarker Md Shakij
Author-X-Name-First: Uddin Sarker Md
Author-X-Name-Last: Shakij
Title: The role of FDI inflows and export on economic growth in Sri Lanka: An ARDL approach
Abstract:
This paper examines the long-run and short-run relationship between Foreign Direct Investment (FDI) inflows, exports, and economic growth in Sri Lanka over 1980–2016. The study implies Autoregressive Distributed Lag (ARDL) bounds testing approach to reveal the relationship between the variables. The study indicates that FDI inflows have a positive and significant relationship with economic growth in the long-run and short run. If FDI inflows increase, GDP growth will increase. But for exports, it has a negative and significant relationship with economic growth in the long-run. If exports increase, the GDP growth will decrease. Sri Lankan exports strongly depend on primary goods. There is a risk of finite resources and price volatility. It’s not surprising for developing economy like Sri Lanka. Also, in the short run, exports have a positive and significant relationship with economic growth. If exports increase, GDP growth will increase significantly. The findings suggest that both FDI inflows and exports influence economic progress in Sri Lanka. Based on emerging market economies, FDI inflows are useful in improving the production process in the host country, and hereafter it will contribute to quality exports and the economic growth of Sri Lanka. Policymakers should emphasize to gear up all the barriers for the economic development of Sri Lanka.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1518116
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1518116
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1518116
Template-Type: ReDIF-Article 1.0
Author-Name: Junior T. Chiweza
Author-X-Name-First: Junior T.
Author-X-Name-Last: Chiweza
Author-Name: Goodness C. Aye
Author-X-Name-First: Goodness C.
Author-X-Name-Last: Aye
Title: The effects of oil price uncertainty on economic activities in South Africa
Abstract:
This paper investigates the link between oil price uncertainty shocks and key macroeconomic indicators of a net oil importing country, South Africa. Monthly data covering the period 1990:01 to 2015:12 is used. The Structural Vector Autoregressive (SVAR) methodology is applied incorporating realized volatility as an indicator of oil price uncertainty to investigate the short run effects of oil price uncertainty. The Generalised Impulse Response Functions (GIRF) analysis reveals that for most variables, oil price uncertainty shock has an adverse and persistent effect over time. Consistent with GIRF, the Generalised Forecast Error Variance Decompositions (GFEVDs) analysis also points out that oil price uncertainty shocks contributes substantially to variations in real output, inflation and various macroeconomic variables of South Africa. Therefore, SVAR analysis reveals the significant role of exogenous oil prices on the economy of South Africa when price uncertainty shocks exist. The policy implications of these findings are drawn.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1518117
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1518117
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1518117
Template-Type: ReDIF-Article 1.0
Author-Name: Dincer Dedeoglu
Author-X-Name-First: Dincer
Author-X-Name-Last: Dedeoglu
Author-Name: Kaan Ogut
Author-X-Name-First: Kaan
Author-X-Name-Last: Ogut
Title: Examination of money supply endogeneity in Turkey: Evidence from asymmetric causality test
Abstract:
In this study, we examine the money supply endogeneity in Turkish economy for the post crises period, between 2009.10 and 2016.12 by employing asymmetric causality test. Our results reveal that a positive credit shock will cause a positive shock in the money supply. That is, an increase in banking sector credit volume will cause an increase in money supply. However, such a causal impact for negative shocks is not found. Our findings show that the causality runs from bank loans to money supply for the positive components so credit cuts may not initiate a fall in money supply.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1518956
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1518956
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1518956
Template-Type: ReDIF-Article 1.0
Author-Name: Zandri Dickason
Author-X-Name-First: Zandri
Author-X-Name-Last: Dickason
Author-Name: Sune Ferreira
Author-X-Name-First: Sune
Author-X-Name-Last: Ferreira
Title: Establishing a link between risk tolerance, investor personality and behavioural finance in South Africa
Abstract:
The main objective of this paper was to establish which behavioural finance biases are associated with a certain level of risk tolerance and investor personality. Furthermore, the study aimed to indicate how these behavioural finance biases can influence investment decisions. Since behavioural finance is becoming more essential in the investment industry, further research within a South African context was regarded as necessary. Results indicated that investors with a low-risk tolerance level and a conservative investor personality are subject towards loss aversion and mental accounting biases. Investors with a high-risk tolerance level are mostly subject towards the self-control bias. The significance of this study will enable investment companies to more accurately profile their investors and to offer more refined investment options.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1519898
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1519898
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1519898
Template-Type: ReDIF-Article 1.0
Author-Name: Athenia Bongani Sibindi
Author-X-Name-First: Athenia Bongani
Author-X-Name-Last: Sibindi
Author-Name: Daniel Makina
Author-X-Name-First: Daniel
Author-X-Name-Last: Makina
Title: Are the determinants of banks’ and insurers’ capital structures homogeneous? Evidence using South African data
Abstract:
This paper investigates the factors that determine capital structures of financial firms using two separate samples of banks and insurance companies and draws comparisons therefrom. It utilizes two samples of 16 South African banks and 26 South African insurance companies for the period 2006–2015. The relationship between leverage and firm-level determinants of capital structure is tested for each sample. The results show that the standard firm-level determinants of capital structure empirically observed on non-financial firms also apply for banks and insurers. Confirming the fundamental differences between banks and insurance companies, the study observed that the 2007–2009 global financial crisis (GFC) have a negative impact on capital structures of banks (meaning that they deleverage during crises). In contrast, the GFC was found to have a positive impact on capital structures of insurance companies (meaning, unlike banks, they leverage during crises). We find that banks and insurers have target capital structures. Banks adjust to this target at an adjustment speed of 44%, whereas insurers adjust at a lower rate of 21%. In conclusion, the paper finds both commonalities and fundamental differences between the capital structures of banks and insurers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1519899
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1519899
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1519899
Template-Type: ReDIF-Article 1.0
Author-Name: Xuan Vinh Vo
Author-X-Name-First: Xuan Vinh
Author-X-Name-Last: Vo
Author-Name: Huu Huan Nguyen
Author-X-Name-First: Huu Huan
Author-X-Name-Last: Nguyen
Title: Bank restructuring and bank efficiency—The case of Vietnam
Abstract:
This study examines the link between bank restructuring and bank efficiency in Vietnamese banks employing the Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA) approach. The data sample includes 26 commercial banks over the period 1999–2015. Our finding indicates that Vietnamese government’s restructuring policies in the first stage have not been beneficial for banks implementing restructuring. Regarding the effect of different restructuring methods, we show that the privatization of state-owned commercial banks, state intervention and mergers and acquisitions (M&As) do not substantially improve efficiency. Besides, we find that bank efficiency declines during bank restructuring period because of not only transition cost but also the change of other environment variables, such as financial crisis or domestic economy slowdown.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1520423
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1520423
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1520423
Template-Type: ReDIF-Article 1.0
Author-Name: Seba Mohanty
Author-X-Name-First: Seba
Author-X-Name-Last: Mohanty
Author-Name: Jitendra Mahakud
Author-X-Name-First: Jitendra
Author-X-Name-Last: Mahakud
Title: Commercial bank capital and risk in India: Does financial crisis matter?
Abstract:
This study investigates the relationship between bank capital and risk in the Indian banking sector. The sample consists of 68 commercial banks including public-sector banks, private-sector banks and foreign banks. We employ panel granger causality test to find out the relationship between risk and capital. The result signifies that there is a unidirectional causality, i.e. risk is causing capital for all the three types of commercial banks. Furthermore, we examine the impact of risk on capital with some bank-specific variables and regulatory pressure as control variables using generalised method of moments (GMM) technique. The results reveal that bank risk, bank-specific variables and regulatory pressure are significantly affect the bank capital, and the results vary across the ownership of the banks. Finally, we examine the impact of risk on bank capital between with and without financial crisis period. We find that risk is positively affecting the bank capital ratio under both periods in the case of public-sector banks, but the rate of change is more on with financial crisis period than without crisis period. The impact of risk on bank capital has been highest for the private-sector banks.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1520424
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1520424
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1520424
Template-Type: ReDIF-Article 1.0
Author-Name: Ayse Y. Evrensel
Author-X-Name-First: Ayse Y.
Author-X-Name-Last: Evrensel
Title: Contradictory effects of religiosity on subjective well-being
Abstract:
This article provides empirical evidence for the contradictory effects of religiosity on subjective well-being (SWB). While a number of empirical studies demonstrate that higher religiosity is associated with higher happiness at the level of the individual, the published lists of happiest countries indicate that these countries are not religious. In this article, the empirical analysis is conducted at the level of the individual using a respondent-based dataset with 347,947 subjects in 96 countries as well as at the level of the country using a cross-section dataset including the same 96 countries. The empirical results at the respondent level indicate that happier people are likely to be female, younger, and healthier with higher social status and a stronger sense of control over their lives. Additionally, higher religiosity is associated with higher levels of SWB. At the country level, while religiosity tends to lose its statistical significance or negatively affect SWB, institutional quality emerges as a positive covariate of SWB. However, the country-level results are sensitive to alternative measures of SWB and religiosity.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1525115
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1525115
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1525115
Template-Type: ReDIF-Article 1.0
Author-Name: K.R. Naveen Kumar
Author-X-Name-First: K.R.
Author-X-Name-Last: Naveen Kumar
Author-Name: Iqbal Thonse Hawaldar
Author-X-Name-First: Iqbal Thonse
Author-X-Name-Last: Hawaldar
Author-Name: T. Mallikarjunappa
Author-X-Name-First: T.
Author-X-Name-Last: Mallikarjunappa
Title: Windows of opportunity and seasoned equity offerings: An empirical study
Abstract:
Taking a sample of seasoned equity offerings (SEOs) by firms listed on Bombay Stock Exchange (BSE) from the year 1992 to 2012, we examine two of the key issues concerning SEOs. First, whether SEOs are underpriced, issued at a price lower than the prevailing market price; and second, whether companies time their issues. Study of 162 SEOs exhibits significant underpricing at 1% significance level leading us to conclude that SEOs in India are significantly underpriced. Analysis of abnormal returns for 114 SEOs taking different event windows surrounding issue opening dates reveals that, except for the −1 to + 1 event window, CAAR for all other event windows are significantly negative. This leads us to conclude that investors in India experience significantly negative abnormal returns surrounding SEO issue opening. Overall, findings of the study reveal that SEOs in India are underpriced and that there exist windows of opportunity for SEOs in India.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1528688
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1528688
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1528688
Template-Type: ReDIF-Article 1.0
Author-Name: Riza Emekter
Author-X-Name-First: Riza
Author-X-Name-Last: Emekter
Author-Name: Robert Beaves
Author-X-Name-First: Robert
Author-X-Name-Last: Beaves
Author-Name: Zane Dennick-Ream
Author-X-Name-First: Zane
Author-X-Name-Last: Dennick-Ream
Title: Is stock market overpriced? A benchmark approach
Abstract:
The fact that stock market is unpredictable does not deter investors, pundits, and academicians from speculating about the next market move. This paper uses multiple benchmarks to judge the current level of the stock market. Among those benchmarks are bonds; commodities; REITs; international stocks; company earnings, sales, and profits; and GDP. Ten-year moving averages of benchmark variables are individually and then collectively compared with S&P 500 index. Although our analysis finds that fundamentals do not support the current high level of the stock market, we do find evidence that a rational bubble exists in that market using the duration dependence test.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1534303
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1534303
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1534303
Template-Type: ReDIF-Article 1.0
Author-Name: Priviledge Cheteni
Author-X-Name-First: Priviledge
Author-X-Name-Last: Cheteni
Author-Name: Gisele Mah
Author-X-Name-First: Gisele
Author-X-Name-Last: Mah
Author-Name: Yohane Khamfula Yohane
Author-X-Name-First: Yohane Khamfula
Author-X-Name-Last: Yohane
Title: Drug-related crime and poverty in South Africa
Abstract:
This paper argues that the link between poverty and drug-related crime might be spurious. We take an empirical approach to investigate the causality and plausibility of this link. Firstly, we regress crime against envisaged explanatory variables in order to estimate the contribution of poverty to crime. Secondly, data is analysed using an ARDL ECM. The quarterly sample data for our estimation is for the period 1995–2016. We found a strong association between crime and poverty both in the short and long run. We recommend the government should focus on none income linked factors in dealing with the scourge of drug-related crime. As demonstrated in this study, various drug-related crimes are driven by socio-economic factors.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1534528
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1534528
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1534528
Template-Type: ReDIF-Article 1.0
Author-Name: Fazlul Miah
Author-X-Name-First: Fazlul
Author-X-Name-Last: Miah
Author-Name: Abdoul Wane
Author-X-Name-First: Abdoul
Author-X-Name-Last: Wane
Title: Accuracy, unbiasedness, and efficiency of current account growth forecast: Evidence from a large cross section of developed and developing economies
Abstract:
We use a previously unexploited consensus survey data set to compare accuracy, unbiasedness and efficiency of Current Account growth forecasts between two panels of 25 developed and 18 developing countries following the methodologies in the existing literature. Forecast errors are bigger for the developing country comparing to the developed country. Developed country forecast errors are unbiased but inefficient. The developing country forecast errors are biased but relatively more efficient. In both the panels, forecast revisions are efficient for the same forecast horizons, but inefficient for the adjacent horizons. Additionally, we find less evidence of forecast smoothing compared to some earlier studies. Forecasters do improve their forecasts as the horizons become shorter although the forecasts fall short of being unbiased and efficient statistically.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1535234
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1535234
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1535234
Template-Type: ReDIF-Article 1.0
Author-Name: Yrgalem Gebreslassie Adane
Author-X-Name-First: Yrgalem Gebreslassie
Author-X-Name-Last: Adane
Author-Name: Tadesse Getacher Engida
Author-X-Name-First: Tadesse Getacher
Author-X-Name-Last: Engida
Author-Name: Yitbarek Abrha Asfaw
Author-X-Name-First: Yitbarek Abrha
Author-X-Name-Last: Asfaw
Author-Name: Hossein Azadi
Author-X-Name-First: Hossein
Author-X-Name-Last: Azadi
Author-Name: Steven Van Passel
Author-X-Name-First: Steven Van
Author-X-Name-Last: Passel
Title: Determinants of internal governance quality: Evidence from corporations in Ethiopia
Abstract:
The study analysed the factors that affect the internal governance quality of corporations in Ethiopia. It performed an ordered logistic regression analysis on a randomly selected sample of 76 corporations to analyse the effect of the ownership structure, form of ownership (private or government), leverage, corporate size, and sales growth on the internal governance quality score (IGQS). The governance quality score was measured using 20 indices categorized into four perspectives: disclosure, board characteristics, ethics, and shareholder rights. In this study, a significant positive effect of the corporate size and sales growth on the IGQS was found. In addition, government-owned corporations were found to perform better than privately owned corporations. It is recommended that appropriate authorities and officials should encourage the use of the corporate governance system in privately owned corporations and the convergence of internal governance quality of the two groups of corporations to the highest level.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1537051
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1537051
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1537051
Template-Type: ReDIF-Article 1.0
Author-Name: Shih-Wei Wu
Author-X-Name-First: Shih-Wei
Author-X-Name-Last: Wu
Author-Name: Juli Dutta
Author-X-Name-First: Juli
Author-X-Name-Last: Dutta
Author-Name: Chin-Yu Huang
Author-X-Name-First: Chin-Yu
Author-X-Name-Last: Huang
Title: The systematic biases in decision-making in the mutual-fund markets: Market states and disposition effect
Abstract:
We have investigated the influence of investors’ expectation of future market trends on their trading and investment decisions in various market states. The efficiency of mutual-fund markets can be threatened by systematic biases in different decision-makings. Mutual-fund investors exhibit the disposition effect whereas neither type of investor exhibits such effect in the bear market. Stock-fund investors in the bull and neutral markets exhibit the disposition effect, whereas balanced-fund investors exhibit the disposition effect only in the neutral market. This study enables mutual-fund managers to plan cash holdings in the trading of various types of mutual funds and in various market states to respond to future fund investors’ fund redemption. Multiple regression analysis is conducted to verify whether stock-fund investors are prone to exhibit the disposition effect in various market states. Stock-fund investors exhibit a higher tendency toward the disposition effect than the balanced-fund investors. In addition, in the bear market the redemption rate for the stock-fund investors is higher than that for the balanced-fund investors that resulted in a high turnover rate.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1537538
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1537538
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1537538
Template-Type: ReDIF-Article 1.0
Author-Name: Isaac Kwesi Ofori
Author-X-Name-First: Isaac
Author-X-Name-Last: Kwesi Ofori
Author-Name: Camara Kwasi Obeng
Author-X-Name-First: Camara Kwasi
Author-X-Name-Last: Obeng
Author-Name: Mark Kojo Armah
Author-X-Name-First: Mark Kojo
Author-X-Name-Last: Armah
Title: Exchange rate volatility and tax revenue: Evidence from Ghana
Abstract:
The need for the Ghanaian government to generate enough revenue for development is becoming increasingly crucial in this era of slow growth, growing unemployment and high debt. However, tax revenue performance over the years reveals an unstable pattern. One key factor that has been overlooked in the literature in terms of the determinants of tax revenue is exchange rate volatility. Coming from the background of volatility in Ghana’s exchange rate, could it be the reason for the instability in the trend of tax revenue? This question is the subject matter of this study. To estimate the effect of exchange rate volatility on tax revenue, the study employed the Auto Regressive Distributed Lag (ARDL) technique after the yearly exchange rate volatilities had been generated using the GARCH(1,1) method. The results of the study suggest that exchange rate volatility has a deleterious effect on tax revenue both in the short-run and long-run but the effect is more pronounced in the long-run than the short-run. The study recommends that the Bank of Ghana step-up its exchange rate stabilization efforts to reduce exchange rate risk imposed on international trade players.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1537822
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1537822
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1537822
Template-Type: ReDIF-Article 1.0
Author-Name: EA Ndaguba
Author-X-Name-First: EA
Author-X-Name-Last: Ndaguba
Author-Name: Barry Hanyane
Author-X-Name-First: Barry
Author-X-Name-Last: Hanyane
Title: Exploring the philosophical engagements for community economic development analytical framework for poverty alleviation in South African rural areas
Abstract:
This paper is the second paper in a series of papers on Community Economic Development Strategic Framework for Poverty Alleviation in Local Government with particular attention to the Raymond Mhlaba Local Municipality (RMLM). The objective of this paper is twofold: (i) to examine the rationale for community economic development in contemporary philosophy for poverty reduction and (ii) to develop an analytical framework for community economic development for alleviating poverty. It uses existing statistics and research data from Statistics South Africa and other indexes cushioned with over 100 research papers to generate data for this argument. Theme and narrative analysis were used to analyse the data for this paper. In conclusion, the paper demonstrated that for poverty to be alleviated—local investments, buying locally made products, patronising local shops and spaza shops, local regeneration, local reconversion, community linking, and building sustainable capital and market in communities are integral for the survival of any community that intends to be economical viable or sustainable. It recommends that one of the ways in which community viability or sustainability may be guaranteed is through regeneration/reconversion policy and a framework that articulates and harmonise sustainability issues and localisation challenges of communities in each locality.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1539942
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1539942
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1539942
Template-Type: ReDIF-Article 1.0
Author-Name: Kalugala Vidanalage Aruna Shantha
Author-X-Name-First: Kalugala Vidanalage Aruna
Author-X-Name-Last: Shantha
Author-Name: Chen Xiaofang
Author-X-Name-First: Chen
Author-X-Name-Last: Xiaofang
Author-Name: L.P.S. Gamini
Author-X-Name-First: L.P.S.
Author-X-Name-Last: Gamini
Title: A conceptual framework on individual investors’ learning behavior in the context of stock trading: An integrated perspective
Abstract:
The objective of the paper is to introduce a conceptual framework for the study of learning behavior of an individual investor in the context of stock trading. It is developed based on the review of behavioral finance literature, and insights from cognitive, behavioral and social learning theories and related empirical evidence. The framework recognizes the investor as an entity that learns consciously and/or unconsciously for continually updating its perspectives underlying stock trading. The intentional or consciousness form of learning occurs as individual learning through reflection of past trading experiences whereas the learning happens unconsciously as social learning through inquiry and imitating the others’ behaviors. These learning processes are expected to be affected by interaction of various structures and processes, both internal and external to the investor, such as cognitive, affective, social and behavioral ones. Accordingly, the framework suggests five hypotheses to examine the determinants of these learning behaviors and to assess whether the investors learn over passage of time through the effects of these structures and processes. It promotes primary data-based behavioral finance empirical studies to track dynamics involved in learning, which could provide new insights on such behavior predicted by the adaptive market hypothesis.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1544062
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1544062
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1544062
Template-Type: ReDIF-Article 1.0
Author-Name: Hamid Waqas
Author-X-Name-First: Hamid
Author-X-Name-Last: Waqas
Author-Name: Rohani Md-Rus
Author-X-Name-First: Rohani
Author-X-Name-Last: Md-Rus
Title: Predicting financial distress: Importance of accounting and firm-specific market variables for Pakistan’s listed firms
Abstract:
This study is intended to identify the predictors of financial distress for the Pakistani firms. Variables used are the financial ratios representing profitability, liquidity, leverage, and cash flows, as well as two important market factors which are size and idiosyncratic standard deviation of each firm’s stock returns (SIG). The sample consists of 290 firms stretching from 2007 to 2016 and logit regression is applied to predict financial distress. The findings reveal that profitability, liquidity, leverage, cash flow ratios, and firm size are significant, while SIG is insignificant in predicting financial distress. Results of the estimated logit model I, model II, and holdout model reveal that the models perform consistently. This study contributes to the literature by testing the market variables in relation to financial distress as these variables were ignored by the previous studies in Pakistan. Findings of this study are precise as the study covers a longer time horizon and a larger sample size.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1545739
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1545739
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1545739
Template-Type: ReDIF-Article 1.0
Author-Name: Timothy O. Aluko
Author-X-Name-First: Timothy O.
Author-X-Name-Last: Aluko
Author-Name: Paul Kibuuka
Author-X-Name-First: Paul
Author-X-Name-Last: Kibuuka
Title: Effectiveness of the Co-operative Grant Incentive Scheme (CIS) on beneficiary firms’ job creation capacity in South Africa
Abstract:
This paper investigates the effect of Co-operative Incentive Scheme (CIS) on beneficiary firms’ job creation capacity and presents empirical evidence generated from operation of the CIS aimed at supporting co-operative enterprises in South Africa. The paired-sample t-tests were applied in determining the effectiveness of the CIS grant incentive programme by comparing employees before and after implementation of the programme. Two employment (job creation) models were formulated based on OLS regression models. Our results suggest that the CIS grant funding programme in South Africa has not effectively contributed to beneficiary firms’ employment capacity between the financial periods of 2011/2012 and 2015/2016 under study. We found that the amount approved made a significant contribution to the number of employment opportunities created in beneficiary firms. Within the same period, the beneficiary firms’ employment creation was lower with respect to the employment figure recorded by the beneficiaries’ firm at application. This may be due to overestimation of the employment figure that was recorded at application by the CIS beneficiary firm. This observation is consistent with other studies, which observed that beneficiary firms of grant incentives overstated their declared employment targets at application to influence their chances of benefiting from such grant schemes.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1545740
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1545740
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1545740
Template-Type: ReDIF-Article 1.0
Author-Name: Varaidzo batsirai Shayanewako
Author-X-Name-First: Varaidzo batsirai
Author-X-Name-Last: Shayanewako
Author-Name: Asrat Tsegaye
Author-X-Name-First: Asrat
Author-X-Name-Last: Tsegaye
Title: The impact of interest rate spread on the banking system efficiency in South Africa
Abstract:
The banking industry is the engine of economic activities of the modern day financial systems. As such, banks play a very significant part in supporting economic growth through the efficient allocation of resources and risk diversification in an environment of optimal interest rate spread. Therefore, the understanding of the impact of interest rate spread on the banking system efficiency demands that an empirical inquiry of this nature be conducted. In this paper, we seek to empirically investigate the impact of interest rate spread on the banking system efficiency in South Africa for the period from 2000Q1 to 2017Q3 by employing the nonlinear autoregressive distributed lags framework. Evidence from this study suggests the presence of asymmetries in the interest rate spread behavior. Specifically, in the long run, we find a significant negative relationship between banking efficiency and a positive shock to interest rate spread. Furthermore, a negative shock to interest rate spread improves banking efficiency by about 0.3% in the long run. The results of this study further suggest that economic growth and real exchange rate are significant factors that positively influence the banking system efficiency and nonperforming loans retard the efficiency of the banking system in South Africa.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1546417
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1546417
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1546417
Template-Type: ReDIF-Article 1.0
Author-Name: Eissa A. Al-Homaidi
Author-X-Name-First: Eissa A.
Author-X-Name-Last: Al-Homaidi
Author-Name: Mosab I. Tabash
Author-X-Name-First: Mosab I.
Author-X-Name-Last: Tabash
Author-Name: Najib H. S. Farhan
Author-X-Name-First: Najib H. S.
Author-X-Name-Last: Farhan
Author-Name: Faozi A. Almaqtari
Author-X-Name-First: Faozi A.
Author-X-Name-Last: Almaqtari
Title: Bank-specific and macro-economic determinants of profitability of Indian commercial banks: A panel data approach
Abstract:
This study aims at finding out the determinants of Indian commercial banks profitability. Profitability of Indian banks is measured by three important variables namely, Return on Assets (ROA), Return on Equity (ROE) and Net Interest Margin (NIM). The study also uses a set of independent variables such as bank-specific factors which include bank size, assets quality, capital adequacy, liquidity, operating efficiency, deposits, leverage, assets management and the number of branches. Pooled, fixed and random effects models and Generalized Method of Moments (GMM) are built on panel data of 10 years for more than 60 commercial banks of India.The study also takes into account Gross Domestic Product (GDP), inflation rate, interest rate and exchange rate as macroeconomic determinants. The results of the study show that all bank-specific factors, except the number of branches, exhibited significant impacts on profitability as measured by NIM. The findings also show that all macroeconomic determinants used in the study are found to be significant with negative impacts on Indian commercial banks profitability. Furthermore, the results show that bank size, number of branches, assets management ratio and leverage ratio are highly significant variables of profitability in the context of Indian commercial banks as measured by ROA. The results give a better insight into the Indian banking sector and the determinants of its profitability
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1548072
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1548072
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1548072
Template-Type: ReDIF-Article 1.0
Author-Name: Yunsoo Choi
Author-X-Name-First: Yunsoo
Author-X-Name-Last: Choi
Author-Name: Dohyeon Kim
Author-X-Name-First: Dohyeon
Author-X-Name-Last: Kim
Title: The effects of investor types on investees’ performance: Focusing on the seed accelerator
Abstract:
Entrepreneurial firms in their early stages cannot finance their own capital sufficiently; hence, external investment is crucial for their survival. Angels, venture capital, and governmental support have played key roles in entrepreneurial financing. Accelerators, a new type of early-stage investor, have been rapidly growing in recent years, and have attracted strong attention. They provide financial support to entrepreneurial firms in their early stages along with mentorship, education, and networking services. However, the advantages of accelerators over existing funding avenues have yet to be proven. Therefore, this study analyzes the behavior and performance of accelerators, angels, and venture capital. We used 30,523 investment data regarding accelerators, angels, and venture capital from the CrunchBase database. By conducting multiple regression and survival analyses, we found that the performance of accelerators differs from that of venture capital, but is similar to that of angels. While accelerators’ investees perform well post funding, venture capitals’ investees perform well in terms of survivability. This study empirically verifies accelerator-related qualitative research. Additionally, we believe our results will contribute to future accelerator-related research and policy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1550870
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1550870
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1550870
Template-Type: ReDIF-Article 1.0
Author-Name: Ranjeeta Sadhwani
Author-X-Name-First: Ranjeeta
Author-X-Name-Last: Sadhwani
Author-Name: Suresh Kumar Oad Rajput
Author-X-Name-First: Suresh Kumar
Author-X-Name-Last: Oad Rajput
Author-Name: Ume Habibah
Author-X-Name-First: Ume
Author-X-Name-Last: Habibah
Title: Do sentiment indices impact the premium of prominent pricing factors?
Abstract:
This study investigates whether Google Search Volume Indices (GSVIs) bring shifts in the expected return of prominent pricing factors in comparison to the Volatility Index (VIX). The results show that compared to VIX, GSVIs bring less significant changes in expected premium on Fama–French’s five-factors and q-factors. Pessimistic sentiment indices (Market Crash and Bear Market) predict more significant variation in the premium of prominent pricing factors than optimistic sentiment indices (Market Rally and Bull Market), and also have a significant correlation with VIX representing downside risk. Furthermore, the sentiment indices are better in predicting premium on five-factors than q-factors.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1550898
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1550898
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1550898
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Correction
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1552821
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1552821
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1552821
Template-Type: ReDIF-Article 1.0
Author-Name: Wuthiya Saraithong
Author-X-Name-First: Wuthiya
Author-X-Name-Last: Saraithong
Title: Trade restriction rationale for food safety implementation: Evidence from Southeast Asian Countries
Abstract:
In response to the widespread use of food safety standards as a tool for restricting international trade, this study attempts to answer whether Southeast Asian countries follow this protectionist trend or not. It employs the political economy framework and focuses on the case of the implementation of maximum residue limits (MRLs) on 113 food products which these countries import from their trading partners. The study utilizes the logit model and marginal effects to find the determinants of MRLs implementation. The estimation includes both the seven-countries and the single-country models. As for the former, the result indicates that Southeast Asian countries simultaneously use MRLs both to raise people’s quality of life via food safety implementation and to protect import-competing producers. On the other hand, each single-country model provides a clearer picture of the reasons for its enforcement of MRLs; one is with trade restriction motive, while the others are with welfare improving purpose.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1553278
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1553278
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1553278
Template-Type: ReDIF-Article 1.0
Author-Name: Sibanjan Mishra
Author-X-Name-First: Sibanjan
Author-X-Name-Last: Mishra
Author-Name: Soumya G. Deb
Author-X-Name-First: Soumya G.
Author-X-Name-Last: Deb
Title: Predictors of firm growth in India: An exploratory analysis using accounting information
Abstract:
This paper aims at identifying relevant financial factors which critically affects firm revenue growth. We specifically focus on the dynamic nature of such factors across up or down-market cycles and also for different scales and size of business. The study uses annual data of 17 accounting and financial variables for a sample of 1,450 Indian firms which exist continuously between 2003 and 2014 and generate a framework for identification of critical factors which affect firm revenue growth. We employ a variable reduction technique via principal component analysis (PCA), and then use the “principal factors” identified thereon, in a logistic regression approach to develop such a framework. The study finds efficiency in management of current assets and capital (both short- and long-term) to be the most critical factors, determining the firm revenue growth in Indian context. The relative importance of capital deployment efficiency is more for small firms than for large firms whereas asset management efficiency is the most critical factor in larger firms. Long-term solvency supersedes all other factors during market downturns. These findings may have important implications for firms and its stakeholders as a priori knowledge on the importance of critical factors regarding firm’s revenue growth could enable the mangers to support them in their decision-making process.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1553571
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1553571
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1553571
Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Dery Nyeadi
Author-X-Name-First: Joseph Dery
Author-X-Name-Last: Nyeadi
Author-Name: Yakubu Awudu Sare
Author-X-Name-First: Yakubu Awudu
Author-X-Name-Last: Sare
Author-Name: Godfred Aawaar
Author-X-Name-First: Godfred
Author-X-Name-Last: Aawaar
Title: Determinants of working capital requirement in listed firms: Empirical evidence using a dynamic system GMM
Abstract:
Working capital management is a critical element in the survival of every firm. While the effective management of working capital leads to value creation in firms, ineffective management of working capital, on the other hand, does not only destroy value but can lead to the eventual solvency of the firm. The search for the factors that influence working capital management has, therefore, become a worthwhile exercise embarked upon by both managers and scholars. The main aim of this study is thus to empirically investigate the determinants of working capital requirement on the listed firms in Ghana. In examining the determinants of working capital requirements, 28 firms listed on the Ghana Stock Exchange were used for a time period of 8 years, spanning from 2007 to 2014. The study employed a dynamic panel system of General Methods of Moments (GMM) to test the hypotheses. This estimator has the ability to produce consistent and unbiased results when even there is an endogeneity in the model. This, therefore, makes our results more efficient and reliable. First, the study suggests that working capital in Ghanaian firms is determined by profitability, age, sales growth, GDP growth, operating cycles and leverage. Second, it is realized that while age, profitability and operating cycle strongly impacts positively on working capital, GDP growth, sales growth and leverage inversely correlate with working capital.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1558713
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1558713
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1558713
Template-Type: ReDIF-Article 1.0
Author-Name: Ahmed Imran Hunjra
Author-X-Name-First: Ahmed Imran
Author-X-Name-Last: Hunjra
Title: Mediating role of dividend policy among its determinants and organizational financial performance
Abstract:
The mediating mechanism of dividend policy remained untapped between financial performance, uncertainty, corporate social responsibility (CSR) and stakeholders’ interest. However, this study contributes to the body of knowledge and discovers the mediating role of dividend policy between financial performance, uncertainty, CSR and stakeholders’ interest. Data is collected through a questionnaire from CFO’s/financial managers of Pakistani corporate sector. Structural Equation Modeling (SEM) is used to analyze the results through AMOS. Uncertainty, CSR, and stakeholders’ interests have a significant impact on financial performance. It is found partial mediation between uncertainty and financial performance whereas dividend policy fully mediates the CSR, stakeholders’ interest and financial performance.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1558714
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1558714
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1558714
Template-Type: ReDIF-Article 1.0
Author-Name: Atanas Sixpence
Author-X-Name-First: Atanas
Author-X-Name-Last: Sixpence
Author-Name: Olufemi Patrick Adeyeye
Author-X-Name-First: Olufemi Patrick
Author-X-Name-Last: Adeyeye
Title: Perception of negative earnings persistence and value relevance: Evidence from Zimbabwe
Abstract:
This paper investigates the impact of negative earnings persistence on the value relevance of earnings before interest and taxes (EBIT) and book values for 27 non-financial firms listed on the Zimbabwe Stock Exchange (ZSE). Negative earnings are perceived to be persistent where firms reported losses in at least 25% of the time over the eight-year study period. Two-step System GMM was used, with the average debt-equity ratio and net asset value per share being additional regression instruments. The regressions were primarily done on the ZSE full sample, and then on a profit-reporting firms’ sample. The loss-reporting firms’ sample was too small for meaningful regressions. It was found that when loss-firms were removed from the sample, value relevance of EBIT and book value declined. This means that investors are very meticulous with firms they perceive to be persistent loss-makers but tend to be complacent with profit-firms.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1559711
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1559711
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1559711
Template-Type: ReDIF-Article 1.0
Author-Name: Hiroshi Ito
Author-X-Name-First: Hiroshi
Author-X-Name-Last: Ito
Author-Name: Ryosuke Sekiguchi
Author-X-Name-First: Ryosuke
Author-X-Name-Last: Sekiguchi
Author-Name: Toshiyuki Yamawake
Author-X-Name-First: Toshiyuki
Author-X-Name-Last: Yamawake
Title: Debt swaps for financing education: Exploration of new funding resources
Abstract:
As an innovative financial mechanism to explore additional funds for social development programs in developing countries, debt swaps for development, including debt-for-education swaps, became popular between the 1980s and 2000s. Their popularity, however, seems to have diminished since the beginning of the 2010s. This article describes debt swaps for development with a focus on debt-for-education swaps, explaining how they became popular, examining why they have lost momentum, and exploring whether debt-for-education swaps are a feasible option for funding social development programs. Despite recent economic recovery and growth worldwide, one of the key obstacles for achieving the United Nations’ Sustainable Development Goal 4—to ensure inclusive and equitable quality education and promote lifelong learning opportunities for all—remains inefficient funding for education programs in developing countries. Based on the findings, this article argues for the feasibility of debt-for-education swaps to seek funding with a number of conditions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1563025
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1563025
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1563025
Template-Type: ReDIF-Article 1.0
Author-Name: Xiangsheng Dou
Author-X-Name-First: Xiangsheng
Author-X-Name-Last: Dou
Title: The determinants of money demand in China
Abstract:
Money demand and its stability have a great impact on the economy of a country. Because China’s financial and monetary system has been in reform, there are many uncertainties in money demand. Especially, China’s money demand has its own particularity. This paper studies the determinants of China’s money demand through building a linear econometric model and SVAR model. The empirical results show that China’s money demand is mainly decided by income, interest rate and expected inflation rate. However, other factors, such as financial innovation, government debt, capital mobility and currency substitution, play a relatively small role, mainly because China’s financial and monetary system has been under reform. The regression results of sample data from different periods show that money demand in China is unstable, indicating that China’s macro-economy has certain risks. This finding suggests that China should adopt prudent financial and monetary policies to cope with the uncertainty of money demand in the future.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 6
Year: 2018
Month: 1
X-DOI: 10.1080/23322039.2018.1564422
File-URL: http://hdl.handle.net/10.1080/23322039.2018.1564422
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Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1564422
Template-Type: ReDIF-Article 1.0
Author-Name: Modisane B. Seitshiro
Author-X-Name-First: Modisane B.
Author-X-Name-Last: Seitshiro
Author-Name: Hopolang P. Mashele
Author-X-Name-First: Hopolang P.
Author-X-Name-Last: Mashele
Author-Name: Stephanos Papadamou
Author-X-Name-First: Stephanos
Author-X-Name-Last: Papadamou
Title: Assessment of model risk due to the use of an inappropriate parameter estimator
Abstract:
The purpose of this study is to assess model risk with respect to parameter estimation for a simple binary logistic regression model applied as a predictive model. The assessment is done by comparing the effectiveness of eleven different parameter estimation methods. The results from the historical credit dataset of a certain financial institution confirmed that using several optimization methods to address parameter estimation risk for predictive models is substantial. This is the case, especially when there exists a numerical optimization method that estimates the optimum parameters and minimizes the cost function among alternative methods. Our study only considers a univariate predictor with a static sample size of cases. This research work contributes to the literature by presenting different parameter estimation methods for predicting the probability of default through binary logistic regression model and determining optimum parameters that minimize the objective model’s cost function. The Mini-Batch Gradient Descent method is revealed to be the better parameter estimator.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2019.1710970
File-URL: http://hdl.handle.net/10.1080/23322039.2019.1710970
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1710970
Template-Type: ReDIF-Article 1.0
Author-Name: Abdul Rahman
Author-X-Name-First: Abdul
Author-X-Name-Last: Rahman
Author-Name: Muhammad Arshad Khan
Author-X-Name-First: Muhammad Arshad
Author-X-Name-Last: Khan
Author-Name: Lanouar Charfeddine
Author-X-Name-First: Lanouar
Author-X-Name-Last: Charfeddine
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Financial development–economic growth nexus in Pakistan: new evidence from the Markov switching model
Abstract:
This paper investigates the impact of financial development on economic growth in Pakistan using the Markov Switching Model over the period 1980–2017. The results based on two-state Markov switching model confirm the Schumpeter’s view that finance spurs growth. The result reveals that financial development augments economic growth in both high and low economic growth regimes in Pakistan. However, the impact of financial development on economic growth is found to be relatively higher in the high-growth regime. This implies that economic growth responds differently to financial development in low-growth and high-growth regimes. Among the control variables, trade openness and government expenditures impact economic growth positively, while labour force exerts a negative impact on economic growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1716446
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1716446
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1716446
Template-Type: ReDIF-Article 1.0
Author-Name: Balagopal Gopalakrishnan
Author-X-Name-First: Balagopal
Author-X-Name-Last: Gopalakrishnan
Author-Name: Sanket Mohapatra
Author-X-Name-First: Sanket
Author-X-Name-Last: Mohapatra
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: The effects of reporting standards and information sharing on loan contracting: Cross-country evidence
Abstract:
Institutional factors that enhance the quality of financial reporting and sharing of credit information can alleviate informational gaps between contracting parties and improve loan contract terms. Using cross-country data on syndicated loans, we find that the cost of debt financing is lower for riskier borrowers in countries with stronger reporting standards and improved credit information sharing. We also find that information quality is more important as compared to information sharing for loan pricing. Both of these effects are larger during periods of higher economic policy uncertainty when information asymmetry is likely to be higher. Our findings suggest that better availability of hard information plays a positive role in reducing borrowing costs of riskier firms.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1716920
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1716920
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1716920
Template-Type: ReDIF-Article 1.0
Author-Name: Ambreen Khursheed
Author-X-Name-First: Ambreen
Author-X-Name-Last: Khursheed
Author-Name: Muhammad Naeem
Author-X-Name-First: Muhammad
Author-X-Name-Last: Naeem
Author-Name: Sheraz Ahmed
Author-X-Name-First: Sheraz
Author-X-Name-Last: Ahmed
Author-Name: Faisal Mustafa
Author-X-Name-First: Faisal
Author-X-Name-Last: Mustafa
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Adaptive market hypothesis: An empirical analysis of time –varying market efficiency of cryptocurrencies
Abstract:
This study examines the adaptive market hypothesis (AMH) in relation to time-varying market efficiency by using three tests, namely Generalized Spectral (GS), Dominguez-Lobato (DL) and the automatic portmanteau test (AP) test on four-digital currencies; Bitcoin, Monaro, Litecoin, and Steller over the sample period of 2014–2018. The study applies Jarque-Bera test, ADF test, Ljung-Box statistics and ARCH-LM test for testing normality of returns, stationarity of series, serial correlation and volatility clustering in returns and squared returns of selected cryptocurrencies. Further, the study adopts an extremely important category of martingale difference hypothesis (MDH), which uses non-linear methods of dependencies for identifying changing linear and non-linear dependence in the price movement of currencies. The results indicate that price movements with linear and nonlinear dependences varies over time. Our tests also reveal that Bitcoin, Monaro and Litecoin have the longest efficiency periods. While Steller shows the longest inefficient market period. In view of varying market conditions, the results indicate that different market periods have significant impact on prices fluctuations of cryptocurrencies. Therefore, our findings suggest implementing the adaptive market hypothesis (AMH) as predicting changes in cryptocurrency prices over time must consider the time-varying market conditions for efficient forecasting.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1719574
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1719574
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1719574
Template-Type: ReDIF-Article 1.0
Author-Name: Bismark Addai
Author-X-Name-First: Bismark
Author-X-Name-Last: Addai
Author-Name: Adjei Gyamfi Gyimah
Author-X-Name-First: Adjei Gyamfi
Author-X-Name-Last: Gyimah
Author-Name: Kwadwo Poku-Agyemang
Author-X-Name-First: Kwadwo
Author-X-Name-Last: Poku-Agyemang
Author-Name: Evan Lau
Author-X-Name-First: Evan
Author-X-Name-Last: Lau
Title: Exchange rate regimes and global cocoa trade: to float or to peg?
Abstract:
The effectiveness of different exchange rate systems continues to attract the attention of many scholars, however, most discussions on exchange rate regimes have focused on how the phenomenon affects economic growth, economic stability, financial crises, international tourism, and international trade in general. In this study, we explore the effect of exchange rate regimes that has so far escaped the attention of many scholars in the exchange rate literature, the effect of exchange rate regimes on global cocoa trade. STATA statistical tool was employed in analyzing panel data from 10 leading cocoa-producing countries from 1980 to 2016. With the justification of the Hausman test, the fixed effects estimation method was used. The main effect observed was that countries suffered a statistically significant negative effect on net exports if they pegged their currencies to the Euro, but countries with floating exchange rates regimes do not suffer that effect. Therefore, this study recommends that countries adopt a more flexible exchange rate system, particularly if they are exporters of agricultural raw materials and products. Most cocoa-producing countries grow cocoa as a cash crop, thus, rely heavily on the trade of cocoa beans and other product. Therefore, it would be counterintuitive to have all the profits from the trade of cocoa to be wiped out by the rigidity of an exchange rate regime.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1719593
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1719593
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1719593
Template-Type: ReDIF-Article 1.0
Author-Name: Rakesh Kumar Sharma
Author-X-Name-First: Rakesh Kumar
Author-X-Name-Last: Sharma
Author-Name: Apurva Bakshi
Author-X-Name-First: Apurva
Author-X-Name-Last: Bakshi
Author-Name: Sheena Chhabra
Author-X-Name-First: Sheena
Author-X-Name-Last: Chhabra
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Determinants of behaviour of working capital requirements of BSE listed companies: An empirical study using co-integration techniques and generalised method of moments
Abstract:
The paper investigates the determinants of working capital to forecast the future requirement of working capital of BSE-listed top 150 companies in India. The study is conducted by collecting the data of 150 top-performing BSE listed companies for the time period of 2009–2017. The ten firm-level explanatory variables and one dummy variable to characterize the nature of business i.e. manufacturing and service sector companies are used to discover the significant determinants of gross and net working capital of selected companies. The four alternative methods are used to verify and validate the results obtained from each other viz. Ordinary Least Square (OLS), fully modified OLS (FMOLS), dynamic OLS (DOLS) and generalized methods of moments (GMM). The empirical findings of four different methods indicate that tangibility, leverage, nature of business and board size are observed as significant factors to forecast the future requirements of net working capital. Return on common equity (ROCE), board size; indicate the positive association with gross working capital. On the other hand, tangibility, nature of business and size of the firm show a negative relationship with gross working capital requirements. The findings from different methods have resulted in similar significant determinants to predict the future requirement of the net and gross working capital. The outcome of the study will be useful for management authorities for maintaining the optimum level of working capital and to forecast future requirements of working capital.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1720893
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1720893
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1720893
Template-Type: ReDIF-Article 1.0
Author-Name: Adams Sorekuong Yakubu Adama
Author-X-Name-First: Adams Sorekuong Yakubu
Author-X-Name-Last: Adama
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Financial contracting and misreporting with limited enforcement, firm financing and growth
Abstract:
This article employs a dynamic stochastic general equilibrium framework to examine asymmetric information and limited contract enforcement in financial markets, where firms have access to both internal and external sources of finance. It considers limited enforcement of financial contract in the form of firm’s ability to misreport and default on output when it is still solvent, that is, a form of institutional weaknesses in holding defaulters to account. The model shows how institutional weakness in the form of limited enforceability of financial contracts affects fluctuations in key macroeconomic variables such as output, employment and investment via its impact on interest rates, risk premium, default risk and leverage. The findings show that limited contract enforcement amplifies the effects of shocks and lower small firm funding. The sensitivity analysis shows that weak contract enforcement affects firm growth and also leads to welfare losses to the society. This study is relevant for developing countries, where there is often poor quality of institutions and the paper suggests that improving such quality has the potential to improve the prospects of such countries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1723826
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1723826
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1723826
Template-Type: ReDIF-Article 1.0
Author-Name: Gurmeet Singh
Author-X-Name-First: Gurmeet
Author-X-Name-Last: Singh
Author-Name: Lakshmi Padmakumari
Author-X-Name-First: Lakshmi
Author-X-Name-Last: Padmakumari
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Stock market reaction to inflation announcement in the Indian stock market: A sectoral analysis
Abstract:
This study investigates the reaction of stock returns to the inflation announcement using time series data from 2012 to 2018. To check the market efficiency or semi-strong efficiency of the Indian Stock Market for inflation announcement, we have used an event study methodology. We selected nine events based on consensus estimate and actual inflation number; we put events into subgroups based on over-estimation, under-estimation, and accurate estimation. We performed an event study on inflation-sensitive sectors such as Banking, Energy, Realty, Service, and FMCG. To check for the above objectives, we calculated Average Abnormal Return (AAR), Cumulative Abnormal Return (CAR), and Cumulative Average Abnormal Return (CAAR). The finding of the study suggests that there are considerable abnormal returns, which are a function of the sector and the regime. Some sectors are more sensitive to inflation announcements, and some regimes are again more sensitive to inflation announcements.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1723827
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1723827
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1723827
Template-Type: ReDIF-Article 1.0
Author-Name: Japhet Osazefua Imhanzenobe
Author-X-Name-First: Japhet
Author-X-Name-Last: Osazefua Imhanzenobe
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Managers’ financial practices and financial sustainability of Nigerian manufacturing companies: Which ratios matter most?
Abstract:
The study aims to identify which aspects of financial practices of managers need to be given priority in achieving a turnaround in the financial sustainability of these manufacturing companies across long-term returns, sustainable growth and financial distress. Currently, the Nigerian manufacturing sector experiences a decline in financial sustainability, thus forcing financially unsustainable companies out of business. Financial practices that improve the long-term financial position and performance need to be implemented. These financial practices can be measured across short-term profitability, efficiency, liquidity and solvency. Some studies have considered sustainability from a financial perspective using one or two measures but very few focus on the Nigerian manufacturing sector. This study fills these gaps by investigating the impact of financial practices on financial sustainability across these measures. Panel dataset for 17 companies from 2008 to 2016 was collected and analysed using the correlation matrix and random effect model. All regressors were significant in explaining financial distress. However, only short-term profitability and efficiency ratios were consistently significant across all three models, thus indicating the superiority of financial practices that affect short-term profits and efficiency. The study recommends that companies should implement financial policies that address periodic costs and productivity while maximizing marketing efforts simultaneously.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1724241
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1724241
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1724241
Template-Type: ReDIF-Article 1.0
Author-Name: Jalaj Pathak
Author-X-Name-First: Jalaj
Author-X-Name-Last: Pathak
Author-Name: Soumya G. Deb
Author-X-Name-First: Soumya G.
Author-X-Name-Last: Deb
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Stylized patterns in implied volatility indices and stock market returns: A cross country analysis across developed and emerging markets
Abstract:
Purpose: This paper examines the associative and causal relationship between changes in the implied volatility index (VIX) and stock market returns, with data from 15 countries representing both developed and emerging economies.1 We also examine the dynamic variation, if any in the nature of the relationship across bull and bear market swings in these markets. Design/Methodology/Approach: We use daily time series data between January 2013 to July 2019, on VIX and stock index from these countries and employ regression and causality models to explore the nature of the relationship between VIX and stock market movements. We also explore differential patterns, if any, across the countries and bull and bear market cycles in each of these countries. We substantiate our results from the main analysis using a series of robustness tests. Findings: For most countries, we find strong evidence of a negative and asymmetric relationship between the stock market and VIX movement, irrespective of the bear and bull market cycles. We also find that this relation is asymmetric in nature i.e. volatility spikes are more in market downturns than during market upswings. We find strong evidence of the “leverage hypothesis” explaining this asymmetric relation for all countries across all market cycles. We also find weak evidence of reverse causality i.e VIX changes to market movements as per the “volatility feedback hypothesis” holding during bear periods only in developed countries. We suspect that two important pre-conditions of volatility feedback hypothesis to hold, namely volatility persistence and contemporaneous positive volatility return relation might not be holding. We do not find any significant changes in these patterns across bull and bear market cycles. Value: These results indicate that investors can effectively use signals imminent in VIX movements, to determine potential entry and exit points both in emerging as well as developed markets. This should provide them an additional tool in addition to standard analysis approaches before allocating resources in a particular market.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1723185
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1723185
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1723185
Template-Type: ReDIF-Article 1.0
Author-Name: Sulemana Mahawiya
Author-X-Name-First: Sulemana
Author-X-Name-Last: Mahawiya
Author-Name: Abraham Haim
Author-X-Name-First: Abraham
Author-X-Name-Last: Haim
Author-Name: Oteng-Abayie Eric Fosu
Author-X-Name-First: Oteng-Abayie
Author-X-Name-Last: Eric Fosu
Author-Name: Christian Nsiah
Author-X-Name-First: Christian
Author-X-Name-Last: Nsiah
Title: In search of inflation limits for financial sector development in ECOWAS and SADC regions: A panel smooth transition analysis
Abstract:
This study investigates a comparative study on the threshold effects of inflation on financial sector development (FSD) between the Economic Community of West African States (ECOWAS) and the Southern Africa Development Community (SADC) for the period 1980–2011. Using a novel panel smooth transition regression, our results suggest evidence of the existence of a robust single threshold of inflation in both regions. Particularly, it indicates 17.9% and 14.5% of inflation for ECOWAS and SADC, respectively, suggesting that inflation above these thresholds presents detrimental effects for financial development in both regions. The study therefore concludes that price stability policies with inflation targeting framework should be the primary objective in monetary policy since high inflation is economically costly to financial development in the two regions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1722306
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1722306
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1722306
Template-Type: ReDIF-Article 1.0
Author-Name: Piyush Kumar Singh
Author-X-Name-First: Piyush Kumar
Author-X-Name-Last: Singh
Author-Name: Keyur Thaker
Author-X-Name-First: Keyur
Author-X-Name-Last: Thaker
Author-Name: Vassilios Papavassiliou
Author-X-Name-First: Vassilios
Author-X-Name-Last: Papavassiliou
Title: Profit efficiency and determinants of Indian banks; A truncated bootstrap and data envelopment analysis
Abstract:
The study applies two-stage data envelopment analysis (DEA) and bootstrap to estimate the Profit Efficiency (PE) and its factors for Indian bank groups. Recognizing the heterogeneity in the bank sizes, we perform DEA to estimate PE for small, medium, and large banks across different ownership. The results show that large public, private, and foreign sector banks are more profit efficient than small and medium banks. Over the period, private banks showed the highest improvement in efficiency, followed by foreign banks while the efficiency of Public sector banks was highest in 2008 showed imporvement for next few years and declined moderately in 2012. In the second stage, we use both normal Tobit and methodogically superior truncated bootstrap regression to capture the exogenous factors affecting the PE. We find GDP growth rate and capital adequacy ratio were not significant, while return on assets, equity-to-asset ratio, size of the operation, number of branches, Herfindahl-Hirschman Index(HHI), and ownership structure are significant determinants of bank efficiency. The study contributes to the literature by introducing sample variation and bias in examining the determinants and comparison of efficiency scores across bank groups and using a more appropriate measure in Indian contest. The new findings have vital implications for the banking industry and resarchers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1724242
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1724242
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1724242
Template-Type: ReDIF-Article 1.0
Author-Name: Gil Cohen
Author-X-Name-First: Gil
Author-X-Name-Last: Cohen
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Algorithmic setups for trading popular U.S. ETFs
Abstract:
In this research, we test whether common trading oscillators can outperform the buy-and-hold strategy (B&H) using six popular ETFs for the period of the last 20 years. We use the original setups of those oscillators and also other setups or oscillators combinations in order to achieve the best past performances. We found that the Relative Strength Index (RSI) combined with Chaikin Money Flow (CMF) gained positive returns for all examined ETFs and also outperformed by 79% the corresponding buy-and-hold strategy for the XLF. The Commodity Channel Index (CCI) and Bollinger Bands (BB) were found to be the best technical tools for trading the examined ETFs. While the CCI performs better for the more volatile ETFs (XLF and XLK), the BB was superior for trading IWM and XLI which are less volatile. We also recommend the CCI strategy for trading the SPY. No technical tools were found to be more effective than B&H strategy for the QQQ.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1720056
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1720056
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1720056
Template-Type: ReDIF-Article 1.0
Author-Name: Devendra Kumar Jain
Author-X-Name-First: Devendra Kumar
Author-X-Name-Last: Jain
Author-Name: Rup Singh
Author-X-Name-First: Rup
Author-X-Name-Last: Singh
Author-Name: Arvind Patel
Author-X-Name-First: Arvind
Author-X-Name-Last: Patel
Author-Name: Evan Lau
Author-X-Name-First: Evan
Author-X-Name-Last: Lau
Title: Mapping of sovereign risks in small island economies: An application of contingent claim approach to fiji
Abstract:
While a decline in the market value of sovereign assets (below a benchmark level of liabilities) can trigger sovereign distress/default risk, volatility in sovereign assets can increase the risk premium on domestic debt and credit spread on external debt. These can escalate the probability of debt default. Therefore, measuring the probability and distance to debt distress associated with sovereign positions is important for assessing the macro-financial risks of an aggregate economy. This paper presents an application of the Contingent Claim Approach (CCA) for measuring the implied asset value and its volatility for the case of Fiji. The CCA captures non-linear changes to sovereign assets and liabilities that are hardly captured by other macroeconomic variables. Our consistent empirical findings indicate no sovereign debt distress for Fiji. Unavailability of partial data on the certain composition of sovereign assets and liabilities is a limitation, but our results are consistent and useful guide to debt policy in Fiji. It is also useful for future research on debt sustainability in other similar smaller developing economies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1727158
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1727158
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1727158
Template-Type: ReDIF-Article 1.0
Author-Name: Santosh Shrivastava
Author-X-Name-First: Santosh
Author-X-Name-Last: Shrivastava
Author-Name: P Mary Jeyanthi
Author-X-Name-First: P Mary
Author-X-Name-Last: Jeyanthi
Author-Name: Sarbjit Singh
Author-X-Name-First: Sarbjit
Author-X-Name-Last: Singh
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Failure prediction of Indian Banks using SMOTE, Lasso regression, bagging and boosting
Abstract:
Banks have a vital role in the financial system and its survival is crucial for the stability of the economy. This research paper attempts to create an efficient and appropriate predictive model using a machine learning approach for an early warning system of bank failure. This paper uses data collected for failed and survived public and private sector banks for the period of 2000–2017 located in India. Bank-specific variables as well as macroeconomic and market structure variables have been used to identify the stress level for banks. Since the number of failed banks in India is very less in comparison to surviving banks, the problem of imbalanced data arises and most of the machine learning algorithms do not work very well with such data. This paper uses a novel approach Synthetic Minority Oversampling Technique (SMOTE) to convert imbalanced data in a balanced form. Lasso regression is used to reduce the redundant features from the failure predictive model. To avoid the bias and over-fitting in the models, random forest and AdaBoost techniques are applied and compared with the logistic regression to get the best predictive model. The result of the study holds its application to various stakeholders like shareholders, lenders and borrowers etc. to measure the financial stress of banks. This study offers an analytical approach ranging from the selection of the most significant bank failure specific indicators using lasso regression, converting data from imbalanced to balanced form using SMOTE and the choice of the appropriate machine learning techniques to predict the failure of the bank.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1729569
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1729569
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1729569
Template-Type: ReDIF-Article 1.0
Author-Name: Rabson Magweva
Author-X-Name-First: Rabson
Author-X-Name-Last: Magweva
Author-Name: Mabutho Sibanda
Author-X-Name-First: Mabutho
Author-X-Name-Last: Sibanda
Author-Name: Mariam Camarero
Author-X-Name-First: Mariam
Author-X-Name-Last: Camarero
Title: Inflation and infrastructure sector returns in emerging markets—panel ARDL approach
Abstract:
This study evaluated the relationship between inflation and infrastructure sector stock returns in emerging markets in the long and short run. It employed a panel autoregressive distributed lag (PARDL) model applying the mean group (MG), pooled mean group (PMG) and dynamic fixed effects (DFE) estimators after preliminary cross-sectional dependence and stationarity tests. The results from the three estimators were insignificant in both the short and long run, illustrating the inability of infrastructure sector returns in emerging markets to hedge inflation. Similar results were obtained when the inflation-hedging capacity of real estate and general listed equity was assessed. This suggests the existence of significant beta risk in emerging stock markets. The results imply that investors interested in hedging inflation in emerging markets should go beyond individual asset classes and embrace the portfolio optimization concept to reduce inflation risk. Given the heterogenic nature of the infrastructure sector, a deeper analysis that focuses on infrastructure sector sub-categories might be fruitful as the pricing power is heterogeneous across these sub-sectors.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1730078
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1730078
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1730078
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Hasnain Abbas Naqvi
Author-X-Name-First: Muhammad Hasnain Abbas
Author-X-Name-Last: Naqvi
Author-Name: Yushi Jiang
Author-X-Name-First: Yushi
Author-X-Name-Last: Jiang
Author-Name: Miao Miao
Author-X-Name-First: Miao
Author-X-Name-Last: Miao
Author-Name: Mishal Hasnain Naqvi
Author-X-Name-First: Mishal Hasnain
Author-X-Name-Last: Naqvi
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Linking biopsychosocial indicators with financial risk tolerance and satisfaction through macroeconomic literacy: A structural equation modeling approach
Abstract:
The purpose of the current research was to analyze the impact of biopsychosocial indicators on the financial risk tolerance (FRT) and financial satisfaction along with the mediating role of macroeconomic literacy in these associations. For this purpose, three indicators names as “personality type, self-esteem, and sensation seeking” were used to check the impact of biopsychosocial indicators on FRT and financial satisfaction. The current study was conducted in China where the data was collected from retail investors through structured questionnaire. The purposive sampling technique was used to decide the sample from the population. The data were collected from 1134 retail investors and SPSS and AMOS were used to analyze the data by applying SEM. Findings of the current study revealed that the personality, self-esteem and sensation seeking have significant influences on FRT. It has been further found that the personality type and self-esteem have significant influences on the financial satisfaction. Results further confirmed the mediating role of macroeconomic literacy between self-esteem and FRT, personality type and FRT, self-esteem and financial satisfaction, and personality type and financial satisfaction. However, no significant mediating role of macroeconomic literacy was found between sensation seeking and FRT, and sensation seeking and financial satisfaction. The current study and findings will be of great importance for theory and practice regarding financial/investment decision making and FRT.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1730079
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1730079
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1730079
Template-Type: ReDIF-Article 1.0
Author-Name: Sayed Irshad Hussain
Author-X-Name-First: Sayed Irshad
Author-X-Name-Last: Hussain
Author-Name: Akhtar Hussain
Author-X-Name-First: Akhtar
Author-X-Name-Last: Hussain
Author-Name: Muhammad Mehboob Alam
Author-X-Name-First: Muhammad Mehboob
Author-X-Name-Last: Alam
Author-Name: Professor Caroline Elliott
Author-X-Name-First: Professor Caroline
Author-X-Name-Last: Elliott
Title: Determinants of export supply in Pakistan: A sector wise disaggregated analysis
Abstract:
This study aims to investigate the impact of supply-side factors on the export performance of Pakistan at a disaggregated level. It has identified major export categories of Pakistan and constructed a novel time-series data set of each of these categories from 1971 to 2014. Using autoregressive distributed lag (ARDL) model (bound testing), the sectoral focus confirms that major export categories respond differently to changes in various factors of export supply in the long-run. For instance, the relative prices have a larger impact on the export performance of raw materials and value-added manufactured products. Similarly, the cost of production has higher effects on the growth of value-added manufactured and cotton waste exports. On the contrary, production capacity and domestic demand pressure have significantly influenced the export supply almost all manufactured and primary export categories in the long-run. In the short-run, the relative price, cost of production, and production capacity showed mixed effects for the export supply of many primary and manufactured export categories while domestic demand pressure hypothesis is valid in most cases. The study concludes that the factors determining the export supply are changing across the export categories. Hence, it is suggested that the government must revisit the export policy and make the new policy in line with new sectorial realities in order to expand the export sector of the country.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1732072
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1732072
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1732072
Template-Type: ReDIF-Article 1.0
Author-Name: Nam Hoai Tran
Author-X-Name-First: Nam Hoai
Author-X-Name-Last: Tran
Author-Name: Chi Dat Le
Author-X-Name-First: Chi Dat
Author-X-Name-Last: Le
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Ownership concentration, corporate risk-taking and performance: Evidence from Vietnamese listed firms
Abstract:
This study examines the associations of corporate governance with firm risk-taking and performance in a typical frontier equity market characterized by high ownership concentration and weak investor protection. Using an extensive sample of Vietnamese listed firms, we find (1) no relation between ownership concentration and firm profitability, but a non-linear relation between ownership concentration and firm valuation; and (2) that concentrated ownership increases the riskiness of accounting performance; however, there is no evidence of the linkage between concentration and the riskiness of market performance. Ultimately, our findings confirm essential differences in using the two alternatives of performance measurement.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1732640
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1732640
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1732640
Template-Type: ReDIF-Article 1.0
Author-Name: Kunal Saha
Author-X-Name-First: Kunal
Author-X-Name-Last: Saha
Author-Name: Vinodh Madhavan
Author-X-Name-First: Vinodh
Author-X-Name-Last: Madhavan
Author-Name: Chandrashekhar G. R.
Author-X-Name-First: Chandrashekhar
Author-X-Name-Last: G. R.
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Pitfalls in long memory research
Abstract:
This paper offers a multifaceted perspective of the literature on long memory. Although the research on long memory has played an instrumental role in elevating the level of scholarly discourse on market efficiency, the authors believe that the issue of the prevalence of long memory or lack thereof remains unsettled. While long memory models should be in the econometrician’s toolbox, their use should be governed by an initial exploratory analysis of the data being studied and the context of the research questions being addressed. Mere fixation on the presence/absence of long memory without taking due cognisance of other confounding factors would pave way for confirmation bias. Consequently, this paper pinpoints the possible pitfalls and potential trade-offs in modeling long memory in asset prices. While not a comprehensive meta-analysis of the literature on long memory, this paper offers a selective bibliography of prior works on long memory that is geared to nudge researchers to exercise caution and judgement while exploring long memory in asset prices.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1733280
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1733280
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1733280
Template-Type: ReDIF-Article 1.0
Author-Name: Abdul Moueed
Author-X-Name-First: Abdul
Author-X-Name-Last: Moueed
Author-Name: Ahmed Imran Hunjra
Author-X-Name-First: Ahmed Imran
Author-X-Name-Last: Hunjra
Author-Name: Zhaojun Yang
Author-X-Name-First: Zhaojun
Author-X-Name-Last: Yang
Title: Use anger to guide your stock market decision-making: results from Pakistan
Abstract:
We assess the role of psychological and social factors in the decision-making of investors mediated by risk perception. We use a questionnaire survey to collect data from 470 individuals who have invested in firms listed at Pakistan Stock Exchange. We use confirmatory factor analysis to refine the instrument and structural equation model for hypothesis testing. We find that psychological and social factors play a significant role in investors’ decision-making. Specifically, anger, fear and a positive mood positively affect investors’ decision-making whereas stress, social interaction and herding produce negative effects. Furthermore, risk perception plays a mediating role between psychological factors, social factors and the investment decision.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1733279
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1733279
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1733279
Template-Type: ReDIF-Article 1.0
Author-Name: Dung Viet Tran
Author-X-Name-First: Dung Viet
Author-X-Name-Last: Tran
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Funding liquidity and bank lending
Abstract:
We investigate how funding liquidity affects the bank lending using a large sample of US bank holding companies. We document a consistent evidence of a lower loan growth for banks that rely more on deposits. The quantile regressions which dissect the lending behavior of banks at the right tail of loan growth distribution point out the leveraged effect of funding liquidity is larger in high-loan-growth banks. The negative effects of funding liquidity on lending seem to be clearer before the crisis and especially for large banks. Interestingly, we do not find any evidence of the relation between lending and funding liquidity after the crisis period. We believe our study is of interest to regulators and policymakers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1734324
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1734324
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1734324
Template-Type: ReDIF-Article 1.0
Author-Name: Hazwan Haini
Author-X-Name-First: Hazwan
Author-X-Name-Last: Haini
Author-Name: Professor Caroline Elliott
Author-X-Name-First: Professor Caroline
Author-X-Name-Last: Elliott
Title: Spatial productivity and efficiency spillovers in the presence of transient and persistent efficiency: Evidence from China’s provinces
Abstract:
This study examines the spatial productivity and efficiency spillovers of Chinese provinces using a spatial Durbin production frontier model that accounts for persistent and transient efficiency using a panel dataset of Chinese provinces from 1985 to 2017. The role of spatial effects is often overlooked in the literature, yet technological progress can spillover and diffuse from provinces and promote regional growth. The spatial Durbin production frontier model allows for the decomposition of direct and indirect (spillover) total factor productivity (TFP) growth, as well as the gross direct and indirect efficiency of the respective provinces. The estimated results show that spatial productivity and efficiency spillovers are positive and lead to higher productivity growth. On average, indirect effects provide an additional TFP growth of 3.1% and an additional efficiency spillover of 18.98%. However, the estimated results also show that TFP growth is declining over time and there is room for efficiency gains if persistent efficiency is increased. These should be addressed through further reforms and policies that promote sustainable growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1735781
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1735781
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1735781
Template-Type: ReDIF-Article 1.0
Author-Name: Amina Amirat
Author-X-Name-First: Amina
Author-X-Name-Last: Amirat
Author-Name: Wafa Alwafi
Author-X-Name-First: Wafa
Author-X-Name-Last: Alwafi
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Does herding behavior exist in cryptocurrency market?
Abstract:
This paper investigates the existence of herding behavior in cryptocurrencies market. Using data of the 20 large cryptocurrencies and MV Index Solution Crypto Compare Digital Assets for large cap index, we found no evidence of herding behavior using cross-sectional absolute standard deviation estimation. However, by applying a rolling window analysis, the results show significant herding behavior, which varies over time. Finally, we find an inverse relationship between herding behavior and the Bloomberg consumer comfort index which means that when traders are less comfortable they prefer to ignore their expectations and follow the market performance.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1735680
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1735680
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1735680
Template-Type: ReDIF-Article 1.0
Author-Name: Friday Osemenshan Anetor
Author-X-Name-First: Friday Osemenshan
Author-X-Name-Last: Anetor
Author-Name: Ebes Esho
Author-X-Name-First: Ebes
Author-X-Name-Last: Esho
Author-Name: Grietjie Verhoef
Author-X-Name-First: Grietjie
Author-X-Name-Last: Verhoef
Author-Name: Christian Nsiah
Author-X-Name-First: Christian
Author-X-Name-Last: Nsiah
Title: The impact of foreign direct investment, foreign aid and trade on poverty reduction: Evidence from Sub-Saharan African countries
Abstract:
Despite postulations on the effects of foreign direct investment (FDI), foreign aid, and trade on growth, empirical evidence from extant research has been mixed. The focus of recent research has shifted from the growth effects of these international flows to their poverty reduction effects. However, results have also been mixed. Most studies have examined the empirical evidence of these flows separately and have mostly conducted single country studies. In this study, we use data from twenty-nine countries in Sub-Saharan Africa between the period 1990–2017 to analyze the effects of FDI, trade, and foreign aid on poverty reduction in a single model using the Feasible Generalized Least Square (FGLS) technique. Our results show that FDI and foreign aid have a negative effect on poverty reduction in the countries studied. These results suggest that the level of FDI required to alleviate poverty has not been reached, and foreign aid have not been properly channeled. However, the results show that trade has a positive and significant impact on poverty reduction, especially in low-income countries. We conclude with policy recommendations.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1737347
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1737347
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1737347
Template-Type: ReDIF-Article 1.0
Author-Name: Willem Daniel Schutte
Author-X-Name-First: Willem Daniel
Author-X-Name-Last: Schutte
Author-Name: Tanja Verster
Author-X-Name-First: Tanja
Author-X-Name-Last: Verster
Author-Name: Derek Doody
Author-X-Name-First: Derek
Author-X-Name-Last: Doody
Author-Name: Helgard Raubenheimer
Author-X-Name-First: Helgard
Author-X-Name-Last: Raubenheimer
Author-Name: Peet Jacobus Coetzee
Author-X-Name-First: Peet Jacobus
Author-X-Name-Last: Coetzee
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: A proposed benchmark model using a modularised approach to calculate IFRS 9 expected credit loss
Abstract:
The objective of this paper is to develop a methodology to calculate expected credit loss (ECL) using a transparent-modularised approach utilising three components: probability of default (PD), loss given default (LGD) and exposure at default (EAD). The proposed methodology is described by first providing a methodology to calculate the marginal PD, then the methodology for calculating the marginal recovery rates and resulting LGD, and lastly a methodology to calculate the EAD. These three components are combined to calculate the ECL in an empirical style. In markets where sophisticated IFRS9 models are developed, our proposed methodology can be used as in two settings: either as a benchmark to compare newly developed IFRS9 models, or, in markets where limited resources or technological sophistication exists, our methodology can be used to calculate ECL for IFRS9 purposes. This paper includes two such comparative studies to illustrate how our proposed methodology can be used as a benchmark for a newly developed IFRS9 model based on an emerging country’s unsecured and secured retail banking portfolio. This paper is, in essence, a step-by-step implementation guide of the proposed IFRS 9 methodology to calculate ECL as well as the use of such a model as a benchmark.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1735681
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1735681
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1735681
Template-Type: ReDIF-Article 1.0
Author-Name: R. W. Masenya
Author-X-Name-First: R. W.
Author-X-Name-Last: Masenya
Author-Name: Z. Dickason-Koekemoer
Author-X-Name-First: Z.
Author-X-Name-Last: Dickason-Koekemoer
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: A conceptual model of the influence of South African investor well-being on risk tolerance
Abstract:
Financial institutions have the responsibility to measure an investor’s risk tolerance to determine his or her risk profile. Once an investor’s risk profile is determined, financial institutions are able to more accurately identify which financial products are suitable for the investor. Several factors can affect one’s level of risk tolerance such as investor well-being. The aim of this study is to construct a structural equation model which depicts the influence of South African investor well-being risk tolerance. Secondary data analysis was used to conduct a quantitative research study. Structural equation modelling techniques were applied during the analysis of the data. The main findings suggest the following: (i) risk tolerance has a positive and statistically significant relationship with investor well-being; (ii) financial well-being has a positive and statistically significant relationship with satisfaction with life; and (iii) financial well-being, physical activity, gender, and income respectively have positive and statistically significant relationships with risk tolerance. Satisfaction with life was not found to have a statistically significant impact on risk tolerance.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1738809
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1738809
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1738809
Template-Type: ReDIF-Article 1.0
Author-Name: Xuan Vinh Vo
Author-X-Name-First: Xuan Vinh
Author-X-Name-Last: Vo
Author-Name: Van Phong Vo
Author-X-Name-First: Van Phong
Author-X-Name-Last: Vo
Author-Name: Thanh Phuc Nguyen
Author-X-Name-First: Thanh Phuc
Author-X-Name-Last: Nguyen
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Abnormal returns and idiosyncratic volatility puzzle: An empirical investigation in Vietnam stock market
Abstract:
This paper aims to examine the relation between idiosyncratic volatility (IVOL) and stock returns with full-sample and conditional alpha sub-samples in Vietnam stock market covering the period from January 2008 to December 2018. We test the IVOL effect on stock returns employing Fama-Macbeth regression method (firm-level analysis) and sorting portfolio method (portfolio-level analysis). In addition, we use different approaches to estimate IVOLs which are the standard deviation of the residuals estimated from regression based on capital asset pricing model (CAPM), Fama-French three-factor model and Carhart four-factor model. We find the IVOL effect which is considered as IVOL puzzle in positive alpha sub-samples. However, we do not discover any significant relation in full-sample and negative alpha sub-samples. Besides, these findings are not consistent with prospect theory. This paper also suggests IVOL opposite strategy for investors to generate significant returns by collecting stocks in positive alpha sub-samples.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1735196
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1735196
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1735196
Template-Type: ReDIF-Article 1.0
Author-Name: Smitha Nair
Author-X-Name-First: Smitha
Author-X-Name-Last: Nair
Author-Name: V Gopikumar
Author-X-Name-First: V
Author-X-Name-Last: Gopikumar
Author-Name: P.K Viswanathan
Author-X-Name-First: P.K
Author-X-Name-Last: Viswanathan
Author-Name: Sruthy Gopakumar
Author-X-Name-First: Sruthy
Author-X-Name-Last: Gopakumar
Author-Name: Mathew Thomas Gil
Author-X-Name-First: Mathew Thomas
Author-X-Name-Last: Gil
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: A contingency model of board characteristics and foreign institutional investor ownership: the moderating role of firm size and market valuation
Abstract:
We investigate the governance sensitivity of foreign institutional investors’ (FII) ownership in a large emerging market setting of India, characterized by highly concentrated insider ownership. More specifically, we focus on the moderating role of firm size and price to book value (PB) in determining the relationship between FII ownership and board characteristics, such as board size, outside director ratio, CEO duality, and board meeting attendance. Our methodology emphasizes the importance of contextual analysis in studies relating to institutional investors’ preferences. We find that FIIs prefer bigger boards and greater board independence in larger and growth firms (higher PB). Further, FIIs prefer firms that have separate CEO and Chairman of the board positions in growth firms.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1739465
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1739465
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1739465
Template-Type: ReDIF-Article 1.0
Author-Name: Devi Prasad Dash
Author-X-Name-First: Devi Prasad
Author-X-Name-Last: Dash
Author-Name: Smruti Ranjan Behera
Author-X-Name-First: Smruti Ranjan
Author-X-Name-Last: Behera
Author-Name: D. Tripati Rao
Author-X-Name-First: D. Tripati
Author-X-Name-Last: Rao
Author-Name: Narayan Sethi
Author-X-Name-First: Narayan
Author-X-Name-Last: Sethi
Author-Name: Nanthakumar Loganathan
Author-X-Name-First: Nanthakumar
Author-X-Name-Last: Loganathan
Author-Name: Salvatore Ercolano
Author-X-Name-First: Salvatore
Author-X-Name-Last: Ercolano
Title: Governance, urbanization, and pollution: A cross-country analysis of global south region
Abstract:
This paper investigates the impact urbanization, industrialization, corruption, human development, energy consumption, and foreign direct investment (FDI) on carbon dioxide (CO2) emissions of 61 developing economies of the global south region of Asia, Africa, and Latin America during the period 1990–2015. The empirical results show that the effect of corruption on CO2 emissions is indeed heterogeneous and contradictory. Specifically, results exhibit that due to immature economic system, and policy paralysis, corruption penetrates the developing economies, and eventually cause carbon emission and pollution. Furthermore, results reveal that FDI guided by clean development mechanism and involved in emission reduction projects in the developing economies play a predominant role to curb the CO2 emission, pollution, and environmental degradation.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1742023
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1742023
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1742023
Template-Type: ReDIF-Article 1.0
Author-Name: Olivier Niyitegeka
Author-X-Name-First: Olivier
Author-X-Name-Last: Niyitegeka
Author-Name: Devi Datt Tewari
Author-X-Name-First: Devi Datt
Author-X-Name-Last: Tewari
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Volatility spillovers between the European and South African foreign exchange markets
Abstract:
This article investigates the exchange rate volatility spillover and dynamic conditional correlation between the euro and the South African rand following the Eurozone sovereign debt crisis. It employs two multivariate generalized autoregressive conditional heteroskedasticity (MGARCH) models, namely bivariate BEKK-GARCH (1,1) a nd DCC-GARCH(1,1). Based on two datasets, for the crisis and post-crisis periods, the study identifies significant uni-directional volatility spillovers from the euro to the rand during crisis and post-crisis periods. Further, increased volatility spillovers and time-varying correlations between currencies were evident during the Eurozone crisis. This suggests pure form of financial contagion between the two foreign exchange markets. As such, investors and policy makers in the stock and/or foreign exchange markets in South Africa should monitor euro volatility due to its contagious impacts on the rand and decoupling strategies should be formulated to insulate the rand from contagion. The contributions of the study are twofold. First, it informs the investors in the foreign exchange market on the extent to which shocks in the euro affect the rand. Second, it adds to the literature on pure form of contagion by testing whether there exists an asymmetric correlation between the rand and euro over tranquil periods as opposed to financial upheaval ones.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1741308
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1741308
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1741308
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Correction
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1752449
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1752449
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1752449
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Correction
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1752451
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1752451
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1752451
Template-Type: ReDIF-Article 1.0
Author-Name: Abdessalem Gouider
Author-X-Name-First: Abdessalem
Author-X-Name-Last: Gouider
Author-Name: Hedi Ben Haddad
Author-X-Name-First: Hedi
Author-X-Name-Last: Ben Haddad
Author-Name: Mohammed M Elgammal
Author-X-Name-First: Mohammed M
Author-X-Name-Last: Elgammal
Title: Manufactured goods’ export diversification in Saudi Arabia: A spatial panel approach
Abstract:
This paper explores the potential spatial diversification of manufactured goods’ exports in Saudi Arabia. To account for the spatial interactions of Saudi’s manufactured goods’ exports, we use a panel Spatial Autoregressive (SAR) model for 77 trade partners over the period 2000–2016. The empirical results suggest, firstly, the existence of spatial interdependence among Saudi’s manufactured goods’ exports. Secondly, we find that the exogenous variables including GDP, GDP per capita, trade freedom, bilateral exchange rate, and trade intensity index exert strong spillover effects on bilateral Saudi’s manufactured goods’ exports. Finally, the study demonstrates evidence of the highest potential with 34 out of 77 partners. This finding has important implications for policymakers, mainly in terms of development of the domestic manufacturing sector and geographic reallocation of Saudi’s manufactured goods’ exports.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1741309
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1741309
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1741309
Template-Type: ReDIF-Article 1.0
Author-Name: Somar Al-Mohamad
Author-X-Name-First: Somar
Author-X-Name-Last: Al-Mohamad
Author-Name: Audil Rashid
Author-X-Name-First: Audil
Author-X-Name-Last: Rashid
Author-Name: Walid Bakry
Author-X-Name-First: Walid
Author-X-Name-Last: Bakry
Author-Name: Ammar Jreisat
Author-X-Name-First: Ammar
Author-X-Name-Last: Jreisat
Author-Name: Xuan Vinh Vo
Author-X-Name-First: Xuan Vinh
Author-X-Name-Last: Vo
Author-Name: Damir Tokic
Author-X-Name-First: Damir
Author-X-Name-Last: Tokic
Title: The impact of BRICS formation on portfolio diversification: Empirical evidence from pre- and post-formation eras
Abstract:
This paper aims at contributing to the international portfolio investment decisions among the emerging BRICS countries where individual and institutional investors seek diversification benefits and to help in advocating policy changes and implementation as a response to the changing dynamics in these countries pre- and post-BRICS formation. Therefore, the context of this paper is aimed towards examining the short term causalities and long term integration among the BRICS stock market pre- and post-BRICS formation. The research applies the Augmented Dicker-Fuller (ADF) and Philips-Perron tests (PP) tests to analyze stationarity among the selected variables. The pre- and post-BRICS formation long-term linear relationship is investigated using Johansen and Juselius cointegration test while the Granger Causality is applied to assess the direction of the causality between the stock market indices. The study also extends the investigation by employing the impulse response function and variance decomposition to evaluate the reaction of each of the BRICS market to a shock from other BRICS stock markets. Weekly stock market indices of BRICS countries were used covering the period from January 2003 to December 2018. One key finding is that the degree of financial integration among the BRICS stock markets has moderately strengthened in the post-BRICS formation period compared to the pre-BRICS formation period. Another significant finding is that the Chinese stock market are mostly independent from other BRICS markets in the two aforementioned sub-periods, implying diversification benefits for the international investors both in the short and the long run. Further, the results also reveal a unidirectional causal relationship from the Russian stock market to its BRICS counterparts in both periods. Finally, the overall results show an increased responsiveness of stock markets in BRICS countries to shocks in each other after the formation of the bloc as compared to pre- formation period.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1747890
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1747890
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1747890
Template-Type: ReDIF-Article 1.0
Author-Name: Belal Ali Abdulraheem Ghaleb
Author-X-Name-First: Belal Ali Abdulraheem
Author-X-Name-Last: Ghaleb
Author-Name: Hasnah Kamardin
Author-X-Name-First: Hasnah
Author-X-Name-Last: Kamardin
Author-Name: Mosab I. Tabash
Author-X-Name-First: Mosab I.
Author-X-Name-Last: Tabash
Author-Name: Muhammad Shafiullah
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shafiullah
Title: Family ownership concentration and real earnings management: Empirical evidence from an emerging market
Abstract:
The paper examines the effect of family ownership concentration (FMOC) on real earnings management (REM) in manufacturing firms listed on Bursa Malaysia (formerly known as Kuala Lumpur Stock Exchange). Data are gathered from 1,056 firm-year observations for the four-year period from 2013 to 2016. The feasible generalised least square estimation is used to examine the relationships. The results show that FMOC is negatively and significantly associated with REM. This evidence supports the alignment hypothesis that FMOC mitigates managerial earnings management by preventing real activities manipulation. However, the finding of the current study is contrary to the claim that family-controlled firms have lower earnings quality. This study extends previous empirical research by examining the effect of different levels of family control on REM in an emerging market and provides evidence that family firms have less incentive to engage in REM practices. The findings imply that earnings reported in the financial statements of Malaysian manufacturing family firms are more reliable as these firms do not manipulate earnings through real business activities. Policymakers may consider the results of the current study that show family-controlled firms have the motivation to self-monitor their business and avoid earnings manipulation activities. Investors may benefit from this evidence and invest in family firms. Future studies may extend the sample to cover other sectors to check the consistency of the findings. In addition, the paper uses data from Malaysia, a country characterised as a family-controlled market. Thus, the findings may not be similar to those of countries with lower FMOC.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1751488
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1751488
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1751488
Template-Type: ReDIF-Article 1.0
Author-Name: Navitha Singh Sewpersadh
Author-X-Name-First: Navitha Singh
Author-X-Name-Last: Sewpersadh
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: K-score categorisation of JSE listed sectors under the financial distress continuum theory: A quantitative approach
Abstract:
Purpose: The liquidation culture in South Africa has proven to be disastrous for its macroeconomic and social goals. Premised on the financial distress continuum theory, which not only determines investment, but also provides early warning signals for firms to pursue remedies, this article investigated the financial health and stability of listed firms. To detect and/or remedy the negative consequences of corporate failures in a timely manner, this study employed the De la Rey K-score model as a risk-based model. Design: The investigation period was over six years with a final sample of 673 company-year observations. This study used the statistical methods of one-way ANOVA and OLS. Findings: The results indicated that the average K-scores from 2011 to 2016 have severely declined, illustrating the magnitude of financial distress among industries. The mean K-score is in the healthy range for the consumer services and consumer goods sectors for each year of the investigation period. This study found that the telecommunications and health care sectors were classified as “grey” zone, which exhibited considerable inter-year variation in financial health. Whilst the industrial and technology sectors were financially distressed. This study also found a significantly positive relationship between the K-score and performance variables. Recommendations: This study recommends that the grey zone sectors should consider turnaround strategies to prevent companies from regressing into the financially distressed category. Furthermore, the distressed sectors should consider embarking on the two pre-insolvency proceedings in the Companies Act (2008). Originality: This study uniquely applied the K-score model as an early warning signal for financial distress and linked the K-score model to the financial distress continuum theory. The results of this study have important implications for policymakers, practitioners, and regulatory authorities, especially those in emerging economies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1748969
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1748969
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1748969
Template-Type: ReDIF-Article 1.0
Author-Name: Samson Ige Abolarinwa
Author-X-Name-First: Samson Ige
Author-X-Name-Last: Abolarinwa
Author-Name: Cosmas Ikechukwu Asogwa
Author-X-Name-First: Cosmas Ikechukwu
Author-X-Name-Last: Asogwa
Author-Name: Charity A. Ezenwakwelu
Author-X-Name-First: Charity A.
Author-X-Name-Last: Ezenwakwelu
Author-Name: Timinepere O. Court
Author-X-Name-First: Timinepere O.
Author-X-Name-Last: Court
Author-Name: Samuel Adedoyin
Author-X-Name-First: Samuel
Author-X-Name-Last: Adedoyin
Author-Name: Tor Eriksson
Author-X-Name-First: Tor
Author-X-Name-Last: Eriksson
Title: Corporate growth strategies and financial performance of quoted manufacturing firms in Nigeria: The mediating role of global economic crises
Abstract:
This study examines the mediating role of global economic crises (GECs) in the effect of growth strategies on Nigerian manufacturing firms’ performance. The study used secondary data for the period between 2000 and 2017 in its analysis. Therefore, an expost facto research design was used in the analysis of 120 firms listed on the Nigerian Stock Exchange, which were selected out of 190 listed firms using a judgmental sampling technique. The researchers follow data cluster analysis approach to analyze the data for the time around a GEC, including pre-and post-crisis periods. The analysis reveals positive and statistically significant effects of internal growth strategies on return on assets and return on equity (coefficient = 9.474 and 6.277; P < 0.01). However, the researchers found that external growth strategies negatively and significantly affect the return on assets (coefficient = −6.005; p-value<0.01) while the effect is positively significant on return on equity. Regarding GECs, the study found a statistically significant reverse effect. It was found that GECs together with external growth strategies yield a positive and significant effect on return on assets, while their mediation with internal growth strategies had a negative and significant effect on return on assets and return on equity (coefficients = −1.480; −2.041, p-value<0.05; coefficient = 2.194, p-value<0.05; 0.608, p-value <0.05). Thus, it is recommended that during GECs, firms should focus on external growth strategies, including mergers and acquisitions, while internal growth strategies, such as product and market developments, should be pursued under progressive and normal economic conditions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1750259
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1750259
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1750259
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Esaku
Author-X-Name-First: Stephen
Author-X-Name-Last: Esaku
Author-Name: Christian Nsiah
Author-X-Name-First: Christian
Author-X-Name-Last: Nsiah
Title: Does firm size affect learning-by-exporting? Empirical evidence from Sub-Saharan Africa
Abstract:
This study examines whether the relationship between exports and productivity growth differs across firm size. Using panel data from three Sub-Saharan African countries, I use propensity score matching procedure to examine this relationship. This study finds evidence of productivity differences between new exporters and non-exporters confirming the empirical regularity that new exporters are more productive than never exporters. The findings indicate that export participation effects vary across firm size, with both small and large firms experiencing immediate and significant productivity gains upon entry. However, the productivity gain for large firms is highly significant and more pronounced in the first two years after entry but declines drastically from the third year and tends towards negative in subsequent years. Learning effects might be important for large firms during the initial years of exporting, but these effects dissipate once learning avenues have been exhausted. Small firms display sustained learning effects that expand beyond the fourth year. Relative to the large firms, small new exporters display sustained and significant productivity growth for five year. This study finds no evidence of cumulative productivity growth beyond the third year for large firms. These results are robust to alternative measure of productivity. Any export-led growth should be directed at helping small new exporters access the export markets.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1754150
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1754150
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1754150
Template-Type: ReDIF-Article 1.0
Author-Name: Adeyemi A. Ogundipe
Author-X-Name-First: Adeyemi A.
Author-X-Name-Last: Ogundipe
Author-Name: Queen Esther Oye
Author-X-Name-First: Queen Esther
Author-X-Name-Last: Oye
Author-Name: Oluwatomisin M. Ogundipe
Author-X-Name-First: Oluwatomisin M.
Author-X-Name-Last: Ogundipe
Author-Name: Romanus Osabohien
Author-X-Name-First: Romanus
Author-X-Name-Last: Osabohien
Author-Name: Jorge Miguel Lopo Gonçalves Andraz
Author-X-Name-First: Jorge Miguel Lopo Gonçalves
Author-X-Name-Last: Andraz
Title: Does Infrastructural Absorptive Capacity Stimulate FDI-Growth Nexus in ECOWAS?
Abstract:
The study assesses the relevance of infrastructural absorptive capacity in the foreign direct investment (FDI)-growth argument in ECOWAS. Though foreign aid has received a vast attention in the literature, however, an assessment of how the infrastructural readiness of the host economies drives the effectiveness of aid was vocal in this re-examination. The study assesses this main thrust in ECOWAS Sub-region for the period 1995–2017 using the system GMM estimation approach. The result suggests that FDI promotes growth though growth responded less proportionately to FDI influx. Alternatively, following the interaction of FDI and physical infrastructures, the responsiveness of FDI declined. Specifically, the responsiveness of GDP growth declined from 29.2% to 0.21% for road infrastructures. It hence becomes expedient for African government and policy makers to channel a viable development path towards enhancing transport and road infrastructures in order to attract financing into the space and the livelihood of poor rural population.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1751487
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1751487
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1751487
Template-Type: ReDIF-Article 1.0
Author-Name: Bhaskar Chhimwal
Author-X-Name-First: Bhaskar
Author-X-Name-Last: Chhimwal
Author-Name: Varadraj Bapat
Author-X-Name-First: Varadraj
Author-X-Name-Last: Bapat
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Impact of foreign and domestic investment in stock market volatility: Empirical evidence from India
Abstract:
Volatility is one of the most important factors of investment decisions. Unexpected information forces the investor to trade abnormally in the market which in turn affects the volatility of the market. But this kind of trading behavior has a different impact on the different market segments. This study investigates the effect of unexpected DII and FPI flows on the volatility of large-cap, mid-cap and, small-cap stocks in Indian markets. Using ARMA (1, 1) and TGARCH (1, 1) model, we estimate the impact of unexpected FPI and DII flows on volatility. The main result of the study shows that unexpected flow of FPIs has a positive impact on market volatility but this impact is reduced by unexpected flow of DIIs. Further, results show that unexpected selling of FPIs increase volatility more than unexpected purchase. Impact of unexpected flow of DIIs flow is more dominating in small-cap stocks. Results from this study are useful for policymakers and regulator.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1754321
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1754321
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1754321
Template-Type: ReDIF-Article 1.0
Author-Name: Samir Belkhaoui
Author-X-Name-First: Samir
Author-X-Name-Last: Belkhaoui
Author-Name: Naif Alsagr
Author-X-Name-First: Naif
Author-X-Name-Last: Alsagr
Author-Name: Stefan F. van Hemmen
Author-X-Name-First: Stefan F.
Author-X-Name-Last: van Hemmen
Author-Name: Mohammed M. Elgammal
Author-X-Name-First: Mohammed M.
Author-X-Name-Last: Elgammal
Title: Financing modes, risk, efficiency and profitability in Islamic banks: Modeling for the GCC countries
Abstract:
The aim of this research is to develop a conceptual model that includes variables related to financing modes, risk-taking, efficiency, and Islamic bank profitability in GCC Countries. The results indicate that the total effect of financing modes on banks’ profitability is high and statistically significant. The results show that a higher- level of participation in Mudharabah and Musharakah financing will generate high credit risk. Murabahah financing increases, directly and indirectly, the profitability and improve simultaneously the capitalization ratio and the cost efficiency for Islamic banks in the GCC countries. The contribution of our research is on two levels. On the one hand, our study is an addition to the literature that examined the determinants of Islamic banks performance. The conceptual model added risk-taking and cost efficiency as intervening variables in the profit-financing modes relationship. On the other hand, this research uses path analysis method, called second-generation approach, to test the model.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1750258
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1750258
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1750258
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Author-Name: Tu Dq Le
Author-X-Name-First: Tu Dq
Author-X-Name-Last: Le
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Market discipline and the regulatory change: Evidence from Vietnam
Abstract:
Following the recent global financial crisis, Vietnamese banks experienced changes in the minimum capital adequacy requirement following the Basel framework. We examine the impact of the regulatory change on market discipline between 2006 and 2015. The findings show a weakening of market discipline when the minimum capital adequacy requirement of 9% is imposed. The same is true for foreign-owned commercial banks during the period of implementing new capital regulation. Also, there is no evidence of the difference in market discipline between bank ownership and risks in the Vietnamese banking system. Our research has implications for bank supervisors, policy-makers, and bank managers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1757801
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1757801
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1757801
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Author-Name: Harshali Damle
Author-X-Name-First: Harshali
Author-X-Name-Last: Damle
Author-Name: Sankarshan Basu
Author-X-Name-First: Sankarshan
Author-X-Name-Last: Basu
Author-Name: Salvatore Ercolano
Author-X-Name-First: Salvatore
Author-X-Name-Last: Ercolano
Title: Effect of the U.S. quantitative easing policy on institutional investor flows of an emerging country
Abstract:
The paper investigates the impact of an unconventional monetary policy of the U.S. on the institutional investor flows in India. We assess the relationship between institutional investor flows and market returns before, during and after the U.S. quantitative easing (QE) period. We find a bi-directional Granger causality between domestic institutional investor flows and market returns in the pre QE period. However, the post QE period shows a bi-directional Granger causality between foreign institutional investor flows and market returns. This indicates that the power to influence market returns in India has shifted from the domestic institutional investors to foreign institutional investors during the QE period. Thus, we find evidence for a change in the market dynamics of an emerging country due to spillover effects of an unconventional monetary policy of a foreign country.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1757800
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1757800
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1757800
Template-Type: ReDIF-Article 1.0
Author-Name: Mohammed Adem
Author-X-Name-First: Mohammed
Author-X-Name-Last: Adem
Author-Name: Fentahun Tesafa
Author-X-Name-First: Fentahun
Author-X-Name-Last: Tesafa
Author-Name: Robert Read
Author-X-Name-First: Robert
Author-X-Name-Last: Read
Title: Intensity of income diversification among small-holder farmers in Asayita Woreda, Afar Region, Ethiopia
Abstract:
This paper examines measuring the intensity of income diversification and identifying the factors which determine level of income diversification in Asayita woreda Eastern part of Afar region. The study used multi stage sampling in combination with stratified and simple random sampling procedures to select kebeles and households. The Simpson Index of Diversity (SID) and Fractional response model were employed to analyse the data collected from a sample of 153 rural households. The level and type of income diversification depends on the accessibility and availability of different income sources. The mean results of degree of income diversification revealed that Simpson Index of Diversity (SID = 0.24) by rural households in the study area. Based on fractional response model educational status, credit utilization, distance from market and access to electric power affect at p < 0.01% probability level, sex of the household head affect at p < 0.05% probability level and, annual household income, special skill and household size significantly affecting degree of income diversification at p < 0.1% probability level. The finding of this research indicates important policy implications suggesting that programs, projects and/or any interventions designed targeting to engage people in other income-generating activities would augment their income sources, which are made to increase the level of income diversification at household level in Asayita woreda.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1759394
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1759394
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1759394
Template-Type: ReDIF-Article 1.0
Author-Name: Abdul Ganiyu Iddrisu
Author-X-Name-First: Abdul Ganiyu
Author-X-Name-Last: Iddrisu
Author-Name: Festus Ebo Turkson
Author-X-Name-First: Festus
Author-X-Name-Last: Ebo Turkson
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Political business cycles, bank pricing behaviour and financial inclusion in Africa
Abstract:
This paper analyses financial inclusion in Africa focusing on the role of political business cycles and pricing behaviour of banks. We employ a sample of 330 banks operating in 29 African countries to test for two related hypotheses. Panel fixed and random effects were estimated for the period 2002 to 2013. The regression results that ensued suggests first that loan price increases in pre-election and election years. Building on this result and employing various specifications of financial inclusion, the second results suggest that, high bank loan prices in election years tend to increase financial access more, compared to non-election years, and that, high deposit price reduces financial usage but increases financial access in election years, compared to non-election years. By extension, these results have important policy implications for policymakers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1762286
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1762286
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1762286
Template-Type: ReDIF-Article 1.0
Author-Name: Umaid A. Sheikh
Author-X-Name-First: Umaid A.
Author-X-Name-Last: Sheikh
Author-Name: Muzaffar Asad
Author-X-Name-First: Muzaffar
Author-X-Name-Last: Asad
Author-Name: Zahid Ahmed
Author-X-Name-First: Zahid
Author-X-Name-Last: Ahmed
Author-Name: Umer Mukhtar
Author-X-Name-First: Umer
Author-X-Name-Last: Mukhtar
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Asymmetrical relationship between oil prices, gold prices, exchange rate, and stock prices during global financial crisis 2008: Evidence from Pakistan
Abstract:
The study investigated that whether the relationship between macroeconomic fluctuations and stock indexes is symmetrical or asymmetrical in nature. This study employed nonlinear autoregressive distributed lag models for the times before and after 2008 economic crises. The overall sample period contains 168 observations between January 2004 and December 2018. The period between January 2004 and December 2007 was considered as pre-economic crisis period containing 48 observations whereas, period between January 2008 and December 2018 was considered as post-economic crisis containing 120 observations. Four different types of unit root tests, i.e., augmented Dickey Fuller test, Philips Perron test, Zivot-Andrew unit root, and Kwiatkowski Philips Schmidt Shin test have been employed to find out the stationarity in data. Findings suggested that in the long run and before global financial crisis, investors react differently to gold prices and oil prices. In long run and after crisis, investors have shown different reactions to all macroeconomic fluctuations. This showed that after crisis, investors reacted differently to positive and negative shocks of gold prices, exchange rate, and interest rate. Another interesting aspect that after global financial crisis, investors reacted only to positive shocks of gold prices, interest rates, and exchange rate in long run. This research contributes to existing literature by identifying that relationship between macroeconomic fluctuation and stock prices is asymmetric in nature whereas, in previous researches authors have assumed linearity in the time series data. The asymmetric effect of macroeconomic variables on stock prices should be considered for investors, governments, and other stakeholders during investment decisions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1757802
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1757802
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1757802
Template-Type: ReDIF-Article 1.0
Author-Name: John Guerard
Author-X-Name-First: John
Author-X-Name-Last: Guerard
Author-Name: Dimitrios Thomakos
Author-X-Name-First: Dimitrios
Author-X-Name-Last: Thomakos
Author-Name: Foteini Kyriazi
Author-X-Name-First: Foteini
Author-X-Name-Last: Kyriazi
Author-Name: Xibin Zhang
Author-X-Name-First: Xibin
Author-X-Name-Last: Zhang
Title: Automatic time series modeling and forecasting: A replication case study of forecasting real GDP, the unemployment rate and the impact of leading economic indicators
Abstract:
We test and report on time series modelling and forecasting using several US. Leading economic indicators (LEI) as an input to forecasting real US. GDP and the unemployment rate. These time series have been addressed before, but our results are more statistically significant using more recently developed time series modelling techniques and software. In this replication case study, we apply the Hendry and Doornik automatic time series PC-Give (AutoMetrics) methodology to the well-studied macroeconomic series, US. real GDP and the unemployment rate. The Autometrics system substantially reduces regression sum of squares measures relative to traditional variations on the random walk with drift model. The LEI are a statistically significant input to real GDP. A similar conclusion is found for the impact of the LEI and weekly unemployment claims series leading the unemployment rate series. We tested the forecasting ability of best univariate and best bivariate models over 60- and 120-period rolling windows and report considerable forecast error reductions. The adaptive averaging autoregressive model forecast ADA-AR and the adaptive learning forecast, ADL, produced the smallest root-mean-square errors and lowest mean absolute errors. Our results are greatly supportive of the significance for modeling and forecasting of the suggested input variables and they imply considerable improvements over all traditional benchmarks.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1759483
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1759483
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1759483
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Author-Name: Mohammad Uzair Akram
Author-X-Name-First: Mohammad Uzair
Author-X-Name-Last: Akram
Author-Name: Kashif Zaheer Malik
Author-X-Name-First: Kashif Zaheer
Author-X-Name-Last: Malik
Author-Name: Ali Imtiaz
Author-X-Name-First: Ali
Author-X-Name-Last: Imtiaz
Author-Name: Ammar Aftab
Author-X-Name-First: Ammar
Author-X-Name-Last: Aftab
Author-Name: Maggie Chen
Author-X-Name-First: Maggie
Author-X-Name-Last: Chen
Title: Forex and financial markets dynamics: A case of China and ASEAN
Abstract:
The paper aims to investigate the possible dual causality between exchange rates and stock indices of China and ASEAN using Structural Vector Auto-Regressive Model (SVAR). The paper has analysed the dynamic relationships between the Yuan and the Shanghai Composite Index and Shenzhen Stock Index in the context of China’s third largest trading bloc, i.e., ASEAN, after the Asian Financial Crisis of 1997. The Asian Financial Crisis of 1997–98 had an adverse impact on stock indices and the currencies of ASEAN countries. It was also expected that a devaluation of the Yuan would follow soon, thus plummeting investors’ confidence in the Chinese markets. Further research was needed to explore the complex relationship between financial and forex markets in the context of China and ASEAN. The focus of this paper is to explore such relationship with the focus on China. The results of the model confirm the dual causality between the two variables of interest in China. It concludes that a positive financial shock does have a small but significant impact upon the Yuan, whereas a positive exchange rate shock has a high and a significant impact upon the Shanghai and Shenzhen Composite Indices. The paper finds the effect of monetary and demand shocks upon the Yuan and stock market indices to be insignificant.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1756144
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1756144
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Author-Name: Sk Alamgir Hossain
Author-X-Name-First: Sk
Author-X-Name-Last: Alamgir Hossain
Author-Name: Syed Moudud-Ul-Huq
Author-X-Name-First: Syed
Author-X-Name-Last: Moudud-Ul-Huq
Author-Name: Marufa Binta Kader
Author-X-Name-First: Marufa Binta
Author-X-Name-Last: Kader
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Impact of trade openness on bank risk-taking behavior: Evidence from a developing country
Abstract:
This study investigates the impact of trade openness along with bank size, bank growth, liquidity, deposit insurance, industry centralization, and capital stringency on risk-taking behavior of commercial banks of Bangladesh. To examine the relationships, it considers 32 commercial banks over a period of 2000 to 2017. The main result of this study reveals that trade openness provides ample opportunities in lending activities of commercial banks and aids decreasing credit risk as well as overall bank risk. Hence, it has great implications for the policymakers to promote trade openness and make banks more competitive.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1765468
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1765468
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1765468
Template-Type: ReDIF-Article 1.0
Author-Name: Nizar Dwaikat
Author-X-Name-First: Nizar
Author-X-Name-Last: Dwaikat
Author-Name: Abdelbaset Queiri
Author-X-Name-First: Abdelbaset
Author-X-Name-Last: Queiri
Author-Name: Ihab Sameer Qubbaj
Author-X-Name-First: Ihab Sameer
Author-X-Name-Last: Qubbaj
Author-Name: Caroline Elliott
Author-X-Name-First: Caroline
Author-X-Name-Last: Elliott
Title: Board governance on dividend initiation by initial public offerings: Evidence from The Malaysian stock market
Abstract:
Within the realm of corporate finance, IPO (refers to the process of offering shares of corporation to the public for the first time) companies in Malaysia received little attention from the academic scholarly works. An important area of inquiry for IPO companies is to investigate the board characteristics impact on dividend initiation. With use of the agency theory principles, four argumentative hypotheses were proposed. The current study used a pooled cross-sectional data with a total sample size of 372 companies listed in the Malaysian Stock Market. The results of this study revealed that the independence of board and the size of board were found to have a positive and significant impact on the decision to initiate dividend for IPO companies. However, multi-seats were found to have a negative and significant impact on the decision to initiate dividend. But, CEO duality were found to be irrelevant to the decision of initiating dividend.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1761241
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1761241
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1761241
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Author-Name: Nurkhodzha Akbulaev
Author-X-Name-First: Nurkhodzha
Author-X-Name-Last: Akbulaev
Author-Name: Basti Aliyeva
Author-X-Name-First: Basti
Author-X-Name-Last: Aliyeva
Author-Name: Juan Sapena
Author-X-Name-First: Juan
Author-X-Name-Last: Sapena
Title: Gender and economic growth: Is there a correlation? The example of Kyrgyzstan
Abstract:
The article is focused on the study of gender equality issues as a necessary factor in the economic growth of the state. The work notes that the economic growth is traditionally considered as an important quantitative characteristic of the development in a country’s economic system, but this concept is complex and multifaceted, which makes it difficult to assess its scale, factors, sources and consequences. Therefore, through a theoretical analysis, the author identified main factors of the influence on country’s economic growth. Also, on the basis of an analytical review in relevant sources in this area, the current situation of women in the society was examined and the examples of state programs for ensuring gender equality in all social sectors of state functioning were given. In consideration of the foreign and the internal experience in strategy for gender equality achievement in the society, as well as conditions and factors of the economic growth in Kyrgyzstan, comparative analysis of key indicators of given categories was carried out in order to determine the existence of correlations between the studied concepts. As a result of research, the author proposed perspective directions of perfection in the existing system for gender equality ensuring in Kyrgyzstan with the aim of achieving a new level of country’s economic development.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1758007
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1758007
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1758007
Template-Type: ReDIF-Article 1.0
Author-Name: Melvin M. Khomo
Author-X-Name-First: Melvin M.
Author-X-Name-Last: Khomo
Author-Name: Meshach Jesse Aziakpono
Author-X-Name-First: Meshach Jesse
Author-X-Name-Last: Aziakpono
Author-Name: Mariam Camarero
Author-X-Name-First: Mariam
Author-X-Name-Last: Camarero
Title: The behaviour of the real effective exchange rate of South Africa: Is there a misalignment?
Abstract:
This paper examines the extent of misalignment of the real effective exchange rate (REER) of South African rand. With South Africa being an open emerging market economy closely linked with global markets, the country’s economy is susceptible to external shocks and changes in global trade patterns. Based on the behavioural equilibrium exchange rate framework of Clark and MacDonald (1998) the study uses a cointegration technique, which caters for endogeneity to estimate the equilibrium value of the REER of the rand. Next, the study uses a Markov regime-switching (MSM) method to determine whether the exchange rate’s departure from the equilibrium level is meaningful enough to be considered as either over- or undervalued. The results show that long-run equilibrium relationship between the rand’s REER and economic variables inclusive of terms of trade, external openness, capital flows and government expenditure. The MSM correctly captures exchange rate misalignment as distinct episodes of exchange rate overvaluation and undervaluation. Most of the exchange rate undervaluation episodes identified in the study have been in response to either idiosyncratic shocks emanating from internal economic/political challenges or systemic global factors transmitted through either the nominal exchange rate or capital flows and not policy-induced behaviour.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1760710
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1760710
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1760710
Template-Type: ReDIF-Article 1.0
Author-Name: Ahmed S. Alanazi
Author-X-Name-First: Ahmed S.
Author-X-Name-Last: Alanazi
Author-Name: Ammar S. Alanazi
Author-X-Name-First: Ammar S.
Author-X-Name-Last: Alanazi
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: The profitability of technical analysis: Evidence from the piercing line and dark cloud cover patterns in the forex market
Abstract:
We examine 112,792 daily candles using more than one million spot quotes among 24 currency pairs between 2000 and 2018. We find that chart patterns are profitable. Relying on these visually based patterns achieves returns of more than 600% after accounting for the transaction costs. Nevertheless, the transaction costs are substantial. In particular, the spread is a large burden on profitability. Overall, our evidence suggests that technical analysis could generate excess returns and that the profitability of technical analysis cannot be explained by market inefficiency. Rather, the evidence is consistent with that on the link between the efficiency and profitability of technical analysis.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1768648
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1768648
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1768648
Template-Type: ReDIF-Article 1.0
Author-Name: David de Villiers
Author-X-Name-First: David
Author-X-Name-Last: de Villiers
Author-Name: Natalya Apopo
Author-X-Name-First: Natalya
Author-X-Name-Last: Apopo
Author-Name: Andrew Phiri
Author-X-Name-First: Andrew
Author-X-Name-Last: Phiri
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Unobserved structural shifts and asymmetries in the random walk model for stock returns in African frontier markets
Abstract:
The purpose of this study is to examine the weak-form market efficiency hypothesis (EMH) for 8 African Frontier markets between 2001 and 2017. To achieve this purpose, we employ unit root testing procedures which are robust to both nonlinearities and smooth structural breaks, making this study the first of its kind for African markets. Our empirical findings suggest that, regardless of whether daily or weekly series are employed, most African frontier markets are not market efficient, in the weak sense form, with the exception of the Kenyan stock market and to a very much lesser extent the Botswana and South African stock series. Important policy and investor implications are drawn in our study.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1769348
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1769348
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1769348
Template-Type: ReDIF-Article 1.0
Author-Name: Trinh Quoc Trung
Author-X-Name-First: Trinh Quoc
Author-X-Name-Last: Trung
Author-Name: Nguyen Thanh Liem
Author-X-Name-First: Nguyen Thanh
Author-X-Name-Last: Liem
Author-Name: Cao Thi Mien Thuy
Author-X-Name-First: Cao Thi Mien
Author-X-Name-Last: Thuy
Author-Name: Mohammed M. Elgammal
Author-X-Name-First: Mohammed M.
Author-X-Name-Last: Elgammal
Title: The impact of short-term debt on accruals-based earnings management – evidence from Vietnam
Abstract:
This study seeks to examine the relationship between short-term debt maturity and accruals-based earnings management using a sample of listed firms in Vietnam from 2010–2017. The extant literature remains under-explored on the impact of short-term debt on accruals-based earnings management at low and high levels of short-term debt. We further dissect the impact of the interaction between the growth opportunities and short debt maturity on accruals-based earnings management. Our findings provide evidence suggesting that short-term debt maturity is likely to exert a desirable impact in lowering earnings management at low levels of short-term debt, while at high levels it tends to increase earnings manipulation, demonstrating a U-shaped relationship. Furthermore, we show that growth opportunities moderate the impact of short debt maturity on earnings management. Specifically, the U-shaped pattern between short-term debt and earnings management is pronounced for firms with low growth opportunities, while for high-growth counterparts that pattern weakens.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1767851
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1767851
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1767851
Template-Type: ReDIF-Article 1.0
Author-Name: Jaison Chireshe
Author-X-Name-First: Jaison
Author-X-Name-Last: Chireshe
Author-Name: Matthew K. Ocran
Author-X-Name-First: Matthew K.
Author-X-Name-Last: Ocran
Author-Name: Francesco Tajani
Author-X-Name-First: Francesco
Author-X-Name-Last: Tajani
Title: Financial development and health care expenditure in Sub Saharan Africa Countries
Abstract:
The study aimed to examine the relationship between financial development and health care expenditure in 46 Sub Saharan Africa (SSA) countries. The paper argues that health care expenditure is a key transmission mechanism through which financial development influences better health outcomes. The study used random and fixed effects as well as instrumental variable estimation methods using data from 1995 to 2014. The results showed that financial development leads to increased health care expenditure. In terms of policy implications, the findings underscore the need to foster financial development in SSA economies to assist with domestic resource mobilisation to finance health care expenditure.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1771878
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1771878
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1771878
Template-Type: ReDIF-Article 1.0
Author-Name: George Okello Candiya Bongomin
Author-X-Name-First: George
Author-X-Name-Last: Okello Candiya Bongomin
Author-Name: John C. Munene
Author-X-Name-First: John C.
Author-X-Name-Last: Munene
Author-Name: Pierre Yourougou
Author-X-Name-First: Pierre
Author-X-Name-Last: Yourougou
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Examining the role of financial intermediaries in promoting financial literacy and financial inclusion among the poor in developing countries: Lessons from rural Uganda
Abstract:
The main purpose of this study is to establish the mediating role of financial intermediaries in the relationship between financial literacy and financial inclusion of the poor in developing countries with data from rural Uganda. The data for this study were analyzed using Partial Least Square (PLS). The results revealed that financial intermediaries significantly mediates the relationship between financial literacy and financial inclusion. The presence of financial intermediaries such as microfinance banks enhance financial literacy to increase the scope of financial inclusion of the poor in rural Uganda. Thus, policy makers and advocates of financial literacy, especially in developing countries should use financial intermediaries such as microfinance banks to roll out financial literacy programs. This can be achieved through provision of financial literacy clinics, workshops and seminars where the poor can learn about personal finance using hands-on approach. This will help them to make wise financial decisions and choices towards consumption of complex financial products offered by the rural-based financial institutions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1761274
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1761274
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1761274
Template-Type: ReDIF-Article 1.0
Author-Name: Thi-Kim-Dung Bui
Author-X-Name-First: Thi-Kim-Dung
Author-X-Name-Last: Bui
Author-Name: Anh-Tuan Doan
Author-X-Name-First: Anh-Tuan
Author-X-Name-Last: Doan
Author-Name: Hyoung-Goo Kang
Author-X-Name-First: Hyoung-Goo
Author-X-Name-Last: Kang
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Institutional environment, ownership structure and firm-specific information: Evidence from a transitional economy
Abstract:
This study examines the relationship between ownership structure and stock price informativeness in a transitional economy characterized by an underdeveloped corporate governance system. Using a sample of 322 publicly listed companies in Vietnam covering a 10-year period from 2009 to 2018, we evaluate how national governance quality affects the impact of ownership type on stock price informativeness. We find the evidence that government-owned firms tend to have higher synchronous (lower informative) stock prices, whereas the opposite is true for the foreign-owned firms. Furthermore, the stock price informativeness of government-owned firms is higher when there is an increase in national governance quality. This study finds no significant difference in governance quality benefits between foreign-controlled and non-foreign firms. These findings suggest that the institutional channel plays an important role in determining the informativeness of the stock prices of government-controlled firms, especially in transitional economies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1774986
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1774986
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1774986
Template-Type: ReDIF-Article 1.0
Author-Name: Justice G. Djokoto
Author-X-Name-First: Justice G.
Author-X-Name-Last: Djokoto
Author-Name: Ferguson K. Gidiglo
Author-X-Name-First: Ferguson K.
Author-X-Name-Last: Gidiglo
Author-Name: Francis Y. Srofenyoh
Author-X-Name-First: Francis Y.
Author-X-Name-Last: Srofenyoh
Author-Name: Kofi Aaron A-O. Agyei-Henaku
Author-X-Name-First: Kofi Aaron A-O.
Author-X-Name-Last: Agyei-Henaku
Author-Name: Akua A. Afrane Arthur
Author-X-Name-First: Akua A.
Author-X-Name-Last: Afrane Arthur
Author-Name: Charlotte Badu-Prah
Author-X-Name-First: Charlotte
Author-X-Name-Last: Badu-Prah
Author-Name: John Fry
Author-X-Name-First: John
Author-X-Name-Last: Fry
Title: Sectoral and spatio-temporal differentiation in technical efficiency: A meta-regression
Abstract:
In the literature, existing meta-regressions on efficiency have focused on specific sectors in a country or multiple country and on specific economic activity. None of the available efficiency meta-regressions covers multiple sectors of an economy. We contribute to the literature by investigating the technical efficiency differentiation within a multi-sectoral environment. Using data from 152 publications yielding 223 observations from diverse sources and applying meta-regression analysis, we investigated the heterogeneity in mean technical efficiency (MTE), assessed the temporal and spatial drivers of estimated technical efficiency for Ghana. We found heterogeneity in the estimated MTE. The selected cauchit functional form of the fractional regression model showed sectoral and spatial variables drive heterogeneity in MTE. There was a seeming technical efficiency regression with average MTE of 0.676 that requires greater effort in the management of production than has been the case previously in order to close the output gap.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1773659
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1773659
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1773659
Template-Type: ReDIF-Article 1.0
Author-Name: Raphael Kwaku Botchway
Author-X-Name-First: Raphael Kwaku
Author-X-Name-Last: Botchway
Author-Name: Abdul Bashiru Jibril
Author-X-Name-First: Abdul Bashiru
Author-X-Name-Last: Jibril
Author-Name: Zuzana Komínková Oplatková
Author-X-Name-First: Zuzana Komínková
Author-X-Name-Last: Oplatková
Author-Name: Miloslava Chovancová
Author-X-Name-First: Miloslava
Author-X-Name-Last: Chovancová
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Deductions from a Sub-Saharan African Bank’s Tweets: A sentiment analysis approach
Abstract:
The upsurge in social media websites has in no doubt triggered a huge source of data for mining interesting expressions on a variety of subjects. These expressions on social media websites empower firms and individuals to discover varied interpretations regarding the opinions expressed. In Sub-Saharan Africa, financial institutions are making the needed technological investments required to remain competitive in today’s challenging global business environment. Twitter as one of the digital communication tools has in recent times been integrated into the marketing communication tools of banks to augment the free flow of information. In this light, the purpose of the present study is to perform a sentiment analysis on a large dataset of tweets associated with the Ecobank Group, a prominent pan-African bank in sub-Saharan Africa using four different sentiment lexicons to determine the best lexicon based on its performance. Our results show that Valence Aware Dictionary and sEntiment Reasoner (VADER) outperforms all the other three lexicons based on accuracy and computational efficiency. Additionally, we generated a word cloud to visually examine the terms in the positive and negative sentiment categories based on VADER. Our approach demonstrates that in today’s world of empowered customers, firms need to focus on customer engagement to enhance customer experience via social media channels (e.g., Twitter) since the meaning of competitive advantage has shifted from purely competing over price and product to building loyalty and trust. In theory, the study contributes to broadening the scope of online banking given the interplay of consumer sentiments via the social media channel. Limitations and future research directions are discussed at the end of the paper.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1776006
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1776006
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1776006
Template-Type: ReDIF-Article 1.0
Author-Name: Dominik L. Schall
Author-X-Name-First: Dominik L.
Author-X-Name-Last: Schall
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: More than money? An empirical investigation of socio-psychological drivers of financial citizen participation in the German energy transition
Abstract:
While financial citizen participation plays an increasing role in renewable energy, there is a lack of understanding which socio-psychological factors correlate with a decision to privately invest in renewable energy. Based on a conceptual model and an extensive literature review, a survey among retail investors of renewable energy projects in Germany was conducted and compared to existing population samples using logistic regressions and factor analysis. This research finds that the typical retail investor in renewable energy in Germany is more likely to be male with a higher income, to have a higher education, and to live in a more rural area compared with the overall population. The typical investor exhibits strong proenvironmental beliefs and behaviors as well as a predisposition for active citizenship. Furthermore, getting a form of non-financial or “psychic return” from the investment seems to be important for the investment decision. Strategic adaptions for public and private actors to increase retail investment in renewable energy are discussed.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1777813
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1777813
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1777813
Template-Type: ReDIF-Article 1.0
Author-Name: Kofi Agyarko Ababio
Author-X-Name-First: Kofi Agyarko
Author-X-Name-Last: Ababio
Author-Name: Jules Clement Mba
Author-X-Name-First: Jules Clement
Author-X-Name-Last: Mba
Author-Name: Ur Koumba
Author-X-Name-First: Ur
Author-X-Name-Last: Koumba
Author-Name: Lau Evan
Author-X-Name-First: Lau
Author-X-Name-Last: Evan
Title: Optimisation of mixed assets portfolio using copula differential evolution: A behavioural approach
Abstract:
Cumulative Prospect Theory (CPT) is rooted in behavioural psychology and has demonstrated to possess sufficient explanatory power for use in actual decision-making problems. In this study, two distinct asset classes (i.e. assets with extremely lower or higher CPT values) are classified and pre-selected for optimisation purposes using the differential evolution algorithm. Data on two asset classes namely cryptocurrencies and traditional indices were used in the study. The data were sourced from the Bloomberg database and spans the period August 2016 to March 2018. Probability weighting function with 1- and 2- parameters are used to obtain the CPT values of cryptocurrencies, indices, and mixed assets (i.e. cryptocurrencies and indices). We observe that portfolios consisting of assets of any kind with extremely lower CPT values generally outperform those with higher CPT values. Moreover, portfolios made up of mixed assets generate benefits in terms of improvement of the returns, but it tends also to increase volatility significantly.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1780838
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1780838
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1780838
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Esaku
Author-X-Name-First: Stephen
Author-X-Name-Last: Esaku
Author-Name: Duncan Watson
Author-X-Name-First: Duncan
Author-X-Name-Last: Watson
Title: Job creation, job destruction and reallocation in Sub-Saharan Africa: Firm-level evidence from Kenyan manufacturing sector
Abstract:
Is the poor aggregate employment growth of the manufacturing sector in Sub-Saharan African countries the outcome of inadequate job creation or rival forces of job creation and job destruction acting in opposite direction? Using a unique dataset from the Kenyan manufacturing sector, we examine this question using ordinary least squares method and feasible generalized least squares technique. We find simultaneous high rates of job creation and job destruction. In most cases, job creation in the manufacturing sector was not adequate to offset the rapid destruction of jobs. Second, we find that the presence of simultaneously high rates of job creation and job destruction cut across firm size and age. Third, we find that young firms account for almost all of the net job creation rates implying that the firm’s age is important in shaping its contribution to net job creation rates. Our findings have practical implications. First, job creation policies alone without policies that mitigate the destruction of jobs created might not be successful. For job creation to be successful in the manufacturing sector, effort should be made towards developing strategies that mitigate the destruction of jobs created. This is because job creation and destruction rates simultaneously follow each other. Second, to expand employment growth, effort should be dedicated to supporting young firms (6–10 years), through possibly, tax relief, providing technology of production or any possible government subsidy that can help these firms grow and survive in the turbulent business environment.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1782113
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1782113
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1782113
Template-Type: ReDIF-Article 1.0
Author-Name: Abdulaziz Hamad Algaeed
Author-X-Name-First: Abdulaziz Hamad
Author-X-Name-Last: Algaeed
Author-Name: Muhammad Shafiullah
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shafiullah
Title: Symmetric oil price shocks and government expenditure-real exchange rate nexus: ARDL and SVAR models for an oil-based economy, 1970–2018
Abstract:
Historically, oil has been the main source of earnings in the Saudi Arabian economy. Different from other symmetric oil price shock studies, the aim of this paper is to test the impacts of symmetric oil price shocks on government expenditure-real exchange rate nexus and ultimately, to check the conformity of symmetric oil price shock findings to those prevailing in literature. To achieve this endeavor, autoregressive distributed lag (ARDL) and structural vector autoregressive (SVAR) have been employed for the period of 1970 to 2018. The goal of carrying out ARDL and SVAR together is to consolidate and strengthen the consistency of the results obtained from both approaches. Our models’ findings support the short-run appreciation of the real exchange rate as a reaction to symmetric oil price shocks and to real government expenditure. The latter finding, though is consistent with Dutch disease predictions. However, in the long-run symmetric oil price shocks negate the real exchange rate. The directional map of causality is as follows: symmetric oil price shocks impact the total earnings of the Saudi government and hence, government spending. Thereafter, the composition of expenditure causes an appreciation of the real exchange rate. Policymakers should consider oil price fluctuations as a source of disturbance to government earnings. Solutions could be carried out by benefiting from other countries' experience.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1782076
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1782076
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1782076
Template-Type: ReDIF-Article 1.0
Author-Name: Rizwana Hayat
Author-X-Name-First: Rizwana
Author-X-Name-Last: Hayat
Author-Name: Abdul Rashid
Author-X-Name-First: Abdul
Author-X-Name-Last: Rashid
Author-Name: Miao Wang
Author-X-Name-First: Miao
Author-X-Name-Last: Wang
Title: Exploring legal and political-institutional determinants of the informal economy of Pakistan
Abstract:
In this paper, the size of the informal economy of Pakistan is determined by including the legal and political-institutional variables as determinants. By using the MIMIC model average estimate for the informal economy of Pakistan is 37.75 percent from 1995 to 2017. The study tries to explore the institutional implications of the informal economy for policymakers to reduce and control the informal economy in the developing country. Empirical results show that the most significant legal variable is Law and Order and the most important political variable is Religion in Politics for measuring the informal economy. Departing from existing studies, institutional determinants are explored in detail because these different institutional determinants may affect the informal economy differently in developed, developing, and underdeveloped countries. The policy formation process can be more effective in developing countries like Pakistan with consideration of the most relevant institutional factors in estimation.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1782075
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1782075
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1782075
Template-Type: ReDIF-Article 1.0
Author-Name: Rogers Ondiba Ochenge
Author-X-Name-First: Rogers
Author-X-Name-Last: Ondiba Ochenge
Author-Name: Rose Ngugi
Author-X-Name-First: Rose
Author-X-Name-Last: Ngugi
Author-Name: Peter Muriu
Author-X-Name-First: Peter
Author-X-Name-Last: Muriu
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Foreign equity flows and stock market liquidity in Kenya
Abstract:
In this paper, we explore the dynamic relationship between aggregate foreign equity inflows and aggregate liquidity of the Kenyan stock market using transactional foreign trading data and several liquidity measures. We employ vector autoregression with monthly gross foreign inflows, local stock market liquidity and returns over the period 2011–2018. We discover a one-way causality link from inflows to liquidity and that foreign investors promote rather than impede local liquidity. Our analysis therefore renders support to the recent policy by Capital Market Authority of Kenya that now allows foreign investors to acquire up to 100% of any stock listed at the Kenyan stock exchange market.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1781503
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1781503
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1781503
Template-Type: ReDIF-Article 1.0
Author-Name: Eissa A. Al-Homaidi
Author-X-Name-First: Eissa A.
Author-X-Name-Last: Al-Homaidi
Author-Name: Mosab I. Tabash
Author-X-Name-First: Mosab I.
Author-X-Name-Last: Tabash
Author-Name: Anwar Ahmad
Author-X-Name-First: Anwar
Author-X-Name-Last: Ahmad
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: The profitability of islamic banks and voluntary disclosure: empirical insights from Yemen
Abstract:
This study aims to empirically examine the relationship between the extent of voluntary disclosure level and profitability of Yemeni Islamic banks. This article adopted a self-constructed disclosure index, composed of 266 items, to measure the level of voluntary disclosure information and its association with the profitability of 30 annual reports of Yemeni Islamic banks, over a ten-year reporting period from 2005 up to 2014. The results with regard to return on assets (ROA) show that background about the Islamic bank, corporate governance information, corporate social disclosure, bank size, and bank age have a negative and significant relationship with return on assets. Concerning return on equity (ROE), the outcomes reveal that background about the Islamic bank, financial ratios, corporate governance information, corporate social disclosure, zakat information, and bank size have a negative and significant effect with return on equity. With respect to profit after tax (PAT), the results indicate that background about the Islamic bank, corporate social disclosure, and bank age has a negative and significant effect with profit after tax. The research mentions that regulatory bodies and managers should develop a guideline for disclosure of information to enhance the relationship between disclosure and profitability among Yemeni Islamic banks, leading to reasonable economic decision-making. This article provides important insights into the largely unexplored voluntary publication of Islamic banks ‘ annual reports in Yemen. The research also represents the first empirical inquiry into the correlation in the context of Yemen between the rate of voluntary disclosures and the attributes of profitability.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1778406
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1778406
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1778406
Template-Type: ReDIF-Article 1.0
Author-Name: Gerald Ngoma
Author-X-Name-First: Gerald
Author-X-Name-Last: Ngoma
Author-Name: Burcu Berke
Author-X-Name-First: Burcu
Author-X-Name-Last: Berke
Title: What determines import demand in Zimbabwe? Evidence from a gravity model
Abstract:
The notion of the determinants of import demand has become a major policy issue in most countries due to the persistent trade deficits being experienced and their effects on the economy. Against this backdrop, this study empirically examined the factors determining import demand in Zimbabwe using a gravity model. Forty trading partners for Zimbabwe and data for the period 2004 to 2017 were employed. The model was estimated using Ordinary Least Squares (OLS) with and without fixed effects and the findings were that gross domestic product and trade openness for Zimbabwe and her trading partners had a positive impact on import demand. Furthermore, inflation and population for Zimbabwe as well as its trading partners’ and bilateral distance were found to be negatively related to import demand. More so, the study found out that dollarization has managed to increase import demand. Based on these findings, policies directed at reducing import demand should target trade openness, population and inflation level. The findings also imply that de-dollarization is an effective strategy to reduce import demand.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1782129
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1782129
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1782129
Template-Type: ReDIF-Article 1.0
Author-Name: Prince Fosu
Author-X-Name-First: Prince
Author-X-Name-Last: Fosu
Author-Name: Thomas I. Wahl
Author-X-Name-First: Thomas I.
Author-X-Name-Last: Wahl
Author-Name: Evan Lau
Author-X-Name-First: Evan
Author-X-Name-Last: Lau
Title: Empirical analysis of US bilateral corn trade: Evidence from Japan, Mexico, China, South Korea, and the European Union
Abstract:
Aggregate export supply function for US corn and bilateral import functions for US corn by Mexico, Japan, China, South Korea, and the EU are estimated using ARDL estimation techniques. The findings of the study show that export price, technology, and lagged exports impact positively on US corn exports, while real effective exchange rates and ethanol production negatively impact US corn export. In addition, the current import price had a negative effect on Mexico, China, and the EU demand for US corn. However, for Japan and South Korea, it is the previous price that negatively affects corn import. More so, livestock production, NAFTA and WTO involvement positively affected corn import by all importing countries. Also, the Chinese population positively impacted corn import from the US. GDP in Mexico, Japan, South Korea, and the EU had a positive effect on corn imports, while China’s GDP impacted negatively on corn imports. More so, the US has a more price elastic supply of corn. Mexico, Japan, South Korea, and the EU have price inelastic demand for US corn, while China has price elastic demand suggesting China is very price sensitive. The results of this study have important implications for global corn trade and the US economy. The results suggest that increases in livestock production in all importing countries could lead to a significant increase in demand for U.S. corn. Also, policies that enhance NAFTA and WTO could lead to a dramatic increase in demand for U.S. corn.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1783128
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1783128
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1783128
Template-Type: ReDIF-Article 1.0
Author-Name: Lingaraj Mallick
Author-X-Name-First: Lingaraj
Author-X-Name-Last: Mallick
Author-Name: Smruti Ranjan Behera
Author-X-Name-First: Smruti Ranjan
Author-X-Name-Last: Behera
Author-Name: Juan Sapena
Author-X-Name-First: Juan
Author-X-Name-Last: Sapena
Title: Does trade openness affect economic growth in India? Evidence from threshold cointegration with asymmetric adjustment
Abstract:
This paper investigates the long-run equilibrium relationship between economic growth and trade openness in India during the period 1960–2018 using the asymmetric error-correction model with threshold cointegration. To evaluate the robustness impact of trade openness on economic growth under different regimes, we divide the full sample period into two sub-periods, i.e., pre-trade reforms period 1960–1990, and post-trade reforms period 1991–2018. The study indeed confirms the evidence of asymmetric cointegration between economic growth and trade openness in India during the period under evaluation and over the different sub-periods. The estimated asymmetric error-correction model exhibits a different speed of adjustment in trade openness in response to positive and negative economic growth shocks in the short-run. More specifically, during the pre-reforms period, deviations from the long-run equilibrium due to a relative increase in economic growth have a lower speed of adjustment in comparison to deviations caused by a corresponding decrease in economic growth in India.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1782659
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1782659
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1782659
Template-Type: ReDIF-Article 1.0
Author-Name: Essotanam Mamba
Author-X-Name-First: Essotanam
Author-X-Name-Last: Mamba
Author-Name: Moukpè Gniniguè
Author-X-Name-First: Moukpè
Author-X-Name-Last: Gniniguè
Author-Name: Essossinam Ali
Author-X-Name-First: Essossinam
Author-X-Name-Last: Ali
Author-Name: Aviral Tiwari
Author-X-Name-First: Aviral
Author-X-Name-Last: Tiwari
Title: Effect of foreign direct investment on structural transformation in West African Economic and Monetary Union (WAEMU) countries
Abstract:
Foreign Direct Investment (FDI) is widely recognized as an engine of the structural transformation in development theories. We analyzed the effects of FDI on the structural transformation in West African Economic and Monetary Union (WAEMU) countries by considering the industry, manufacturing, agricultural, and services sectors for the period spanning from 1990 to 2017. Using the Panel Corrected Standard Errors (PCSE) estimation technique, we showed the neutrality hypothesis of FDI inflows on industrial, manufacturing and agricultural productivity in the WAEMU region. However, findings showed positive effect of FDI inflows on services sector’s productivity. We also found that domestic credit was not an important determinant for structural transformation in WAEMU countries, except for the services sector. Moreover, findings showed that the institutional quality indicator is relatively low in WAEMU region and has negative relationship with agricultural productivity, while it increases services sector’s value added. These results imply that the low institutional quality in WAEMU may lead to the failure in the design and implementation of reliable agricultural policies of the region which may not attract the FDI, resulting in the negative effect of FDI on structural transformation in the region. Rethinking about the design and implementation of domestic development policies and promoting actions that can attract FDI in sectors with positive ripple effects, including industry, manufacturing, agriculture and services sectors are recommended for the structural transformation of the economy of WAEMU countries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1783910
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1783910
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1783910
Template-Type: ReDIF-Article 1.0
Author-Name: Malefa Rose Malefane
Author-X-Name-First: Malefa Rose
Author-X-Name-Last: Malefane
Author-Name: Mariam Camarero
Author-X-Name-First: Mariam
Author-X-Name-Last: Camarero
Title: Trade openness and economic growth in Botswana: Evidence from cointegration and error-correction modelling
Abstract:
The purpose of this paper is to estimate the dynamic impact of trade openness on economic growth in Botswana using the ARDL bounds testing approach. The study employs four different proxies for trade openness, which include trade-based measures and a composite index. The trade-based measures capture the effects of total trade, exports, and imports while the composite index takes country size and geography into account. The use of four different indicators in this study enables a broader analysis of how different forms of trade openness affect economic growth. Evidence from the results points to the significance of total trade and exports in promoting economic growth in Botswana, but also the lack of growth impetus from imports. Specifically, the results reveal that when the ratio of total trade to GDP, the ratio of exports to GDP, and the trade openness index are used as proxies of trade openness, then trade openness has a significant, positive impact on economic growth in both the short run and the long run. However, when the ratio of imports to GDP is used as a proxy for openness, the study fails to find any significant impact of trade openness on economic growth in both the short run and the long run. Based on these findings, this study recommends that Botswana should pursue policies that boost the exports and total trade. However, there is a need for the country to revisit its combination of imports to enable significant growth-enhancing effects from the imports sector.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1783878
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1783878
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1783878
Template-Type: ReDIF-Article 1.0
Author-Name: E. Chuke Nwude
Author-X-Name-First: E. Chuke
Author-X-Name-Last: Nwude
Author-Name: Robinson O. Ugwoke
Author-X-Name-First: Robinson O.
Author-X-Name-Last: Ugwoke
Author-Name: Peter Chinyere Uruakpa
Author-X-Name-First: Peter Chinyere
Author-X-Name-Last: Uruakpa
Author-Name: Ugochukwu Sebastine Ugwuegbe
Author-X-Name-First: Ugochukwu Sebastine
Author-X-Name-Last: Ugwuegbe
Author-Name: Nnenna G. Nwonye
Author-X-Name-First: Nnenna G.
Author-X-Name-Last: Nwonye
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Official development assistance, income per capita and health outcomes in developing countries: Is Africa different?
Abstract:
In this study, we investigate the effect of official development assistance and income per capita on health outcomes in developing countries. Health outcome is proxied by life expectancy and under-5-mortality rate. We accounted for the endogeneity problem in the model by employing a dynamic two-step system generalized method of moments (GMM) estimator. We find that official development assistance does not improve health outcome in developing countries, while income per capital significantly improves health outcome in developing countries. The study reports that CO2 emission is not a significant determinant of health outcome in developing countries but the prevalence of HIV and Immunization significantly determines health outcomes in developing countries. More specifically the prevalence of HIV increases the under-5-mortality rate and decreases life expectancy; immunization increases life expectancy but decreases under-5-mortality rate. It was equally revealed in the study that health outcome in Sub-Saharan Africa (SSA) does not significantly differ from health outcomes in other developing countries. We equally reported that the effect of income per capita on health outcome in Sub-Saharan Africa countries is not significantly different from that of non-SSA countries. The effect of official development assistant on health outcome in SSA was found to be significantly different from non-SSA countries. The study reveals that the effect of ODA on life expectancy in SSA is less compared to its effect on non-SSA countries. Similarly, the effect of ODA on under-5-mortality is higher in SSA countries as against other non-SSA countries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1774970
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1774970
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1774970
Template-Type: ReDIF-Article 1.0
Author-Name: Sarthak Kumar Jena
Author-X-Name-First: Sarthak
Author-X-Name-Last: Kumar Jena
Author-Name: Chandra Sekhar Mishra
Author-X-Name-First: Chandra Sekhar
Author-X-Name-Last: Mishra
Author-Name: Prabina Rajib
Author-X-Name-First: Prabina
Author-X-Name-Last: Rajib
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Determinants of the choice of share buyback methods: A study in India
Abstract:
This study examines signaling, excess cash flow, substitution, leverage, agency cost, stock and liquidity hypotheses by considering firm-specific parameters to find out their impact on selection between tender offer and open market method while doing buyback. This study is based on the basic premise that the rules and regulations those govern these two methods are completely different and have different objectives. This study takes 430 non-financial buybacks from 1998–1999 to 2017–2018 for analysis and these buybacks segregated in terms of tender offer (176) and open market methods (254). In this study, both univariate and multivariate tests have been employed. T-test and Wilcoxon rank sum test are used for univariate analysis, and logistic regression is used for multivariate analysis. The empirical findings corroborate the evidence that free cash flow hypothesis, leverage hypothesis, agency cost hypothesis and liquidity hypothesis are the prime motivators for choosing of tender offer than open market share repurchase. This study finds that dividend paid and choosing of tender offer are substitutes. The results also support the notion that for correcting short-term undervaluation firms choose tender offer rather than open market methods. This study is the first comprehensive analysis in the Indian context to find out the motivations behind the selection of share repurchase methods.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1782073
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1782073
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1782073
Template-Type: ReDIF-Article 1.0
Author-Name: Samuel Tawiah Baidoo
Author-X-Name-First: Samuel Tawiah
Author-X-Name-Last: Baidoo
Author-Name: Hadrat Yusif
Author-X-Name-First: Hadrat
Author-X-Name-Last: Yusif
Author-Name: Enock Kojo Ayesu
Author-X-Name-First: Enock Kojo
Author-X-Name-Last: Ayesu
Author-Name: Walid Mensi
Author-X-Name-First: Walid
Author-X-Name-Last: Mensi
Title: Improving loan repayment in Ghana: Does financial literacy matter?
Abstract:
Loan defaults continue to be a major challenge that confronts financial institutions in developing countries and this impedes their potential role in sustainable development. Given the enormity of loan defaults, policymakers have devoted much attention to the phenomenon by implementing strategies and policies aimed at improving loan repayment to avert the situation. To complement the effort of policymakers, several empirical studies have also been conducted regarding loan repayment determinants; but what is worrying is that none of these studies emphasises the role of financial literacy, especially in the Ghanaian context. This study therefore examines the potential effect of financial literacy on loan repayment. We rely on primary data and employ the binary probit regression for the analysis. The results reveal a positive and significant relationship between financial literacy and loan repayment. This means that enhancing financial literacy improves loan repayment significantly which will in turn ensure sustainability of the financial institutions. The level of education of borrowers is also revealed to play a key role in loan repayment. Given the findings, the study sheds new lights on how loan repayment can be improved to ensure a vibrant banking sector.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1787693
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1787693
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1787693
Template-Type: ReDIF-Article 1.0
Author-Name: Alula Tafesse
Author-X-Name-First: Alula
Author-X-Name-Last: Tafesse
Author-Name: Degiye Goshu
Author-X-Name-First: Degiye
Author-X-Name-Last: Goshu
Author-Name: Fekadu Gelaw
Author-X-Name-First: Fekadu
Author-X-Name-Last: Gelaw
Author-Name: Alelign Ademe
Author-X-Name-First: Alelign
Author-X-Name-Last: Ademe
Author-Name: Goodness Aye
Author-X-Name-First: Goodness
Author-X-Name-Last: Aye
Title: Commercialization of Moringa: Evidence from Southern Ethiopia
Abstract:
The policies in Ethiopia to advance the commercial orientation of farmers need identification of challenges at farmer level and exhaustive actions to shift the farm sector. Further activities have to be done to change the country’s present subsistence-oriented farm production system of different crops. The research has aimed at investigating factors determining the Moringa commercialization in southern Ethiopia. The cross-sectional survey method was used to identify 232 Moringa producing smallholder farmers from Wolaita and Gamo zones. Heckman’s two-step sample selection model is adopted to find factors determining the probability of Moringa market participation and the intensity of participation. The study result revealed that the likelihood of the Moringa output market participation is influenced by the variables such as location, access to irrigation, and distance to market. On the other hand family size, per capita income, frequency of extension contact, access to irrigation, access to credit, and distance to market are among significantly influencing factors of the extent of Moringa marketing. Therefore, policy agents should mainly consider these variables on any development activities to improve Moringa marketing. Furthermore, it requires improving extension services and offering immediate practical training on techniques of market-oriented and value-added Moringa production and marketing systems.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1783909
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1783909
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1783909
Template-Type: ReDIF-Article 1.0
Author-Name: Beza Muche Teka
Author-X-Name-First: Beza Muche
Author-X-Name-Last: Teka
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Factors affecting bank customers usage of electronic banking in Ethiopia: Application of structural equation modeling (SEM)
Abstract:
Electronic banking services have not been widely used by most bank customers in Ethiopia; most bank customers continue to conduct most of their banking transactions using traditional methods. Therefore, the main objective of this study is to identify factors that affect customers’ usage of electronic banking services. The type of research applied in this study is explanatory in nature. A research model was developed by integrating the constructs of Technology Acceptance Model (TAM) and Theory of Planned Behavior (TPB). A total of 420 actual users of e-banking services were used as a sample. A well-structured questionnaire was used to collect the relevant information. The data analyzed using Structural Equation Modeling revealed that perceived usefulness, perceived ease of use, attitude towards e-banking, perceived behavioral control, subjective norms, behavioral intention, awareness as well as the availability of internet/network connection have a significant positive impact on users e-banking usage practice. However, perceived risk has a significant negative impact. These findings suggest that banks in Ethiopia should create awareness to their customers with regard to the usage and benefits of e-banking service delivery channels.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1762285
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1762285
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1762285
Template-Type: ReDIF-Article 1.0
Author-Name: Vinod Kumar
Author-X-Name-First: Vinod
Author-X-Name-Last: Kumar
Author-Name: Ganesh Kumar Nidugala
Author-X-Name-First: Ganesh Kumar
Author-X-Name-Last: Nidugala
Author-Name: Sergio Rossi
Author-X-Name-First: Sergio
Author-X-Name-Last: Rossi
Title: Impact of primary market on total factor productivity: A cross-country analysis
Abstract:
Schumpeter argued that entrepreneurial finance causes the absorption of innovation in the economy and productivity growth. Previous empirical work, however, reported an insignificant relationship between the primary equity market and economic growth, and suggested exploration of the routes through which the primary equity market may affect economic growth. In the present study, we examined the impact of the primary equity market on total factor productivity (TFP) and non-TFP growth in a cross-country setting using panel data analysis and the GMM approach. We employed published data relating to 87 countries for the period 1990–2014. We found a positive impact of the primary equity market on TFP in both developed and developing economies, without a significant difference. The impact of the primary equity market on non-TFP growth was found to be significant in developing economies only. The findings suggest that the primary equity market boosts growth in all economies, but the impact is higher in developing economies. Findings of the study suggest that policy makers should focus on developing primary equity market to foster economic growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1786293
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1786293
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1786293
Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad Nasih
Author-X-Name-First: Mohammad
Author-X-Name-Last: Nasih
Author-Name: Admiralty SaAvira Al-Cholili
Author-X-Name-First: Admiralty SaAvira
Author-X-Name-Last: Al-Cholili
Author-Name: Iman Harymawan
Author-X-Name-First: Iman
Author-X-Name-Last: Harymawan
Author-Name: Imran Haider
Author-X-Name-First: Imran
Author-X-Name-Last: Haider
Author-Name: Nadia Klarita Rahayu
Author-X-Name-First: Nadia Klarita
Author-X-Name-Last: Rahayu
Author-Name: Yudhvir Seetharam
Author-X-Name-First: Yudhvir
Author-X-Name-Last: Seetharam
Title: Political connections, overinvestment and governance mechanism in Indonesia
Abstract:
The purpose of this study is to investigate the association between political connections and overinvestment in Indonesia as a democratic, multi-party and developing country. This study uses sample of 1,044 and 543 firm-year observations from listed firms on the Indonesian Stock Exchange from 2012 to 2017. A two-stage model is used to address overinvestment, which used two different measurements, then continued by ordinary least square regression to establish the main analysis result. This study finds that political connection is negatively associated with overinvestment in Indonesia. We also find that this negative association is increasing due to the existence of governance mechanism from both external and internal parties of the firm. Our results indicate that the significant negative associations between political connections with overinvestment, which later is strengthen by governance mechanism might be caused by several differences in institutional setting and/or political connections benefits between the previous research in China and with the place where this research is taken. This paper could give insights in decision-making for stakeholders to anticipate certain harmful issues to the companies that might be occurred by their politically connected top management like directors and commissioners.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1790220
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1790220
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1790220
Template-Type: ReDIF-Article 1.0
Author-Name: Sayed O. M. Timuno
Author-X-Name-First: Sayed O. M.
Author-X-Name-Last: Timuno
Author-Name: Joel Hinaunye Eita
Author-X-Name-First: Joel Hinaunye
Author-X-Name-Last: Eita
Author-Name: Lanouar Charfeddine
Author-X-Name-First: Lanouar
Author-X-Name-Last: Charfeddine
Title: Towards an effective fiscal stimulus: Evidence from Botswana
Abstract:
While there is a general agreement on the effectiveness of fiscal stimulus, there is no consensus on which stimulus is better. To address this concern, this paper uses a Dynamic Stochastic General Equilibrium (DSGE) model to propose a fiscal stimulus that Botswana can adopt given the slowing mining productivity. The results suggest that short-run macroeconomic stabilisation can be achieved through a cut in labour taxes. This fiscal stimulus generates larger growth multipliers and contributes relatively more employment compared to a cut in consumption tax and increases in government spending. The findings also revealed that a cut in labour taxes improves trade balance, resulting in a greater accumulation of international reserves and has no Dutch disease effects. These results suggest the need for a labour tax policy reform. These results also offer some policy options for other developing countries, which may face similar fiscal risks in future.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1790948
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1790948
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1790948
Template-Type: ReDIF-Article 1.0
Author-Name: Nguyen Huu Anh
Author-X-Name-First: Nguyen
Author-X-Name-Last: Huu Anh
Author-Name: Nguyen La Soa
Author-X-Name-First: Nguyen
Author-X-Name-Last: La Soa
Author-Name: Ha Hong Hanh
Author-X-Name-First: Ha Hong
Author-X-Name-Last: Hanh
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Environmental accounting practices and cost of capital of enterprises in Vietnam
Abstract:
This study aimed to investigate the nexus between the level of environmental financial accounting practices (EFAP) and cost of capital. The population of this study is 1.188 firm-year observations. However, we excluded 408 firm-year with less than 2 years of information to calculate EFAP, 73 firm-year without sufficient financial accounting information to calculate the cost of capital and 35 firm-year without sufficient financial accounting information to calculate control variables. Finally, this paper used a sample of 672 firm-year observations of listed companies on the Vietnam stock market for 5 years from 2013 to 2017. Two-stage regressions with the lag term are adopted to address econometric issues and to improve the accuracy of the regression coefficients. The results show that Vietnamese firms with higher EFAP performance can rapidly reduce their cost of capital. The findings also indicate that capital structure does not play a moderating role to evaluate the relationship between EFAP and the cost of capital.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1790964
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1790964
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1790964
Template-Type: ReDIF-Article 1.0
Author-Name: Manuel Barron
Author-X-Name-First: Manuel
Author-X-Name-Last: Barron
Author-Name: Antonio Belso-Martinez
Author-X-Name-First: Antonio
Author-X-Name-Last: Belso-Martinez
Title: Business training programs and microenterprise formalization in Peru
Abstract:
A large share of workers in developing countries are constrained to self-employment mainly due to lack of opportunities in wage employment, becoming entrepreneurs de facto constrained to the informal sector, with meager profits and poor working conditions. In response to this problem, several governments offer business training programs targeted at these entrepreneurs with two aims: to improve business outcomes and to promote enterprise formalization. This paper explores the relation between business training programs and formalization using data of 1,133 participants in two entrepreneurship programs in Peru. Difference-in-differences with various matching techniques indicate that formalization increased by 20–25 percentage points 2 years after program participation. This study presents suggestive evidence of three potential mechanisms behind this increased formalization rates: the opportunity to reconsider participants’ original business plans, the demystification of the tax procedures, and access to seed capital.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1791546
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1791546
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1791546
Template-Type: ReDIF-Article 1.0
Author-Name: Boitumelo Nnoi Yolanda Sekati
Author-X-Name-First: Boitumelo Nnoi Yolanda
Author-X-Name-Last: Sekati
Author-Name: Johannes Tshepiso Tsoku
Author-X-Name-First: Johannes Tshepiso
Author-X-Name-Last: Tsoku
Author-Name: Lebotsa Daniel Metsileng
Author-X-Name-First: Lebotsa Daniel
Author-X-Name-Last: Metsileng
Author-Name: Damir Tokic
Author-X-Name-First: Damir
Author-X-Name-Last: Tokic
Title: Modelling the oil price volatility and macroeconomic variables in South Africa using the symmetric and asymmetric GARCH models
Abstract:
This article employed the ARCH, GARCH and EGARCH models to model the oil price volatility and macroeconomic variables in South Africa for the period 1990Q1 to 2018Q2. The macroeconomic variables used in the study are GDP, inflation, interest rate and exchange rates. According to ARCH (1) and GARCH (1, 1) models, exchange rate and interest rate have a negative effect on the oil price, while GDP and inflation suggesting a positive effect. The results for GDP and inflation imply that a 1% increase in GDP and inflation may lead to an increase in oil price. The negative effect on interest rate and exchange rate led by their negative values implies that a 1% increase in interest rate and exchange rate may lead to a decrease in oil price. The EGARCH (1, 1) model revealed that oil price is negatively affected by all the macroeconomic variables. This implies that a 1% increase in these variables may lead to a decrease in oil price. The symmetric and asymmetric techniques revealed that the South African oil prices are volatile. The article recommends that South African policy makers should have a view on the impact of oil price volatility on the South African economy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1792153
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1792153
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1792153
Template-Type: ReDIF-Article 1.0
Author-Name: Josephat Lotto
Author-X-Name-First: Josephat
Author-X-Name-Last: Lotto
Author-Name: Damir Tokic
Author-X-Name-First: Damir
Author-X-Name-Last: Tokic
Title: Understanding sociodemographic factors influencing households’ financial literacy in Tanzania
Abstract:
This paper primarily aimed at examining the influence households’ demographic characteristics on the level of their financial literacy in Tanzania. The paper employs secondary data from the FinScope survey conducted by Financial Sector Deepening Trust (FSDT). To do so, the study employed both bivariate and multivariate analytical techniques. The study, reveals that the adult population exhibits large financial literacy gap- and, therefore, adults should not be considered as a homogenous group- rather gender, age, education and income levels of the households, which are showcased in this study, to also be taken into consideration while designing financial literacy improvement public initiatives. In particular, the study concludes that men are more inclined to have higher levels of financial literacy than women something which limits their financial decisions making ability. It is also concluded that younger households and those with higher income levels are equipped with higher financial literacy levels. Likewise, more educated and employed households tend to have higher levels of financial literacy. It, therefore, follows that programs to foster financial knowledge among households should be targeted at marginalized groups like women, the elderly and those with low incomes and educational attainment. As the main contribution of the research, it is highlighted that this is a pioneer study in the Tanzanian context, by proposing a model that identifies which socioeconomic and demographic factors influence the propensity for a low or high financial literacy level.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1792152
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1792152
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1792152
Template-Type: ReDIF-Article 1.0
Author-Name: J. Lawrenson
Author-X-Name-First: J.
Author-X-Name-Last: Lawrenson
Author-Name: Z. Dickason-Koekemoer
Author-X-Name-First: Z.
Author-X-Name-Last: Dickason-Koekemoer
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: A model for female South African investors’ financial risk tolerance
Abstract:
Research relating to the influence of investor’s demographic factors and personality traits on financial risk tolerance receives increasing attention. Financial risk tolerance refers to the degree of uncertainty an investor is willing to bear, with regards to the financial risks taken on. The investor’s personality refers to the stable characteristics an individual tends to display in any given situation. Personality traits may therefore also be considered as a driver in investor financial decisions. Understanding the influence gender and personality traits have on an investor’s financial risk tolerance, will assist in predicting their financial and investment decisions with regards to their asset portfolios. The purpose of this article is to develop a structural equation model for investment firms to more accurately profile their female investors, considering their personality traits, level of risk tolerance and level of education. Results from this study are in line with previous investment and portfolio management research. Results indicate that male investors are more risk-tolerant than their female counterparts. Furthermore, investors’ level of education significantly influenced their level of financial risk tolerance. Personality traits were found to influence female investors financial risk tolerance.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1794493
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1794493
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1794493
Template-Type: ReDIF-Article 1.0
Author-Name: Raphael Kolade Ayeni
Author-X-Name-First: Raphael Kolade
Author-X-Name-Last: Ayeni
Author-Name: Christian Nsiah
Author-X-Name-First: Christian
Author-X-Name-Last: Nsiah
Title: Determinants of private sector investment in a less developed country: a case of the Gambia
Abstract:
The Gambia as one of the LDCs has made so many efforts to industrialize its economy. The Gambia Investment and Export Promotion Agency, GIEPA, was formed to develop Free Zones in selected locations to enable investors to operate in a more macroeconomic friendly environment. Despite all efforts, the Gambia economy suffers from limited availability of foreign exchange, weak agricultural output, a slowdown in their major investment—tourism, high inflation, a huge fiscal deficit, and a huge domestic debt burden. This study identified the determinants of domestic private investment in the Gambia. The study employed the ARDL Co- integration method to analyze a long-run equilibrium model of private investment. Exchange rate, credit to private sector, external debts, Real Interest Rate, Real Exchange Rate, Inflation, among others were identified as exogenous variables. Findings show that high exchange rate increased the real cost of import especially capital goods thereby making investment very costly. Financing of huge debts also inhibited private investment in the Gambia. Aggregate Demand Condition, Real Interest Rate, Real Exchange Rate, Inflation all performed below expectation. Credit to the private sector has not contributed effectively to boost private investment in the Gambia due to insufficient credit. The study therefore suggests an exchange rate policy that will be favorable to reduce cost of imported capital goods. The Gambia should look inward for the supplying of raw materials locally or promote investment in the areas where the required raw materials are available locally as stated by the comparative advantage theory.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1794279
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1794279
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1794279
Template-Type: ReDIF-Article 1.0
Author-Name: Charles Peprah
Author-X-Name-First: Charles
Author-X-Name-Last: Peprah
Author-Name: Ibrahim Abdulai
Author-X-Name-First: Ibrahim
Author-X-Name-Last: Abdulai
Author-Name: Williams Agyemang-Duah
Author-X-Name-First: Williams
Author-X-Name-Last: Agyemang-Duah
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Compliance with income tax administration among micro, small and medium enterprises in Ghana
Abstract:
In a developing country like Ghana, Micro, Small, and Medium Scale Enterprises (MSMEs) play an important role in the socio-economic development of the economy. Payment of income tax by MSMEs remains one of the key sources of government revenue for development activities in Ghana. However, not much is known regarding the compliance of MSMEs with income tax administration in Ghana. Understanding income tax administration compliance and associated challenges among MSMEs could assist relevant policy actors in designing strategies to improve income tax administration in Ghana. Against this background, a mixed-method study involving 210 (200 MSMEs and 10 key informants) sample was conducted to examine the compliance of MSMEs with income tax administration in the Nkwanta South District of Ghana. The study revealed a lack of tax education, high tax rate, low level of income, and high household consumption levels as the dominant and influential factors to tax compliance among the MSMEs. The study further showed that challenges associated with tax administration include low institutional capacity, inadequate resources, negative public attitude towards tax payment, lack of collaboration between the tax agencies, and political interference. Based on these findings, it is important for policymakers and tax collection institutions to strengthen and streamline existing measures to ensure effective income tax administration in Ghana.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1782074
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1782074
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1782074
Template-Type: ReDIF-Article 1.0
Author-Name: Thu Thuy Nguyen
Author-X-Name-First: Thu Thuy
Author-X-Name-Last: Nguyen
Author-Name: Van Chien Nguyen
Author-X-Name-First: Van Chien
Author-X-Name-Last: Nguyen
Author-Name: Trong Nguyen Tran
Author-X-Name-First: Trong Nguyen
Author-X-Name-Last: Tran
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Oil price shocks against stock return of oil- and gas-related firms in the economic depression: A new evidence from a copula approach
Abstract:
This research examines the influence of world crude oil price shocks on the financial performance of Vietnamese oil- and gas-related firms. Based on copula approach and the sample data of domestic giant oil- and gas firms from 2009 to 2019, in particular in the situation of oil price steadily going up and economic depression of 2011–2012; approximately nine copulas including Gauss, Clayton, Rotated-Clayton, Plackett, Frank, Gumbel, Rotated-Gumbel, Student, Symmetrized-Joe-Clayton have been focused. A new evidence could be found that the oil price shocks have not impacted on the stock return of oil- and gas-related firms in the wave of increasing oil price, but a lagged period of time oil- and gas-related firms could receive more stock returns. The results further demonstrate that world oil price fluctuations have significantly impacted on the financial performance of some firms as PVS, PVG, and PET in the pre-depression period. In respect to the economic depression of 2011–2012, the study reveals no evidence in the relationship between world oil price fluctuations and stock returns of oil- and gas-related firms. In other words, results in the post-depression period suggest that world oil price shocks can affect stock returns of selected giant oil- and gas-related firms.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1799908
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1799908
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1799908
Template-Type: ReDIF-Article 1.0
Author-Name: Anthony Adu-Asare Idun
Author-X-Name-First: Anthony Adu-Asare
Author-X-Name-Last: Idun
Author-Name: Anthony Q. Q. Aboagye
Author-X-Name-First: Anthony Q. Q.
Author-X-Name-Last: Aboagye
Author-Name: Godfred Alufar Bokpin
Author-X-Name-First: Godfred Alufar
Author-X-Name-Last: Bokpin
Author-Name: Christian Nsiah
Author-X-Name-First: Christian
Author-X-Name-Last: Nsiah
Title: The effect of bank market power on economic growth in Africa: The role of institutions
Abstract:
We provide empirical investigations into the role of political institutions in the bank market power-economic growth nexus using country-level data from 44 African countries from 2002 to 2015. We employed a dynamic GMM model to achieve the above objective. The results show that banks with market power in Africa induce economic growth. Also, institutional quality improvement causes positive economic growth and improves the degree with which banks with market power influence economic growth. The influence of institutional quality on economic growth, however, varies depending on specific institutional factors even when we differentiated the effect of the level of bank market power. In West Africa, banks with market power induce economic growth, but the less competitive nature in the banking environment of the other sub-regions discourages economic growth. The results call for policy directions that improve economic and political institutions towards improving effective intermediation in Africa. In West Africa, the Central Banks should come up with regulations targeting large banks with market power to channel funds into productive sectors. In other sub-regions, more competitive banking environments can harness financial resources into productivity growth. The implication is that, regulators and policymakers should implement sound institutional structures that would ensure tailor-made banking system structure to stimulate sustainable economic growth in Africa.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1799481
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1799481
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1799481
Template-Type: ReDIF-Article 1.0
Author-Name: Brian Tavonga Mazorodze
Author-X-Name-First: Brian Tavonga
Author-X-Name-Last: Mazorodze
Author-Name: Christian Nsiah
Author-X-Name-First: Christian
Author-X-Name-Last: Nsiah
Title: Youth unemployment and murder crimes in KwaZulu-Natal, South Africa
Abstract:
The relationship between crime and unemployment has a long history in social science and remains a central point of debate for politicians today. In this paper, the objective is to establish whether youth unemployment has a causal effect on murder cases in KwaZulu-Natal; a province in South Africa facing high levels of both and the contribution is methodological. In particular, this paper pioneers the application of a control function procedure in testing and controlling idiosyncratic endogeneity within a count data framework in a bid to isolate the exogenous effect of youth unemployment on murder crimes. Using local municipality-level panel data observed between 2006 and 2017 and holding constant standard control variables, youth unemployment is found to be exogenous to omitted time-varying correlates suggesting that classical count data models with entity-fixed effects suffice. Also confirmed is that the control function approach reports results that are similar to the classical Poisson estimator while the Negative Binomial alternative tends to underestimate the effect of youth unemployment on crime by about 10%. Consistent with the majority of studies in literature, the analysis finds a positive and sizeable effect of youth unemployment on murder offences. A percentage point increase in youth unemployment increases the odds of murder occurrence by 1.6–1.8 times. This suggests that South Africa’s labour market could be linked to murder crimes in KwaZulu-Natal and that a social policy aimed at creating jobs for young people can be an alternative way of combating murder crimes in the province.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1799480
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1799480
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1799480
Template-Type: ReDIF-Article 1.0
Author-Name: Pierre J. Venter
Author-X-Name-First: Pierre J.
Author-X-Name-Last: Venter
Author-Name: Eben Mare
Author-X-Name-First: Eben
Author-X-Name-Last: Mare
Author-Name: Edson Pindza
Author-X-Name-First: Edson
Author-X-Name-Last: Pindza
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Price discovery in the cryptocurrency option market: A univariate GARCH approach
Abstract:
In this paper, two univariate generalised autoregressive conditional heteroskedasticity (GARCH) option pricing models are applied to Bitcoin and the Cryptocurrency Index (CRIX). The first model is symmetric and the other takes asymmetric effects into account. Furthermore, the accuracy of the GARCH option pricing model applied to Bitcoin is tested. Empirical results indicate that asymmetry is not an important factor to consider when pricing options on Bitcoin or CRIX, this is consistent with findings in the literature. In addition, the GARCH option pricing model provides realistic price discovery within the bid-ask spreads suggested by the market.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1803524
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1803524
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1803524
Template-Type: ReDIF-Article 1.0
Author-Name: Woradee Jongadsayakul
Author-X-Name-First: Woradee
Author-X-Name-Last: Jongadsayakul
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: The effect of new futures contracts on gold futures price volatility: Evidence from the Thailand futures exchange
Abstract:
This paper studies the effect of new gold derivatives products, including Gold-D and Gold Online Futures, on the futures price volatility of existing gold futures with two contract sizes, 50 baht-weight and 10 baht-weight, using symmetric and asymmetric GARCH family models, namely: GARCH (1,1), TARCH (1,1), and EGARCH (1,1) models. The results reveal the existence of leverage effect in TARCH (1,1) and EGARCH (1,1) models. Moreover, TARCH (1,1) is found as the best fitting model in modelling gold futures price volatility. The results confirm that the coming into market of Gold-D significantly reduces the price volatility of existing gold futures. There is not a significant negative relationship between the introduction of Gold Online Futures and the existing gold futures price volatility. Therefore, the results suggest regulatory authority to lower the level of margin requirements for the related futures contracts, along with the issuance of new derivatives products.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1802807
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1802807
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1802807
Template-Type: ReDIF-Article 1.0
Author-Name: Pendo Shukrani Kasoga
Author-X-Name-First: Pendo Shukrani
Author-X-Name-Last: Kasoga
Author-Name: Mohammed M Elgammal
Author-X-Name-First: Mohammed M
Author-X-Name-Last: Elgammal
Title: Does investing in intellectual capital improve financial performance? Panel evidence from firms listed in Tanzania DSE
Abstract:
Despite that reviews have been done in intellectual capital and the performance of firms, their status has remained uncertain in the emerging economy. Previous studies have generally focused on single industries and have overlooked the input of the service and manufacturing sectors as a whole. This study offers new insight into the area of intellectual capital and its relationship with firms’ performance in Tanzania and evaluates intellectual capital within the service and manufacturing sectors in totality. Using panel regression analysis for the periods of 2010 to 2019, the performance was measured in terms of SG, ROA, ATO, and Tobin’s. Heteroscedasticity and endogeneity were controlled using clustered robust standard errors. The empirical findings demonstrate a significant positive influence between structural capital efficiency and SG, ROA, ATO, and Tobin’s. However, the effect of human capital efficiency and capital employed efficiency were negative which suggests poor investment in human skills and capital of the firms. Further, VAIC was significantly positively associated with SG, ATO, ROA, and Tobin’s Q. It is recommended that to have a competitive advantage, managers and policymakers should focus on the three parts of intellectual capital which are the key drivers of value creation in the organization.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1802815
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1802815
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1802815
Template-Type: ReDIF-Article 1.0
Author-Name: Peterson Owusu Junior
Author-X-Name-First: Peterson
Author-X-Name-Last: Owusu Junior
Author-Name: Anokye M. Adam
Author-X-Name-First: Anokye M.
Author-X-Name-Last: Adam
Author-Name: George Tweneboah
Author-X-Name-First: George
Author-X-Name-Last: Tweneboah
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Connectedness of cryptocurrencies and gold returns: Evidence from frequency-dependent quantile regressions
Abstract:
This paper explores the symmetric and asymmetric dependency structure of decomposed return series of Gold and eight cryptocurrencies to establish the hedging and diversification potentials of these asset classes. Daily data spanning 30 April 2013 to 18 April 2019 are employed within the Ensemble Empirical Mode Decomposition and Quantile-in-Quantile regression techniques. Our empirical results provide evidence that cryptocurrencies and Gold can both hedge and diversify for each other at different conditional distributions of their returns. We also find that cryptocurrencies are not purely speculative but can be driven by medium- and long-term fundamentals. In addition, both Gold and cryptocurrencies can be hedge and diversifiers for other traditional asset classes such as crude oil, fiat currencies, and other commodities.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1804037
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1804037
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1804037
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Dick-Sagoe
Author-X-Name-First: Christopher
Author-X-Name-Last: Dick-Sagoe
Author-Name: Jorge Miguel Lopo Gonçalves Andraz
Author-X-Name-First: Jorge Miguel Lopo Gonçalves
Author-X-Name-Last: Andraz
Title: Decentralization for improving the provision of public services in developing countries: A critical review
Abstract:
Decentralisation, which sends power and resources from the Central to local governments, comes with several theoretical promises. One such promise is the improvement in local service provision. However, achieving these theoretical promises of decentralization has been a big challenge in most developing countries. This study aims to address the question “does decentralization improve service delivery levels at the local level, as promised?” This study reviews work on decentralization and service provision in developing countries and bring out some lessons from these works. To do this, the study falls on a set of articles from world-class scholars on decentralisation and service provision and key findings and themes from their works. As has been stressed in the conclusion, decentralisation has made some gains in meeting the real needs of local people in terms of service provision. In some instances, increases in the expenditure of local governments have increased service provision levels. However, the level of quality of these service providers through decentralisation has remained questionable. The author argues that an increase in service provision is good; however, it is the quality of these service provisions at the local level that can reduce poverty at the local level. The study, therefore, recommends for a revisit of the design of decentralisation to embrace the type which seeks to empower the local people to demand transparency and accountability from local government officials. With this, the effectiveness of administrative, fiscal and political decentralisation along with clear channels for local accountability and transparency are necessary for improved and quality service provision.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1804036
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1804036
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1804036
Template-Type: ReDIF-Article 1.0
Author-Name: Kazeem Abimbola Sanusi
Author-X-Name-First: Kazeem Abimbola
Author-X-Name-Last: Sanusi
Author-Name: Mariam Camarero
Author-X-Name-First: Mariam
Author-X-Name-Last: Camarero
Title: On the relation between government expenditure and revenue in South Africa: An empirical investigation in a nonlinear framework
Abstract:
The study explores the nonlinear linkage between government expenditure and government revenue using quarterly data from the first quarter of 1965 to the second quarter of 2019. Linear models are first deployed to determine the order of integration of the variables, cointegration, granger causality and variance decomposition within the SVAR model. Nonlinear techniques are employed to spot the asymmetric relation of the univariate and the expenditure and revenue linkage. Asymmetric adjustments are carried out to unknot the dynamic mechanism based on the threshold vector autoregressive model (TVAR) and threshold vector error-correction model (TVECM). Finally, the Markov Switching model is employed to determine the tendency of the variables to remain in a particular region and their transition probabilities. The empirical findings suggest the presence of nonlinear but one-way causal relation between government expenditure and revenue. The results show that adjustment mechanism of government expenditure towards the equilibrium is more persistent than government revenue when the threshold level is attained.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1803523
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1803523
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1803523
Template-Type: ReDIF-Article 1.0
Author-Name: Hazwan Haini
Author-X-Name-First: Hazwan
Author-X-Name-Last: Haini
Author-Name: Jorge Miguel Lopo Gonçalves Andraz
Author-X-Name-First: Jorge Miguel Lopo Gonçalves
Author-X-Name-Last: Andraz
Title: Examining the productivity of the ASEAN economies in the presence of transient and persistent efficiency
Abstract:
In recent decades, the ASEAN economies have implemented a number of regional integration policies. Using a panel dataset of 10 ASEAN countries from 1980 to 2017, this study examines the productivity and efficiency of the ASEAN economies using a stochastic production frontier model. Furthermore, the parametric model is decomposed using a generalised Malmquist productivity index to provide estimates of gross technical efficiency, technical progress and returns to scale change, while taking into account of transient and persistent efficiency. The results show that there is room for efficiency gains, as the ASEAN economies can increase GDP by 7.7 per cent if persistent efficiency is increased. Furthermore, the results show that technical progress is increasing over time and exhibits increasing returns to scale. However, technical change is slow, as it averages at one per cent over the sample period. Policy implications for future growth are discussed.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1805138
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1805138
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1805138
Template-Type: ReDIF-Article 1.0
Author-Name: Ronal Chand
Author-X-Name-First: Ronal
Author-X-Name-Last: Chand
Author-Name: Rup Singh
Author-X-Name-First: Rup
Author-X-Name-Last: Singh
Author-Name: Arvind Patel
Author-X-Name-First: Arvind
Author-X-Name-Last: Patel
Author-Name: Devendra Kumar Jain
Author-X-Name-First: Devendra Kumar
Author-X-Name-Last: Jain
Author-Name: Robert Read
Author-X-Name-First: Robert
Author-X-Name-Last: Read
Title: Export performance, governance, and economic growth: evidence from Fiji - a small and vulnerable economy
Abstract:
This article analyses the nexus between exports, established indicators of governance, and economic growth in Fiji. It finds that exports and governance co-operate to promote economic growth. The interplay between these variables is also meaningful. The findings imply that Fiji needs to improve export productivity and quality of institutional governance to ensure persistent rates of economic growth. Other variables such as human capital, private investment, foreign aid, and policy environment are also growth-enhancing in this small and vulnerable economy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1802808
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1802808
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1802808
Template-Type: ReDIF-Article 1.0
Author-Name: Kentaka Aruga
Author-X-Name-First: Kentaka
Author-X-Name-Last: Aruga
Author-Name: Sudha Kannan
Author-X-Name-First: Sudha
Author-X-Name-Last: Kannan
Title: Effects of the 2008 financial crisis on the linkages among the oil, gold, and platinum markets
Abstract:
To find out if gold remains to be unlinked with the crude oil market after the 2008 financial crisis, we investigated how long-run price linkages and price causalities among crude oil and gold markets changed before and after the crisis. To have a good reference, we also tested the same issue for the oil-platinum relationship. Using the cointegration methods, we found little evidence that gold began to have a price linkage with the crude oil market after the 2008 financial crisis. Conversely, we identified a long-run relationship between the crude oil and platinum markets after the crisis. Hence, we found that compared to the platinum market, the gold market remained unlinked with the oil market after the 2008 financial crisis indicating that it continued to be independent of the crude oil market.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1807684
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1807684
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1807684
Template-Type: ReDIF-Article 1.0
Author-Name: Tu DQ Le
Author-X-Name-First: Tu DQ
Author-X-Name-Last: Le
Author-Name: Van TH Nguyen
Author-X-Name-First: Van TH
Author-X-Name-Last: Nguyen
Author-Name: Son H Tran
Author-X-Name-First: Son H
Author-X-Name-Last: Tran
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Geographic loan diversification and bank risk: A cross-country analysis
Abstract:
This study investigates the geographic loan expansion on bank risk using the aggregate data of 53 countries from 2005 to 2016 using the system generalized method of moments. Our findings show that global expansion tends to increase bank insolvency and reduce bank adjusted-risk-performance. Our findings further indicate loans distributed to advanced markets tend to reduce bank stability while the proportion of loans to other emerging markets and developing countries may have the potential to improve bank solvency and risk-adjusted-performance. As diversification is seen as a necessary strategy to diversify bank risks, bank managers should put more attention to emerging markets.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1809120
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1809120
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1809120
Template-Type: ReDIF-Article 1.0
Author-Name: Stanley K. Kirika
Author-X-Name-First: Stanley K.
Author-X-Name-Last: Kirika
Author-Name: Rosanna Spano
Author-X-Name-First: Rosanna
Author-X-Name-Last: Spano
Title: Monetary de-measurement of taxation using cogni-economic pressure coefficient on a continuous progressivity model: Towards equitable taxation for Kenya
Abstract:
Tax derives from subjects’ earnings measured in monetary terms, a principle anchored in financial accounting. The canon of equity, especially the vertical form, sometimes referred to as “ability to pay” remains monetary. However, negating conventional horizontal equity, equal taxable incomes often require employment of different economic rationality levels to earn them depending on the profession or sector the tax payer comes from; hence different cognitive energies are required to generate the same taxable income—disapproving the mere “ability to pay” paradigm. From the Gamma Rationality Measure for the credit unions sector that comprises 67% of Kenyan economic livelihoods and using a combination of econometric and Riemann double integral methods, the income consumption rationality function is derived, from which a Cogni-economic Pressure Coefficient is generated for each income level. The coefficient is used to work out a more equitable tax structure from a continuous progressivity tax model, for greater equity, incidentally securing a boost to productivity and economy canons of tax administration—a global lesson, specific for Kenya.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1804038
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1804038
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1804038
Template-Type: ReDIF-Article 1.0
Author-Name: Mehdi Zolfaghari
Author-X-Name-First: Mehdi
Author-X-Name-Last: Zolfaghari
Author-Name: Saeid Hoseinzade
Author-X-Name-First: Saeid
Author-X-Name-Last: Hoseinzade
Author-Name: Numan Ulku
Author-X-Name-First: Numan
Author-X-Name-Last: Ulku
Title: Impact of exchange rate on uncertainty in stock market: Evidence from Markov regime-switching GARCH family models
Abstract:
We employ the Markov Regime-Switching GARCH (MRS- GARCH) family models under the normal, Student’s t-, and GED distributions to measure the uncertainty of the industry index returns (IIR) of Tehran Stock Exchange over the period of 2013–2019. The models distinguish between two different regimes in both conditional mean and conditional variance. The results show that the MRS-EGARCH-in-mean (MRS-EGARCH-M) models under GED and Student’s t-distributions have the best performance to model the IIR volatility. We find evidence of regime-switching behaviour in Iran’s stock market. After removing the forecastable component (expected variation) from the best fitted models, we measure the time series of the IIR uncertainty (unforecastable component) and estimate the impact of exchange rate fluctuations on them using an autoregressive distributed lag (ARDL) model. We find that foreign exchange rate fluctuations have a significant and distinct impact on the IIR uncertainty across various regimes. The results show that the exchange rate generally has a negative and positive impact on the IIR uncertainty for export and import-oriented industries, respectively, under both regimes.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1802806
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1802806
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1802806
Template-Type: ReDIF-Article 1.0
Author-Name: Neeraj Gupta
Author-X-Name-First: Neeraj
Author-X-Name-Last: Gupta
Author-Name: Jitendra Mahakud
Author-X-Name-First: Jitendra
Author-X-Name-Last: Mahakud
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Ownership, bank size, capitalization and bank performance: Evidence from India
Abstract:
This study focuses on assessing the role of various bank-specific, industry-specific and macroeconomic determinants in Indian commercial banks performance. Performance of the Indian banks has been measured by Return on Assets (ROA), Return on Equity (ROE) and Net Interest Margin (NIM) and Pre-provision profit ratio. The study analyses impact of various bank-specific factors like bank size, capital ratio, risk, cost to income ratio, funding cost, revenue diversification, labour productivity and bank age on bank performance. It also tries to assess the relationship between various bank-specific and industry-specific variables like bank concentration, inflation rate and GDP growth rate with bank performance. Fixed effects estimation model and Generalized Method of Moments (GMM) have been used on a panel data of 19 years for 64 commercial banks of India. The findings reveal that private sector banks are more profitable than the public sector banks. Additionally, the results of the study show that bank size, non-performing loan ratio and revenue diversification are the major determinants of the commercial banks performance in India. Furthermore, the results reveal that during the crisis period the impact of bank size, bank age, labour productivity and revenue diversification on the performance of the Indian banks is robust. The higher non-government stake leads to the enhanced performance of the commercial banks in India. The higher capital adequacy leads to the increase in the performance of the banks. The larger banks are less profitable. The results provide better insights about the determinants of Indian banks profitability.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1808282
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1808282
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1808282
Template-Type: ReDIF-Article 1.0
Author-Name: Nimra Noor
Author-X-Name-First: Nimra
Author-X-Name-Last: Noor
Author-Name: Irem Batool
Author-X-Name-First: Irem
Author-X-Name-Last: Batool
Author-Name: Hafiz Muhammad Arshad
Author-X-Name-First: Hafiz Muhammad
Author-X-Name-Last: Arshad
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Financial literacy, financial self-efficacy and financial account ownership behavior in Pakistan
Abstract:
Study examines the role of financial literacy and financial self-efficacy of individuals in explaining their behavior to have financial accounts. Study has used the questionnaire based survey and collected the data responses from 564 adults belonging to Sahiwal division. The binary logistic regression model is utilized to estimate the probability of having financial accounts in relation to individual’s financial literacy and financial self-efficacy level. Estimated results show that individual’s financially literacy level is positively related with individual’s account ownership model among the selected group. While individual’s financial self-efficacy level does not explain any positive significant impact on individual’s account ownership model. Other socio-demographic variables like gender, marital status, education, occupation, and income level are also found to have influential impact on the individuals’ account ownership behavior in Pakistan. Study recommends that financial literacy is pertinent to have equitable financial inclusion in the economy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1806479
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1806479
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1806479
Template-Type: ReDIF-Article 1.0
Author-Name: Emmanuel Duodu
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Duodu
Author-Name: Samuel Tawiah Baidoo
Author-X-Name-First: Samuel Tawiah
Author-X-Name-Last: Baidoo
Author-Name: Evan Lau
Author-X-Name-First: Evan
Author-X-Name-Last: Lau
Title: How does quality of institutions affect the impact of trade openness on economic growth of Ghana?
Abstract:
Developing countries, of which Ghana is no exception have actively engaged in trade openness after independence, yet, their economic growth remains low and this calls for urgent attention to address the situation. This study therefore examines the impact of trade openness on economic growth of Ghana for the period 1984–2018 taken into consideration the role quality of institutions play. The results from the autoregressive distributed lag model (ARDL) reveal that, both trade openness and quality of institutions exert a significant positive impact on economic growth in both the long and short run. However, the interaction of trade openness and quality of institutions is shown to have insignificant impact on economic growth in both periods. The results further indicate that exchange rate has a significant positive (significant negative) impact on economic growth in the long run (short run). Based on the findings, the study concludes that, institutional quality has no influence on the impact of trade openness on economic growth in the Ghanaian context. Policy implications aimed at ensuring sustained economic growth have been put forward for the discourse of stakeholders.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1812258
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1812258
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1812258
Template-Type: ReDIF-Article 1.0
Author-Name: Oliver E. Ogbonna
Author-X-Name-First: Oliver E.
Author-X-Name-Last: Ogbonna
Author-Name: Ikechukwu A. Mobosi
Author-X-Name-First: Ikechukwu A.
Author-X-Name-Last: Mobosi
Author-Name: Okwudili W. Ugwuoke
Author-X-Name-First: Okwudili W.
Author-X-Name-Last: Ugwuoke
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Economic growth in an oil-dominant economy of Nigeria: The role of financial system development
Abstract:
This paper examines the effect of financial system development on oil-dominant economy of Nigeria using Zivot-Andrews unit root test and Autoregressive Distributed Lag (ARDL) model over the period 1981 to 2015. The motivation of this paper is that the study distinguished the impact of financial system development on the non-oil sector from the oil sector. The study also differs from the usual yet unsatisfactory approach of measuring financial system development in Nigeria to build an index as a measure that characterizes the whole development in the financial sector using Principal Components Analysis (PCA). The result reveals that there exist mediating factors that alter the impact of finance on growth. Specifically, the findings indicate that financial system development has a negative and insignificant impact on the growth of oil sector while the influence of financial system development on the growth of non-oil sector is positive and significant. The study therefore recommend that policymakers should channel the high receipts from the export of crude to productive investments through financial institutions that will allocate the resources more efficiently to improve the quality of investment capable of driving growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1810390
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1810390
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1810390
Template-Type: ReDIF-Article 1.0
Author-Name: K. J. Chipunza
Author-X-Name-First: K. J.
Author-X-Name-Last: Chipunza
Author-Name: K. R. Tsunga
Author-X-Name-First: K. R.
Author-X-Name-Last: Tsunga
Author-Name: K. McCullough
Author-X-Name-First: K.
Author-X-Name-Last: McCullough
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Price discovery of South African stocks cross-listed on the New York Stock Exchange
Abstract:
The number of South African firms that have sought cross-listing in regional and global markets has been increasing. Many firms increase their presence beyond local markets, and one of these avenues is through cross-listing; however, it remains unclear whether the home or host market contributes more to the incorporation of information in cross-listed stocks. This study examined the price discovery process of Johannesburg Stock Exchange (JSE) domiciled stocks with a cross-listing on the New York Stock Exchange (NYSE). The price discovery of cross-listed stocks was tested using Johansen’s and Phillips-Ouliaris’ cointegration, the vector error correction model and common factor weights. Long-term relationships consistent with the law of one price were found. Contrary to the home bias hypothesis, results indicated that the NYSE dominated price discovery. Fund managers and investors who have included JSE cross-listed stocks in their portfolios should devote more attention to the NYSE as information flows appear to occur mainly from the NYSE to JSE. Further, results suggest that there is co-movement and integration between the USA and South Africa which diminishes diversification benefits for investors.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1810879
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1810879
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1810879
Template-Type: ReDIF-Article 1.0
Author-Name: Quang Khai Nguyen
Author-X-Name-First: Quang Khai
Author-X-Name-Last: Nguyen
Author-Name: Zhaojun Yang
Author-X-Name-First: Zhaojun
Author-X-Name-Last: Yang
Title: Ownership structure and bank risk-taking in ASEAN countries: A quantile regression approach
Abstract:
This study examines the effect of ownership structure on the risk-taking behavior of banks in ASEAN countries. Using a sample of 96 commercial banks in ASEAN countries from 2002 to 2018, the study demonstrates that the relationship between ownership structure and bank risk-taking behavior is correlated with the characteristics of individual banks in terms of quantile regression. First, state ownership and foreign ownership affect bank risk-taking positively in high-risk banks while negatively in low-risk banks. Second, the relationship between ownership concentration and risk-taking is negative in all distributions of bank risk. These findings suggest that appropriate ownership structure can constrain bank risk-taking activities in accordance with the level of risk of each bank.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1809789
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1809789
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1809789
Template-Type: ReDIF-Article 1.0
Author-Name: Isam Saleh
Author-X-Name-First: Isam
Author-X-Name-Last: Saleh
Author-Name: Malik Abu Afifa
Author-X-Name-First: Malik
Author-X-Name-Last: Abu Afifa
Author-Name: Louis Murray
Author-X-Name-First: Louis
Author-X-Name-Last: Murray
Title: The effect of credit risk, liquidity risk and bank capital on bank profitability: Evidence from an emerging market
Abstract:
This paper aims to investigate the effect of credit risk, liquidity risk and bank capital on bank profitability over a nine-year period (2010–2018) by examining empirical evidence from an emerging market. This study is grounded on econometric panel data using GMM methods. The results indicate that credit risk, liquidity risk, and bank capital variables have an impact on bank profitability. Understanding the Basel requirements and their importance by local and foreign bank managers is significant as enforcing them can improve the efficiency of the bank and increases profitability while barricading it from risk.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1814509
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1814509
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1814509
Template-Type: ReDIF-Article 1.0
Author-Name: Kazeem Abimbola Sanusi
Author-X-Name-First: Kazeem Abimbola
Author-X-Name-Last: Sanusi
Author-Name: Christian Nsiah
Author-X-Name-First: Christian
Author-X-Name-Last: Nsiah
Title: Fiscal dominance and inflation: Evidence from Nigerian and South African’s experiences
Abstract:
This study attempted to estimate degree of fiscal dominance by econometrically analysing degree of fiscal and monetary policies interdependence in Nigeria and South Africa. This is done to define the extent at which fiscal authority actions confine the monetary policy actions. The empirical confirmation offered in the study on the basis empirical findings showed that the degree of fiscal and monetary policies interdependence for both Nigeria and South Africa are 0.84 and 0.67. This shows that degrees of fiscal dominance in both economies are 0.16 and 0.33 respectively. The evidence shows that both economies are under low fiscal dominance, though Nigerian economy is seen to be under a lower fiscal dominance hypothesis when compared with South African economy. Therefore, the Nigerian monetary authority has greater freedom to fight inflation. However, the Nigerian economy still has a higher inflation than South Africa. The study concludes based on the empirical findings, that monetary policy authorities in Nigeria and South Africa should strive more to maintain the current level of their autonomy given their higher degree of fiscal and monetary policies interdependence. Current level of autonomy can be maintained by ensuring that the fiscal authority plans its intertemporal budget constraints such that current level of government outstanding debt and its interest would always be offset by future primary surpluses rather than seigniorage.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1814508
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1814508
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1814508
Template-Type: ReDIF-Article 1.0
Author-Name: Damilola Felix Eluyela
Author-X-Name-First: Damilola
Author-X-Name-Last: Felix Eluyela
Author-Name: Abiola John Asaleye
Author-X-Name-First: Abiola John
Author-X-Name-Last: Asaleye
Author-Name: Olabisi Popoola
Author-X-Name-First: Olabisi
Author-X-Name-Last: Popoola
Author-Name: Adedoyin Isola Lawal
Author-X-Name-First: Adedoyin Isola
Author-X-Name-Last: Lawal
Author-Name: Henry Inegbedion
Author-X-Name-First: Henry
Author-X-Name-Last: Inegbedion
Author-Name: Louis Murray
Author-X-Name-First: Louis
Author-X-Name-Last: Murray
Title: Grey directors, corporate governance and firms performance nexus: Evidence from Nigeria
Abstract:
There has been a consistent argument in the literature as regards the importance of grey directors on board, and their impact on firm performance with most studies focused on developed economies. However, little is known on the short and long-run implications. In this study, we examined the joint short-run and long-run causality relationship, as well as the long-run behaviour between grey directors and corporate performance of deposit money banks. Our sample includes 14 deposit money banks out of the 15 listed on Nigeria stock exchange for 2010–2017. The estimation techniques used include descriptive statistics, unit root test, panel co-integration test and fully modified ordinary least square regression (FMOLS). Using Tobin Q as the dependent variable, there is no flow of joint long-run causality from the independent variables. The significance of the short-run coefficients indicates joint causality moving from independent variable to the dependent variable in the short-run. Furthermore, the long-run equation shows a significant positive relationship between indigenous directors, the board size, non-executive directors and performance of the selected deposit money banks in Nigeria, while a negative correlation was observed with firm size. Grey director was insignificant in the long-run. The study concludes that aggregate policy changes need to carefully considered in promoting a long-term benefit and need to gear effort towards maximising the performance of the banking sector in the long-run through effective group decision.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1815962
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1815962
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1815962
Template-Type: ReDIF-Article 1.0
Author-Name: Andreas Humpe
Author-X-Name-First: Andreas
Author-X-Name-Last: Humpe
Author-Name: David G. McMillan
Author-X-Name-First: David G.
Author-X-Name-Last: McMillan
Author-Name: Mariam Camarero
Author-X-Name-First: Mariam
Author-X-Name-Last: Camarero
Title: Macroeconomic variables and long-term stock market performance. A panel ARDL cointegration approach for G7 countries
Abstract:
Based on the present value model for stock prices, we utilise a pooled mean group estimator for panel ARDL cointegration to estimate the long-run relationship between G7 stock prices and macroeconomic variables over the last 40 years. We find a positive long-run relation between stock prices, industrial production and consumer prices as well as a negative relationship with real 10-year interest rates.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1816257
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1816257
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1816257
Template-Type: ReDIF-Article 1.0
Author-Name: Hirofumi Nishi
Author-X-Name-First: Hirofumi
Author-X-Name-Last: Nishi
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Firm age and crude oil returns: Stock price sensitivity of oil-producing and consuming companies
Abstract:
This study aims to identify firm characteristics that affect the cross-firm variation in oil–stock interactions. A panel data analysis with a sample of U.S. and Canadian firms reveals that the stock price sensitivity to crude oil price returns is negatively and significantly associated with firm age. Contrary to a common belief, firm size or stock liquidity does not seem to influence heterogeneity in oil–stock relationships. My finding is consistent across oil-producing and consuming companies while the effect of firm age is not observed among financial institutions engaged in commodity trading. An additional test using the panel Granger causality approach shows no lagged effect of oil market movement on the oil and gas extraction firms, suggesting their prompt response to market information.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1812252
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1812252
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1812252
Template-Type: ReDIF-Article 1.0
Author-Name: Van Dan Dang
Author-X-Name-First: Van Dan
Author-X-Name-Last: Dang
Author-Name: Japan Huynh
Author-X-Name-First: Japan
Author-X-Name-Last: Huynh
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Holdings of sovereign bonds by commercial banks in Vietnam
Abstract:
The study examines the bank-specific determinants of sovereign bond holdings and how such holdings affect bank lending of the banking market in Vietnam. Using annual financial data of commercial banks from 2007 to 2018 and alternative regression techniques for both dynamic and static models, we attribute the motives of sovereign bond holdings to the liquidity reserves, profitability improvement, and risk-shifting. At odds with our expectation, we find no evidence in favor that Vietnamese banks purchase government bonds to increase capital adequacy ratio. Furthermore, to clarify the economic impact of sovereign bond investment, we also offer evidence to reject the notion that purchases of government bonds are detrimental to banks’ core function in normal times captured by bank lending and liquidity creation. All estimates are robust across alternative regression techniques in both dynamic and static panel models. Overall, our findings have important policy implications for Vietnam and some emerging economies with similar backgrounds.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1818409
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1818409
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1818409
Template-Type: ReDIF-Article 1.0
Author-Name: Kudakwashe Joshua Chipunza
Author-X-Name-First: Kudakwashe Joshua
Author-X-Name-Last: Chipunza
Author-Name: Hilary Tinotenda Muguto
Author-X-Name-First: Hilary Tinotenda
Author-X-Name-Last: Muguto
Author-Name: Lorraine Muguto
Author-X-Name-First: Lorraine
Author-X-Name-Last: Muguto
Author-Name: Paul-Francois Muzindutsi
Author-X-Name-First: Paul-Francois
Author-X-Name-Last: Muzindutsi
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Return predictability and valuation ratios: sector-level evidence on the Johannesburg stock exchange
Abstract:
The efficient market hypothesis describes an efficient market as one in which investors cannot consistently predict stock returns because prices instantly reflect all the information flowing into the market. However, return predictability has been documented in many markets. This study tests the predictability of returns using two valuation ratios—the dividend and earnings yields—on the South African market, at both aggregated and sectoral level. Unlike most studies in South Africa, this study employs an apposite present value model, accounts for structural breaks and investigates the non-linearity of the relationship between stock returns and valuation ratios. The results show that returns are predictable at both aggregated and sectoral levels. This finding has implications for market efficiency through enhanced price discovery which, in turn, has implications for investment and portfolio management. However, it should be noted that statistical significance may not translate to economic significance, so there is a need to determine the latter if one intends to use any strategy that relies on this evidence.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1817252
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1817252
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1817252
Template-Type: ReDIF-Article 1.0
Author-Name: Abbas Ali Daryaei
Author-X-Name-First: Abbas Ali
Author-X-Name-Last: Daryaei
Author-Name: Yasin Fattahi
Author-X-Name-First: Yasin
Author-X-Name-Last: Fattahi
Author-Name: Ramazan Hasani
Author-X-Name-First: Ramazan
Author-X-Name-Last: Hasani
Author-Name: Hamed Sadeqi
Author-X-Name-First: Hamed
Author-X-Name-Last: Sadeqi
Author-Name: Yudhvir Seetharam
Author-X-Name-First: Yudhvir
Author-X-Name-Last: Seetharam
Title: Value of cash and accounting conservatism: The role of audit quality and firm growth
Abstract:
The primary aim of the present research was to fill the significant gap in the accounting literature, which is widely acknowledged, regarding the association between conservative accounting and the value of cash, particularly in emerging Islamic stock markets. By using a sample including all the firms listed on the Tehran Stock Exchange from 2008 to 2017, we regress the value of cash on accounting conservatism with regard to the moderator role of audit quality (audit tenure, audit opinion, audit size, and earnings management as proxies for audit quality). Generally, the findings not only confirm a positive relationship between accounting conservatism and cash value in the absence of audit quality but also suggest that ignoring the important role of audit quality mechanism can result in wrong conclusions concerning the effect of accounting conservatism on cash value, especially in developing countries such as Iran, due to concentrated government and institutional ownership structures. This cross-sectional analysis based on firm growth leads to the conclusion that analysis regarding the relationship between accounting conservatism and cash value must be taken into account by highlighting the impact of macroeconomic variables and political economy. Furthermore, the findings of the current study suggest that the application of monitoring and controlling theories calls for more inquiry.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1816281
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1816281
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1816281
Template-Type: ReDIF-Article 1.0
Author-Name: Mosab I. Tabash
Author-X-Name-First: Mosab I.
Author-X-Name-Last: Tabash
Author-Name: Umaid A. Sheikh
Author-X-Name-First: Umaid A.
Author-X-Name-Last: Sheikh
Author-Name: Muzaffar Asad
Author-X-Name-First: Muzaffar
Author-X-Name-Last: Asad
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Market miracles: Resilience of Karachi stock exchange index against terrorism in Pakistan
Abstract:
Terrorism plays a pivotal role in influencing the stock indexes of many countries. This research article claims to be first in accessing the asymmetrical effect of multiple categories of terroristic activities on stock indexes in the presence of macroeconomic volatility. This research utilized a Non-linear autoregressive distributive lag model (NARDL) to find out the asymmetrical relationship between terroristic disruptions and stock indexes. Data on terroristic attacks have been incorporated from 2002 to 2015, and more than 4600 observations taken into account. Positive shocks to attacks on mosques, killed in mosque attacks, killed in drone attacks, and army personal fatalities are negatively affecting the stock prices in the short run. Results indicated that such disruption causes a temporary negative effect on stock indexes only in the short run but in the long-run stock exchange remains resilient against such disruptions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1821998
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1821998
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1821998
Template-Type: ReDIF-Article 1.0
Author-Name: Prudence Makololo
Author-X-Name-First: Prudence
Author-X-Name-Last: Makololo
Author-Name: Yudhvir Seetharam
Author-X-Name-First: Yudhvir
Author-X-Name-Last: Seetharam
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: The effect of economic policy uncertainty and herding on leverage: An examination of the BRICS countries
Abstract:
This study examines the role of economic policy uncertainty (EPU) in influencing firm performance and leverage as a form of financing decisions, in the presence of herding in the emerging markets of Brazil, Russia, India, China and South Africa (BRICS). This study contributes to our understanding of how businesses in emerging markets make financial decisions during uncertain times as well as the role of policy development in influencing firm performance and corporate decisions. The increase or decrease in EPU is determined by the way policymakers or investors act and the consequences of their decisions. EPU is, in fact, a market characteristic that brings changes in prices and returns. Therefore, investors and policymakers should be aware of it to prevent any negative effects. A steady and predictable economic policy is critical to economic growth. We investigate how firms rationalise making leverage financing decisions during times of economic policy uncertainty and if so, if herding is present in these decisions. Our data spans the Top 80 listed firms in each respective country from the beginning of June 2002 to the end of June 2017. Russian, Indian and South African results show that EPU is significant in determining leverage financing decisions and that an increase in EPU leads to herding in such decisions. We find contrary results in Brazilian and Chinese firms. Our results imply that when leverage decisions are made, both the political climate as well as competitor movement data must be considered in determining a firm’s “ideal” capital structure.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1821482
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1821482
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1821482
Template-Type: ReDIF-Article 1.0
Author-Name: Olli Salmensuu
Author-X-Name-First: Olli
Author-X-Name-Last: Salmensuu
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Speculation in Delhi potato wholesale markets, 2007–2019: Causal connections of prices and arrival quantities
Abstract:
This work built on financial literature on rolling window Granger-causality testing (RWGCT) methodology, specifically expanding its early theme of speculative trading which emerged in 2009 following the food price crisis. Although many times driving the commodity prices in reality, the unexpected often remains unexplained in equilibrium modelling. Financial speculation is a distinct, unexpected phenomenon which allows us to determine temporal order of affecting market forces in equilibrium dynamics. A logical framework retraces price and quantity adjustment directions from underlying speculative demand or supply curve shifts; using it, we extracted these shifts with RWGCT from the price and arrival quantity data of Delhi potato wholesale markets. The main results confirmed the framework, more speculation was detected on demand side compared to supply side. The food price crises of 2007–2009 and 2011–2012 saw most demand-side speculation, as financial liquidity poured also to potato markets, whereas supply-side speculation was most likely detected due to unexpectedness related to approaching harvest or its aftermath when considerably supply becomes available, and thus also greater potential gains from timing sales.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1821997
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1821997
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1821997
Template-Type: ReDIF-Article 1.0
Author-Name: Chokri Zehri
Author-X-Name-First: Chokri
Author-X-Name-Last: Zehri
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Restrictive policy impacts in emerging economies
Abstract:
The policy responses to capital flows in emerging markets are multiple. However, capital inflow controls, if applied sufficiently broadly, can buttress all other policies by limiting the volume of capital inflows and address balance sheet vulnerabilities. The study analyzes the effects of capital controls (CC) domestically and internationally. Applied to 24 emerging economies (EEs) from 2009 to 2016, a panel vector autoregression model using a quarter dataset provides further evidence on these effects. Domestically, the results show that following the 2008 financial crisis, strengthening CC may support policymakers’ actions to improve their macroeconomic policies. Unpredictably, there is no relationship founded between CC and international reserves accumulation. However, a combination of controls and reserves are needed to manage well the volatile capital flows. Internationally, restrictions on capital flows may cause spillovers between countries introducing controls and neighboring countries. These multilateral effects raise the challenge of optimal policy coordination.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1815979
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1815979
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1815979
Template-Type: ReDIF-Article 1.0
Author-Name: Alex Adegboye
Author-X-Name-First: Alex
Author-X-Name-Last: Adegboye
Author-Name: Stephen Ojeka
Author-X-Name-First: Stephen
Author-X-Name-Last: Ojeka
Author-Name: Kofo Adegboye
Author-X-Name-First: Kofo
Author-X-Name-Last: Adegboye
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Corporate governance structure, Bank externalities and sensitivity of non-performing loans in Nigeria
Abstract:
This study highlights the effect of corporate governance structure and bank externalities on non-performing loans in Nigeria covering the period 2009–2017. This study constructs corporate governance index for Nigerian Banks using Principal Component Analysis to establish the influence of corporate governance structure on non-performing loans. This study conducts a panel data analysis using static and dynamic estimators to examine the sensitivity of non-performing loans and corporate governance structure. From the empirical analysis, corporate governance structure of banks in Nigeria has a negative and significant influence on non-performing loans in Nigerian banks. This result reveals that sound corporate governance structure enhances the loan quality and bank stability. In addition, the study affirms that stringent policy imposed by the bank regulators has a negative impact on non-performing loans. Thus, effective corporate governance mechanism and bank regulations could help to curb excessive risk appetite that could mutilate probable performance and loan quality. This study recommends that banks should continue to implement high quality of corporate governance mechanism with positive effects at eliminating excessive risk-taking.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1816611
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1816611
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1816611
Template-Type: ReDIF-Article 1.0
Author-Name: Bassam A. Albassam
Author-X-Name-First: Bassam A.
Author-X-Name-Last: Albassam
Author-Name: Mariam Camarero
Author-X-Name-First: Mariam
Author-X-Name-Last: Camarero
Title: A model for assessing the efficiency of government expenditure
Abstract:
It is challenging for governments to transfer public spending into successful public programs and projects. Additionally, good governance of the public financial system is essential for economic and human development. The author suggested a model to evaluate the efficiency of public spending using data from 71 countries during the period 1996–2017. The model addresses the ability of public allocations to reach government’s objectives (e.g., controlling unemployment and enhancing economic growth) in addition to including factors related to sustainable development. Thus, econometric and statistical tests are carried out to validate the model and to measure its stability and accuracy. Building on the current model, we could therefore apply the model to individual countries to better understand each country’s public spending system and to help decision makers efficiently execute their national strategic plans.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1823065
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1823065
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1823065
Template-Type: ReDIF-Article 1.0
Author-Name: Songchan Guo
Author-X-Name-First: Songchan
Author-X-Name-Last: Guo
Author-Name: Unyong Pyo
Author-X-Name-First: Unyong
Author-X-Name-Last: Pyo
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Does option trading affect idiosyncratic momentum?
Abstract:
Portfolios in idiosyncratic momentum are formed on past residuals of the Fama-French three factor model rather than past total returns. This study examines whether the idiosyncratic momentum strategy can sustain excess returns following the emergence of traded options. We compare idiosyncratic momentum returns with traditional momentum returns over different holding periods and over difference in traded options. Our results show that idiosyncratic momentum returns for stocks with options are positive for three, six, and twelve months following the formation date, while traditional momentum returns for those with options are insignificant or even turn to negative. We also find strong evidence that the enhanced information efficiency led by short selling has impacts more on traditional momentum than on idiosyncratic momentum. While traditional momentum disappears on stocks with traded options, idiosyncratic momentum survives and is still anomalous to the efficient market hypothesis.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1824362
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1824362
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1824362
Template-Type: ReDIF-Article 1.0
Author-Name: Faisal Faisal
Author-X-Name-First: Faisal
Author-X-Name-Last: Faisal
Author-Name: M. Shabri Abd Majid
Author-X-Name-First: M. Shabri Abd
Author-X-Name-Last: Majid
Author-Name: A. Sakir
Author-X-Name-First: A.
Author-X-Name-Last: Sakir
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Agency conflicts, firm value, and monitoring mechanisms: An empirical evidence from Indonesia
Abstract:
Using a linear model, previous studies on the ownership concentration–firm performance nexus have produced inconsistent empirical findings and found no consensus concerning the measure of agency conflict control mechanism. Using a non-monotonic model and a combination of agency conflict control mechanisms, this study contributes to the existing literature by examining the moderating roles of additional blockholders, dividends, foreign ownership types in determining the effect of ownership concentration on performance of 580 Indonesia’s firms during the 2009–2018 period. Employing panel piecewise and moderated regression models, the study documented that the ownership concentration–firm performance relationship had followed a non-monotonic pattern, proving both monitoring and expropriation hypotheses exist for non-financial firms in Indonesia. These findings highlighted the important role of additional blockholders, dividends, foreign ownership types as moderating variables, and debt as a predictor to influence firm performance, functioning as the control mechanisms for the agency conflicts in Indonesia.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1822018
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1822018
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1822018
Template-Type: ReDIF-Article 1.0
Author-Name: Mousumi Singha Mahapatra
Author-X-Name-First: Mousumi Singha
Author-X-Name-Last: Mahapatra
Author-Name: Ramkumar Mishra
Author-X-Name-First: Ramkumar
Author-X-Name-Last: Mishra
Author-Name: Yudhvir Seetharam
Author-X-Name-First: Yudhvir
Author-X-Name-Last: Seetharam
Title: Behavioral influence and financial decision of individuals: A study on mental accounting process among Indian households
Abstract:
Studies noticed that individuals’ cognitive, psychological, and behavioral limitations always have some influence in their everyday decision making. And the financial decisions are no exceptions. Perhaps it can be affirmed that individual financial decisions do have cognitive influence. This is also true with the Indian households. This study has briefly identified one such component i.e. mental accounting system and has explored the presence of mental accounting influence in households’ financial decisions. The study also establishes mental accounting as a second-order construct by using a hierarchical latent variable model. Partial Least Square Structural Equation Model (PLS-SEM) has been used to analyze and validate the scales. The analysis has been done with 452 responses collected using a survey method through a structured questionnaire given to Indian households. The study essentially analyses the influence of mental accounting in the financial decisions of households. This study aims at extending the knowledge of behavioral finance among the scholars of consumer behavior and personal finance, as well as the financial service providers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1827762
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1827762
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1827762
Template-Type: ReDIF-Article 1.0
Author-Name: Truong Hong Trinh
Author-X-Name-First: Truong Hong
Author-X-Name-Last: Trinh
Author-Name: Nguyen Manh Toan
Author-X-Name-First: Nguyen Manh
Author-X-Name-Last: Toan
Author-Name: Evan Lau
Author-X-Name-First: Evan
Author-X-Name-Last: Lau
Title: A SAM framework for general equilibrium modeling and economic policy analysis
Abstract:
Social accounting matrix (SAM) is the linkage bridge between economic data and policy analysis in the general equilibrium models. While the empirical SAM is built upon economic data from the system of national accounts, the theoretical SAM is built upon the relation between economic actors in the economy. This paper proposes the SAM framework for the data linkage between the empirical SAM and the theoretical SAM, in which the SAM structure is defined with endogenous and exogenous blocks. The endogenous activities involve the production, income generation, and expenditures in the economy. The exogenous activities involve income redistribution, asset transfer, and capital accumulation of the economy. From the SAM framework, the general equilibrium model with the objective function of GDP, the equilibrium price system, and the constraints of macro balances are developed for experimental simulation and economic policy analysis. The paper contributes to the SAM framework that provides fundamental insights into economic data, SAM structure, and general equilibrium model for economic policy analysis.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1829802
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1829802
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1829802
Template-Type: ReDIF-Article 1.0
Author-Name: Tochukwu Timothy Okoli
Author-X-Name-First: Tochukwu Timothy
Author-X-Name-Last: Okoli
Author-Name: Devi Datt. Tewari
Author-X-Name-First: Devi Datt.
Author-X-Name-Last: Tewari
Author-Name: Muhammad Shafiullah
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shafiullah
Title: An empirical assessment of fintechs heterogeneous transmission channels to financial development among African economies
Abstract:
The poor use of innovations for financial service delivery among African banks has limited the extent of financial development in the continent. Consequently, financial authorities seeks for a technology-enabled financial solution; an area not well covered in literature. This study therefore, examines the determinants of financial development in a panel of thirty-one heterogeneous African markets for the period 2002–2019 with emphasis on financial technology (Fintech). The liquidity-preference and credit-creation theories were used to model a dummy variable interactive equation to capture possible heterogeneities. The study hypothesized that Fintech transmits directly to financial development among emerging Africa but indirectly through bank-efficiency and financial inclusion among the frontier and fragile groups, respectively. Results from both the dynamic system GMM and the static techniques support this hypothesis with significant heterogeneities in both the intercept and slope coefficients of Fintech among the various groups. The study concludes that on average, emerging African markets report higher financial depth than the frontier and fragile groups; however, with higher slopes, they can converge with emerging markets’ in the long-run through Fintech adoption. The study recommends the collaboration of Fintech with banks, improved bank efficiency and financial inclusion as panaceas to promote financial development in Africa.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1829273
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1829273
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1829273
Template-Type: ReDIF-Article 1.0
Author-Name: Y N Raju
Author-X-Name-First: Y N
Author-X-Name-Last: Raju
Author-Name: Debashis Acharya
Author-X-Name-First: Debashis
Author-X-Name-Last: Acharya
Author-Name: Aviral Tiwari
Author-X-Name-First: Aviral
Author-X-Name-Last: Tiwari
Title: Revisiting the Volatility- Growth relationship: Some cross country evidence, 1978–2017
Abstract:
This paper attempts a re-examination of the relationship between the output volatility and economic growth using an annual data set for select 67 countries for the period 1978 to 2017 spanning over 40 years. Towards this objective cross section and panel, regressions are estimated for different country groups namely developing, industrial, high financially integrated (HFI) and low financially integrated (LFI) country groups. Overall, the results indicate that output volatility as a proxy of macroeconomic volatility has negative effect on economic growth. The results appear to be stronger when we include other control variables as part of an information set. The panel regression results support the negative relationship between economic growth and volatility for the developing countries. The financial development indicator indicates significant relation with growth for industrial economies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1826655
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1826655
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1826655
Template-Type: ReDIF-Article 1.0
Author-Name: Oluchukwu F. Anowor
Author-X-Name-First: Oluchukwu F.
Author-X-Name-Last: Anowor
Author-Name: Hyacinth E. Ichoku
Author-X-Name-First: Hyacinth E.
Author-X-Name-Last: Ichoku
Author-Name: Vincent A. Onodugo
Author-X-Name-First: Vincent A.
Author-X-Name-Last: Onodugo
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Nexus between healthcare financing and output per capita: Analysis of countries in ECOWAS sub-region
Abstract:
The performances of African countries particularly in West African Sub-region on global-human development indices had been abysmal over the years and have worsened in the face of COVID-19 pandemic. This is a source of concern to scholars. Expenditure on health and education are recognized by experts as key predictors of human capital development. The latter is theoretically adjudged as a major driver of socio-economic development. This study investigated the relationship between health financing and economic performance (proxied by per capita GDP) among the 15 member countries of Economic Community of West African States (ECOWAS). Data spanning the period 1985–2017 were used and Panel Autoregressive Distributive Lag (PARDL) technique was adopted for the analysis. Results show that both private and public expenditures on healthcare were statistically significant to grow output per capita in the long-run. Further findings also suggest that other socio-economic covariates that affected the outcome of aggregate economic performance like price level of capital formation and population growth rate implicitly affected output per capita in the Sub-region. Recommendation points to all critical stakeholders to show more commitment and allocate more resources towards improved health care in the Sub-region if the cycle of stunted economic development will be broken.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1832729
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1832729
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1832729
Template-Type: ReDIF-Article 1.0
Author-Name: Khurshid Khudoykulov
Author-X-Name-First: Khurshid
Author-X-Name-Last: Khudoykulov
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Asset-pricing models: A case of Indian capital market
Abstract:
The asset-pricing models have been a fundamental area of research in finance due to its applicability in corporate finance and stock analysis. The present research attempted to evaluate the three popular asset-pricing models namely the capital asset-pricing model, the Fama-French three-factor model, and the Fama-French five-factor model in the Indian equity market for the period of January 2009 to November 2018. The study also tested the role of the size, profitability, value, investment, and market factors in explaining the average equity returns at the Indian bourses. The empirical results indicate the inferior performance of single market factor in describing the variations in average stock returns in comparison of the FF3FM and FF5FM. Furthermore, the size and value factors added to CAPM yields a vital improvement in explaining the variation in average returns of sample stocks.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1832732
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1832732
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1832732
Template-Type: ReDIF-Article 1.0
Author-Name: Charles Shaaba Saba
Author-X-Name-First: Charles Shaaba
Author-X-Name-Last: Saba
Author-Name: Nicholas Ngepah
Author-X-Name-First: Nicholas
Author-X-Name-Last: Ngepah
Author-Name: Christian Nsiah
Author-X-Name-First: Christian
Author-X-Name-Last: Nsiah
Title: Convergence in military expenditure and economic growth in Africa and its regional economic communities: evidence from a club clustering algorithm
Abstract:
This study examines the convergence in military expenditure and economic growth for a panel of 35 African countries between 1990 and 2015. We employ the Phillips and Sul methodology to achieve our objective. Overall, the results at Africa level reveal no evidence of convergence in military expenditure and growth. However, after robustness tests, the final club classification results do support the hypothesis of club convergence for the two variables. The results of the analysis show that there exist: (i) two convergence clubs for military expenditure; and (ii) five convergence clubs for growth. The empirical findings further suggest that the Regional Economic Communities (RECs) form distinct convergent and divergent clubs, exhibiting considerable heterogeneity in the underlying defence and growth patterns. In addition, the empirics confirm that the countries in each region appear to have chosen dissimilar defence and growth transition paths. The policy implications are discussed in the concluding section of this study.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1832344
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1832344
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1832344
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Naeem
Author-X-Name-First: Muhammad
Author-X-Name-Last: Naeem
Author-Name: Kashif Saleem
Author-X-Name-First: Kashif
Author-X-Name-Last: Saleem
Author-Name: Sheraz Ahmed
Author-X-Name-First: Sheraz
Author-X-Name-Last: Ahmed
Author-Name: Naeem Muhammad
Author-X-Name-First: Naeem
Author-X-Name-Last: Muhammad
Author-Name: Faisal Mustafa
Author-X-Name-First: Faisal
Author-X-Name-Last: Mustafa
Author-Name: Papavassiliou Vassilios
Author-X-Name-First: Papavassiliou
Author-X-Name-Last: Vassilios
Title: Extreme return-volume relationship in cryptocurrencies: Tail dependence analysis
Abstract:
We explore extreme return-volumes dependence among different cryptocurrencies such as Bitcoin, Ethereum, Ripple, and Litecoin by using the Copula approach. We use Student-t, Frank, Clayton, Survival Clayton, Gumbel, and SJC copulas. We filter out margins by using the EGARCH model for return series and GARCH model for volume series. Evidence of significant symmetric dependence between return-volume is not found due to insignificance of student-t and Frank copula parameters. In a return-volume relationship, coefficients of lower tail dependence are significant for Bitcoin, Ripple, and Litecoin which means that low returns are followed by low volumes. Lower tail dependence for the return-volume relationship is stronger than the upper tail dependence for Bitcoin, Ripple, and Litecoin. Moreover, for negative return-volume, left tail dependence coefficients are significant for Ripple and Litecoin, which means that high returns are followed by low volumes for Ripple and Litecoin. Our investigation shows that investors (buyer or seller) are very careful in extreme market conditions for both Ripple and Litecoin. Extreme upper tail and lower tail dependence coefficients are insignificant for Ethereum.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1834175
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1834175
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1834175
Template-Type: ReDIF-Article 1.0
Author-Name: Duc Hong Vo
Author-X-Name-First: Duc Hong
Author-X-Name-Last: Vo
Author-Name: Nhan Thien Nguyen
Author-X-Name-First: Nhan Thien
Author-X-Name-Last: Nguyen
Author-Name: McMillan David
Author-X-Name-First: McMillan
Author-X-Name-Last: David
Title: Real exchange rate in the long run: A multi-resolution analysis
Abstract:
Findings from previous studies indicate that the long-run stationarity of the real exchange rate in different time horizons remains unclear. In order to shed light on this problem, we have adopted a new method which is widely used to analyze signals, the so-called wavelet transformation. This paper uses monthly data of the consumer price indices (CPI) and nominal exchange rates for six ASEAN countries for the 1998–2019 period. The unobserved component method is used to remove the seasonality and cyclicity of the CPI. Then, the real exchange rates are calculated. We use the unit root tests and wavelet transformation to verify if the purchasing power parity (PPP) holds in the long run in different time horizons. Key findings from the paper are as follows. First, the mean-reverting pattern of real exchange rate recurs itself for the period longer than 5 years. Second, the variation around trend using wavelet methodology can be used as a reliable indicator for future movements of the real exchange rate. Third, the high volatility of the exchange rate in the short run may be induced by arbitrage activities. Implications have emerged based on these findings for policymakers and investors in relation to the behaviour of the real exchange rate.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1831725
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1831725
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1831725
Template-Type: ReDIF-Article 1.0
Author-Name: Mehak Sharma
Author-X-Name-First: Mehak
Author-X-Name-Last: Sharma
Author-Name: Anshul Jain
Author-X-Name-First: Anshul
Author-X-Name-Last: Jain
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Role of size and risk effects in value anomaly: Evidence from the Indian stock market
Abstract:
Portfolios of companies with high book-to-market (BTM) ratio (low Price-To-Book (PB) ratios, Value firms) outperform those with companies with low BTM ratio (high PB ratios, Growth firms). In literature, this is known as the Value Anomaly. This anomaly is related to the third factor in the three-factor model of Fama and French, and is commonly used to explain the cross section of returns. Studies on the Value Anomaly in the Indian Stock Markets have yielded mixed results. Using a longer span of data and a larger set of companies, this study explores and observes the Value Anomaly in the Indian Stock Market. The contribution of size and systematic risk towards the behaviour of the Value Anomaly is studied. We observe that Value Anomaly exists in India, but with growth portfolios outperforming value. A critical analysis reveals possible linkages to firm size.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1838694
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1838694
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1838694
Template-Type: ReDIF-Article 1.0
Author-Name: Belainew Belete
Author-X-Name-First: Belainew
Author-X-Name-Last: Belete
Author-Name: Surafel Melak
Author-X-Name-First: Surafel
Author-X-Name-Last: Melak
Author-Name: Goodness Aye
Author-X-Name-First: Goodness
Author-X-Name-Last: Aye
Title: Impact of small scale irrigation technology on women empowerment in Amhara national regional state of Ethiopia
Abstract:
Even though there is a growing interest to empower rural women in all economic activities. Works of literature are scant to evaluate the role of small-scale irrigation technology on women empowerment. This study evaluates the impact of the adoption of small-scale irrigation technologies on women empowerment, where empowerment is measured by Women Empowerment in the Agricultural index. The propensity Score Matching (PSM) method was employed to identify comparable technology adopting and non-adopting sample households. Results of the average treatment effect on treated suggest adoption of small-scale irrigation technologies exacerbate the disempowerment of women. Hence, we suggest Policy and development interventions should give due emphasis on improving women’s capacity to own and control resources and should be decision-makers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1837440
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1837440
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1837440
Template-Type: ReDIF-Article 1.0
Author-Name: Muqaddas Khalid
Author-X-Name-First: Muqaddas
Author-X-Name-Last: Khalid
Author-Name: Qaisar Abbas
Author-X-Name-First: Qaisar
Author-X-Name-Last: Abbas
Author-Name: Mian Sajid Nazir
Author-X-Name-First: Mian Sajid
Author-X-Name-Last: Nazir
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Efficiently monitoring the ship of financially distressed companies sinking in Iron law of earnings management: Evidence from Pakistan
Abstract:
The purpose of this study is to validate the relationship between earnings management and financial distress. Further, it will explore the moderating role of ownership structure for the relationship between earnings management and financial distress which is missing in the current literature. Agency theory and the iron law of earnings management are utilized to develop the framework for this study. Data have been collected from 156 companies listed on the Pakistan Stock Exchange for the period of 2004 to 2017. All the reported results are on a log-odds matric because our dependent variable is binary. The results of the study proved that there exists a positive relationship between earnings management and financial distress and this relationship is negatively moderated by ownership structure. The results of this study are beneficial for investors as well as regulators regarding control mechanisms of ownership structure.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1838685
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1838685
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1838685
Template-Type: ReDIF-Article 1.0
Author-Name: Lê Thị Minh Hằng
Author-X-Name-First: Lê Thị
Author-X-Name-Last: Minh Hằng
Author-Name: Hoang Van Hai
Author-X-Name-First: Hoang
Author-X-Name-Last: Van Hai
Author-Name: Nguyen Truong Son
Author-X-Name-First: Nguyen
Author-X-Name-Last: Truong Son
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: The role of reference-dependent preferences in the idiosyncratic volatility puzzle: Evidence from Korea
Abstract:
In this paper, the role of the reference-dependent preference in the relationship between idiosyncratic volatility and future return was investigated in the Korean stock market from July 1990 to June 2018. The capital gains overhang was used as a reference point for a definition of the loss and gains domain. As a consequence, the negative idiosyncratic volatility-return relationship is driven by unrealized capital losses. In addition, this negative relation disappears in the unrealized capital gains domain, suggesting the important role of the reference-dependent preference in the idiosyncratic volatility puzzle interpretation. These findings are robust to control for several factors, such as market beta, return reversal variable, momentum, and liquidity.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1838686
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1838686
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1838686
Template-Type: ReDIF-Article 1.0
Author-Name: Tamirat Beyene
Author-X-Name-First: Tamirat
Author-X-Name-Last: Beyene
Author-Name: Wondaferahu Mulugeta
Author-X-Name-First: Wondaferahu
Author-X-Name-Last: Mulugeta
Author-Name: Tesfaye Merra
Author-X-Name-First: Tesfaye
Author-X-Name-Last: Merra
Author-Name: Wing-Keung Wong
Author-X-Name-First: Wing-Keung
Author-X-Name-Last: Wong
Title: Technical efficiency and impact of improved farm inputs adoption on the yield of haricot bean producer in Hadiya zone, SNNP region, Ethiopia
Abstract:
Haricot bean is one of the most important food legumes of Ethiopia and it is considered as the main cash crop and the least expensive source of protein for the farmers. Low production and productivity, which are mainly associated with poor adoption and inefficient implementation of improved farm technologies, were among the major problems. Adoption and efficient utilization of improved farm inputs is one of the most promising ways to reduce food insecurity in study area. However, the adoption and implementation of these improved farm inputs is constrained by various factors. So, the aim of this study was to analyze the technical efficiency and impact of improved farm inputs adoption on the yield of haricot bean producers. A multi-stage sampling technique was employed to select 231 sample household heads and they were interviewed using structured interview schedule. Data analysis was done with the help of Stochastic Frontier Analysis; mainly Cobb-Douglas Production Function, logistic regression model were employed. The Stochastic Production Frontier result revealed that the allocated amount of land, labour, seed, chemical fertilizer and oxen were appeared to be positively and significantly influencing haricot bean production of both adopters and total sampled householders. The result of logistic regression model indicated that the probability of adoption of improved farm inputs affected by extension service, information access and cooperative membership positively and by market distance and crop diversification negatively. Therefore, specialization, asset formation, innovative institutional arrangement, information, extension and farmers training accompanied with more access to chemical fertilizer in the study area.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1833503
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1833503
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1833503
Template-Type: ReDIF-Article 1.0
Author-Name: Álvaro Turriago-Hoyos
Author-X-Name-First: Álvaro
Author-X-Name-Last: Turriago-Hoyos
Author-Name: William Andrés Martínez Mateus
Author-X-Name-First: William Andrés
Author-X-Name-Last: Martínez Mateus
Author-Name: Ulf Thoene
Author-X-Name-First: Ulf
Author-X-Name-Last: Thoene
Author-Name: Robert Read
Author-X-Name-First: Robert
Author-X-Name-Last: Read
Title: Spatial analysis of multidimensional poverty in Colombia: Applications of the Unsatisfied Basic Needs (UBN) Index
Abstract:
This research article seeks to specify and measure the determinants of multidimensional poverty in Colombia using the Unsatisfied Basic Needs (UBN) Index based on information from the latest available 2005 population census applying a spatial econometric approach. An exploratory analysis of the spatial distribution of the UBN and a confirmatory analysis through spatial models are conducted using municipalities as the unit of analysis. This spatial analysis confirms diffusion effects of poverty between neighbouring municipalities, the existence of clusters and hot spots in the Pacific Chocó region, the Caribbean Coast, and the southern region of the country. Within those clusters, we find high levels of unemployment, low levels of urban population, as well as a high proportion of ethnic minorities, and large size municipalities. This research contributes to public policymaking and the improvement of governance in the third largest Latin American country by population size and the region’s fourth largest economy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1837441
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1837441
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1837441
Template-Type: ReDIF-Article 1.0
Author-Name: Bilal Sarwar
Author-X-Name-First: Bilal
Author-X-Name-Last: Sarwar
Author-Name: Noor Muhammad
Author-X-Name-First: Noor
Author-X-Name-Last: Muhammad
Author-Name: Nadeem Uz Zaman
Author-X-Name-First: Nadeem
Author-X-Name-Last: Uz Zaman
Author-Name: Zia Ur Rehman
Author-X-Name-First: Zia Ur
Author-X-Name-Last: Rehman
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: The conundrum of bank capital structure: Empirical evidence from Pakistan
Abstract:
This paper aims to analyze factors explaining the capital structure puzzle in the banking sector of Pakistan. Capital Adequacy Ratio (CAR) is used as a proxy for bank capital structure. Secondary data has been collected from the publications of the State Bank of Pakistan and the annual reports of banks from 2006–2017. The data is analyzed by applying the pooled OLS, fixed effect, and the GMM estimator. The determinants are grouped in (i) bank financial performance (ii) bank risk-based and (iii) industry level. Using bank financial performance indicators, the alternate cost of capital is significant, and management quality is an insignificant determinant of capital structure. Similarly, using bank risk-based variables, default risk, and credit risk is statistically significant whereas, bank risk index is statistically insignificant in explaining capital structure. Furthermore, using the industry-specific variables, both the average CAR of the banking sector and the market competitiveness proxied by the Herfindahl-Hirschman Index (HHI) is significantly predicting capital structure. Overall the bank risk-based and the industry-specific indicators are explaining bank capital structure more significantly compared to other indicators in the study. Finally, this paper included the financial crisis to observe any exogenous shocks while studying capital structure which is found to be significant in the current study.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1838688
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1838688
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1838688
Template-Type: ReDIF-Article 1.0
Author-Name: Umaid A. Sheikh
Author-X-Name-First: Umaid A.
Author-X-Name-Last: Sheikh
Author-Name: Muzaffar Asad
Author-X-Name-First: Muzaffar
Author-X-Name-Last: Asad
Author-Name: Aqeel Israr
Author-X-Name-First: Aqeel
Author-X-Name-Last: Israr
Author-Name: Mosab I. Tabash
Author-X-Name-First: Mosab I.
Author-X-Name-Last: Tabash
Author-Name: Zahid Ahmed
Author-X-Name-First: Zahid
Author-X-Name-Last: Ahmed
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Symmetrical cointegrating relationship between money supply, interest rates, consumer price index, terroristic disruptions, and Karachi stock exchange: Does global financial crisis matter?
Abstract:
The study is intended to investigate the symmetrical relationship between macroeconomic variability and KSE-100 indexes by employing the ARDL model with bound testing procedure and error correction model. Authors have also examined whether the linkages between macroeconomic variability and KSE-100 indexes change in the wake of the 2008 Global economic recession. Macroeconomic variability is represented by fluctuations in interest rates, consumer price index, and Money supply (M2). Monthly level data representing macroeconomic volatility has been incorporated from the trading economics website and validated from the Pakistan bureau of statistics. Four different types of unit root tests like augmented dickey fuller test, KPSS, and Philips Peron unit root are also employed for the identification of seasonality effects in data. To identify structural breaks and linearity in data, the Zivot Andrew unit root test and BDS test for nonlinearity have also been employed respectively. This study adds to the existing literature by classifying investor’s different reactions to fluctuation in macroeconomic variability before and after the international economic recession. Our study results proposed that in the long run and before the international economic crunch, the money supply and interest rates have an inverse relationship with stock indexes but CPI has a direct and significant relationship. However, after the 2008 economic crisis and for a longer horizon, stock indexes have been impacted positively by money supply, and IR has formulated an inverse relationship with KSE-100 indexes. This indicated that the association between macroeconomic variations and KSE-100 indexes changes following the 2008 international economic crisis.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1838689
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1838689
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1838689
Template-Type: ReDIF-Article 1.0
Author-Name: William Mbanyele
Author-X-Name-First: William
Author-X-Name-Last: Mbanyele
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Ownership concentration, firm life cycle, and leverage: Evidence from Italian family firms
Abstract:
We examine the impact of ownership concentration, firm life cycle, and family ownership on leverage using a sample of listed Italian firms. The study findings reveal that family businesses in Italy have high ownership concentration and use less debt than non-family firms. The study results show that there is a nonlinear relationship between ownership concentration and leverage, and between the firm life cycle and leverage. Furthermore, the study contributes to the literature by showing that firm age positively moderates ownership concentration and leverage linkage. Besides we provide evidence that debt and ownership alternate as disciplining devices at different ownership concentration levels and life cycle stages. Our policy contribution encourages regulators to enforce laws that protect minority shareholders in businesses with high ownership concentration.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1838687
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1838687
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1838687
Template-Type: ReDIF-Article 1.0
Author-Name: Edward Bace
Author-X-Name-First: Edward
Author-X-Name-Last: Bace
Author-Name: Ana Ferreira
Author-X-Name-First: Ana
Author-X-Name-Last: Ferreira
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Regulation’s influence on EU banking efficiency: An evaluation post crisis
Abstract:
This paper examines the impact of regulatory policies on banking market efficiency using a sample of 678 commercial banks from 21 European Union countries for the post-crisis year 2010, controlling for bank-specific and country-specific variables. Data on regulation, supervision and monitoring variables, and activity restrictions are from the most recent Bank Regulation and Supervision Survey database conducted by the World Bank, published 2012. Besides these we incorporate bank size, equity, market share, government ownership, and growth of Gross Domestic Product per capita, employing an Ordinary Least Squares method. Focus is on two alternative measures of banking market efficiency: net interest margin and overhead costs (operating expenses to assets). Elevated levels of these two ratios should indicate a low level of banking efficiency. The evidence suggests that the link between capital regulation and banking efficiency is not robust enough to control for other regulatory variables. Results confirm that activity restrictions have a negative and significant impact on banking efficiency. Policies encouraging official supervisory power do not enhance efficiency of the banking sector. The only approach positively and statistically significantly associated with efficiency is private monitoring. This leads to the suggestion that government regulation and supervision should be more focused on promoting transparency of information.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1838735
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1838735
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1838735
Template-Type: ReDIF-Article 1.0
Author-Name: Hasan Hanif
Author-X-Name-First: Hasan
Author-X-Name-Last: Hanif
Author-Name: Muhammad Naveed
Author-X-Name-First: Muhammad
Author-X-Name-Last: Naveed
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Dynamic modeling of idiosyncratic risk under economic sensitivity. A case of Pakistan
Abstract:
Financial institutions are an important source of providing impetus to investment by mobilizing savings and channelizing them to meet much needed capital requirements of other sectors. Similarly, the extant literature documents volatility of influential financial intuitions is not standalone but of contagious nature tending to spread through the financial system hence causes economic and financial shocks. This study brings new insights by investigating the dynamic aspect of idiosyncratic risk across different economic conditions in a developing economy like Pakistan. To analyze the impact of factors that influence idiosyncratic risk, one and two step system GMM is used. The findings of the study highlight that capital structure of the financial institutions needs proper monitoring of regulatory authorities as banks get a good amount of loans during good times but this can wreak havoc during the crisis as it happened in 2008–2009. In the like manner, the State Bank of Pakistan should also introduce higher liquidity requirements as results point out increased liquidity leads to lower level of idiosyncratic risk. In addition to that, Monetary policy and prudential regulation policy should also be aligned as contractionary monetary policy deters the munificence of the sector and leads to increase in external dynamism resulting in higher level of idiosyncratic volatility. The economic sensitivity analysis indicate that role of liquidity becomes more significant during crisis and postcrisis period. Finally, study also elucidates that sector level variables are also instrumental in modeling of idiosyncratic risk along with firm and country level variables.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1838734
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1838734
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1838734
Template-Type: ReDIF-Article 1.0
Author-Name: Faisal Sagheer Uddin
Author-X-Name-First: Faisal
Author-X-Name-Last: Sagheer Uddin
Author-Name: Muhammad Azam
Author-X-Name-First: Muhammad
Author-X-Name-Last: Azam
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Price-sensitive announcements and stock return anomalies: Evidence from Pakistan
Abstract:
The purpose of this study is to investigate the effect of price-sensitive announcements on stock return anomalies and the interaction effect of corporate announcements of firms with abnormal returns (AR). The study focused on 279 announcements for a period of two years from Jan-2016 till Dec-2017. The announcements were related to plant expansion, change in capital structure, change in ownership, and financial results. We adopted the event study methodology to calculate the Cumulative Abnormal Return (CAR) for the event window of 30 days (−15, +15). The study also used hierarchical moderated regression analysis to examine the moderating effect of corporate announcements on abnormal returns. The findings revealed that insiders received higher abnormal returns when they buy stocks before corporate announcements. The results also indicated that these returns are specifically related to purchases made before announcing plant expansion, financial results, and change in the capital structure. The study also exposed that insiders having prior information on corporate announcements can increase predictability and drive the return irrespective of the firms’ operating business. The results provide more insight into the effectiveness of the Security and Exchange Commission of Pakistan (SECP) in curbing insider trading in the Pakistan Stock Exchange (PSX). The study recommends to the individual investors to diversify their investment to safeguard the returns.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1838692
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1838692
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1838692
Template-Type: ReDIF-Article 1.0
Author-Name: Josephat Lotto
Author-X-Name-First: Josephat
Author-X-Name-Last: Lotto
Author-Name: Irene Isaka
Author-X-Name-First: Irene
Author-X-Name-Last: Isaka
Author-Name: Aviral Tiwari
Author-X-Name-First: Aviral
Author-X-Name-Last: Tiwari
Title: On understanding the implication of pension debt on fiscal policy in Tanzania: Is there any room for improving the adequacy of pension benefits?
Abstract:
This paper aims at understanding the implication of pension debt on fiscal policy in Tanzania. The paper employed a modified projected benefit obligation (PBO) approach for a period between 2010 and 2018. The results of the paper indicate a mismatch between benefit payments and members’ contributions, in that outflows are found to exceed inflows for a large part of the examined period, which tends to imply that pensions adequacy is questionable, and that the system cannot be sustained for a longer period if no rescue is put in place immediately. Further, drawing from the computed life expectancy of pensioners, it is indicative that the size of the retirement age cohort will continue to enlarge over time; which would result in increasing pension obligations. Since increased pension expenditure would not be fully covered from the existing pension assets, the Government as a guarantor would be required to cover the matured pension obligations through its annual fiscal budget. Unfortunately, looking at the current National Debt sustainability report pension debt is not part of the proposed national debt. Following these findings, and since neither increasing the contribution rate nor the retirement age may not be sustainable options, the reduction of accrual rate is the most suitable option the government is recommended to implement so as to rescue the current situation. However, in a long run, the paper recommends the government to undertake a systemic pension reform, which would change the entire pension system from a defined benefits scheme to a defined contributions scheme.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1838690
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1838690
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1838690
Template-Type: ReDIF-Article 1.0
Author-Name: Faisal Abbas
Author-X-Name-First: Faisal
Author-X-Name-Last: Abbas
Author-Name: Shoaib Ali
Author-X-Name-First: Shoaib
Author-X-Name-Last: Ali
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Dynamics of bank capital ratios and risk-taking: Evidence from US commercial banks
Abstract:
This study aims to explore how different capital ratios influence the risk-taking of large commercial banks of the USA. The study collects the data from FDIC for commercial banks from 2003 to 2019. We use a two-step GMM method to manage the endogeneity, simultaneity, heteroscedasticity, and auto-correlations issue. The findings conclude that an increase in the risk-based capital ratios decreases the banks’ risks. Empirical findings demonstrated a significant and positive association between non-risk-based capital ratios and bank risk-taking. The findings also demonstrate that an increase in capital buffer ratios decreases the banks’ risks. The impact of capital ratios on risk-taking is heterogeneous for well and under-capitalized banks. The findings suggest that State-chartered member and non-member banks are inclined to take a higher risk than nationally chartered banks. The findings have implications for regulators to consider the State-chartered member, non-member, and nationally chartered banks while formulating the new guidelines for required capital ratios.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1838693
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1838693
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1838693
Template-Type: ReDIF-Article 1.0
Author-Name: Sylvester Senyo Horvey
Author-X-Name-First: Sylvester Senyo
Author-X-Name-Last: Horvey
Author-Name: Jacob Ankamah
Author-X-Name-First: Jacob
Author-X-Name-Last: Ankamah
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Enterprise risk management and firm performance: Empirical evidence from Ghana equity market
Abstract:
This paper examines the linear and non-linear relationship between Enterprise Risk Management (ERM) and firm performance while focusing on how operational status (financial and non-financial listed firms’ status) affects this relationship in Ghana. Analysis of 30 listed firms on Ghana Stock Exchange between 2010 and 2016 in a robust fixed effect and random effect estimation techniques, presented new insights into ERM literature. We showed that ERM propels firm performance at both the firm level (return on assets and equity) and market level (Tobin Q) performance of listed firms in Ghana. A non-linear inverted U-shape is observed when return on equity is employed as a performance indicator while a non-linear direct U-shape is observed when return on assets and Tobin Q are employed as performance indicators. A non-linear relationship exists between ERM and performance of listed firms in Ghana whether the non-linearity is an inverted U shape or direct U shape depends on the firm performance. This paper recommends that firms should implement fundamental robust measures and dynamic risk management techniques to get better ERM outcome. Enterprise Risk Management should be implemented in both financial firms and non-financial firms because firms which practice ERM are more likely to perform better than Non-ERM counterparts.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1840102
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1840102
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1840102
Template-Type: ReDIF-Article 1.0
Author-Name: Santanu Pal
Author-X-Name-First: Santanu
Author-X-Name-Last: Pal
Author-Name: Ajay K. Garg
Author-X-Name-First: Ajay K.
Author-X-Name-Last: Garg
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Macroeconomic surprises and stock market responses in view of global linkage – A study of Indian stock market
Abstract:
In prior literature it was conjectured that the Indian stock market responses on domestic macroeconomic surprises are expected to be significantly influenced by global surprises. In this paper we empirically established that hypothesis. We used both the Event Analysis and VAR model. We found that global surprises consistently dominate Indian stock market and the influence of domestic macroeconomic surprises on it is relatively less. The understanding of stock market dynamics against domestic macroeconomic surprises and global factors can provide assistance to the policy makers for augmenting policy effectiveness and the corporate finance professionals for enhancing decision making.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1839171
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1839171
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1839171
Template-Type: ReDIF-Article 1.0
Author-Name: Salmon Mugoda
Author-X-Name-First: Salmon
Author-X-Name-Last: Mugoda
Author-Name: Stephen Esaku
Author-X-Name-First: Stephen
Author-X-Name-Last: Esaku
Author-Name: Rose Kibuka Nakimu
Author-X-Name-First: Rose Kibuka
Author-X-Name-Last: Nakimu
Author-Name: Edward Bbaale
Author-X-Name-First: Edward
Author-X-Name-Last: Bbaale
Author-Name: Robert Read
Author-X-Name-First: Robert
Author-X-Name-Last: Read
Title: The portrait of Uganda’s informal sector: What main obstacles do the sector face?
Abstract:
In this paper, using primary data collected from business owners, we examine the nature and obstacles in the informal sector of Uganda. We find that education level matters in the selection of enterprises. The bulk of businesses, like eating kiosks, fish selling, shoe shining among others that require no specialized skill to operate were mainly run by primary school dropouts and those with no formal level of education. Furthermore, we find evidence of a strong entrepreneurial spirit among secondary school dropouts than at any other education level. Across all businesses surveyed, secondary school dropouts run a high number of informal enterprises. Evidence suggests that their motivation is driven by two key factors, namely, wanting to take advantage of an existing business opportunity and failure to find employment in the formal sector. The empirical results show that access to finance, crime, theft and disorder, electricity, water, taxes, burdensome inspections, and informal gifts are robust and significant obstacles to the operations of the informal sector in Uganda. Policies should focus on a regulatory framework that supports the sector to create secure livelihoods and generate employment opportunities for the unemployed rather than viewing the sector as a source of “illegality.” Improving access to finance, providing regular power and water supply, and improving the tax regime would mitigate the obstacles faced by informal businesses leading to possible formalization. Informal sector businesses should not be perceived as “illegal entities” but rather complementary effort by an increasingly enterprising population in the country.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1843255
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1843255
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1843255
Template-Type: ReDIF-Article 1.0
Author-Name: Samuel Antwi
Author-X-Name-First: Samuel
Author-X-Name-Last: Antwi
Author-Name: Mohammed Issah
Author-X-Name-First: Mohammed
Author-X-Name-Last: Issah
Author-Name: Aboagyewaa Patience
Author-X-Name-First: Aboagyewaa
Author-X-Name-Last: Patience
Author-Name: Solomon Antwi
Author-X-Name-First: Solomon
Author-X-Name-Last: Antwi
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: The effect of macroeconomic variables on exchange rate: Evidence from Ghana
Abstract:
The study examined the effect of macroeconomic variables on exchange rate in Ghana using a multivariate modeling technique of the Vector Autoregression (VAR) and focusing on impact of broad money supply (M2), lending rate, inflation and real GDP on exchange rate, for 76 quarterly observations period of 2000–2019, in Ghana and to examine their effectiveness in managing exchange rate in Ghana. The study used only secondary sources of data from Bank of Ghana, World Development Indicators and Ghana Statistical Service. It was found that, real GDP granger causes exchange rate in Ghana. However, inflation, money supply and lending rate do not granger cause exchange rate in Ghana but they affect exchange rate indirectly. It was recommended that a sound exchange rate policy should take into account some considerations. The bank of Ghana should try to reduce the lending rate and money supply in order to lower inflation to create rooms for more investors to produce more to increase the GDP produced in the country, in order to depreciate the foreign currency.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1821483
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1821483
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1821483
Template-Type: ReDIF-Article 1.0
Author-Name: Tu Dq Le
Author-X-Name-First: Tu Dq
Author-X-Name-Last: Le
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Multimarket contacts and bank profitability: do diversification and bank ownership matter?
Abstract:
This study investigates the impact of multimarket contacts on bank profitability in the Vietnamese banking system from 2006 to 2015 using the system GMM. The findings indicate in general no evidence of the mutual forbearance hypothesis in this sector. However, we do find evidence of tacit collusion for the case of foreign-owned banks and newly combined banks with greater multimarket contacts. Finally, this study reveals that on average the most profitable banks are less geographically diversified, more technically efficient, and have lower credit risk. Regarding the role of bank ownership, more profitable banks are state-owned commercial banks, listed banks, and non-merged banks.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1849981
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1849981
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1849981
Template-Type: ReDIF-Article 1.0
Author-Name: Chaiyuth Padungsaksawasdi
Author-X-Name-First: Chaiyuth
Author-X-Name-Last: Padungsaksawasdi
Author-Name: Yudhvir Seetharam
Author-X-Name-First: Yudhvir
Author-X-Name-Last: Seetharam
Title: Herd behavior and firm-specific information
Abstract:
The study shows critical roles of firm-specific information on herd behavior, which is underexplored in prior literature, albeit an increasing impact of firm-specific information on asset pricing. The main finding demonstrates that three of four selected measures of firm-specific information (return residual, return skewness, and information discreteness) are associated with the aggregate herd behavior in the Thai equity market. The return residual delineates the greatest impacts in most cases, especially during the financial turbulence periods. Herd behavior with firm-specific information is observed at all times. More importantly, less corporate transparency, more noise trading, large asymmetric risk, and low liquidity are the main drivers of intentional herd behavior.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1844399
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1844399
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1844399
Template-Type: ReDIF-Article 1.0
Author-Name: Dipesh Karki
Author-X-Name-First: Dipesh
Author-X-Name-Last: Karki
Author-Name: Trijya Kafle
Author-X-Name-First: Trijya
Author-X-Name-Last: Kafle
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Investigation of Factors Influencing Risk Tolerance among Investors using Ordinal Logistic Regression: A case from Nepal.
Abstract:
The paper investigates the factors that affect the risk tolerance of the general investors in Nepalese stock market. Using data of 99 investors, study applies ordinal logistic regression to evaluate the impact of investor’s education level, gender, financial literacy, years in trading, prior history of loss and history of margin lending on risk tolerance capacity of the investor. The paper finds that with prior loss, chances of high-risk investor moving to moderate risk is 4.48 log odds while that of moderate risk investor moving to low risk is 1.33 log odds. Meanwhile financial literacy increases the risk level across risk spectrum by log odds of 1.59. On the other hand keeping other things constant with availability of margin lending, there is 48% probability investor falls into moderate risk category. The study however didn’t find any influence of gender, years in trading and education on risk tolerance. The research finds that financial literacy is an important driver in risk appetite of investors than their education level. Further it shows that past experience of the investor very much influences their level of riskiness. Finally paper finds margin lending having more influence on those investors that falls under moderate risk level. The study thus provides guidelines for policy maker in setting the margin rate, and also helps portfolio manager to assess the risk appetite of the potential investor and finally provides empirical evidence of financial literacy in stabilizing risk tolerance of investors.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1849970
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1849970
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1849970
Template-Type: ReDIF-Article 1.0
Author-Name: D. Kellerman
Author-X-Name-First: D.
Author-X-Name-Last: Kellerman
Author-Name: Z. Dickason-Koekemoer
Author-X-Name-First: Z.
Author-X-Name-Last: Dickason-Koekemoer
Author-Name: S. Ferreira
Author-X-Name-First: S.
Author-X-Name-Last: Ferreira
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Analysing investment product choice in South Africa under the investor lifecycle
Abstract:
Individual investment decision-making theory revolves around the logical choices an investor is expected to make to achieve the maximum return on investments. The investor life cycle theory is often used as a guideline to determine how investors will invest based on their predicted life cycle phase. However, the question remains whether lifecycle investing is still relevant today. The main purpose of the paper is to analyse how demographic factors influence investment product selection for South African banking clients using Big Data. The analysis found that the investment patterns of South African investors strongly contradict the foundational literature of the investor life cycle. South African investors are skewed more towards low-risk investment options like cash, across all age ranges, only investing in higher-risk instruments much later than what the investor life cycle theory suggests. Female investors are especially risk-averse, however, the effect becomes less prominent as income level rises. The risk-averse investment style seen in the findings for all South African investors can be explained by the slow economic growth experienced in South Africa, with investors having less disposable income to invest.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1848972
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1848972
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1848972
Template-Type: ReDIF-Article 1.0
Author-Name: Johnny Jansen van Rensburg
Author-X-Name-First: Johnny
Author-X-Name-Last: Jansen van Rensburg
Author-Name: Gary van Vuuren
Author-X-Name-First: Gary
Author-X-Name-Last: van Vuuren
Author-Name: Xibin Zhang
Author-X-Name-First: Xibin
Author-X-Name-Last: Zhang
Title: Evaluating investment decisions based on the business cycle: A South African sector approach
Abstract:
Sector investing aims to guide investors in identifying undervalued securities. Knowing which sectors flourish at different phases of the business cycle, investment returns may be boosted by increasing holdings in securities from strengthening sectors and reducing holdings in weakening ones. As the business cycle phase changes, security rotation can continuously improve portfolio returns. Sector investing is, however, heavily dependent upon accurate phase identification and therefore highly vulnerable to phase misidentification. Investing in securities which do not thrive at the phase identified could lead to inferior portfolio returns or even losses. There is ample precedent in the literature regarding the usefulness of Fourier analysis in identifying business cycle frequencies. This article contributes by installing this approach for the first time to augment existing sector investing methodology. We confirm that the sector rotation approach does generate statistically significant outperformance (relative to local market index performance) in South Africa. This work adds to the current dearth of theoretical and empirical research regarding sector rotation in emerging economies, so it can also be beneficial for researchers interested in similar milieus.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1852729
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1852729
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1852729
Template-Type: ReDIF-Article 1.0
Author-Name: Bankole Fred Olayele
Author-X-Name-First: Bankole Fred
Author-X-Name-Last: Olayele
Author-Name: Kwok Tong Soo
Author-X-Name-First: Kwok Tong
Author-X-Name-Last: Soo
Author-Name: Mariam Camarero
Author-X-Name-First: Mariam
Author-X-Name-Last: Camarero
Title: Redistributive fiscal policies and regional economic disparities
Abstract:
Finding a definitive answer to the question of whether fiscal redistribution is harmful or beneficial for regional economic performance is not straightforward. This paper disentangles the key components of fiscal redistribution in a regional Canada-US setting. Redistributive spending is calibrated as the difference between pretax personal income, and personal income after federal taxes and transfers. Based largely on fixed effects and dynamic panel methods, our findings support the battery of studies on the mixed evidence concerning the relationship between fiscal redistribution and per capita income. To the extent that results are sensitive to estimation methods and functional specifications, the study underscores the importance of unbundling the components of a redistributive fiscal package in a bid to establish optimal thresholds for effective policy interventions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1853326
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1853326
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1853326
Template-Type: ReDIF-Article 1.0
Author-Name: Ky Han Tran
Author-X-Name-First: Ky Han
Author-X-Name-Last: Tran
Author-Name: Nguyen Hung Duong
Author-X-Name-First: Nguyen Hung
Author-X-Name-Last: Duong
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Earnings management to avoid earnings decreases and losses: Evidence from Vietnamese listed companies
Abstract:
By combining Empirical Distribution Approach (EDA) and Discretionary Accruals Approach (DAA) with data including 2,949 observations of 295 Vietnamese listed companies from 2006 to 2016, we provide evidence that the firms have conducted earnings management behavior to avoid losses but have not committed earnings management behavior to avoid earnings decreases. The evidence indicates that the firms conducting earnings management behavior to avoid losses account for from 4.88% to 13.76% of the whole sample and account for from 49.6% to 73.6% of negative earnings observations. In addition, we find that the changes in working capital are a common tool for managers to conduct earnings management behavior to avoid losses. Furthermore, by removing discretionary accruals from earnings, we also confirm that managers have used discretionary accruals as a tool to manipulate reported earnings upward to avoid losses.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1849980
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1849980
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1849980
Template-Type: ReDIF-Article 1.0
Author-Name: Sarfaraz Javed
Author-X-Name-First: Sarfaraz
Author-X-Name-Last: Javed
Author-Name: Uvesh Husain
Author-X-Name-First: Uvesh
Author-X-Name-Last: Husain
Author-Name: Muhammad Shafiullah
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shafiullah
Title: An ARDL investigation on the nexus of oil factors and economic growth: A timeseries evidence from Sultanate of Oman
Abstract:
The study is conducted to comprehend the relation of the oil sector with Oman’s economic growth. Oman is an abundant oil country, and the oil sector plays an influential part in its economic development. The data were gathered from a range of 1989 to 2018 from the National Center for Statistics and Information of Oman; it published the statistical year for variables including oil revenue, oil price, gross capital formation, total revenue, and production or export of Crude Oil. The data were analyzed with the help of the ARDL cointegration approach and Granger causality test. The results enlighten that economic performance is significantly affected by the oil price, crude oil production, and gross capital formation, and the total revenue and oil revenue insignificantly influence it. The impact of export has a substantial adverse influence on economic growth. The variables have long-run granger cause on each other while short-run causal bidirectional relation exists among economic performance, crude oil production, and export of Crude Oil. The study helps Oman’s Government understand the importance of the oil sector and aids in maintaining or forecasting the oil revenue and government spending to retain a stable economy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1838418
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1838418
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1838418
Template-Type: ReDIF-Article 1.0
Author-Name: Hery Toiba
Author-X-Name-First: Hery
Author-X-Name-Last: Toiba
Author-Name: Tri Wahyu Nugroho
Author-X-Name-First: Tri Wahyu
Author-X-Name-Last: Nugroho
Author-Name: Dwi Retnoningsih
Author-X-Name-First: Dwi
Author-X-Name-Last: Retnoningsih
Author-Name: Moh. Shadiqur Rahman
Author-X-Name-First: Moh. Shadiqur
Author-X-Name-Last: Rahman
Author-Name: Goodness Aye
Author-X-Name-First: Goodness
Author-X-Name-Last: Aye
Title: Food system transformation and its impact on smallholder farmers’ income and food security in Indonesia
Abstract:
Transformation of food system in Indonesia can have a profound impact on the supply chain of smallholder farmers. Policymakers are concerned about the impact of “modern food retail penetration” or “supermarket penetration” on Indonesian food chain participants. This study aims to analyze the link between supermarket penetration and smallholder farmers’ welfare. Data were obtained from a survey involving 300 smallholder horticulture farmers from two regencies: Malang and Kediri. The data were analyzed to shed light on these issues. Endogenous switching regression was used to analyze the impact of participation in modern food marketing channel on both food security and welfare. The results of the econometric analysis suggest that there is a link between participation in the modern market and food security. In addition, this study also highlights that the presence of a new system of food supply chain is able to increase smallholder farmers’ income through the stability of price and demand.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1854412
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1854412
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1854412
Template-Type: ReDIF-Article 1.0
Author-Name: Watekhi Watekhi
Author-X-Name-First: Watekhi
Author-X-Name-Last: Watekhi
Author-Name: Nachrowi Djalal Nachrowi
Author-X-Name-First: Nachrowi
Author-X-Name-Last: Djalal Nachrowi
Author-Name: Muhammad Shafiullah
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shafiullah
Title: The effect of trade liberalization on inter-industry wage difference in Indonesia’s manufacturing sector
Abstract:
This study analyzes the effect of trade liberalization on wage inequality through industry wage premiums in Indonesia’s manufacturing sector between 2000 and 2015, a period marked by low import tariffs. The study was undertaken by adopting a two-stage estimation approach. Using the national labor force survey dataset from Sakernas (Survei Angkatan Kerja Nasional—Indonesia Labor Force Survey), first, the study estimates industry wage premiums conditional on individual worker characteristics. In the second stage, the data are pooled across industries over time, then regressed on import tariff of final goods as a measure of trade liberalization, controlling for market concentration. The study finds a negative effect of import tariffs on industry wage premiums, implying that industry wage premiums decreased by more in sectors facing a larger tariff hike, and, vice versa, industry wage premiums increased by more in sectors experiencing larger tariff cuts. This suggests that trade liberalization contributes to wider wage inequality through inter-industry wage difference. Therefore, a more selective measure should be taken in implementing trade liberalization by opening wider access for superior commodities and protecting less-competitive commodities with high domestic demand.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1853325
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1853325
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1853325
Template-Type: ReDIF-Article 1.0
Author-Name: Olusanya Elisa Olubusoye
Author-X-Name-First: Olusanya Elisa
Author-X-Name-Last: Olubusoye
Author-Name: Dasauki Musa
Author-X-Name-First: Dasauki
Author-X-Name-Last: Musa
Author-Name: Salvatore Ercolano
Author-X-Name-First: Salvatore
Author-X-Name-Last: Ercolano
Title: CARBON EMISSIONS AND ECONOMIC GROWTH IN AFRICA: ARE THEY RELATED?
Abstract:
The study the ARDL model, Mean Group (MG), and the Pooled Mean Group (PMG) model to examine the Environemtnal Kuznets Curve (EKC) hypothesis in 43 African countries pooled into 3 income groups from 1980–2016. The EKC hypothesis is accepted in only 21% of the sample but rejected in 70% of the countries in the total sample. This result shows that carbon emissions increase as economic growth increases in 79% of the countries while economic growth will lead to lower carbon emissions in only a few countries (21%). The study concludes that an increase in economic growth will induce higher emissions in most countries in Africa. These countries should take all possible policy actions such as the massive deployment of renewable energy, carbon tax policy, and the carbon emissions trading scheme to curtain growth in carbon emission.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1850400
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1850400
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1850400
Template-Type: ReDIF-Article 1.0
Author-Name: Matthew W. Burkett
Author-X-Name-First: Matthew W.
Author-X-Name-Last: Burkett
Author-Name: William T. Scherer
Author-X-Name-First: William T.
Author-X-Name-Last: Scherer
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: A Fundamental Misunderstanding of Risk: The Bias Associated with the Annualized Calculation of Standard Deviation
Abstract:
Quantifiable, measurable risk is of critical importance when making data-driven decisions in finance and investment management, but what if the generally accepted practice of the investment industry for calculating risk possessed incorrect mathematical assumptions and embedded biases? This piece revisits the discussion surrounding the methodology used to calculate annualized standard deviation statistics commonly used when reporting the performance of investment products. It goes on to present a new example illustrating the bias when applied to an efficient frontier.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1857005
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1857005
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1857005
Template-Type: ReDIF-Article 1.0
Author-Name: Nunung Ghoniyah
Author-X-Name-First: Nunung
Author-X-Name-Last: Ghoniyah
Author-Name: Sri Hartono
Author-X-Name-First: Sri
Author-X-Name-Last: Hartono
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: How Islamic and conventional bank in Indonesia contributing sustainable development goals achievement
Abstract:
This study aimed to prove that social goal in improving social living standards is implanted on banking’s objective in Indonesia. This research also tried to prove that there were differences between conventional and Islamic banks in defining the company goals, whether the goals are profit-oriented or socially oriented. This social goal is also aligned with sustainable development goals (SDGs) as international agendas in the world. The banks’ contribution will be measured its impact on sustainable development goals. The developed hypotheses are equipped with good financing quality control. Furthermore, this research will compare the social goals of conventional banks and Islamic banks (sharia banks). This research used 801 data from the annual reports of conventional and Islamic banks in Indonesia from 2011 to 2018. Meanwhile, the reflection of sustainable development goals used several indicators, so that the statistical analysis used is WarpPLS. This research proved that there were differences between Islamic and conventional banks in promoting sustainable development. Generally, high financing or credit will increase sustainable development, while the sufficient/low bank profit demanded from the bank financing/credit also will increase sustainable development achievement. In conclusion, the financing quality is able to differentiate whether the low profits earned by banks are due to social orientation for sustainable development or because of poor market conditions (bad credit/financing).
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1856458
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1856458
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1856458
Template-Type: ReDIF-Article 1.0
Author-Name: Tochukwu Timothy Okoli
Author-X-Name-First: Tochukwu Timothy
Author-X-Name-Last: Okoli
Author-Name: Devi Datt. Tewari
Author-X-Name-First: Devi Datt.
Author-X-Name-Last: Tewari
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Investigating the determinants and growth of financial technology depth of penetration among the heterogeneous Africa economies
Abstract:
The widespread financial exclusion in Africa despite the continent’s high adoption of financial technology (Fintech) suggests that there is a gap between Fintech’s adoption and its actual usefulness. This study seeks to measure Fintech’s usefulness, its growth and identify its determinants in a panel of three emerging, twenty-four frontiers and five fragile African markets for the period 2004–2018. A dummy variable interactive equation was modelled based on theory to account for heterogeneity between groups. Results from the system Generalised Method of Moments (GMM) estimation technique reveal that on average, Fintech usefulness in Africa is a dynamic heterogeneous process. Income per person, level of financial development, Fintechs’ compatibility with users’ experiences, users’ risk perception, inflation rate and financial-openness were the main determinants of its usefulness. Its rapid growth after the 2009 financial crisis suggests that greater Fintech usefulness can mitigate financial crisis among Africa markets. In particular, the growth of Mobile-banking, ATM and Internet-banking as at 2018 are on average 41.8%, 0.4%, and 20.8% respectively greater than its average in the base year 2004. The study concludes that Fintech’s usefulness is driven by economic, financial and psychological factors; therefore, structural transformation, financial development and improved literacy were recommended.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1838691
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1838691
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1838691
Template-Type: ReDIF-Article 1.0
Author-Name: Matthew W. Burkett
Author-X-Name-First: Matthew W.
Author-X-Name-Last: Burkett
Author-Name: William T. Scherer
Author-X-Name-First: William T.
Author-X-Name-Last: Scherer
Author-Name: Andrew Todd
Author-X-Name-First: Andrew
Author-X-Name-Last: Todd
Author-Name: Vassilios Papavassiliou
Author-X-Name-First: Vassilios
Author-X-Name-Last: Papavassiliou
Title: Portfolio design and management through state-based analytics: A probabilistic approach
Abstract:
This paper presents an innovative new approach to investment portfolio design, which applies a discrete, state-based methodology to defining market states and making asset allocation decisions with respect to both current and future state membership. State membership is based on attributes taken from traditional finance and portfolio theory namely expected growth, and covariance. The transitional dynamics of the derived states are modeled as a Markovian process. Asset weighting and portfolio allocation decisions are made through an optimization-based approach coupled with heuristics that account for the probability of state membership and the quality of the state in terms of information provided.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1854948
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1854948
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1854948
Template-Type: ReDIF-Article 1.0
Author-Name: Zainul Kisman
Author-X-Name-First: Zainul
Author-X-Name-Last: Kisman
Author-Name: Aviral Tiwari
Author-X-Name-First: Aviral
Author-X-Name-Last: Tiwari
Title: The solution to overcome the disappearing dividend phenomenon: Learning from the experience of the Indonesia Stock Exchange
Abstract:
The purpose of this article is to determine what causes the phenomenon of disappearing dividends, which mostly occurs in stock exchanges in developed and emerging countries. This is the phenomenon of the decreasing probability of issuers to choose to pay dividends (cash, stock, and mixed) rather than not to pay. The results of multinomial logit model show, that size and profitability have a significant positive effect on cash, stock, and mixed dividend decisions. The decision not to pay dividends is influenced by low agency costs, high debt, over-liquidity, and excessive investment opportunities. To overcome this phenomenon, all stakeholders must be able to manage the above cause variables in an integrated manner.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 8
Year: 2020
Month: 01
X-DOI: 10.1080/23322039.2020.1858566
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1858566
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Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1858566
Template-Type: ReDIF-Article 1.0
Author-Name: Naghmana Ghafoor
Author-X-Name-First: Naghmana
Author-X-Name-Last: Ghafoor
Author-Name: Sana Fayyaz
Author-X-Name-First: Sana
Author-X-Name-Last: Fayyaz
Author-Name: Mehr-Un- Nisa
Author-X-Name-First: Mehr-Un-
Author-X-Name-Last: Nisa
Author-Name: M. Riaz Akbar
Author-X-Name-First: M. Riaz
Author-X-Name-Last: Akbar
Author-Name: Wai Ching Poon
Author-X-Name-First: Wai Ching
Author-X-Name-Last: Poon
Title: An empirical investigation of socio-economic impacts of agglomeration economies in major cities of Punjab, Pakistan
Abstract:
Agglomeration economies are the external benefits earned from clustering of industries and people in cities. The study assumes unbridled clustering of population in emerging urban agglomerations turning economies into diseconomies. This study empirically investigates the heterogeneous socioeconomic impacts of agglomeration economies in selected cities of Punjab, Pakistan, from 1998 to 2018, using the Pooled Mean Group and the Mean Group techniques of Panel ARDL. Agglomeration economies are determined by population density, number of registered factories, employment size, and housing, in the cities of Punjab. The study designed four indices for socioeconomic conditions using principal component analysis. These include: education-index, healthcare-index, water & sanitation-index, and economic conditions-index. Research findings reveal pressures of high population density, unemployment, and costly housing on educational & healthcare facilities, poor sanitation & waste management, in cities of Punjab, Pakistan. The study suggests that policy makers and urban planners to develop short term and long term policies and development plans for villages and secondary cities to uplift wellbeing of the local population. Nonetheless, cities need to decentralize for sustainable development and management.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1975915
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1975915
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1975915
Template-Type: ReDIF-Article 1.0
Author-Name: Abdulai Adams
Author-X-Name-First: Abdulai
Author-X-Name-Last: Adams
Author-Name: Emmanuel Tetteh Jumpah
Author-X-Name-First: Emmanuel Tetteh
Author-X-Name-Last: Jumpah
Author-Name: Muhammad Shafiullah
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shafiullah
Title: Agricultural technologies adoption and smallholder farmers’ welfare: Evidence from Northern Ghana
Abstract:
Improving the welfare of smallholder farmers through the introduction of improved technologies has gained increased attention in recent times. The focus now transcends the mere development and introduction of these farming technologies to improve productivity alone. Policymakers, particularly those in developing countries now pursue the implementation of interventions that promote the use of improved technologies to advance the welfare of smallholder farmers. However, the impact of such intervention to inform future policy decisions remains largely lacking and under theorized. The current study, therefore, analysed the impact of technology adoption on smallholder farmers’ welfare. We obtained data from 461 technology adopters and non-adopters by using purposive and simple random sampling. Using the propensity score matching technique, we estimated the impact of technology adoption on smallholder farm households. The results show that regional location, educational level, age, and Farmer Base Organisation (FBO) membership are the main determinants of technology adoption among smallholder farmers. Technology adoption had a positive but statistically insignificant impact on welfare. Consumption and clothing expenditure increased with adoption but not healthcare. To improve the impact of technology adoption on smallholder farmer welfare, emphasis should be placed on business supporting/advisory services; agricultural extension outreach, finance/input support among others.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.2006905
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2006905
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:2006905
Template-Type: ReDIF-Article 1.0
Author-Name: Abhisek Mishra
Author-X-Name-First: Abhisek
Author-X-Name-Last: Mishra
Author-Name: Byomakesh Debata
Author-X-Name-First: Byomakesh
Author-X-Name-Last: Debata
Author-Name: GOODNESS AYE
Author-X-Name-First: GOODNESS
Author-X-Name-Last: AYE
Title: Livelihood security among rural poor: Evaluating the impact of Rural Livelihood Mission in Odisha, India
Abstract:
Livelihood insecurity remains a prime concern for low household income countries. To provide secured livelihood to rural poor, the government of India has introduced a self-employment type poverty alleviation programme namely National Rural Livelihood Mission (NRLM). This paper empirically examines the effect of participation in NRLM on the livelihood security of rural poor. Data were collected from 220 respondents (including both beneficiaries and non-beneficiaries) through a structured questionnaire from Sonepur district of Odisha (India). A livelihood security index (LSI) was constructed to capture the livelihood security of the respondents taking habitat security, health security, food security, and economic security into account. Further, the impact of the programme has been estimated using propensity score matching (PSM) method. The study finds a positive and significant effect of participation in the programme on livelihood security. Therefore, poor should be encouraged to participate in the programme to strengthen their livelihood security.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1978705
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1978705
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1978705
Template-Type: ReDIF-Article 1.0
Author-Name: Joanna Stawska
Author-X-Name-First: Joanna
Author-X-Name-Last: Stawska
Author-Name: Maciej Malaczewski
Author-X-Name-First: Maciej
Author-X-Name-Last: Malaczewski
Author-Name: Paulina Malaczewska
Author-X-Name-First: Paulina
Author-X-Name-Last: Malaczewska
Author-Name: Ewa Stawasz-Grabowska
Author-X-Name-First: Ewa
Author-X-Name-Last: Stawasz-Grabowska
Author-Name: Salvatore Ercolano
Author-X-Name-First: Salvatore
Author-X-Name-Last: Ercolano
Title: The Nash equilibrium in the policy mix model for Czechia, Hungary, and Romania
Abstract:
The aim of the paper is to compare the sensitivity of a government’s fiscal policy and a central bank’s monetary policy, which are in Nash equilibrium in the case of a non-cooperative game between the government and the central bank in Czechia, Hungary, and Romania. The analysis for each country is conducted from the date of its accession to the European Union. The research period for Czechia and Hungary includes the quarters 2004Q2-2019Q2, and for Romania, 2007Q1-2019Q2. The study has demonstrated that in Romania the government’s response to interest rate changes is the strongest and the central bank’s response to changes in the budget deficit turned out to be the weakest. On the other hand, the strongest response of the central bank to changes in the budget deficit turned out to be in Hungary, which means that the central bank in Hungary makes a significant correction of interest rates as a result of changes in the budget deficit.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2020.1869380
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1869380
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1869380
Template-Type: ReDIF-Article 1.0
Author-Name: Adeeb Abdulwahab Alhebri
Author-X-Name-First: Adeeb Abdulwahab
Author-X-Name-Last: Alhebri
Author-Name: Shaker Dahan Al-Duais
Author-X-Name-First: Shaker Dahan
Author-X-Name-Last: Al-Duais
Author-Name: Amal Mohammed Almasawa
Author-X-Name-First: Amal Mohammed
Author-X-Name-Last: Almasawa
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: The influence of independence and compensation of the directors on family firms and real earnings management
Abstract:
This study investigates real earnings management in family firms and further examines the moderating effects of the independence and compensation of directors. Based on a sample of 106 non-financial public listed firms over 5 years in Saudi Arabia, the empirical results show that family firms are positively linked to real earnings management. This result supports the entrenchment hypothesis that family firms have lower earnings quality due to manipulation in real activities. Further, we found evidence that the proportion of independent directors and the compensation paid to directors both interacted in family firms to reduce real earnings management. Our findings suggest that increasing the proportion of independent directors and paying higher compensation to directors are one workable way for family firms to mitigate their real earnings management behaviour.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1934977
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1934977
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1934977
Template-Type: ReDIF-Article 1.0
Author-Name: Foued Hamouda
Author-X-Name-First: Foued
Author-X-Name-Last: Hamouda
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Identifying economic shocks with stock repurchase programs
Abstract:
This paper aims to identify economic shocks in four developed countries that authorize different buyback programs. Previous research has revealed that there are few public debates about buyback activities and economic conditions. According to the free cash flow hypothesis, the total payout policy is in line with the real economy of each country. Using linear and non-linear bivariate causality tests, we find that buybacks and industrial production are endogeniously determined. In Japan, prior buyback programs indicated a change in economic growth. However, in the United States, changes in economic growth will increase repurchase activity before the financial crisis. This finding is interesting because it supports the idea that repurchase programs are a significant factor in determining economic shocks. It has extended and confirmed the knowledge and perception that stock repurchases could be used by financial economists to predict economic shocks.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1968112
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1968112
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1968112
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Owusu Ansah
Author-X-Name-First: Martin
Author-X-Name-Last: Owusu Ansah
Author-Name: Rosemary Boateng Coffie
Author-X-Name-First: Rosemary
Author-X-Name-Last: Boateng Coffie
Author-Name: Samuel Awuni Azinga
Author-X-Name-First: Samuel
Author-X-Name-Last: Awuni Azinga
Author-Name: Michael Nimo
Author-X-Name-First: Michael
Author-X-Name-Last: Nimo
Author-Name: Christian Nsiah
Author-X-Name-First: Christian
Author-X-Name-Last: Nsiah
Title: Ghana’s single spine pay policy and unemployment: The application of the partial least square modelling approach
Abstract:
The paper investigated the nexus between Ghana’s single spine pay policy and unemployment. An exploratory sequential mixed design method was employed to collect data from 413 business owners and managers, which comprised manufacturing companies, service industries, wholesalers as well as small and medium-sized enterprises. The Statistical Package for Social Sciences (SPSS) 24.0 as well as the structural equation modelling (SEM) statistical technique with PLS 3.0 was used to determine the hypothesized relationships. It was observed that single spine pay policy had a significant effect on unemployment. The policy had a very high influence on cyclical unemployment, followed by frictional unemployment as well as the structural unemployment in that order. It basically uncovered evidence that the introduction of the policy contributed to the unemployment situation in the country. The study contributes to the ongoing research in examining the linkage between single spine pay policy and unemployment. It also adds to the existing literature on the measurement of unemployment as a “multidimensional construct” instead of the conventional “unidimensional construct” measurement. The strategic implication of the result is discussed in the paper.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1911766
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1911766
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1911766
Template-Type: ReDIF-Article 1.0
Author-Name: Opoku Adabor
Author-X-Name-First: Opoku
Author-X-Name-Last: Adabor
Author-Name: Emmanuel Buabeng
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Buabeng
Author-Name: Raoul Fani Djomo Choumbou
Author-X-Name-First: Raoul Fani
Author-X-Name-Last: Djomo Choumbou
Title: Asymmetrical effect of oil and gas resource rent on economic growth: Empirical evidence from Ghana
Abstract:
We investigate the asymmetric effect of oil and gas resource rent on economic growth of Ghana for the period 2010 to 2019, dwelling on the hypothesis that natural resources extraction has double-edge effect on economic growth. Using Nonlinear Autoregressive Distributed Lag (NARDL) model as estimation strategy, we find that oil and gas resource rent affect economic growth asymmetrically. Specifically, our NARDL estimates suggest that oil resource rent promotes economic growth significantly, providing empirical evidence in support of the resource blessing hypothesis. However, gas resource rent exerts a significant adverse effect on economic growth, providing empirical evidence to support the resource curse hypothesis. Our findings point to the need for policies that promote the expansion of oil resources firms than gas resource firms in the short run while long term policies should target setting up both oil and gas resource firms in developing countries, especially countries with similar socioeconomic and demographic setting like Ghana. Finally, government and monetary authorities should promote policies that attract foreign direct investment inflow in Ghana while taming inflation and lending rate towards growth enhancing targets.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1971355
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1971355
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1971355
Template-Type: ReDIF-Article 1.0
Author-Name: Esmael Abdu
Author-X-Name-First: Esmael
Author-X-Name-Last: Abdu
Author-Name: Mohammd Adem
Author-X-Name-First: Mohammd
Author-X-Name-Last: Adem
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Determinants of financial inclusion in Afar Region: Evidence from selected woredas
Abstract:
This paper examined the determinants of financial inclusion in Afar Region. To address the objectives of the study, two purposively selected woredas (Awash and Asaita) and one city administration (Samara-logia) were used. Three hundred and eighty-four sample households were selected for this study. Data collected from administered structured questionnaires were analyzed using the binary logistic regression model. The results show that age, use, financial literacy, and mobile banking are positively and significantly related to financial inclusion. On the other hand, barrier and income negatively and significantly affect financial inclusion. The study results reveal that 31.25% of households were included and 68.75% of households are excluded from formal financial services. Further results show that barriers to financial inclusion such as problem of access to credit, absence of collateral, interest rate, lack of literacy, lack of internet access, lack of trust for financial institutions, lack of money, problem of access to bank branches and ATMs are main obstacles of financial inclusion in Afar region. This study recommends that government and financial institutions should encourage financial service providers, offer fiscal incentives or request financial institutions and serve poor or low-income people. Financial institutions should adopt technologies that ensure financial services are more accessible such as mobile banking. Moreover, households should enhance the saving habits that are helpful to increase amount of income and the literacy level of their children for the best use of financial services.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1920149
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1920149
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1920149
Template-Type: ReDIF-Article 1.0
Author-Name: Abdulkarim Yusuf
Author-X-Name-First: Abdulkarim
Author-X-Name-Last: Yusuf
Author-Name: Saidatulakmal Mohd
Author-X-Name-First: Saidatulakmal
Author-X-Name-Last: Mohd
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: The impact of government debt on economic growth in Nigeria
Abstract:
This study investigated the effect of government debt on Nigeria’s economic growth using annual data from 1980 to 2018 and the Autoregressive Distributed Lag technique. The empirical results showed that external debt constituted an impediment to long-term growth while its short-term effect was growth-enhancing. Domestic debt had a significant positive impact on long-term growth while its short-term effect was negative. In the long term and short term, debt service payments led to growth retardation confirming debt overhang effect. The findings suggested that the government should direct the borrowed funds to the diversification of the productive base of the economy. This will improve long-term economic growth, expand the revenue base and strengthen the capacity to repay outstanding debts when due. Fiscal improvements that encourage domestic resource mobilization, efficient debt management strategies and reliance on domestic debt rather than external debt for increased deficit financing to engender greater growth are the main contribution of the study.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1946249
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1946249
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1946249
Template-Type: ReDIF-Article 1.0
Author-Name: James Murunga
Author-X-Name-First: James
Author-X-Name-Last: Murunga
Author-Name: Moses Kinyanjui Muriithi
Author-X-Name-First: Moses Kinyanjui
Author-X-Name-Last: Muriithi
Author-Name: Nelson Were Wawire
Author-X-Name-First: Nelson Were
Author-X-Name-Last: Wawire
Author-Name: Christian Nsiah
Author-X-Name-First: Christian
Author-X-Name-Last: Nsiah
Title: Estimating the size of the informal sector in Kenya
Abstract:
In Kenya, very little research has been carried out on the topic of the informal sector. This paper estimates the size of the Kenyan informal sector for the period 1970–2018. In light of our analysis of the stationary properties of the data, which suggests a mixture of I(0) and I(1) variables, this study specifies an Autoregressive Distributed Lag Model (ARDL), which is applied to variables that pose such attributes. In addition, the model is good for small sample size observation, a characteristic that is common among developing countries. Our estimates indicate that this sector is quite large and has grown over time to about 32% of the country’s GDP or nearly one-third of the size of the recorded GDP. These results are consistent with the stylized fact about the Kenyan economy, in particular the large number of individuals employed in small businesses and trading as well as the number of tax returns filed on an annual basis versus the stated level of employment. The finding of a significant informal sector also has implications for the conduct of fiscal policy. The sector should not be wound abruptly since it provides employment to many Kenyans. The fiscal policy should aim at reducing the tax burden so that the participants in the informal sector gradually formalize their businesses.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.2003000
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2003000
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:2003000
Template-Type: ReDIF-Article 1.0
Author-Name: Emeka A Ndaguba
Author-X-Name-First: Emeka A
Author-X-Name-Last: Ndaguba
Author-Name: Anathi Hlotywa
Author-X-Name-First: Anathi
Author-X-Name-Last: Hlotywa
Author-Name: Christian Nsiah
Author-X-Name-First: Christian
Author-X-Name-Last: Nsiah
Title: Public health expenditure and economic development: The case of South Africa between 1996 and 2016
Abstract:
A nation’s financial commitment to health investment and expenditure has a corresponding effect on its economic growth and development. Understanding the interplay and underlying connection between health expenditure and national development is critical in forecasting the wellbeing of a nation, vis-à-vis health preparedness. In this paper, we explore the impact of public healthcare expenditure on economic development in South Africa between 1996 and 2016. The autoregressive distributed lag model, error-correction model and a time series panel were adopted in analysing this effect. Empirical findings demonstrate a positive relationship between PHE and HDI in South Africa. Further, health investment may increase the income of health workers and provide for better working conditions and facilities to save lives. In addition, the relationship between CPI and economic development is insignificant, however CPI mediates PG.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1905932
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1905932
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1905932
Template-Type: ReDIF-Article 1.0
Author-Name: Yukiko Konno
Author-X-Name-First: Yukiko
Author-X-Name-Last: Konno
Author-Name: Antonio Belso-Martinez
Author-X-Name-First: Antonio
Author-X-Name-Last: Belso-Martinez
Title: Factors Influencing the continuation of start-up companies
Abstract:
This study investigates the factors that influence the discontinuation of Japanese business start-ups using the resource-based view (RBV) framework. By conducting an empirical study using the binary logit model, this study reveals the factors that caused start-ups that began in 2006 to suspend operations by 2010. According to the results of the analysis, the better the company was prepared for potential threats before it opened, the higher the probability that the business would remain in operation. Moreover, it was found that business continuity is higher when the manager has business experience related to the current business. In terms of model fit, it was found that start-up preparation is more important to continuity than manager attributes.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1899368
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1899368
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1899368
Template-Type: ReDIF-Article 1.0
Author-Name: Van Dan Dang
Author-X-Name-First: Van Dan
Author-X-Name-Last: Dang
Author-Name: Van Cuong Dang
Author-X-Name-First: Van Cuong
Author-X-Name-Last: Dang
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Bank diversification and the effectiveness of monetary policy transmission: Evidence from the bank lending channel in Vietnam
Abstract:
The study empirically examines the impact of bank diversification on monetary policy transmission through the bank lending channel. Based on monetary and bank-level data from 2008 to 2018 in Vietnam, a diverse environment of monetary policy tools, results show that bank diversification significantly drives the bank lending channel in different ways. Using the changes in lending rates and policy rates as monetary policy indicators, the study posits strong evidence to indicate that the transmission of the bank lending channel becomes weaker as banks get more involved in non-traditional activities. In contrast, we observe that bank diversification promotes the effectiveness of monetary policy transmission by the intervention of foreign exchange reserves, with no clear-cut link in the case of open market operations. Further analysis indicates the weakening effect is almost confirmed in all bank groups, while the strengthening effect works only for banks with large capital buffers. In brief, the results suggest that monetary authorities should be vigilant when they are strongly encouraging bank diversification. Besides, they also need to choose the appropriate monetary tools to apply and establish specific policies for different groups of banks.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1885204
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1885204
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1885204
Template-Type: ReDIF-Article 1.0
Author-Name: Kamaruddin
Author-X-Name-First:
Author-X-Name-Last: Kamaruddin
Author-Name: Raja Masbar
Author-X-Name-First: Raja
Author-X-Name-Last: Masbar
Author-Name: Sofyan Syahnur
Author-X-Name-First: Sofyan
Author-X-Name-Last: Syahnur
Author-Name: Shabri A. Majid
Author-X-Name-First: Shabri A.
Author-X-Name-Last: Majid
Author-Name: Muhammad Shafiullah
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shafiullah
Title: Asymmetric price transmission of Indonesian coffee
Abstract:
Almost all previous studies of Asymmetric Price Transmission (APT) only focused on speed perspective. The study aims to investigate the effect of coffee prices in the global market on the Indonesian producer market in magnitude, speed, and direction perspectives. This study used the data of coffee prices at the producer level, coffee prices at the world market, and Indonesian GDP for the period 1980 to 2018. To examine the behavior of the APT, we use the NARDL model. The results show that there is a nonlinear co-integration of coffee prices between the global market and the Indonesian producer market. The APT occurs both in the long run and short run. The existence of the APT is not only in speed but also in magnitude and direction sides. The response of coffee prices in the producer market is higher and faster when the world coffee prices decrease. It indicates the failure to perform a perfectly competitive market structure in Indonesia. If the performance of the national economy is stable, Indonesian coffee producers are more likely to increase global coffee prices. However, in the Indonesian economic recession, coffee producers tend to suffer welfare loss due to the negative shock of world coffee prices. Therefore, policymakers should not only focus on economic growth but also has to make some policies assessing perfect competition in domestic agricultural markets.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1971354
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1971354
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1971354
Template-Type: ReDIF-Article 1.0
Author-Name: Ali Murad Syed
Author-X-Name-First: Ali Murad
Author-X-Name-Last: Syed
Author-Name: Hana Saeed Bawazir
Author-X-Name-First: Hana Saeed
Author-X-Name-Last: Bawazir
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Recent trends in business financial risk – A bibliometric analysis
Abstract:
The finance literature is giving more attention to financial frisk aspects. However, in literature, only a fragmented comprehension is known about the contextual influence of financial risk aspects of businesses. In this article, we contribute by carving out the intersections between Finance and Risk and analyze the production as well as visualize the evolution and trends of this field. In our research approach we use bibliometric technique to analyze 10 years of publications in Web of Science (WoS) database and present a comprehensive contextual picture of financial risk research. We analyzed 3024 publications by identifying the most prominent journals, authors, articles, countries and collaboration among authors and countries. Moreover, a co-occurrence analysis between authors, keywords and journal was done along as well as cluster analysis and thematic analysis is also performed to find the evolutionary trends. Our results showed that credit risk is the most trend topic over the last 10 years and performance and risk taking are two most inter-connected words using co-occurrence citation analysis. Our analysis showed that the corporate governance, financial crisis, financial innovation, and entrepreneurship are evolving themes and their occurrence is increasing and become more prominent in the in the domain of financial risk.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1913877
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1913877
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1913877
Template-Type: ReDIF-Article 1.0
Author-Name: Hyangsuk Cho
Author-X-Name-First: Hyangsuk
Author-X-Name-Last: Cho
Author-Name: Salvatore Ercolano
Author-X-Name-First: Salvatore
Author-X-Name-Last: Ercolano
Title: Determinants of the downward sloping segment of the EKC in high-income countries: The role of income inequality and institutional arrangement
Abstract:
Even among developed countries, each country has very different circumstances and political institutions regarding environmental issues. Moreover, the differences in individual attitudes about environmental issues within national borders and in the types of environmental behaviors affect the environmental policy of each country. Therefore, in contrast to the Environmental Kuznets curve (EKC) hypothesis, the effect of economic growth on environmental degradation differs between high-income countries. Evidences show that economic growth is not the only determinant of environmental change, particularly in high-income countries. In this respect, this paper examines the existence of the EKC as well as the effects of the level of political institution on the relationship between greenhouse gas (GHG) emission per capita and income inequality; it does this by using unbalanced data for 33 OECD countries from 1990 to 2014. The findings of this study show that the level of income inequality differentially affects the GHG emission depending on the level of institution. The EKC hypothesis holds only in countries with a high level of institution, and the threshold of the EKC is positioned at a lower income level in countries with stronger institutional arrangement, and such countries also show lower GHG emission per capita.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1954358
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1954358
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1954358
Template-Type: ReDIF-Article 1.0
Author-Name: Bedilu Demissie Zeleke
Author-X-Name-First: Bedilu Demissie
Author-X-Name-Last: Zeleke
Author-Name: Adem K. Geleto
Author-X-Name-First: Adem K.
Author-X-Name-Last: Geleto
Author-Name: Hussien H. Komicha
Author-X-Name-First: Hussien H.
Author-X-Name-Last: Komicha
Author-Name: Sisay Asefa
Author-X-Name-First: Sisay
Author-X-Name-Last: Asefa
Author-Name: Xibin Zhang
Author-X-Name-First: Xibin
Author-X-Name-Last: Zhang
Title: Determinants of adopting improved bread wheat varieties in Arsi Highland, Oromia Region, Ethiopia: A Double-Hurdle Approach
Abstract:
The improvement of agricultural productivity using technology is an important avenue for increasing output and reducing poverty in sub-Saharan countries. However, the low adoption of high yield varieties has been identified as one of the main reasons for low productivity in sub-Saharan Africa. Consequently, the study examined the effect of demographic, socioeconomic and institutional factors affecting adoption and adoption-intensity of improved wheat varieties (IWVs), using data obtained from randomly selected farm households in the Arsi Highland of Ethiopia. We estimated a Double hurdle model to analyze the determinants of the intensity of IWVs adoption, as adoption and use intensity were two independent decisions influenced by different factors. The results also show that Double hurdle model is more appropriate than the Tobit model. Empirical estimates of the first hurdle reveal that wheat farming experience, distance to cooperatives, renting a tractor and combine harvester, Urea application, and net income from the wheat grain sale all significantly increased the likelihood of IWVs adoption. Estimates of the second hurdle revealed that the decision to use the optimal intensity of IWVs by smallholder farmers was influenced by seed availability, row planting, and distance to cooperative all significantly and positively. The intensity of adoption was also found to be negatively related to the proportion of farmland allotted for wheat production. Accordingly, policies and interventions that are informed about such factors are required to accelerate the adoption and adoption-intensity of IWVs in Ethiopia to realize a wheat Green Revolution and fight food insecurity in a sustainable manner.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1932040
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1932040
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1932040
Template-Type: ReDIF-Article 1.0
Author-Name: Srikanth Potharla
Author-X-Name-First: Srikanth
Author-X-Name-Last: Potharla
Author-Name: Kaushik Bhattacharjee
Author-X-Name-First: Kaushik
Author-X-Name-Last: Bhattacharjee
Author-Name: Vishwanathan Iyer
Author-X-Name-First: Vishwanathan
Author-X-Name-Last: Iyer
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Institutional ownership and earnings management: Evidence from India
Abstract:
The present study analyzes and assesses the robustness of monitoring effectiveness of institutional investment against the information asymmetry prevailing in the market, especially the asymmetric monitoring effectiveness of Domestic Institutional Investment (DII) vis-à-vis Foreign Institutional Investment (FII). Drawing from a sample of listed non-financial firms with institutional investment of 20% or more, this study tests the relationship between earnings management and institutional ownership controlling for known firm-specific variables. The results reveal that institutional investment in aggregate as well as DII and FII have significant negative impact on earnings management supporting the active monitoring hypothesis. The results also support hometown advantage hypothesis for the sub-group of companies with higher Price to Book Value (PBV) and global investor hypothesis for the sub-group of companies with lower PBV ratio. Various implications applicable in the Indian markets contexts are discussed. Domestic institutional investors should improve their cost-effective technology to acquire and process the price-sensitive information which can enhance their competitive advantage over their foreign counterparts. This is one among the first few studies that tests the robustness of monitoring effectiveness of institutional investment against the information asymmetry in the market and shows that monitoring effectiveness of FII and DII is not uniform across companies in which they invest. Another contribution to the extant literature in India is the analysis using alternative definitions of earnings management, incorporating industry-specific and time-specific factors in estimation of discretionary accruals.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1902032
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1902032
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1902032
Template-Type: ReDIF-Article 1.0
Author-Name: Partha Mohapatra
Author-X-Name-First: Partha
Author-X-Name-Last: Mohapatra
Author-Name: Ajit Dayanandan
Author-X-Name-First: Ajit
Author-X-Name-Last: Dayanandan
Author-Name: Sudershan Kuntluru
Author-X-Name-First: Sudershan
Author-X-Name-Last: Kuntluru
Author-Name: Athira A
Author-X-Name-First: Athira
Author-X-Name-Last: A
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Audit partner rotation, and its impact on audit quality: Evidence from India
Abstract:
Using multiple indicators of audit quality, the study examines the impact of audit partner rotation on audit quality in India based on 1,694 firm years for the period of 2011–2017 when the institutional set up for audit partner rotation was voluntary. The empirical results indicate that the audit partner rotation had no significant impact on audit quality as measured by discretionary accruals and going concern audit opinion. The study finds that other factors like loss year, size of the firm, value, leverage have a statistically significant impact on audit quality. The empirical results also indicate an inverse relationship between audit fees and audit partner rotation implying, price-cutting of the audit. The findings are important to regulators regarding the significance of audit partner rotation in enhancing audit quality.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1938379
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1938379
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1938379
Template-Type: ReDIF-Article 1.0
Author-Name: Dung Viet Tran
Author-X-Name-First: Dung Viet
Author-X-Name-Last: Tran
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Bank stability and dividend policy
Abstract:
Relying on a US bank sample, we document the double-edged sword of dividends on the bank's riskiness. Paying dividends exposes banks to stricter market discipline, then decreases the risk-taking behaviors of bank management compared with non-payers, consistent with the Dividend-Stability Channel. However, among banks that pay dividends, excessive dividends makes them riskier, consistent with the Dividend-Fragility Channel. Our results remain unchanged due to a battery of robustness testings.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1982234
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1982234
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1982234
Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad Alsharif
Author-X-Name-First: Mohammad
Author-X-Name-Last: Alsharif
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: The efficiency of banks and stock performance: Evidence from Saudi Arabia
Abstract:
The aim of this study is to extend the literature by extensively investigating the efficiency of banks in Saudi Arabia and examining its relationship with stock performance through relying on six measures of efficiency (three price efficiencies and three technical efficiencies). This study employs the data envelopment analysis (DEA) on all listed Saudi commercial banks over the period 2006–2018 ensuring the robustness of the results, and the multiple-regression analysis method is used to empirically test the impact of the efficiency changes on bank stock returns. The results indicate that Saudi banks are more technically efficient, and their price efficiencies are more volatile. Furthermore, changes in bank efficiency are positively related to stock performance; however, these positive relationships are only statistically significant with the changes in profit and scale efficiency measures implying that investors pay much attention to the improvement in bank profitability and future dividends.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1953726
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1953726
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1953726
Template-Type: ReDIF-Article 1.0
Author-Name: Yufan Zhao
Author-X-Name-First: Yufan
Author-X-Name-Last: Zhao
Author-Name: Sin Huei Ng
Author-X-Name-First: Sin Huei
Author-X-Name-Last: Ng
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Dividend payout policies in the pre and post split share structure reform in China
Abstract:
This paper examines the motivation of dividend payout policies for Chinese listed firms before and after the Split Share Structure Reform in China from the corporate governance-related viewpoint. Analysis was carried out using panel data with random effect from a sample of firms listed on the A-share Chinese market in the period of 2001–2004 (before the reform) and 2014–2017 (after the reform). It is found that (1) the incentive of tunnelling via dividend by controlling shareholders is weaken after the reform; (2) dividends are taken as a measure to reduce agency problems caused by free cash flows after the reform; (3) dividends after the reform become more stable than those before the reform. (4) in general, the market reacts positively to the increase of dividend both before and after the reform. It can be concluded that dividend policies are taken as the measure of minority shareholder protection and signalling rather than expropriation after the reform. This paper contributes to the literature by comparing dividend payout policies during the full circulation era with that before the reform was initiated.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1923620
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1923620
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1923620
Template-Type: ReDIF-Article 1.0
Author-Name: Misbah Sadiq
Author-X-Name-First: Misbah
Author-X-Name-Last: Sadiq
Author-Name: Muhammad Usman
Author-X-Name-First: Muhammad
Author-X-Name-Last: Usman
Author-Name: Aysha Zamir
Author-X-Name-First: Aysha
Author-X-Name-Last: Zamir
Author-Name: Malik Shahzad Shabbir
Author-X-Name-First: Malik Shahzad
Author-X-Name-Last: Shabbir
Author-Name: Ankasha Arif
Author-X-Name-First: Ankasha
Author-X-Name-Last: Arif
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Nexus between economic growth and foreign private investment: Evidence from Pakistan economy
Abstract:
This study examines the impact of economic growth along with taxes, technology, trade openness and exchange rate on the sustainability of foreign private investment (FPI) in Pakistan. This study uses random effects and generalized least squares estimators and contains data set starting from 1996 to 2017. The results indicate that the Pakistan economy has vastly positive influenced regarding the location and choice of emerging and developed countries’ investment in the domestic market. Furthermore, emerging and developed economies investment increases the contribution among domestic firms to the national economy. The results, which are consistent across models, indicate that Pakistan’s economy is more likely to receive FPI from emerging and developed economies, but the relative intensity of local government efforts, regardless of economic size. Moreover, an increase in likelihood will generate FPI from developed countries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1956067
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1956067
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1956067
Template-Type: ReDIF-Article 1.0
Author-Name: Shaikh Hamzah Abdul Razak
Author-X-Name-First: Shaikh Hamzah
Author-X-Name-Last: Abdul Razak
Author-Name: Fekri Ali Shawtari
Author-X-Name-First: Fekri Ali
Author-X-Name-Last: Shawtari
Author-Name: Bilal Ahmad Elsalem
Author-X-Name-First: Bilal Ahmad
Author-X-Name-Last: Elsalem
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Ownership type, business model, market structure, and the performance of Takaful and conventional insurance companies in Malaysia
Abstract:
The paper evaluates the performance of the Takaful and insurance companies in Malaysia. It examines the impact of ownership, business model, and market structure on conventional and Takaful companies’ performance. The inter-firm comparisons provide information about the performance and competitiveness of firms operating under different modes of business. The study adopts the unbalanced panel data approach with Panel Corrected Standard Error (PCSE) regression to analyse the data of 44 Malaysian Takaful and insurance companies with 255 firm observations over the period from 2011 to 2016. The study’s findings show that Takaful and insurance companies perform at par in terms of their premiums. However, Takaful has better investment income. Foreign-owned firms perform better than local firms. The efficient market hypothesis is more powerful than the structural conduct hypothesis in explaining the firms’ performance. The study’s implications are expected to help improve and develop the Takaful and insurance sector as an efficient industry in-line with regulation changes. To the best of our knowledge, this paper is the first to compare the Takaful with conventional insurance in Malaysia concerning their performance, market structure, and ownership.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1888436
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1888436
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1888436
Template-Type: ReDIF-Article 1.0
Author-Name: Ramesh C. Paudel
Author-X-Name-First: Ramesh C.
Author-X-Name-Last: Paudel
Author-Name: Majed Alharthi
Author-X-Name-First: Majed
Author-X-Name-Last: Alharthi
Author-Name: Robert Read
Author-X-Name-First: Robert
Author-X-Name-Last: Read
Title: Role of financial development in the export performance of a landlocked developing country: The case of Nepal
Abstract:
This paper, using the most recent index of financial development as developed in an IMF publication by Svirydzenka, examines the role of overall financial development, financial institutions, and financial markets in the export performance of Nepal employing the Autoregressive distributed lag (ARDL) approach of cointegration using the annual datafrom 1980 to 2017. The results show that financial development does not have a strong long-run positive relationship with the export performance of Nepal. Financial institutions and financial markets also indicate a negative association with exports. Therefore, it can be suggested based on the results that there is a need for developing strategies for the proper financial development improving the financial institution quality, and widening the financial market targeting to facilitate more meaningfully to the exporters and manufacturers to boost export performance.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1973653
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1973653
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1973653
Template-Type: ReDIF-Article 1.0
Author-Name: Saima Shadab
Author-X-Name-First: Saima
Author-X-Name-Last: Shadab
Author-Name: Aviral Tiwari
Author-X-Name-First: Aviral
Author-X-Name-Last: Tiwari
Title: The nexus between export diversification, imports, capital and economic growth in the United Arab Emirates: An empirical investigation
Abstract:
Using the Vector Error Correction Model (VECM) and Toda-Yamamoto Causality approach, this paper investigates the short-run and long–run relationship between export diversification, physical and human capital, imports, and economic growth in the UAE. The study period in consideration is 1975-2017. The findings obtained from the VECM test confirm the existence of a significant long-run relationship between export diversification, imports, and economic growth in the UAE. Besides, the Toda Yamamoto Granger Causality test results reveal that imports Granger-cause UAE’s economic growth which proves the validity of the Import-Led Growth hypothesis for the UAE economy in the long-run. The results also confirm that a unidirectional causal relationship exists from export diversification to economic growth for the UAE. This finding indicates the success of the UAE economy in attaining economic diversification and reduction in oil–dependency.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1914396
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1914396
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1914396
Template-Type: ReDIF-Article 1.0
Author-Name: A. Daniel Gbadebo
Author-X-Name-First: A. Daniel
Author-X-Name-Last: Gbadebo
Author-Name: A. Oluwatobi Adekunle
Author-X-Name-First: A. Oluwatobi
Author-X-Name-Last: Adekunle
Author-Name: O. Joseph Akande
Author-X-Name-First: O. Joseph
Author-X-Name-Last: Akande
Author-Name: D. Wahid Olanipekun
Author-X-Name-First: D. Wahid
Author-X-Name-Last: Olanipekun
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: The MPC meetings, macroeconomic announcements and exchange rate behaviour in Nigeria
Abstract:
Literature recognise that announcement impinge shocks which could shift the mean behaviour of the exchange rate. This study apply event driven models to analyse how the expectation of daily log-exchange rate and its daily log-return respond to all the 88 MPC meetings and selected CBN’s announcements that “contained information on exchange rate stabilisation” from 2 January 2005 to 25 September 2020. We establish that the log-exchange rate responds to the announcements, with and without the MPC meetings. The exchange rate is expected to depreciate in all the three days before, on the announcement day, and all the three days after the announcement. There is no sufficient evidence that either the MPC meeting or CBN announcement affects the behaviour of the log-return. Hence, unlike the MPC meetings, the announcements affects the exchange rate but not its return. We expect market participants to consider these findings in making forex decisions, and the central banks in the formulation of monetary policy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1952720
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1952720
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1952720
Template-Type: ReDIF-Article 1.0
Author-Name: Alfred Kechia Mukong
Author-X-Name-First: Alfred Kechia
Author-X-Name-Last: Mukong
Author-Name: Lwanga Elizabeth Nanziri
Author-X-Name-First: Lwanga Elizabeth
Author-X-Name-Last: Nanziri
Author-Name: Stephanos Papadamou
Author-X-Name-First: Stephanos
Author-X-Name-Last: Papadamou
Title: Social networks and technology adoption: Evidence from mobile money in Uganda
Abstract:
Innovative financial technologies are becoming a pathway to inclusive economic participation for individuals and firms. This paper presents evidence on how individuals’ decisions to adopt such technology, particularly mobile money, relate to the adoption choices of their network of family and friends. Using the Uganda Financial Inclusion Insights (FII) Tracker Survey for 2013, we find that mobile money adoption decisions are closely linked to the network of an individual’s family and friends. Networks are defined in two ways: by the source of information on mobile money services and by the average number of adoptions in one’s neighbourhood. Like many other studies, we find a positive correlation between mobile money adoption and the adoption decisions of one’s network. The correlation persists across the different measures of networks and even when we control for unobservable (neighbourhood fixed effects) characteristics. However, the magnitude of the point estimates decreases as the model becomes saturated. Despite having more mobile money users than adopters in our sample, we do not find evidence that networks can stifle technology adoption due to the possibility of piggybacking on early adopters within the network.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1913857
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1913857
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1913857
Template-Type: ReDIF-Article 1.0
Author-Name: Madow Nagou
Author-X-Name-First: Madow
Author-X-Name-Last: Nagou
Author-Name: Nimonka Bayale
Author-X-Name-First: Nimonka
Author-X-Name-Last: Bayale
Author-Name: Brigitte Kanga Kouassi
Author-X-Name-First: Brigitte Kanga
Author-X-Name-Last: Kouassi
Author-Name: Mariam Camarero
Author-X-Name-First: Mariam
Author-X-Name-Last: Camarero
Title: On the robust drivers of public debt in Africa: Fresh evidence from Bayesian model averaging approach
Abstract:
While economic theory suggests a wide range of potential drivers of public debt, there is little consensus regarding the most relevant ones. This paper analyzes the determinants of the public debt in Africa. This is done by adopting a Bayesian Model Averaging (BMA) approach applied to data of 51 African countries, spanning the period 1990–2018. Our results suggest that, among the set of twenty-seven (27) regressors considered, those reflecting international financial and institutional conditions as well as internal economic prospects tend to receive high posterior inclusion probabilities. Then, the study explores the effect of these regressors on public debt by employing the fixed effects (FE) and the system Generalized Method of Moments (GMM) estimators. The results reveal that, foreign aid, fiscal deficit, trade openness, military expenditure, interest and exchange rates, debt-service, domestic credit, government stability index, political regime type and socio-economic crises are the main and robust drivers of public debt accumulation in African countries. These findings are robust to changes in the model specification, the inclusion of socio-economic crises and regional heterogeneities.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2020.1860282
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1860282
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1860282
Template-Type: ReDIF-Article 1.0
Author-Name: Hai Chi Nguyen
Author-X-Name-First: Hai Chi
Author-X-Name-Last: Nguyen
Author-Name: Doan Thanh Nguyen
Author-X-Name-First: Doan Thanh
Author-X-Name-Last: Nguyen
Author-Name: Mohammed M Elgammal
Author-X-Name-First: Mohammed M
Author-X-Name-Last: Elgammal
Title: The impact of non-commodity sovereign wealth funds’ ownership on the domestic target firm performance
Abstract:
Previous research fails to investigate the impact of sovereign wealth funds (SWFs) on financial and non-financial performances of target firms. This study aims to fill the gap by using quantile regression technique on a sample of non-commodity SWFs and their target firms in five countries, namely France, Singapore, China, Malaysia and Vietnam. The research shows that non-commodity SWFs have a positive effect of increasing the financial performance for domestic target firms with relatively good performance. However, the SWFs have no significant impact on low-performing target businesses. The research findings imply that SWFs have limitations in management skills and experience and hesitate to invest in businesses with poor performance to avoid risks of bankruptcy and financial distress. The results show that the non-commodity SWFs tend to exert a negative impact on the non-financial performance of domestic target firms more strongly when the non-financial performance of the target firms is higher. Finally, these results indicate that SWFs are concerned with both financial and non-financial performances, and try to balance the two types of performance in an optimal way.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1878620
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1878620
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1878620
Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Dery Nyeadi
Author-X-Name-First: Joseph Dery
Author-X-Name-Last: Nyeadi
Author-Name: Kofi Kamasa
Author-X-Name-First: Kofi
Author-X-Name-Last: Kamasa
Author-Name: Stephen Kpinpuo
Author-X-Name-First: Stephen
Author-X-Name-Last: Kpinpuo
Author-Name: Christian Nsiah
Author-X-Name-First: Christian
Author-X-Name-Last: Nsiah
Title: Female in top management and firm performance nexus: Empirical evidence from Ghana
Abstract:
This study investigates empirically the link between females in top management and firm performance in Ghana. This study employs the Instrumental Variable (IV) Two Stage Least Squares (2SLS) technique of estimation in determining the impact of females in top management on firm performance using World Bank Enterprise Survey (WBES) data across 720 firms in Ghana. This technique is very robust as it has the power to control for any possible endogeneity bias, which can lead to spurious results. After controlling for reverse causality, our results reveal that the inclusion of females in top management impacts positively on firm performance in Ghana. We further note that though innovation has direct positive impact on firm performance, there is no evidence of any moderating roles played by innovation or education in the link between female in top management and firm performance in Ghana. The results of our study should however be interpreted with a bit of caution as we have not been able to examine the time dynamics of our findings due to lack of reliable panel data. Apart from serving as a reference literature for future studies, the study is very useful to both government and firms who make decisions in respect of females in management.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1921323
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1921323
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1921323
Template-Type: ReDIF-Article 1.0
Author-Name: Prince Mike Sena
Author-X-Name-First: Prince Mike
Author-X-Name-Last: Sena
Author-Name: Grace Nkansa Asante
Author-X-Name-First: Grace Nkansa
Author-X-Name-Last: Asante
Author-Name: William Gabriel Brafu-Insaidoo
Author-X-Name-First: William Gabriel
Author-X-Name-Last: Brafu-Insaidoo
Author-Name: Robert Read
Author-X-Name-First: Robert
Author-X-Name-Last: Read
Title: Monetary policy and economic growth in Ghana: Does financial development matter?
Abstract:
The link between financial development and monetary policy has received considerable attention in many African countries but empirical evidence on the link has been mixed. By the use of the Autoregressive Distributed Lag (ARDL) approach, this study investigated whether financial development influences the effectiveness of monetary policy and assessed their joint effect on economic growth in Ghana for the period 1980 to 2016. The results revealed that financial development strengthens the effectiveness of monetary policy on economic growth in Ghana. The study therefore recommended that Bank of Ghana should further deepen financial sector development and improve on the competitiveness of financial markets in order to improve on the capacity of monetary policy in enhancing growth of the economy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1966918
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1966918
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1966918
Template-Type: ReDIF-Article 1.0
Author-Name: Andualem Kassegn
Author-X-Name-First: Andualem
Author-X-Name-Last: Kassegn
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: COVID-19: The impacts of the global crises on African remittances and countries response to this an extreme crisis
Abstract:
As the COVID-19 pandemic continues to afflict much of the global economy, the flow of African remittances is likely to suffer substantially. Therefore, the aims of this review were to assess and complied the possible impacts of the COVID-19 pandemic on African remittances and highlights the key responses undertaken in the continent, which could be useful and provided necessary information on the ongoing COVID-19 pandemics in the continent. To achieve these objectives, in this review, all relevant information were collected through different search engines of PubMed/PMC/Medline, Web of Science, Google Scholar, Scopus, Google, and Science Direct databases. In addition, media news, reports relevant to the topic from local and national governments and international organizations were used. This review revealed that the COVID-19 pandemic is inevitably affecting remittance-dependent African countries through devastating impacts on the global economy in the destination countries, and restrictions on travel and high cost of sending remittances to their home country.As aresult, remittances to Africa are expected to decrease significantly by around 8.8% between 2019 and 2020, from $48 billion to $44 billion. Hence, this review draws practical lessons for African countries to tackle the impacts of COVID-19 pandemic on African remittance inflows. It argues that governments need to design and undertaken comprehensive relief measures, monetary and fiscal policy recovery policies to address problems related to the falling of remittances towards Africa due to the pandemic. Therefore, flexible country level and region-wide collaborative efforts should be made to mitigate the expected decline of remittance inflows to African due to the COVID-19 pandemic.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1948665
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1948665
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1948665
Template-Type: ReDIF-Article 1.0
Author-Name: Solomon Estifanos Massresha
Author-X-Name-First: Solomon Estifanos
Author-X-Name-Last: Massresha
Author-Name: Tadesse Zenebe Lema
Author-X-Name-First: Tadesse Zenebe
Author-X-Name-Last: Lema
Author-Name: Markew Mengiste Neway
Author-X-Name-First: Markew Mengiste
Author-X-Name-Last: Neway
Author-Name: Wudineh Ayalew Degu
Author-X-Name-First: Wudineh Ayalew
Author-X-Name-Last: Degu
Author-Name: Muhammad Shafiullah
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shafiullah
Title: Perception and determinants of agricultural technology adoption in North Shoa Zone, Amhara Regional State, Ethiopia
Abstract:
Laying the ground for the agricultural sector to derive development is critical and urgent in relieving majority of the poor out of poverty trap. This in turn calls the modernization of the agriculture sector through agricultural technology adoption. The major objective of the study is to assess the perception and determinants of agricultural technology adoption in North Shoa zone, Amhara regional state, Ethiopia. Data were collected from 796 farming households from four districts namely, Angolela Tera, Menz Gera, Minijar Shenkora and Moretna Jiru. For analysis purpose, t-test and binomial logistic model was employed. The result indicates that the likelihood of adopting improved seed, chemical fertilizer and irrigation is higher among households with higher age, greater years of schooling, large farm size, large livestock ownership and many extension contacts. Additionally, the likelihood of adopting these agricultural technologies is higher for household participating in non-farm income generating activities, having membership status in various social group and having access to credit. The likelihood of adopting the prevailing agricultural technologies also found higher for male- headed households as compared to female-headed ones. Distance to the nearest market also negatively and significantly affects the decision to adopt various agricultural technologies. The study suggested that the awareness of farmers concerning the available agricultural technologies should be raised through membership of different social group and frequent extension contact. On the other, promoting farmers to participate in off-farm income generation activities and creating access to credit service can reduce the financial constraint in purchasing and possessing new agricultural technologies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1956774
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1956774
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1956774
Template-Type: ReDIF-Article 1.0
Author-Name: Birku Reta Entele
Author-X-Name-First: Birku Reta
Author-X-Name-Last: Entele
Author-Name: Bikram Acharya
Author-X-Name-First: Bikram
Author-X-Name-Last: Acharya
Author-Name: Wing-Keung Wong
Author-X-Name-First: Wing-Keung
Author-X-Name-Last: Wong
Title: Demand forecasting for successive generations of mobile telecommunication service in Ethiopia
Abstract:
The Ethiopian telecommunication market has been expanding slowly due to supply side constraints. However, these days, government has already announced to open market to the private operators and in this environment, the upcoming mobile telecommunication market, where 4 G service was already introduced in 2015, is becoming more substitutive and competitive. Thus, this study aim to forecast the switchers and leapfrogers demand for 3 G and 4 G mobile data services in Ethiopia. In order to do so, firstly, we investigated consumer preferences for mobile data generation services. Secondly, we estimated the mobile phone diffusion using Bass model to predict the future potential market size. Finally, we combined both models and forecasted the switchers and leapfrogers demand for 3 G and 4 G mobile data services. The result reveals that, by 2025, the 3 G and 4 G data service subscribers are forecasted to be 40 and 1.93 million, respectively, including both switchers and leapfrogers adoption. The policy implications are: (1) Service provider should adjust its service supply plan as per the forecasted demand. (2) Service provider should charge its service package strategically considering demand elasticity and finally, the service provider should make proper expansion of 4 G infrastructure since consumers are verging towards 4 G data services.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1969111
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1969111
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Template-Type: ReDIF-Article 1.0
Author-Name: Mesele Belay Zegeye
Author-X-Name-First: Mesele Belay
Author-X-Name-Last: Zegeye
Author-Name: Robert Read
Author-X-Name-First: Robert
Author-X-Name-Last: Read
Title: Adoption and Ex-post Impact of Agricultural Technologies on Rural Poverty: Evidence from Amhara Region, Ethiopia
Abstract:
This study examines the impacts of multiple agricultural technology adoption on poverty in rural Amhara region, Ethiopia. The study is based on Ethiopian socio economic survey of 2015/16. A total of 656 farm households were included. The study employed Multinomial Logit model to identify the determinants of adoption and Multinomial Endogenous Switching Models to measure the effect of adoption on poverty. The results revealed that educational level of the household head, family size, off-farm participation, livestock, extension visit, credit access, advisory service, plot distance, distance from market, distance from zonal town, and remittances are the major determinants of agricultural technology adoption decisions. The impact results revealed that adoption of multiple technologies increases consumption expenditure significantly, thereby reduces poverty. Moreover, adoption in package provides higher consumption than in isolation. Therefore, the study suggests that policies that promote wider adoption of alternative agricultural technologies at the regional and country level help to reduce poverty.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1969759
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1969759
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1969759
Template-Type: ReDIF-Article 1.0
Author-Name: Nguyen Minh Ha
Author-X-Name-First: Nguyen Minh
Author-X-Name-Last: Ha
Author-Name: Nguyen Dang Le
Author-X-Name-First: Nguyen
Author-X-Name-Last: Dang Le
Author-Name: Pham Trung-Kien
Author-X-Name-First: Pham
Author-X-Name-Last: Trung-Kien
Author-Name: Francesco Tajani
Author-X-Name-First: Francesco
Author-X-Name-Last: Tajani
Title: The impact of urbanization on poverty reduction: An evidence from Vietnam
Abstract:
Poverty is a global socio-economic phenomenon. It is always a problem in all countries include developing countries and developed countries. In Vietnam, the poverty rate has been decreasing while the urbanization has happened rapidly over the past 20 years. Handling the dual problems of urbanization and poverty is important to be able to attain sustainable development. Therefore, this study is to analyze the impact of urbanization on poverty reduction in Vietnam. Using Driscoll and Kraay’s method and D-GMM method to estimate the provinces’ panel data in the period 2006–2016, we confirm that there exists a U-shape relationship between the level of urbanization and the poverty level in Vietnam. Moreover, the estimated thresholds of urbanization from the perspective of poverty reduction are 40.19% and 43.68% in the static and dynamic model, respectively. In addition, our results exhibit that the gross regional domestic product, human capital, and agricultural value have the effect of reducing poverty, but government spending and export value increases the poverty rate in Vietnam. The paper has relevant implications for policymakers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1918838
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1918838
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Template-Type: ReDIF-Article 1.0
Author-Name: Isaiah Oino
Author-X-Name-First: Isaiah
Author-X-Name-Last: Oino
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Regulatory capital: Implications on credit creation and profitability
Abstract:
The level of liquidity in banking determines the extent to which a bank can meet its financial intermediation role. Liquidity and regulatory capital requirements have gained momentum after the 2008 global financial crisis. Meeting the shareholder’s need (i.e profitability) and regulatory requirements (liquidity and capital) is a delicate balance that banks strive to achieve. Applying a pooled fixed-effects model on a complete panel of 179 banks from 2008 to 2019 in the European Union, the results show how banks in Europe strive to achieve profitability requirements at the same time meeting the regulatory hurdles. The results indicate, better-capitalised banks lend much more, which in turn enhances profitability. Also, the findings indicate that higher capital requirements for banks significantly positively influence liquidity. Furthermore, there is an inverse relationship between growth in loans and total regulatory capital. The results imply banks should ensure that the quality of the capital base and the buffers above the regulatory minimum are built up during periods of strong earnings growth. The results also indicate that profitability is significant in influencing the liquidity of the bank. The results emphasise the need to regulate not only the minimum capital requirement but also the liquidity level.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1955470
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1955470
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1955470
Template-Type: ReDIF-Article 1.0
Author-Name: Samuel Elias Kayamo
Author-X-Name-First: Samuel Elias
Author-X-Name-Last: Kayamo
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Asymmetric impact of real exchange rate on inflation in Ethiopia: a non-linear ARDL approach
Abstract:
A surge in inflation for the last decade has been a top agenda of political and economic debate in Ethiopia. The monitory authority of the country has regularly devalued Ethiopian birr to stabilize the inflation and stimulate exports. Whether this has indeed stabilized inflation and increased export earnings is an issue of debate. This study investigates the asymmetric impact of real exchange rate on inflation for period 1982–2019. The non-linear ARDL bounds test is used to test the presence of long-run co-integrations. Long- and short-run estimations were done based on the non-linear ARDL error correction methodology. The result of the study indicated that the real exchange rate has asymmetric effects on inflation in short- and long-run. The imbalance in real exchange rate (depreciation and appreciation) causes a surge in inflation in the long-run. The policy implication of this study is that flexibility in exchange rate market should be planned to ensure price stability rather than following restrictive exchange rate policy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1986931
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1986931
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1986931
Template-Type: ReDIF-Article 1.0
Author-Name: Solomon Tilahun
Author-X-Name-First: Solomon
Author-X-Name-Last: Tilahun
Author-Name: Francesco Tajani
Author-X-Name-First: Francesco
Author-X-Name-Last: Tajani
Title: The determinants of public investment in Ethiopia: An ARDL approach
Abstract:
Public investment has shown increasing trends both in nominal and as a share of GDP over years in Ethiopia. These upsurges in public investment are believed to be due to factors that have visible impact on the fiscal posture of the country. To investigate the validity of Wagner’s law in Ethiopia; this study sets determinants of public investment in Ethiopia as a general objective. Specifically, the study sought to examine the main influencing factors on level of public investment in Ethiopia along three sets of explanatory variables. In order to meet the aforementioned objective, the study employed an autoregressive distributed lag (ARDL) approach over the period 1985–2019. Results from the bound tests show that there is a long-run relationship between the variables. The real per capita GDP is found to be positively and significantly impact on level of public investment which shows that there an evidence in favour of Wagner’s law,i.e. public spending has a high income elasticity of demand. This study also found that there is a positive relationship between public investment and private investment which shows that two are moving in tandem. Again, the study also found that foreign aid has positive impact on public investment implying that additional foreign aid leads to larger spending of the government on capital. Moreover, the study found that the degree of urbanization suggests that levels of public spending are higher in the urban sector than rural economies. These findings give strong policy implication to the policy makers because an increase in public investments in may then help spur economic growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1929680
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1929680
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1929680
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Yousaf
Author-X-Name-First: Muhammad
Author-X-Name-Last: Yousaf
Author-Name: Petr Bris
Author-X-Name-First: Petr
Author-X-Name-Last: Bris
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Effects of working capital management on firm performance: Evidence from the EFQM certified firms
Abstract:
The main aim of the current study is to explore the relationship between working capital (WC) and firm performance. We chose a sample of 326 Czech firms, including 20 certified firms from the EFQM (European Foundation for Quality Management) Excellence Model from the Albertina database. The sample of the Czech firms was taken from three sectors: manufacturing, automobile, and construction. We employed a two-step system generalized method of moment (GMM) technique to determine the results. The study results revealed a negative impact of WC on firm performance; moreover, the firms having a quality certificate from the EFQM Excellence Model perform better. The findings of previous research, which were held globally, and the current study results will encourage the directors, managers, and leaders of the Czech firms to participate in the quality award.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1958504
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1958504
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1958504
Template-Type: ReDIF-Article 1.0
Author-Name: Jemal Abafita
Author-X-Name-First: Jemal
Author-X-Name-Last: Abafita
Author-Name: Tekilu Tadesse
Author-X-Name-First: Tekilu
Author-X-Name-Last: Tadesse
Author-Name: Robert Read
Author-X-Name-First: Robert
Author-X-Name-Last: Read
Title: Determinants of global coffee trade: Do RTAs matter? Gravity model analysis
Abstract:
This study investigates the patterns of global coffee trade flows and identifies the major determinants of global coffee trade by incorporating RTAs as important variable. Gravity modeling with OLS and PPML estimator was employed for the analysis using panel data on bilateral coffee trade flows of 18 major coffee exporters and 201 trading partners for the period 2001–2015. Both exporter GDP (and population) as well as importer GDP were found to be important determinants enhancing coffee trade. Of the bilateral distance variables, physical distance is found to impede coffee trade, while common border was found to enhance it. On the other hand, cultural (distance) variables like colonial link, common colonizer and common language were also found to enhance coffee trade. Other variables that were found to significantly enhance coffee trade include depreciation in exporting country’s exchange rate, the amount of arable land in exporting country, infrastructure and global financial crisis. On the other hand, importing country tariff was found to significantly reduce coffee trade as expected. Surprisingly, the RTA variable had no significant impact on coffee bilateral trade.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1892925
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1892925
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1892925
Template-Type: ReDIF-Article 1.0
Author-Name: Nguyen Ngoc Thach
Author-X-Name-First: Nguyen Ngoc
Author-X-Name-Last: Thach
Author-Name: Jorge Miguel Lopo Gonçalves Andraz
Author-X-Name-First: Jorge Miguel Lopo Gonçalves
Author-X-Name-Last: Andraz
Title: How have NESTs grown? Explanations based on endogenous growth theory
Abstract:
The NEST or potential Emerging and growth-leading economies (EAGLEs) have been playing an increasing role in global growth, but the problems of their long-term growth attract the least attention, specifically the possibility of endogenous growth. The study was conducted to test for the endogenous growth possibility of the 15 NEST economies of the first wave. Based on macro data over 17 years, using the Bayesian non-linear regression method through the Metropolis–Hastings algorithm and Gibbs sampling, the author specified individual Constant elasticity of substitution (CES) functions for the researched economies. The Bayesian non-linear regressions are recognized as appropriate for empirical analysis of growth processes. The research revealed that out of the 15 studied NEST economies, the nine that have probably generated endogenous growth have acquired, on average, the higher magnitude of output growth, capital growth, FDI inflows, HDI, as well as expenditure on R&D. This is because these countries have implemented reasonable growth policies, such as encouraging investments from domestic and foreign companies, accumulating human capital, developing national R&D activities, extensively applying high technologies. Specifically, our findings are consistent with the predictions of Romer’s endogenous growth theory.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1913847
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1913847
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1913847
Template-Type: ReDIF-Article 1.0
Author-Name: Irvan Kuswardana
Author-X-Name-First: Irvan
Author-X-Name-Last: Kuswardana
Author-Name: Nachrowi Djalal Nachrowi
Author-X-Name-First: Nachrowi
Author-X-Name-Last: Djalal Nachrowi
Author-Name: Telisa Aulia Falianty
Author-X-Name-First: Telisa
Author-X-Name-Last: Aulia Falianty
Author-Name: Arie Damayanti
Author-X-Name-First: Arie
Author-X-Name-Last: Damayanti
Author-Name: Robert Read
Author-X-Name-First: Robert
Author-X-Name-Last: Read
Title: The effect of knowledge spillover on productivity: Evidence from manufacturing industry in Indonesia
Abstract:
In this study, we analyze the effect of knowledge spillover on productivity in the Indonesian manufacturing industry from 2010 to 2014 using inter-sectoral linkages and inter-regional linkages. For the first time in the literature, we apply an input-output table and geographic distance between regions as the weight matrix in spatial econometric estimation to measure the productivity spillover. We find that: (1) productivity spillover from transactions of intermediate goods in vertical linkage (customer-supplier) is dominated by inter-industry downstream and intra-industry upstream; (2) the adoption of foreign technology by domestic firms through imported materials is more vital than foreign direct investment; (3) productivity spillover created from capital-intensive industries is higher than that from labor-intensive industries; (4) in productivity spillover flows through inter-regional spillover and intra-regional spillover, the latter creates higher productivity spillover than the former. This implies that the shorter the geographic distance, the narrower the technology gap; (5) investments in human capital and physical capital are a prerequisite for absorbing technology and thus essential absorptive capacity factors for firms/industries/regions as they narrow down the technology gap between developing and advanced firms/industries/regions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1923882
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1923882
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1923882
Template-Type: ReDIF-Article 1.0
Author-Name: Girma Mulugeta
Author-X-Name-First: Girma
Author-X-Name-Last: Mulugeta
Author-Name: Francesco Tajani
Author-X-Name-First: Francesco
Author-X-Name-Last: Tajani
Title: The role and determinants of women labor force participation for household poverty reduction in Debre Birhan town, North Shewa zone, Ethiopia
Abstract:
Women participation in economic activities plays a critical role in driving economic development throughout the world. This study aims to analyze the role and determinants of women’s labor force participation for reducing household poverty in the case of Debre Birhan town. To carry out this, the study used a cross-sectional study design. The data was collected by distributing questionnaires to a total of 291 sample households using multi-stage sampling technique. Logistic regression model was employed to analyze the determinants of women labor force participation by the collected data. The binary logit regression result identified that training, exposed to mass media and access to credit and education status of woman were found to be positive and significantly related to the probability of being participate. Moreover, Logistic regression model was employed in order to analyze the effect of woman labor force participation to household poverty reduction, with the probability of a household being poor as a dependent variable and a set of demographic and socioeconomic variables as the explanatory parameters. Based on this, out of the 291 surveyed household heads, 183(62.89%) of them were found poor. The result of this study confirms that women’s participation reduces the household poverty. Therefore, this study recommends that household uses family planning, promotes woman to attend higher education, exposed to mass media, creating public or private daycare centers for child and access to credit for woman. At this juncture both the households and the government should have the joint effort and responsibility to find possible panaceas.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1892927
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1892927
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1892927
Template-Type: ReDIF-Article 1.0
Author-Name: Nga Thi Viet Nguyen
Author-X-Name-First: Nga
Author-X-Name-Last: Thi Viet Nguyen
Author-Name: Chi Thi Kim Nguyen
Author-X-Name-First: Chi Thi Kim
Author-X-Name-Last: Nguyen
Author-Name: Phuong Thi Minh Ho
Author-X-Name-First: Phuong Thi Minh
Author-X-Name-Last: Ho
Author-Name: Huong Thi Nguyen
Author-X-Name-First: Huong
Author-X-Name-Last: Thi Nguyen
Author-Name: Duy Van Nguyen
Author-X-Name-First: Duy
Author-X-Name-Last: Van Nguyen
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: How does capital structure affect firm’s market competitiveness?
Abstract:
Effective capital decisions not only increase the operational efficiency of businesses but also is strategic to bring the enterprise’s competitive advantages to the market. Using an appropriate debt ratio helps businesses to strike a balance between internal and external resources to compete with other enterprises in the industry. This study aims to find out the effects of capital structure through debt ratio (DR) on the competitiveness of enterprises (HHI) in Vietnam. A sample of 574 companies listed on Vietnam’s stock exchange from 2010–2018 is studied with STATA software. The results show that capital structure affects the competitiveness of enterprises in reverse U-shape. At the same time, DR affects HHI in the form of the U-shaped function in industrial products, information and telecommunication, and consumer goods. Meanwhile, DR affects HHI in reverse U-shape in the sectors of consumer services, raw materials, and community utilities. With the results of this analysis, the research also provides discussion as well as policy implications for businesses to make optimal use of capital structure to provide competitive advantage in the market.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.2002501
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2002501
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:2002501
Template-Type: ReDIF-Article 1.0
Author-Name: Brian Tavonga Mazorodze
Author-X-Name-First: Brian Tavonga
Author-X-Name-Last: Mazorodze
Author-Name: Mariam Camarero
Author-X-Name-First: Mariam
Author-X-Name-Last: Camarero
Title: Exchange rate misalignment, state fragility, and economic growth in sub-Saharan Africa
Abstract:
The sluggish and sometimes negative growth in sub-Saharan Africa has defined the objectives of most studies seeking to explain the sources of its slow growth. I contribute to this inquiry by estimating how state fragility influences the effect of exchange rate misalignment on economic growth. Since exchange rate misalignment captures the distortionary effects of inappropriate macroeconomic policies in the main, my hypothesis is that resilient and less fragile states cope better with macroeconomic imbalances making misaligned exchange rates less likely to have serious effects on growth in such countries. In testing this hypothesis, I first measure misalignment as deviations of the actual exchange rate from an estimated equilibrium level using the dynamic ordinary least squares method. I then insert this variable and its interaction with state fragility in a growth specification. In line with my hypothesis, results from the system generalised method of moments and data on 13 sub-Saharan countries observed between 2009 and 2018 show a significantly negative effect of exchange rate misalignment on growth that increases with state fragility. Based on this evidence, I urge countries in this region to improve state resilience as an effort to reduce the negative effect of exchange rate misalignment on economic growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1898113
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1898113
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1898113
Template-Type: ReDIF-Article 1.0
Author-Name: Abdul Hakim
Author-X-Name-First: Abdul
Author-X-Name-Last: Hakim
Author-Name: Awan Setya Dewanta
Author-X-Name-First: Awan Setya
Author-X-Name-Last: Dewanta
Author-Name: Sahabudin Sidiq
Author-X-Name-First: Sahabudin
Author-X-Name-Last: Sidiq
Author-Name: Riska Dwi Astuti
Author-X-Name-First: Riska Dwi
Author-X-Name-Last: Astuti
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Modeling the interaction across international conventional and Islamic stock indices
Abstract:
Islamic financial instruments have been experiencing rapid growth in the last 50 years. Despite the unique motivation in formulating them, namely based on Syariah law, their movement might link to those of the conventional ones. This paper is devoted to investigating such interactions. It does so by applying two multivariate time series models to estimate various instruments, both Islamic and conventional ones. The models are the VAR (Vector Autoregression) and the VARMA-GARCH (Vector Autoregressive Moving Average-Generalized Autoregressive Heteroskedasticity). From the VAR model it finds evidence of bidirectional influences across both instruments. It also finds a conventional stock index that dominates the other series, namely the DJI (Dow Jones Index). From the VARMA-GARCH model, it finds influences from the conventional to Islamic index and vice versa, both in conditional mean and conditional variances. This paper suggests that the behavior of Islamic instruments are inseparable from the conventional ones. Future research might consider conditional correlations across these variables.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2020.1862394
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1862394
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1862394
Template-Type: ReDIF-Article 1.0
Author-Name: Isaac Doku
Author-X-Name-First: Isaac
Author-X-Name-Last: Doku
Author-Name: Ronney Ncwadi
Author-X-Name-First: Ronney
Author-X-Name-Last: Ncwadi
Author-Name: Andrew Phiri
Author-X-Name-First: Andrew
Author-X-Name-Last: Phiri
Author-Name: Muhammad Shafiullah
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shafiullah
Title: Determinants of climate finance: Analysis of recipient characteristics in Sub-Sahara Africa
Abstract:
What are the characteristics of recipient countries that attract more climate finance in mitigating and adapting to climate change? In this study, we address this question by looking at recipients in 43 Sub-Sahara African countries for the period 2006–2017, and implement several panel regression techniques, including system generalized methods of moments estimations to address potential endogeneity concerns. We also performed sensitivity analysis using panel quantile regressions. The findings show that Sub-Sahara African countries with higher population growth rate, higher poverty levels, better ease of doing business profile, weaker governance policies, weaker control of corruption, stronger rule of law enforcement, deepened social inequality, and better ICT usage, have attracted more climate finance. Policy implications of the study are discussed.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1964212
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1964212
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1964212
Template-Type: ReDIF-Article 1.0
Author-Name: Diem Pham Thi Thuy
Author-X-Name-First: Diem Pham
Author-X-Name-Last: Thi Thuy
Author-Name: Hoai Nguyen Trong
Author-X-Name-First: Hoai
Author-X-Name-Last: Nguyen Trong
Author-Name: Evan Lau
Author-X-Name-First: Evan
Author-X-Name-Last: Lau
Title: Impacts of openness on financial development in developing countries: Using a Bayesian model averaging approach
Abstract:
This study investigates the influences of trade and financial openness on financial development over the period 2003–2017 from a sample of 64 developing countries, employing a Bayesian model averaging approach to take into account model uncertainty. The results demonstrate that the contribution of trade openness to financial development is important in developing economies with better institutions. However, financial openness has an insignificant positive effect on financial development. There is no evidence to support the Rajan and Zingales hypothesis that the simultaneous openness to both trade and capital flows promotes financial development. Our findings also indicate that a better institutions environment allows a developing economy to exploit the benefits of openness to financial development.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1937848
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1937848
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1937848
Template-Type: ReDIF-Article 1.0
Author-Name: Tenkir Seifu Legesse
Author-X-Name-First: Tenkir Seifu
Author-X-Name-Last: Legesse
Author-Name: Jiqiang Tang
Author-X-Name-First: Jiqiang
Author-X-Name-Last: Tang
Author-Name: Zhen Wu
Author-X-Name-First: Zhen
Author-X-Name-Last: Wu
Author-Name: Haifeng Guo
Author-X-Name-First: Haifeng
Author-X-Name-Last: Guo
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Debt financing, corporate investment and the productivity of capital invested: Evidence from biggest manufacturing countries
Abstract:
This study examines the impact of debt financing on the productivity of capital invested and the mediating role of corporate investment using data from manufacturing firms in China, Japan and the United States. We find that firms that use more debt capital are less likely to make overinvestment. It is found that overinvestment is more likely in firms that have high cash flow but low level of financial leverage. Our study also shows that companies with high debt and low cash flow have more probability of underinvestment. This is consistent with the view that financially constrained firms are more exposed to underinvestment problem. Furthermore, we documented that the use of debt financing has a positive impact on the productivity of the capital invested and that this effect is partly mediated by the investment of the manufacturing firms. This paper shades light into the present understanding of how companies use debt financing decisions to boost their investment efficiencies. The study has important management implications for corporate financial decisions as it identifies the links among corporate debt financing, investment and capital productivity.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1936369
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1936369
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1936369
Template-Type: ReDIF-Article 1.0
Author-Name: Josephat Lotto
Author-X-Name-First: Josephat
Author-X-Name-Last: Lotto
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Does earnings distribution policy influence corporate stock price instability? Empirical evidence from Tanzanian listed industrial firms
Abstract:
This paper primarily aims at examining the impact of dividend policy on stock price volatility of industrial firms listed in the Dar es Salaam Stock Exchange employing data collected from audited published financial statements for the period 2009–2019. The paper utilized a panel data regression estimation method, and the results show that both measures of dividend policy—dividend yield and dividend payout ratios—have negative significant relationship with stock price volatility. This may indicate that the increase in firm’s dividend yield and dividend payout lowers the stock price volatility, which in return, improves corporate stock price stability. The results, therefore, provide important implications for risk management practices, financial securities valuation and government policy towards stock market development. Also, since both management and investors are concerned about the volatility of stock price, the findings of this paper shed light on the path way to discovering what moves stock price and important factors to be considered by investors before making investment decisions, and managements by establishing their ability to utilize dividend policy as a mechanism of controlling the stock price volatility.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1953737
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1953737
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1953737
Template-Type: ReDIF-Article 1.0
Author-Name: Chei Bukari
Author-X-Name-First: Chei
Author-X-Name-Last: Bukari
Author-Name: Gloria Essilfie
Author-X-Name-First: Gloria
Author-X-Name-Last: Essilfie
Author-Name: Millicent Abigail Aning-Agyei
Author-X-Name-First: Millicent Abigail
Author-X-Name-Last: Aning-Agyei
Author-Name: Isaac Christopher Otoo
Author-X-Name-First: Isaac Christopher
Author-X-Name-Last: Otoo
Author-Name: Christian Kyeremeh
Author-X-Name-First: Christian
Author-X-Name-Last: Kyeremeh
Author-Name: Anthony Akwesi Owusu
Author-X-Name-First: Anthony Akwesi
Author-X-Name-Last: Owusu
Author-Name: Kofi Fosu Amuquandoh
Author-X-Name-First: Kofi Fosu
Author-X-Name-Last: Amuquandoh
Author-Name: Kpanja Ibrahim Bukari
Author-X-Name-First: Kpanja Ibrahim
Author-X-Name-Last: Bukari
Author-Name: Christian Nsiah
Author-X-Name-First: Christian
Author-X-Name-Last: Nsiah
Title: Impact of COVID-19 on poverty and living standards in Ghana: A micro-perspective
Abstract:
The novel Coronavirus disease 2019 (COVID-19), which has become a global epidemic, hit Ghana on 12 March 2020 and, in less than a week, increased by over 300% with two deaths. As of 11 August 2020, Ghana had recorded over 41,000 cases with over 215 deaths. This study seeks to provide a micro-level evidence on how COVID-19 is posing a threat to some of the Sustainable Development Goals, particularly poverty in Ghana. Specifically, the study examined the effect of COVID-19 on poverty and living standards of Ghanaian households. The study further analysed which class of persons within the income distributions has been mostly hit by the pandemic. Data on 3,905 households were obtained via concurrent online survey and telephone interviews. Multiple analytical approaches were employed―Ordinary least squares, probit model and simultaneous quantile regressions. Results showed that COVID-19 had significantly increased the poverty levels of households while deteriorating living standards. The study also discovered that gender and locational heterogeneities exist regarding the impact of COVID-19 with females and rural dwellers mostly disadvantaged. However, simultaneous quantile regression result shows that in terms of overall household consumption, those in the middle and upper classes are profoundly affected compared to those in the lowest class. A key policy implication from this study is that Ghana needs to broaden its social protection programmes to assist both the new poor and existing poor.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1879716
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1879716
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1879716
Template-Type: ReDIF-Article 1.0
Author-Name: Tochukwu Timothy Okoli
Author-X-Name-First: Tochukwu Timothy
Author-X-Name-Last: Okoli
Author-Name: Devi Datt. Tewari
Author-X-Name-First: Devi Datt.
Author-X-Name-Last: Tewari
Author-Name: Kehinde Damilola Ileasanmi
Author-X-Name-First: Kehinde Damilola
Author-X-Name-Last: Ileasanmi
Author-Name: Evan Lau
Author-X-Name-First: Evan
Author-X-Name-Last: Lau
Title: Investigating a threshold effect in Twin Deficit Hypothesis: Evidence from the BRICS Economies
Abstract:
Over the years, empirical evidence on twin-deficit hypothesis has been inconsistent. While some support it, others affirm the prevalence of the Ricardian Equivalence. This study therefore examines a nonlinear/threshold relationship between the deficits among the BRICS economies using the Panel ARDL (1, 1) model with a quarterly data spanning from 2000q1 to 2019q4. The efficient estimator of PMG based on the Hausman test shows that twin divergence holds among the BRICS market up to a certain threshold beyond which the hypothesis holds. This suggests that BRICS countries face a dampening effect of fiscal/current deficits on their current account/fiscal deficits to a point after which further increases in either of the deficits will significantly raise the other. The static fixed effect technique and second-order U-shaped test reveal a consistent result. The speed of adjustment to long-run steady state for the current account deficits and the fiscal deficits models are 27.4 and 52.5 per cents respectively, at 5 per cent significance level. However, higher growth shocks and interest rate lead to divergence of the deficits while exchange rate and trade openness dampen it. Fiscal deepening and management within a bound were recommended as the panacea for twin-deficit problems.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1886451
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1886451
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1886451
Template-Type: ReDIF-Article 1.0
Author-Name: Anupam Das Gupta
Author-X-Name-First: Anupam
Author-X-Name-Last: Das Gupta
Author-Name: Niluthpaul Sarker
Author-X-Name-First: Niluthpaul
Author-X-Name-Last: Sarker
Author-Name: Mohammad Rifat Rahman
Author-X-Name-First: Mohammad
Author-X-Name-Last: Rifat Rahman
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Relationship among cost of financial intermediation, risk, and efficiency: Empirical evidence from Bangladeshi commercial banks
Abstract:
The global financial crisis and stiff market competition enhance risk exposures that raise debate on the cost of financial intermediation and the supremacy of banks’ efficiency. This study examines the concurrent effects of bank risk, efficiency and cost of financial intermediation of Bangladeshi commercial banks. The Two-Step System GMM (2GMM) estimators of unbalanced dynamic panel data of 32 commercial banks from 2000 to 2016 addresses key factors rigorously in the light of bank-level, industry-level, and macroeconomic-level phenomenon. Efficiency gains cost the spread of banks’ financial intermediation, and risk-taking negatively affects the return. Cost-efficient banks are taking more credit risk; however, more efficiency gains reduce banks’ risk substantially. Size (cost of intermediation) of banks positively (inversely) affect the risk-taking (efficiency) behaviour of banks. Market competition enhances the risk and efficiency and reduces banks’ interest spread. Finally, the Nonlinear effect of size and market competition is heterogeneous on risk, efficiency, and financial intermediation cost that follows a U-shape curve. This study explicitly addresses two issues: simultaneous effect of financial intermediation, bank risk, and efficiency and validated the nonlinear relationship considering size and market competition effect.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1967575
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1967575
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1967575
Template-Type: ReDIF-Article 1.0
Author-Name: Nizar Dwaikat
Author-X-Name-First: Nizar
Author-X-Name-Last: Dwaikat
Author-Name: Ihab Sameer Qubbaj
Author-X-Name-First: Ihab Sameer
Author-X-Name-Last: Qubbaj
Author-Name: Abdelbaset Queiri
Author-X-Name-First: Abdelbaset
Author-X-Name-Last: Queiri
Author-Name: Yudhvir Seetharam
Author-X-Name-First: Yudhvir
Author-X-Name-Last: Seetharam
Title: Gender diversity on the board of directors and its impact on the Palestinian financial performance of the firm
Abstract:
This study aims to examine the impact of gender diversity in the Board of Directors (BOD) on the firm performance—return of assets (ROA) and return of equity (ROE)—using a sample of Palestinian non-financial companies for the period 2008–2015. Gender diversity was measured as a percentage of women in the BOD, and dummy variable for the existence of at least one woman in the BOD. The study employed method of two-stage least squares (2SLS) to address endogeneity issues in the relationship between gender diversity and company performance. The findings show that women still exist modestly in the BOD, women exist more in the BOD of industrial firms than in the BOD of service firms. Furthermore, firms with at least one woman in the BOD have a large debt ratio, independence of BOD, better ROA performance, less size, and no difference in BOD size. The results of 2sls show that gender diversity has a positive and statistically significant impact on firm performance.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1948659
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1948659
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1948659
Template-Type: ReDIF-Article 1.0
Author-Name: Awadh Saeed Bin-Dohry
Author-X-Name-First: Awadh Saeed
Author-X-Name-Last: Bin-Dohry
Author-Name: Hanita Kadir Shahar
Author-X-Name-First: Hanita Kadir
Author-X-Name-Last: Shahar
Author-Name: Sharmilawati Sabki
Author-X-Name-First: Sharmilawati
Author-X-Name-Last: Sabki
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: The determinants of dual listing decision of firms from ASEAN-5
Abstract:
This study aims to examine the determinants that encouraged firms to have a dual listing. Practically, there is a noticeable lack of empirical evidence, as well as the situation of the ASEAN markets integration which is going against the theoretical debate raises the need for more empirical studies. As a result, the Generalized Method of Moments (GMM) model was applied to assess the strength determinants that driving the listing abroad decision. The empirical findings indicate that firms from countries with higher trade openness and those suffering from higher illiquidity and ownership concentration are more likely to pursue an additional listing. Likewise, the result also shows that firms originated from countries with lower Foreign Direct Investment (FDI) and reputation tend to seek a dual listing. The result shows that firms that are characterized by higher ROA and those from countries with higher GDP are more encouraged to pursue an additional listing. Meanwhile, firms from countries that are characterized with lower market capitalization are more encouraged to have a dual listing. The insignificant results reported for stock volatility and geographic proximity can be interpreted as a result of the improvement in trading technology. In conclusion, the study contributes to the existing body of knowledge by providing empirical evidence about the power of these motivations which encourage firms to have a dual listing. Equally, the results offer evidence for stakeholders, such as investors, and authorities to attain a better understanding of these determinants.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1917105
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1917105
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1917105
Template-Type: ReDIF-Article 1.0
Author-Name: Nadia Klarita Rahayu
Author-X-Name-First: Nadia Klarita
Author-X-Name-Last: Rahayu
Author-Name: Iman Harymawan
Author-X-Name-First: Iman
Author-X-Name-Last: Harymawan
Author-Name: Wulandari Fitri Ekasari
Author-X-Name-First: Wulandari Fitri
Author-X-Name-Last: Ekasari
Author-Name: John Nowland
Author-X-Name-First: John
Author-X-Name-Last: Nowland
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Risk management committee, independent commissioner, and audit fee: An update
Abstract:
We investigate whether the risk management committee and independent commissioner contribute to the audit fee. We use 720 observations from Indonesian listed companies for 2015–2018. We use ordinary least square analysis to address our hypotheses. The result shows that the proportion of independent commissioners weakens the relationship between RMC and audit fees. Our study proved that the existence of a risk management committee would lead to a higher demand for audit coverage. As a result, the audit fee increased. RMC may demand high-quality external assurance, but it may be ignored because the independent commissioner has more authority than RMC. In addition, we also used coarsened exact matching with a consistent result as the OLS. These findings provide evidence for policymakers on the relationship between audit fees and risk management committees.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1892926
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1892926
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1892926
Template-Type: ReDIF-Article 1.0
Author-Name: Faisal Faisal
Author-X-Name-First: Faisal
Author-X-Name-Last: Faisal
Author-Name: Zainal Abidin
Author-X-Name-First: Zainal
Author-X-Name-Last: Abidin
Author-Name: Haryanto Haryanto
Author-X-Name-First: Haryanto
Author-X-Name-Last: Haryanto
Author-Name: Yudhvir Seetharam
Author-X-Name-First: Yudhvir
Author-X-Name-Last: Seetharam
Title: Enterprise risk management (ERM) and firm value: The mediating role of investment decisions
Abstract:
The purpose of this study is to examine the mediating effect of investment decisions on the relationship between Enterprise Risk Management (ERM) and firm value. Two hundred and twenty-four companies listed on the Indonesia Stock Exchange for period 2017–2018 were selected as sample by applying Slovin’s formula. We used path analysis and Sobel test to check the mediating effect of investment decisions. Our results show that the implementation of ERM in Indonesia public listed companies is still in the initial stage. In addition, the regression tests show that ERM and investment decisions have a positive effect on firm value. The path analysis and Sobel’s test results show that investment decisions act as partial mediation on the relationship between ERM and firm value. The study suggests that ERM contributes in improving the effectiveness of investment decisions and firm performance. Therefore, the significant role of stakeholders in increasing the maturity level of ERM is very essential, especially in Indonesia, where the level of risk maturity is still at the initial level. Studies that test the influence of risk management maturity on firm value are still rare, especially in developing country. While, Farrell and Gallagher (2019) have tested the relationship between ERM maturity and firm value, nevertheless they have not considered the role of investment decision in the intermediating the relationship between ERM maturity and firm value.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.2009090
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2009090
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:2009090
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Esaku
Author-X-Name-First: Stephen
Author-X-Name-Last: Esaku
Author-Name: Evan Lau
Author-X-Name-First: Evan
Author-X-Name-Last: Lau
Title: The long- and short-run relationship between the shadow economy and trade openness in Uganda
Abstract:
This paper examines the relationship between the shadow economy and trade openness in Uganda, using autoregressive distributed lag bounds testing approach. We find that the shadow economy and trade openness have a long- and short-run relationship. These results hold even when alternative econometric methods are used. The empirical evidence indicates that more exposure to foreign trade significantly reduces the size of the shadow economy. This could imply that as countries become more integrated into the world economy, firms and individual entrepreneurs are induced to engage in the formal sector so as to reap the benefits of international markets. This paper shows that trade openness is an important determinant of the shadow economy in both the short- and long-run. At the policy level, any policy framework that strengthens integration into the global economy will be an effective tool that can reduce shadow activities in both the short- and long-run. The practical implication of these results is that countries that have fully reformed their economies to allow for free trade and investment inflows experience a decline in shadow activities implying that, in more open economies, more trade reduces informality.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1930886
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1930886
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1930886
Template-Type: ReDIF-Article 1.0
Author-Name: Mac Junior Abeka
Author-X-Name-First: Mac Junior
Author-X-Name-Last: Abeka
Author-Name: Eric Andoh
Author-X-Name-First: Eric
Author-X-Name-Last: Andoh
Author-Name: John Gartchie Gatsi
Author-X-Name-First: John Gartchie
Author-X-Name-Last: Gatsi
Author-Name: Seyram Kawor
Author-X-Name-First: Seyram
Author-X-Name-Last: Kawor
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Financial development and economic growth nexus in SSA economies: The moderating role of telecommunication development
Abstract:
The economic growth of most sub-Saharan African countries in the past years has not been able to equalize with other regions. Even though financial development has been highlighted in several empirical literature as a factor that could spur up economic growth, the level of financial development in sub-Saharan Africa is not effectively channeled into desired levels of economic growth. However, there is an indication in the literature that financial development will be more relevant to the economic growth of sub-Saharan African economies that have strong telecommunication infrastructure. Using the system General Method of Moment estimation technique, the paper found that telecommunication infrastructure enhances the effect of financial development on the economic growth of sub-Saharan African economies. It is therefore recommended that sub-Saharan African economies should apply appropriate measures to boost their telecommunication infrastructure so that gains from the financial sector can effectively be channeled into economic growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2020.1862395
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1862395
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1862395
Template-Type: ReDIF-Article 1.0
Author-Name: Chaiyuth Padungsaksawasdi
Author-X-Name-First: Chaiyuth
Author-X-Name-Last: Padungsaksawasdi
Author-Name: Sirimon Treepongkaruna
Author-X-Name-First: Sirimon
Author-X-Name-Last: Treepongkaruna
Author-Name: Zhaojun Yang
Author-X-Name-First: Zhaojun
Author-X-Name-Last: Yang
Title: Chasing for information during the COVID-19 panic: The role of Google search on global stock market
Abstract:
This paper examines the causal relationship between global stock market performance and Google search volume index (SVI) surrounding the disastrous event of the coronavirus (COVID-19) outbreak. Based on 6,106 stock index-day observations of 71 countries during the period from 1 January 2020 to 29 May 2020, we find that both the SVI and the growth in confirmed cases lower the global stock market returns. Consistent with the information discovery theory, we find when the confirmed cases increase, retail investors search for more information, improving their returns on stock indices during the outbreak. Finally, our further instrumental-variable analysis shows that our results are unlikely confounded by endogeneity.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1930669
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1930669
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1930669
Template-Type: ReDIF-Article 1.0
Author-Name: Sarpong Mohammed
Author-X-Name-First: Sarpong
Author-X-Name-Last: Mohammed
Author-Name: Abubakari Mohammed
Author-X-Name-First: Abubakari
Author-X-Name-Last: Mohammed
Author-Name: Edward Nketiah-Amponsah
Author-X-Name-First: Edward
Author-X-Name-Last: Nketiah-Amponsah
Author-Name: Aviral Tiwari
Author-X-Name-First: Aviral
Author-X-Name-Last: Tiwari
Title: Relationship between Exchange Rate Volatility and Interest Rates Evidence from Ghana
Abstract:
This paper examines the effect of interest rates on exchange rate volatilities in Ghana. It utilizes the Quarterly Time Series dataset spanning 2000 Quarter 1 to 2017 Quarter 2 and the Autoregressive Distributed Lag model as well as the Vector Error Correction Model to investigate the long-run and short-run relationships between the variables. The results showed that in the long-run model, exchange rate volatility was seen to be influenced by money supply, inflation, Central Bank’s policy rate, and the Ghana Stock Exchange composite index. However, in the short-run model, exchange rate volatility was found to be significantly influenced by its past values and the Central Bank’s policy rate.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1893258
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1893258
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1893258
Template-Type: ReDIF-Article 1.0
Author-Name: Ryno du Plooy
Author-X-Name-First: Ryno
Author-X-Name-Last: du Plooy
Author-Name: Pierre J. Venter
Author-X-Name-First: Pierre J.
Author-X-Name-Last: Venter
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Pricing vanilla options using artificial neural networks: Application to the South African market
Abstract:
In this paper, a feed-forward artificial neural network (ANN) is used to price Johannesburg Stock Exchange (JSE) Top 40 European call options using a constructed implied volatility surface. The prices generated by the ANN were compared to the prices obtained using the Black-Scholes (BS) model. It was found that the pricing performance of the ANN significantly improves when the number of training samples are increased and that ANNs are able to price European call options in the South African market with a high degree of accuracy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1914285
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1914285
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1914285
Template-Type: ReDIF-Article 1.0
Author-Name: Nassar S. Al-Nassar
Author-X-Name-First: Nassar S.
Author-X-Name-Last: Al-Nassar
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: On the informational efficiency of Saudi exchange-traded funds listed at home and away from home
Abstract:
This study compares the pricing efficiency of two domestic exchange-traded funds (ETFs) (i.e., Falcom 30 and HSBC 20) listed on the Saudi stock exchange (i.e., Tadawul), as well as an international ETF (i.e., iShares MSCI Saudi Arabia) listed on the NYSE, by examining the extent and properties of the deviations of their prices from their net asset values (NAVs), and whether these deviations persist and vary over time. The results show that the deviations of the market prices of all of the ETFs are significantly large and persist for at least three days. It is shown that the standard deviation of the premiums/discounts based on the dyna model are large, particularly for the domestic funds. The premiums/discounts appear to be exacerbated during the periods of market turbulence. The results from cointegration analysis support the existence of a long-run relationship between the prices and the NAVs of the three ETFs. However, the ETFs’ prices do not fully reflect the fundamental information contained in the underlying basket of the stocks in either the long run or the short run. Furthermore, the adjustment toward the long-run relationship seems to be quite slow, albeit apparently faster in the case of iShares MSCI Saudi Arabia. The restrictions on short selling, the concentration of authorized market participants, the increased cost for the creation and redemption of the ETF shares, and the lack of an active secondary market for the ETF shares can create major limits to arbitrage, thereby impeding efficiency in the market.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1902654
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1902654
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1902654
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Esaku
Author-X-Name-First: Stephen
Author-X-Name-Last: Esaku
Author-Name: Francesco Tajani
Author-X-Name-First: Francesco
Author-X-Name-Last: Tajani
Title: Does corruption contribute to the rise of the shadow economy? Empirical evidence from Uganda
Abstract:
This paper investigates whether corruption has contributed to the rise of the shadow economy in Uganda. Using autoregressive distributed lag bounds testing approach and granger causality econometric methods we find a positive relationship between corruption and the size of the shadow economy in both the long- and short-run. Additionally, the causality results reveal a bidirectional causal relationship between the shadow economy and corruption, and vice versa. These findings suggest that, for the case of Uganda, an increase in corruption contributes to the rise in the size of the shadow economy and vice versa, all else equal. Given the complementary relationship between corruption and the size of the shadow economy, addressing widespread informality in the country would require; first, reforming the political system to tackle political corruption and go after politicians who use their influence and power to circumvent institutions. Second, carrying out institutional reforms to address political patronage and influence peddling would go a long way into addressing systemic corruption which in turn could help mitigate the spread of informal sector activities. Third, strengthening the enforcement of existing laws to identify and punish culpable public officials who use their offices for private gain would also address the level of informality in the country.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1932246
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1932246
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1932246
Template-Type: ReDIF-Article 1.0
Author-Name: Mehdi Rad
Author-X-Name-First: Mehdi
Author-X-Name-Last: Rad
Author-Name: Ali Amiri
Author-X-Name-First: Ali
Author-X-Name-Last: Amiri
Author-Name: Mohammad Hussein Ranjbar
Author-X-Name-First: Mohammad Hussein
Author-X-Name-Last: Ranjbar
Author-Name: Hojatollah Salari
Author-X-Name-First: Hojatollah
Author-X-Name-Last: Salari
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Predictability of financial statements fraud-risk using Benford’s Law
Abstract:
The main objective of this research is to investigate the Predictability of Financial Statements Fraud-Risk Using Benford’s Law on the Tehran Stock Exchange. Therefore, based on financial fraud detection criteria, a sample of 50 companies was extracted that 25 companies had fraud-risk in financial statements (experimental group) and 25 did not have fraud-risk (control group). Next, the frequency distribution of the first left digit of the numbers in the financial statements as well as the financial ratios of both groups was extracted, and their conformity with Benford’s distribution was evaluated through the chi-square test to test the research hypotheses. The comparison between the mentioned frequency distribution and Benford’s distribution showed a significant difference. The result indicates that Benford’s law cannot predict the financial statements fraud-risk of companies, in other words, Benford’s law cannot separate companies with fraud-risk from those without fraud-risk in financial statements.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1889756
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1889756
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1889756
Template-Type: ReDIF-Article 1.0
Author-Name: Bang Nguyen-Viet
Author-X-Name-First: Bang
Author-X-Name-Last: Nguyen-Viet
Author-Name: Khanh Ngoc Huynh
Author-X-Name-First: Khanh
Author-X-Name-Last: Ngoc Huynh
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Empirical analysis of internet banking adoption in Vietnam
Abstract:
This study defines and measures the key factors driving consumers’ adoption of internet banking in Vietnam, and comprises both qualitative and quantitative research. Qualitative research was carried out through focus group discussions with 12 consumers, while quantitative research was conducted through interviews with 475 bank customers in Vietnam. The results indicate the following: (i) the adoption of internet banking in Vietnam is directly affected by perceived usefulness, attitude, perceived risk, innate innovativeness, domain-specific innovativeness, and internet experience; (ii) perceived risk is directly affected by innate and domain-specific innovativeness; (iii) perceived ease of use is directly affected by innate and domain-specific innovativeness; (iv) consumers’ attitudes are directly affected by perceived usefulness and perceived ease of use; and (v) perceived usefulness is directly affected by perceived ease of use. However, this study had certain limitations. First, owing to limited resources in conducting the research, the sample size consisted of only 475 consumers. Second, this study employed the sampling technique of direct and email interview methods.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1992876
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1992876
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1992876
Template-Type: ReDIF-Article 1.0
Author-Name: Muyanja Ssenyonga
Author-X-Name-First: Muyanja
Author-X-Name-Last: Ssenyonga
Author-Name: Muhammad Shafiullah
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shafiullah
Title: Imperatives for post COVID-19 recovery of Indonesia’s education, labor, and SME sectors
Abstract:
The article assesses the impact of COVID-19 pandemic on the Indonesian economy and the influence that repercussions from the pandemic have had on the country’s long-term development goals and objectives. The article used backcasting approach to link expected development objectives and targets with current state of social and economic conditions. Results demonstrated a gap between long-term and current economic performance, attributable largely to the impact of COVID-19 pandemic on the economy and society. A drastic decline in aggregate demand due to contraction in household and corporate expenditure, investment, and exports sparked a surge in open unemployment and underemployment. While swift and wide-ranging government response helped to attenuate the impact of the crisis on the economy and vulnerable sections of society, COVID-19 pandemic impact compounded existing fundamental problems facing the Indonesian economy including de-industrialization, wide urban–rural, East–West, inter-regional digital divide; unemployment and underemployment; weak human resource development; low participation in global value chains; and low education effectiveness. Policy recommendations to nudge the economy and society back to its long-term development trajectory include initiatives to enhance emergency response program effectiveness and tackling structural problems. The initiatives include strengthening and widening the coverage of government programs that support business and society in education, labor and employment, and SME and trade. The thrust of the pathways stresses the need for accelerating the implementation of the national information highway and the ASEAN connectivity initiative. Achieving will support efforts to mainstream the adoption and deployment of digitalization in the economy, government, and transboundary trade.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1911439
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1911439
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1911439
Template-Type: ReDIF-Article 1.0
Author-Name: Mekonnen Yitayaw
Author-X-Name-First: Mekonnen
Author-X-Name-Last: Yitayaw
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Firm-specific, industry-specific and macroeconomic determinants of commercial banks’ lending in Ethiopia: Panel data approach
Abstract:
Lending is the primary role in commercial banks’ daily banking activities and is described as the heart of a commercial banks’ banking business. On the other hand, it is also one of the greatest sources of risk to the safety and soundness of financial institutions. There is little empirical evidence on bank lending behavior in emerging markets like Ethiopia. However, the existing studies have a difference in the identification of which factors have a strong impact and on the direction of those impacts if any on Ethiopian commercial banks’ lending. Thus, this study investigated the bank-specific, industry-specific and macroeconomic determinants of commercial banks’ lending in Ethiopia using balanced panel data of 15 commercial banks from 2011 to 2019. To realize the stated objective quantitative approach and explanatory design were employed using secondary data sources from the audited financial statement of sampled commercial banks. The model result of the study indicated that bank-specific factors such as; volumes of deposit, capital adequacy, and bank size have a positive and statistically significant effect on bank lending. Industry-specific factors such as; cash reserve requirement, bank concentration, and average lending rate have a negative and statistically significant effect on bank lending. Likewise, one of the macro-economic variables gross domestic products has a negative and statistically significant effect on bank lending. The study suggested that commercial banks in Ethiopia have to manage their lending by giving more attention to the internal factors, which the management has control over in line with the banking industry rules and regulations recalling the influence of the general economic dynamic. I believe that this study is of interest to bankers, analysts, regulators, policymakers, and investors since it provides useful insight on the determinants of commercial banks’ lending and an understanding of how bank intermediation roles may respond to internal as well as external rules, regulations, and general economic dynamics, and it will contribute to the scarce empirical evidence.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1952718
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1952718
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1952718
Template-Type: ReDIF-Article 1.0
Author-Name: Aditya Aji Prabhawa
Author-X-Name-First: Aditya Aji
Author-X-Name-Last: Prabhawa
Author-Name: Mohammad Nasih
Author-X-Name-First: Mohammad
Author-X-Name-Last: Nasih
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Intangible assets, risk management committee, and audit fee
Abstract:
This study analyzes whether the company’s intangible assets will affect the audit fee paid to the auditor and risk management committee as a moderating variable. The sample of this study consisted of 656 observations from companies listed on the Indonesia Stock Exchange (BEI) for 2010–2018 from all industry sectors except the financial industry, using the method of multiple linear regression analysis, aims to determine whether intangible assets affect audit fees and whether the risk management committee strengthens or weakens the relationship between the two variables. The research method used in this study is quantitative. This study indicates that the amount of intangible assets in the company will positively impact audit fees. The risk management committee has the responsibility to shareholders to ensure that their financial statements are free from errors or fraud and also strengthen the relationship between the two variables. These findings provide evidence for policymakers on the relationship between Intangible assets, risk management committees, and audit fees
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1956140
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1956140
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1956140
Template-Type: ReDIF-Article 1.0
Author-Name: Adisu Abebaw
Author-X-Name-First: Adisu
Author-X-Name-Last: Abebaw
Author-Name: Francesco Tajani
Author-X-Name-First: Francesco
Author-X-Name-Last: Tajani
Title: Output gap determinants in Ethiopia
Abstract:
The output gap measured as the percentage deviation of actual output from its potential level is an indicator of an economy’s achievement. Output gap has been an important concept used for forming of policies. In this study, we estimated the potential output and output gap, established some of its macro-economic determinants for the Ethiopian economy. By using yearly data spanning from 1990 to 2018, the study estimated the potential output and output gap using HP filtering, and production function approaches. Accordingly, both approaches indicated that the output gap has been fluctuating over the study period—indicating the actual output inconsistently and frequently deviating from its potential level. Mainly, in 1996 and 2003, the actual output showed the highest positive and negative deviations from its potential, respectively. The study also examined the effect of some macro-economic indicators on the output gap using the ARDL framework. Accordingly, inflation, trade openness, lending rate, and FDI are found to be having a significant effect on the output gap. Lending rate and trade openness have positive and significant effect, whereas inflation and FDI have a negative significant effect on the output gap. This study suggests; augmenting domestic production and utilization capacity, avoiding unrestricted importation and, export diversification, lowering lending rate and increasing FDI inflow; helps to reduce output gap. Besides, understanding the trend of potential and output gap would be helpful in dealing with inflation.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1887550
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1887550
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1887550
Template-Type: ReDIF-Article 1.0
Author-Name: Japan Huynh
Author-X-Name-First: Japan
Author-X-Name-Last: Huynh
Author-Name: Van Dan Dang
Author-X-Name-First: Van Dan
Author-X-Name-Last: Dang
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Loan portfolio diversification and bank returns: Do business models and market power matter?
Abstract:
The paper examines how loan portfolio diversification drives bank returns, mainly focusing on the conditioning roles of business models and market power in this nexus. We employ a sample of Vietnamese commercial banks from 2008 to 2019 to perform regressions in the dynamic panel models with the two-step system generalized method of moments (GMM) estimator. We find that increased sectoral loan portfolio diversification reduces bank returns, but not all banks are equally affected. Banks that adopted a business model towards non-interest activities are hurt less from loan portfolio diversification, and bank market power may mitigate the detrimental effects of loan portfolio diversification on bank returns. When such asymmetric effects are sizeable, neglecting them could miscalculate the choice of loan portfolio diversification. Our findings are robust to a rich set of bank return indicators and alternative loan portfolio diversification measures based on the Herfindahl-Hirschman (HHI)/Shannon Entropy (SE) indexes with different sectoral exposure profiles. Thus, both regulators and commercial banks should take the disadvantage of portfolio diversification into account when encouraging/pursuing a diversified strategy, which must be accompanied by the crucial caveat that the damage is most pronounced for banks with lower shares of non-interest income and less market power.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1891709
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1891709
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1891709
Template-Type: ReDIF-Article 1.0
Author-Name: Zemenu Amare Ayalew
Author-X-Name-First: Zemenu Amare
Author-X-Name-Last: Ayalew
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Capital structure and profitability: Panel data evidence of private banks in Ethiopia
Abstract:
The paper primarily studied the empirical relationship between capital structure, as measured by total and short-term debt ratios, and profitability of private banks in Ethiopia, for the period 2013/14 to 2018/19, using panel fixed effects. A survey of 16 private banks are included in the study. Based on the regression analysis results, capital structure variables and some bank-specific characteristics explain a substantial part of the variations in bank profitability. Higher profitability measures of ROA and net interest margin tend to be associated with relatively higher total and short-term debt ratios, loan to deposit ratios, and credit risks. Besides, older banks are in a better position than younger counterparts in terms of profitability. The impact of size is found to be significantly negative, at least for the ROA model, implying that Ethiopian private banks are operating below their optimal capacity. Mixed results were found pertaining the coefficient estimates of cos–income ratio and employee productivity.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1953736
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1953736
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1953736
Template-Type: ReDIF-Article 1.0
Author-Name: Urvashi Varma
Author-X-Name-First: Urvashi
Author-X-Name-Last: Varma
Author-Name: Raveesh K
Author-X-Name-First: Raveesh
Author-X-Name-Last: K
Author-Name: Alka Munjal
Author-X-Name-First: Alka
Author-X-Name-Last: Munjal
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Determinants of payout choice between open market repurchase, tender offer repurchase and special dividends
Abstract:
The paper aims to identify the variables contributing to special payouts considering open market repurchase, tender offer repurchases, and special dividends. A multinomial logit model has been used to investigate the choice of payout out of 754 payout announcements made between 2004 and 2017 in India. The study investigates agency cost, shareholder heterogeneity, clientele effect, distribution size, misvaluation, and takeover threat. The MNL results suggest that open market repurchase is chosen when the takeover threat is high, firms are significant, or in case of undervaluation of firms. Tender offer repurchase is preferred in high agency cost, high takeover threat, low shareholder heterogeneity, and undervaluation. The study further investigates the nature of ownership in terms of a business group affiliated and standalone firms. The result of the study suggests the nature of ownership impacts the choice of dividend payout choice. Group affiliated firms are driven by clientele effect and distribution size, and in standalone firms’ agency and shareholder heterogeneity holds. The Bayesian approach which is based on the combination of previous information and the current data available is used in the study for MNL. The findings suggest that payout choices of open market repurchase and tender offer repurchase over special dividends are based on misvaluation and shareholder heterogeneity.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1934975
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1934975
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1934975
Template-Type: ReDIF-Article 1.0
Author-Name: Xiuli Ma
Author-X-Name-First: Xiuli
Author-X-Name-Last: Ma
Author-Name: Xindong Zhang
Author-X-Name-First: Xindong
Author-X-Name-Last: Zhang
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: The predictive performance of liquidity risk
Abstract:
This paper assesses the explanatory power of the liquidity-risk-based pricing models relative to the Fama–French three-factor model (FF3) and the extensions to the FF3. We find that the liquidity-augmented capital asset pricing model (LCAPM) performs no worse but generally better than other models considered in describing liquidity risk and a variety of anomaly portfolios. Our finding remains intact relative to the troublesome portfolios related to small, value, and aggressive investment.. This study highlights that liquidity risk is not negligible, which is in contrast to some recent findings that the price-impact-based liquidity risk factor contributes little to explain average returns.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1966194
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1966194
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1966194
Template-Type: ReDIF-Article 1.0
Author-Name: Asif Khan
Author-X-Name-First: Asif
Author-X-Name-Last: Khan
Author-Name: Alam Ahmad
Author-X-Name-First: Alam
Author-X-Name-Last: Ahmad
Author-Name: Saba Shireen
Author-X-Name-First: Saba
Author-X-Name-Last: Shireen
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Ownership and performance of microfinance institutions: Empirical evidences from India
Abstract:
The study examines the efficiency differences across the ownership structure of Indian microfinance institutions (MFIs) operating during the year 2005/06 to 2017/18 in response to regulatory reforms initiated by the Reserve Bank of India (RBI) in the year 2011. We remove the outliers from the dataset first. Thereafter, we employ the bootstrap data envelopment analysis (DEA) to assess the bias-corrected efficiency scores. To identify the performance determinants, we use bootstrap truncated regression. The empirical results suggest that the performance difference between NBFCs and Non-NBFC MFIs is not statistically significant in the sample period. Further, the study finds that the size and ownership structure of MFI has a positive and statistically significant impact on the efficiency level. Although the coefficient of PAR30 (Portfolio at risk, 30 days) is statistically insignificant, however, the results conclude that the deteriorating credit quality has hindered the efficiency level. The Indian MFI industry needs to focus on the adoption of more innovative technology and partnership with FinTech (financial technology) firms to reduce the transaction costs and service time. The RBI essentially endorses the regulatory-sandbox practices to offer micro-financial services to the poor.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1930653
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1930653
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1930653
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Yousaf
Author-X-Name-First: Muhammad
Author-X-Name-Last: Yousaf
Author-Name: Petr Bris
Author-X-Name-First: Petr
Author-X-Name-Last: Bris
Author-Name: Ismat Haider
Author-X-Name-First: Ismat
Author-X-Name-Last: Haider
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Working capital management and firm’s profitability: Evidence from Czech certified firms from the EFQM excellence model
Abstract:
Working capital management (WCM) is one of the most important decisions for all firms. The main components of WCM are days sales outstanding (DSO), days inventory outstanding (DIO), days payable outstanding (DPO), and cash conversion cycle (CCC). Using a sample of 332 Czech firms, including 20 certified firms from the EFQM (European Foundation for Quality Management) Model, the current study explored the effects of the main components of WCM on firms’ profitability. We used two different regression models to test the hypothesis, i.e. pooled regression and maximum likelihood estimation (MLE). The findings of the research revealed all the components of WCM have a negative impact on firm profitability. On the other hand, the interaction terms of the EFQM certified firms with the components of WCM showed a positive impact on firms’ profitability which means that there is a positive relationship between the components of WCM of the certified firms and profitability. However, it is examined that the quality certificate/award from EFQM Excellence Model decreases the firm’s profitability. The outcomes of the current research will be beneficial to academics, managers, leaders, and directors of the firms to improve their firm’s profitability.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1954318
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1954318
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1954318
Template-Type: ReDIF-Article 1.0
Author-Name: Wan Wei
Author-X-Name-First: Wan
Author-X-Name-Last: Wei
Author-Name: Susan Pozo
Author-X-Name-First: Susan
Author-X-Name-Last: Pozo
Author-Name: Evan Lau
Author-X-Name-First: Evan
Author-X-Name-Last: Lau
Title: The effects of conventional and unconventional monetary policy on exchange rate volatility
Abstract:
This paper examines the impacts of U.S. conventional and unconventional monetary policy announcements on the volatility of six exchange rates, namely Australian dollar, British pound, Canadian dollar, Euro, Japanese yen, and Swiss franc against the U.S. dollar. Narrow windows around policy announcements and high frequency second-by-second intraday data are used in the analysis. Results show that the exchange rate volatility increases significantly in the narrow window before and after the announcements under conventional monetary policy regime. The increase in the volatility is even greater during the contemporaneous period under the unconventional regime. Dividing monetary policy announcements into expansionary and non-expansionary groups, we further find that exchange rate volatility responds stronger to the non-expansionary announcements compared to the expansionary ones under the unconventional monetary policy regime.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1997425
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1997425
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1997425
Template-Type: ReDIF-Article 1.0
Author-Name: Dur Almulla
Author-X-Name-First: Dur
Author-X-Name-Last: Almulla
Author-Name: Abdullah A. Aljughaiman
Author-X-Name-First: Abdullah A.
Author-X-Name-Last: Aljughaiman
Author-Name: Vassilios Papavassiliou
Author-X-Name-First: Vassilios
Author-X-Name-Last: Papavassiliou
Title: Does financial technology matter? Evidence from an alternative banking system
Abstract:
The purpose of this study is to examine the impact of the financial technology (fintech) services provided by banks on their performance. We also investigate the influence of fintech firms’ growth (as competitor firms) on banks’ financial performance. We extend our analysis to investigate the differences between conventional banks (CBs) and Islamic banks (IBs) in this relationship and utilise a sample of 40 listed banks from Gulf Cooperation Countries, where fintech growth was impressive in the period 2014–2019. We find a negative relationship between fintech services and bank performance for both types of bank. Furthermore, we show that the growth of fintech firms in a country negatively influences CBs’ financial performance but has no significant impact on IBs’ performance. In addition, we test our hypotheses through multiple additional tests and robustness tests, such as the generalised method of moments. The findings could be relevant to banks, policy makers, and academic research.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1934978
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1934978
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1934978
Template-Type: ReDIF-Article 1.0
Author-Name: Simon Ng’ang’a Mwaura
Author-X-Name-First: Simon Ng’ang’a
Author-X-Name-Last: Mwaura
Author-Name: Isaac Maina Kariuki
Author-X-Name-First: Isaac
Author-X-Name-Last: Maina Kariuki
Author-Name: Simon Kiprop
Author-X-Name-First: Simon
Author-X-Name-Last: Kiprop
Author-Name: Augustus Sammy Muluvi
Author-X-Name-First: Augustus Sammy
Author-X-Name-Last: Muluvi
Author-Name: Gideon Obare
Author-X-Name-First: Gideon
Author-X-Name-Last: Obare
Author-Name: Boniface Kiteme
Author-X-Name-First: Boniface
Author-X-Name-Last: Kiteme
Author-Name: Muhammad Shafiullah
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shafiullah
Title: The impacts of community-based water development projects on rural poverty among small-holder farmers: Evidence from the Ewaso Ng’iro North Catchment Area, Kenya
Abstract:
The main challenge with respect to water in the rural setting, lies in access, control and management. Collective action has been taken up following the International Water Management (IWM) principles and institutionalized in the Kenyan legal framework through water resource users’ associations (WRUAs). We carried out this study to assess whether this collective action has any impact on household poverty using objective poverty measures (consumption and income), a subjective poverty measure and a water poverty measure. We used 2019 household survey data of 652 randomly selected rural households from the Upper Ewaso Ng’iro North Catchment Area. We employed the full information maximum likelihood endogenous probit regression model to obtain the impact of WRUA membership on household poverty status. We find that collective water management can have welfare improving impacts for rural households, especially where there low public investments in water provision, management and access. We recommend that WRUAs be empowered through financial, legal and capacity building interventions to enhance their community impacts.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1882763
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1882763
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1882763
Template-Type: ReDIF-Article 1.0
Author-Name: Daiki Maki
Author-X-Name-First: Daiki
Author-X-Name-Last: Maki
Author-Name: Yasushi Ota
Author-X-Name-First: Yasushi
Author-X-Name-Last: Ota
Author-Name: Xibin Zhang
Author-X-Name-First: Xibin
Author-X-Name-Last: Zhang
Title: Robust tests for ARCH in the presence of a misspecified conditional mean: A comparison of nonparametric approaches
Abstract:
This study compares the size and power of autoregressive conditional heteroskedasticity (ARCH) tests that are robust to the presence of a misspecified conditional mean. The approaches employed are based on two nonparametric regressions for the conditional mean: an ARCH test with a Nadaraya-Watson kernel regression and an ARCH test using a polynomial approximation regression. The two approaches do not require the specification of a conditional mean and can adapt to various nonlinear models, which are unknown a priori. The results reveal that the ARCH tests are robust to the misspecfied conditional mean models. The simulation results show that the ARCH tests based on the polynomial approximation regression approach have better properties of the size and power than those using the Nadaraya-Watson kernel regression approach for various nonlinear models.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2020.1862445
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1862445
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1862445
Template-Type: ReDIF-Article 1.0
Author-Name: Hiroki Iwamoto
Author-X-Name-First: Hiroki
Author-X-Name-Last: Iwamoto
Author-Name: Hideo Suzuki
Author-X-Name-First: Hideo
Author-X-Name-Last: Suzuki
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Evaluation of personnel-adjusted added value: Estimating its relationship with future profit in Japan
Abstract:
Personnel-adjusted added value (PAV) is an index to measure human resource management for internal purposes. In this study, the possibilities and limitations of PAV using external estimates are investigated. To measure the effectiveness of PAV, it is compared with the general added value. This proves the effect of the personnel adjustment. The relationship between future performance and PAV (and added value), including other control variables, are statistically analysed by hierarchical linear modelling. The essence of PAV is to separate the basic labour costs from the company-specific personnel costs. To calculate PAV from outside an enterprise, the basic labour costs should be estimated. For this purpose, in addition to financial data, this study uses survey data on recruitment and employment in Japan. Statistical analysis is applied to the 2008–2016 longitudinal company data of 569 Japanese companies. We find that PAV, a management indicator that includes the adequacy of human resource management, is a useful factor related to future performance.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1954764
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1954764
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1954764
Template-Type: ReDIF-Article 1.0
Author-Name: Marcin Potrykus
Author-X-Name-First: Marcin
Author-X-Name-Last: Potrykus
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: The share of investments in gold and oil using the example of selected European stock exchanges– A comparative analysis
Abstract:
In this article, optimal investment portfolios with minimal risk and maximum efficiency were calculated. The portfolios were designated for ten selected European stock exchanges, based on the listings of the twenty largest companies in each of those markets. All calculations were made based on company shares only, company shares and investments in gold, shares of companies and investments in crude oil as well as shares of companies and investments in gold and crude oil. The research hypothesis tested in the study is: The share of alternative investments in the investment portfolio does not depend on the stock exchange, but it differs depending on the length of the estimation window used. The study showed that for most exchanges there were statistically significant differences for the distribution of the determined weight for alternative investments. However, it was noted that the longer the estimation window, the greater the number of exchanges with no differences in the distributions of that weight. In addition, for portfolios with minimal risk, there were larger differences between the designated weights of alternative investments than for the same portfolios, which were determined based on maximizing efficiency. It was also found that the longer the estimation window, the higher the efficiency of the designated portfolios. Moreover, the investment in gold had an average weight, in four-element portfolios with a minimum risk, greater than 60%. Oil investment in the same portfolios had an average weight of 28%.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1929679
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1929679
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1929679
Template-Type: ReDIF-Article 1.0
Author-Name: Linh Duy Bui
Author-X-Name-First: Linh
Author-X-Name-Last: Duy Bui
Author-Name: Trung Chi Le
Author-X-Name-First: Trung
Author-X-Name-Last: Chi Le
Author-Name: Anh Huynh Ngoc Quang
Author-X-Name-First: Anh Huynh
Author-X-Name-Last: Ngoc Quang
Author-Name: Wing-Keung Wong
Author-X-Name-First: Wing-Keung
Author-X-Name-Last: Wong
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Determinants of the possibilities by investors’ risk-taking: Empirical evidence from Vietnam
Abstract:
This paper focuses on determining the factors influencing investors’ risk-taking through empirical evidence from Vietnam. This study investigates risk perception, expected return and herding behavior, and other determinants such as historical volatility and subjective financial risk attitude; according to previous studies, these are the main components affecting risk-taking behavior among investors. Overconfidence (better than average, miscalibration, and excessive optimism) is also taken into consideration. We employ pooled-OLS and quantile regression to overcome the shortage of research models in this field. In addition, we demonstrate how risk-taking behavior can be affected by those factors with the application of measures across four different investment channels. This study suggests implications for investors who wish to control risk.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1917106
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1917106
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1917106
Template-Type: ReDIF-Article 1.0
Author-Name: Sayantan Kundu
Author-X-Name-First: Sayantan
Author-X-Name-Last: Kundu
Author-Name: Aditya Banerjee
Author-X-Name-First: Aditya
Author-X-Name-Last: Banerjee
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Predictability of earnings and its impact on stock returns: Evidence from India
Abstract:
The purpose of this paper is to analyse the predictability of earnings information before the quarterly disclosure date. Two categories of firms are contrasted: the firms that announce better quarterly earnings than the prior period and the firms that do not. The paper uses a sample of 67 large-cap Indian stocks over 33 quarters from 2010 to 2018. Panel data estimation with fixed and random effects is applied to examine the impact of quarterly earnings announcements on stock returns. Results show that all stocks experience return premiums in the pre-announcement period, which is already documented in the literature. The paper adds to the literature by finding that the firms that report better earnings numbers than the previous period generate significantly higher stock returns. It is inferred that the market can anticipate whether the firm will announce better earnings than the prior period. The paper shows that changes in revenue and core earnings are better anticipated. Post-announcement, stock prices adjust to reflect the disclosed earnings information, and only non-performers experience a drop in stock prices. It is the first comprehensive study of liquid large-cap Indian stocks that provides evidence on the behaviour of stock returns around earnings announcements.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1898112
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1898112
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1898112
Template-Type: ReDIF-Article 1.0
Author-Name: Akingbade U. Aimola
Author-X-Name-First: Akingbade U.
Author-X-Name-Last: Aimola
Author-Name: Nicholas M. Odhiambo
Author-X-Name-First: Nicholas M.
Author-X-Name-Last: Odhiambo
Author-Name: Christian Nsiah
Author-X-Name-First: Christian
Author-X-Name-Last: Nsiah
Title: Public debt and inflation nexus in Nigeria: An ARDL bounds test approach
Abstract:
Inflationary tendencies of public debt have been the cause of an unsettling debate among policymakers in Nigeria. Using the autoregressive distributed lag (ARDL) framework, this study attempts to investigate the impact of total public debt on inflation in Nigeria for the period 1983–2018. The cointegrating regression results reveal evidence of a stable long-run relationship among inflation, total public debt, money supply, interest rate, economic growth, trade openness, and private investment in the presence of structural breaks. Empirical results show that the impact of public debt on inflation is statistically insignificant, irrespective of whether the regression was in the short or the long run. Hence, the study concludes that inflation in Nigeria could be driven by other factors other than public debt.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1921905
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1921905
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1921905
Template-Type: ReDIF-Article 1.0
Author-Name: Tough Chinoda
Author-X-Name-First: Tough
Author-X-Name-Last: Chinoda
Author-Name: Tafirei Mashamba
Author-X-Name-First: Tafirei
Author-X-Name-Last: Mashamba
Author-Name: Andrew Vivian
Author-X-Name-First: Andrew
Author-X-Name-Last: Vivian
Title: Fintech, financial inclusion and income inequality nexus in Africa
Abstract:
Financial institutions play a pivotal role in the efficient allocation of capital resources. However, some households and firms may be excluded from formal financial markets due to asymmetric information and market imperfections, thereby adversely affecting equitable income distribution. On the other hand, among other things, access to finance is viewed as one of the key tools to fight poverty. This study develops a novel double FFI Model and applies the structural equation modelling to simultaneously analyze the interaction between financial technology, financial inclusion, and income inequality in a panel of 25 African countries over the periods 2011, 2014, and 2017. The results show that financial inclusion mediates the financial technology-income inequality relationship thus playing a fundamental role in reducing income inequality in Africa. On the policy front, the study urges African policymakers and regulators to craft policies that enhance Fintech developments and financial inclusion.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1986926
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1986926
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1986926
Template-Type: ReDIF-Article 1.0
Author-Name: Bac Truong Cong
Author-X-Name-First: Bac
Author-X-Name-Last: Truong Cong
Author-Name: Wai Ching Poon
Author-X-Name-First: Wai Ching
Author-X-Name-Last: Poon
Title: The impact of metropolises’ characteristics on provincial economic structure transformation: evidence from Vietnam
Abstract:
Economic structure transformation is widely recognized as a crucial role in sustainable development. However, the existing literature almost focused on the change inside certain economic areas and ignored the external relationship. This raises the question about the role of factors outside in economic structure transformation at the prefecture-level. This paper takes Vietnam as the study area to fill this gap and examines the impact of metropolis’s characteristics on the provinces’ economic structural transformation. Using data of provincial economic structure from 2015 to 2018 collected from the General Statistics Office of Vietnam, the econometric analysis with instrument variables for panel data is performed. The results show that metropolises play an important role in the economic structure change of provinces through certain roles: destination of migration and start-point of remittances, the market for goods and services, hubs of information and knowledge.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1937849
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1937849
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1937849
Template-Type: ReDIF-Article 1.0
Author-Name: Garima Sisodia
Author-X-Name-First: Garima
Author-X-Name-Last: Sisodia
Author-Name: Nemiraja Jadiyappa
Author-X-Name-First: Nemiraja
Author-X-Name-Last: Jadiyappa
Author-Name: Anto Joseph
Author-X-Name-First: Anto
Author-X-Name-Last: Joseph
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: The relationship between human capital and firm value: Evidence from Indian firms
Abstract:
The purpose of this paper is to investigate whether human capital affects firm value by following a positive methodological approach. According to the classical theory of economic growth, the output of a country depends on its human and physical capital. At the micro-level, the same theory holds true for firm output. Thus, the human capital of a firm should play a significant role in firm performance and therefore firm valuation. Our results show a positive relationship between human capital and firm value. Human capital creates value; first, by better utilization of current growth opportunities; second, by creating future growth opportunities, and lastly, by reducing the volatility associated with the firm growth rate. Also, we test the size effect on the relationship between human capital and firm value and do not find any differential impact.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1954317
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1954317
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1954317
Template-Type: ReDIF-Article 1.0
Author-Name: Munacinga Simatele
Author-X-Name-First: Munacinga
Author-X-Name-Last: Simatele
Author-Name: Edson Mbedzi
Author-X-Name-First: Edson
Author-X-Name-Last: Mbedzi
Author-Name: Robert Read
Author-X-Name-First: Robert
Author-X-Name-Last: Read
Title: Consumer payment choices, costs, and risks: Evidence from Zimbabwe
Abstract:
Very little is known about payment choices in the African context and in developing countries in general. Their unique infrastructures and economic nuances suggest that both the availability of instruments and supporting structures in the payment system are different from the general perception. This exploratory study investigates the payment choices in Zimbabwe, a country that claims the existence of a near cashless society. Through a descriptive and logit analysis based on survey data, we find that a strong preference for cash, coupled with cash shortages and inadequate infrastructure for electronic payments, has resulted in a multitiered pricing system, with significant premiums for digital payments. This perverse effect counters the heavily lauded benefits of mobile payments in developing countries. We argue that the demand-side bias in government policies will not effectively counter persistent currency failures and the resultant inflation, both of which have a strong influence on payment choices. We recommend that the government should consider polices that will reduce merchant adoption costs to encourage widespread use of digital payment instruments, such as debit cards.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1875564
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1875564
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1875564
Template-Type: ReDIF-Article 1.0
Author-Name: Adjei Gyamfi Gyimah
Author-X-Name-First: Adjei
Author-X-Name-Last: Gyamfi Gyimah
Author-Name: Bismark Addai
Author-X-Name-First: Bismark
Author-X-Name-Last: Addai
Author-Name: George Kwasi Asamoah
Author-X-Name-First: George Kwasi
Author-X-Name-Last: Asamoah
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Macroeconomic determinants of mutual funds performance in Ghana
Abstract:
This study examines the impact of key macroeconomic variables on mutual funds’ financial performance in Ghana. We employ the Pooled Mean Group (PMG) estimation of the Autoregressive Distributed Lag (ARDL) model to analyze the macroeconomic determinants of mutual funds in Ghana for the period 2007–2016. The study documents homogenous long-run significant positive impacts of exchange rate, inflation, T-Bill, GDP growth on mutual funds’ financial performance, and a homogeneous long-run negative significant impact of monetary policy rate on the financial performance of mutual funds. The study also establishes heterogeneous short-run respective significant negative and positive impacts of T-Bill and monetary policy on mutual fund’s financial performance. Unlike many previous studies that used stock data to estimate mutual funds’ performance, accounting data is used in this study. Second, we incorporate monetary policy rate in our study variables since most of the prior studies ignored that variable. Finally, the outcome of our study contributes to existing knowledge on the short-run and long-run effects of macroeconomic variables on the financial performance of mutual funds from the perspectives of a developing country.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1913876
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1913876
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1913876
Template-Type: ReDIF-Article 1.0
Author-Name: Brian Tavonga Mazorodze
Author-X-Name-First: Brian Tavonga
Author-X-Name-Last: Mazorodze
Author-Name: Christian Nsiah
Author-X-Name-First: Christian
Author-X-Name-Last: Nsiah
Title: Trade and wage disparities in South Africa
Abstract:
Literature on trade and wage disparities has gained prominence since the mid-90s following the push for trade liberalization across the globe. Despite the 26 years of empirical research, however, questions of whether trade closes or widens the wage gap remain relevant today, particularly in countries such as South Africa where income inequality remains a persistent policy concern. Against this background, this paper contributes to the literature by examining the effect of trade on relative wages between skilled and low-skilled workers in South Africa using a local municipality-level dataset observed between 1995 and 2019. Results from the system GMM estimator confirm that trade has had a positive and non-trivial effect on wage disparities in the past two decades. When decomposed into exports and imports, it is the latter that appears to have added a relatively large wage premium on skilled workers at the expense of low-skilled workers. This result is crucial in designing both trade and industrial policies. In particular, it brings to the fore the need for targeted interventions that protect low-skilled workers. Such interventions may include programs for skills upgrade and trade protectionist policies in low-skill labour-intensive industries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1915516
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1915516
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1915516
Template-Type: ReDIF-Article 1.0
Author-Name: M Rasbin
Author-X-Name-First: M
Author-X-Name-Last: Rasbin
Author-Name: Mohamad Ikhsan
Author-X-Name-First: Mohamad
Author-X-Name-Last: Ikhsan
Author-Name: Beta Y. Gitaharies
Author-X-Name-First: Beta
Author-X-Name-Last: Y. Gitaharies
Author-Name: Yoga Affandi
Author-X-Name-First: Yoga
Author-X-Name-Last: Affandi
Author-Name: Evan Lau
Author-X-Name-First: Evan
Author-X-Name-Last: Lau
Title: Real exchange rate undervaluation and Indonesia’s manufacturing exports
Abstract:
This study analyzes the impact of real exchange rate undervaluation on Indonesia’s manufacturing exports in 22 manufacturing industries throughout 1990–2015. The study was undertaken by modifying a partial equilibrium model of monopolistic competition for exporting firms and using the augmented mean group (AMG) method. This study confirms that the real exchange rate, both misalignment and changes in levels (depreciation/appreciation), are insignificant in affecting Indonesia’s manufacturing exports. In addition, this study finds that manufactured exports are significantly determined by the manufactured exports in the previous period, real interest rates, real wages, labor productivity, and firm growth. This finding indicates that the exchange rate manipulation policy is not an important factor in strengthening the competitiveness of Indonesia’s manufacturing exports. We suggest policies that play more important roles in driving manufacturing exports are creating a competitive and conducive business climate, lowering domestic interest rates, and reforming the labor system.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1930880
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1930880
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1930880
Template-Type: ReDIF-Article 1.0
Author-Name: Sheng Xu
Author-X-Name-First: Sheng
Author-X-Name-Last: Xu
Author-Name: Michael Asiedu
Author-X-Name-First: Michael
Author-X-Name-Last: Asiedu
Author-Name: Gabriel Kyeremeh
Author-X-Name-First: Gabriel
Author-X-Name-Last: Kyeremeh
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Firm productivity, innovation, and financial development
Abstract:
This study utilizes firm-level data from the World Bank’s Enterprise Survey Indicator Database, conducted between 2009 and 2018 for 32 countries in Africa, to examine the causal relationship between firm productivity, innovation, and financial development. We show evidence that firm innovation significantly and positively affects firm productivity. We also show the mediating role of well-developed financial markets on productivity. In a well-developed financial market, the impact of firm innovation is significant through the facilitation and financing of innovation activities; and innovative firms to boost productivity and lower production costs. These findings are significant for countries in Africa (and other less-developed countries) who spend less on R&D but can adopt or imitate existing innovative ideas from technology-rich countries for accelerated economic growth and increased productivity.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1976359
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1976359
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1976359
Template-Type: ReDIF-Article 1.0
Author-Name: Isaac Doku
Author-X-Name-First: Isaac
Author-X-Name-Last: Doku
Author-Name: Ronney Ncwadi
Author-X-Name-First: Ronney
Author-X-Name-Last: Ncwadi
Author-Name: Andrew Phiri
Author-X-Name-First: Andrew
Author-X-Name-Last: Phiri
Author-Name: Salvatore Ercolano
Author-X-Name-First: Salvatore
Author-X-Name-Last: Ercolano
Title: Examining the role of climate finance in the Environmental Kuznets Curve for Sub-Sahara African countries
Abstract:
The purpose of this study is to examine the impact of climate finance on pollutant emissions (CO2, CH4 and N2O) for a sample of 19 Sub-Sahara Africa (SSA) countries over the period 2006 to 2017. Our study augments the traditional Environmental Kuznets Curve (EKC) with climate finance and our findings affirm the existence of an inverted U-shaped relationship between per capita income and emissions (i.e. traditional EKC) as well as between climate finance and emissions (Climate finance-induced EKC). We particularly compute turning points of $3,690 (CO2); $5,710 (CH4) and $6,420 (N2O) for per capita GDP levels and $910 million (CO2), $1.2 billion (CH4) and $1. 6 billion (N2O) for climate finance funds. These turning points are above the current averages observed for the SSA countries hence implying that these African countries are not developed enough and neither receive sufficient climate funding to address the challenges arising from climate change.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1965357
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1965357
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1965357
Template-Type: ReDIF-Article 1.0
Author-Name: Maurice Omane-Adjepong
Author-X-Name-First: Maurice
Author-X-Name-Last: Omane-Adjepong
Author-Name: Imhotep Paul Alagidede
Author-X-Name-First: Imhotep
Author-X-Name-Last: Paul Alagidede
Author-Name: Anna Gustav Lyimo
Author-X-Name-First: Anna Gustav
Author-X-Name-Last: Lyimo
Author-Name: George Tweneboah
Author-X-Name-First: George
Author-X-Name-Last: Tweneboah
Author-Name: Mohammed M Elgammal
Author-X-Name-First: Mohammed M
Author-X-Name-Last: Elgammal
Title: Herding behaviour in cryptocurrency and emerging financial markets
Abstract:
The letter examines herding in the most liquid cryptocurrency markets relative to traditional financial markets of 10 emerging economies within the G20. Our results reference significant symmetric crowd and imitation trading, which are dependent on time. Additionally, we report asymmetric herd behaviour in the cryptocurrency and stock markets, indicative that traders of these markets react collectively to extreme return movement with implied high risk and consequences for market informational efficiency.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1933681
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1933681
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1933681
Template-Type: ReDIF-Article 1.0
Author-Name: Ayse Y. Evrensel
Author-X-Name-First: Ayse Y.
Author-X-Name-Last: Evrensel
Author-Name: Wai Ching Poon
Author-X-Name-First: Wai Ching
Author-X-Name-Last: Poon
Title: Are constitutional characteristics a proxy for institutional quality? Evidence from 109 countries
Abstract:
The paper investigates the question whether constitutions are a proxy for institutional quality. It provides a discussion of institutions and states that constitutions are an example of a formal institution. As any other formal institution, constitutions are also influenced by countries’ informal institutions, including customs and belief systems. The novel content analysis goes beyond the often-used constitutional characteristics of government systems and electoral rules. In addition to the mentioned characteristics, the length, the number of revisions, and over 30 additional characteristics are coded for 109 constitutions, such as state religion and religious freedom as well as referring to state as mother, father or holy. Based on the content analysis, alternative constitutional scores are calculated. Statistically significant correlations are observed between measures of institutional quality such as corruption control and some of the constitutional scores. Based on the two widely-used economic development models, the OLS and two-stage least squares estimations are conducted with and without the institutional quality-related variables, where in the latter case the institutional quality-related variables are replaced by constitutional scores. Especially in two-stage least squares estimations, constitutional scores that emphasize the length, mention state religion, and refer to state as mother, father or holy statistically significantly and negatively affect income per capita. These findings point out to possible limitations to change that is aimed by constitutional revisions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1911909
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1911909
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1911909
Template-Type: ReDIF-Article 1.0
Author-Name: Massoud Metghalchi
Author-X-Name-First: Massoud
Author-X-Name-Last: Metghalchi
Author-Name: John Kagochi
Author-X-Name-First: John
Author-X-Name-Last: Kagochi
Author-Name: Linda Hayes
Author-X-Name-First: Linda
Author-X-Name-Last: Hayes
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: A technical approach to equity investing in South Africa: A tale of two indexes
Abstract:
This research uses Simple Moving Averages and four other well-known indicators to investigate the usefulness of the Technical Analysis approach to the Johannesburg stock exchange (JSE) in South Africa. Technical indicators are applied to two JSE indexes representing large cap and small cap companies over the period of 1/2/2002 to 12/31/18. The best trading rules for both the Small Cap and All Share indexes involve the use of two simple moving averages. For the Small Cap Index, our best two trading rules and a low-risk strategy have positive annual net excess return over the Buy and Hold (B&H) strategy for the entire period and each sub-period, thus trading rules can beat the B&H strategy. However, we cannot say the same for the All Share Index (representing large cap companies).
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2020.1869374
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1869374
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1869374
Template-Type: ReDIF-Article 1.0
Author-Name: Yaya Keho
Author-X-Name-First: Yaya
Author-X-Name-Last: Keho
Author-Name: Robert Read
Author-X-Name-First: Robert
Author-X-Name-Last: Read
Title: Determinants of Trade Balance in West African Economic and Monetary Union (WAEMU): Evidence from heterogeneous panel analysis
Abstract:
This study investigates the determinants of the trade balance in West African and Monetary Union (WAEMU) over the period 1975–2017. We employ the Mean Group (MG) estimator along with the grouped mean version of Dynamic OLS (DOLS) and Fully Modified OLS (FMOLS) to deal with both endogeneity and cross-country heterogeneity. The results reveal that the trade balance is negatively related to domestic and foreign income whereas real effective exchange rate depreciation improves the trade balance in the long-run. However, the results do not confirm the short-run worsening of trade balance suggested by the J-curve. In the short-run, the trade balance is sensitive only to foreign real income but not to domestic income and real exchange rate. The country-level estimates show heterogeneity in the response of the trade balance to real exchange rate, domestic and foreign income. Overall, the findings of this study suggest that policies aimed at improving the trade balance should focus on the domestic production of imported goods, rather than devaluation.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1970870
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1970870
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1970870
Template-Type: ReDIF-Article 1.0
Author-Name: Isaiah Kiprono Byegon
Author-X-Name-First: Isaiah Kiprono
Author-X-Name-Last: Byegon
Author-Name: Jane Kabubo-Mariara
Author-X-Name-First: Jane
Author-X-Name-Last: Kabubo-Mariara
Author-Name: Anthony Wambugu
Author-X-Name-First: Anthony
Author-X-Name-Last: Wambugu
Author-Name: Christian Nsiah
Author-X-Name-First: Christian
Author-X-Name-Last: Nsiah
Title: The link between socio-economic factors and multiple child deprivations in Kenya
Abstract:
This paper analyzes the socio-economic correlates of multiple child deprivations in Kenya using the 1993–2014 KDHS. Conventionally, child well-being is examined from the perspective of income poverty. However, numerous studies have argued that income is just one of the defining characteristics of poverty. Furthermore, examining child well-being only through monetary lens risk leaving behind millions of children because children are not economic agents. Despite global recognition of the importance of having a comprehensive measure of child well-being, there is a dearth of literature on multiple child deprivations. This study utilized data on seven child-specific dimensions of well-being. First, we counted the number of dimensions each child was deprived and then ranked them from those who were not deprived to those who are deprived in four or more dimensions. Second, we examined the distribution of multiple child deprivations by various characteristics. Finally, we investigated factors associated with multiple child deprivations using an ordered logit regression model. The results reveal that rural children, male children and children living in households without access to electricity and under female headship, on average, suffer higher incidence of multiple deprivations than their counterparts. Children with higher birth orders, twins and from rural residence had higher probability of suffering multiple deprivations while higher maternal education, employment of the respondent were associated with lower chances of a child suffering multiple deprivations. The findings of the study suggest the need for integrated policies targeting multiple forms of deprivation and strategies to ensure access to public services in remote areas.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1938378
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1938378
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1938378
Template-Type: ReDIF-Article 1.0
Author-Name: Mohamed Idris Somoebwana
Author-X-Name-First: Mohamed Idris
Author-X-Name-Last: Somoebwana
Author-Name: Oscar Ingasia Ayuya
Author-X-Name-First: Oscar Ingasia
Author-X-Name-Last: Ayuya
Author-Name: John Momanyi Mironga
Author-X-Name-First: John Momanyi
Author-X-Name-Last: Mironga
Author-Name: Muhammad Shafiullah
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shafiullah
Title: Drivers of marine fishery dependence: Micro-level evidence from the coastal lowlands of Kenya
Abstract:
Poverty and inequality remain a development challenge for most fishery-dependent households. This has prompted the current interest in the ocean-based economic model as Kenya became the first to host a global conference on the sustainable blue economy which was held in Nairobi in November 2018. To provide a more comprehensive understanding of the challenges surrounding the blue economy approach, we used a fractional response model to analyze drivers of marine fishery dependence. Our case study, involving 384 randomly selected households from Coastal lowlands of Kenya, specifically Kilifi County, revealed that marine fishery is the highest livelihood option exhibiting gender differences. The livelihood participation rates were approximately 68%, 36%, 31%, 25%, and 9% for marine fishery and related activities, agriculture, self-employment (excluding agriculture and marine fishery), wage employment, and remittances respectively. Many livelihood options were pursued independently implying a low level of diversified livelihood strategies in the region. The analysis of the determinants of the marine fishery dependence indicated that education level, agricultural productive assets, access to credit, group membership, security of tenure, flood shock, and fish price shock significantly influenced marine fishery dependence. The study therefore recommends government intervention in marine governance and development programs such as infrastructural development, capital availability and extension services. This will enable the dependent households to diversify to alternative livelihood options and contributes to sustainable marine fishery dependence.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1944967
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1944967
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1944967
Template-Type: ReDIF-Article 1.0
Author-Name: Dwi Martani
Author-X-Name-First: Dwi
Author-X-Name-Last: Martani
Author-Name: Nur Aulia Rahmah
Author-X-Name-First: Nur Aulia
Author-X-Name-Last: Rahmah
Author-Name: Fitriany Fitriany
Author-X-Name-First: Fitriany
Author-X-Name-Last: Fitriany
Author-Name: Viska Anggraita
Author-X-Name-First: Viska
Author-X-Name-Last: Anggraita
Author-Name: Zhaojun Yang
Author-X-Name-First: Zhaojun
Author-X-Name-Last: Yang
Title: Impact of audit tenure and audit rotation on the audit quality: Big 4 vs non big 4
Abstract:
This paper examines the effect of audit tenure and audit rotation on audit quality. This study also examines whether this effect of the rotation is different between the Big 4 and non-Big 4 audit firm. This research was conducted in Indonesia, which is one of the few countries that not only implementing audit partner rotation but also mandatory audit firm rotation. However, in 2015, the mandatory audit firm rotation in Indonesia was abolished. The results show that the relationship between the tenure of auditor and audit quality is not significant. Audit firm rotation positively impacts audit quality, and the positive impact is lower in Big 4. In non-Big 4, audit partner rotation has no effect on audit quality, but audit firm rotation could improve audit quality. Meanwhile, in Big 4, audit partner rotation is sufficient to improve audit quality because they have sufficient partners to perform a quality review.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1901395
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1901395
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1901395
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Author-Name: Chirongo Moses Keregero
Author-X-Name-First: Chirongo Moses
Author-X-Name-Last: Keregero
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: A theoretical framework for simulating systemic risk and its application to analysis of the banking system
Abstract:
Risk of basic defaults and contagious defaults are two main sources of bank systemic risk. In this paper, a theoretical framework is proposed to classify the time evolution of the basic defaults and contagious defaults using sequences of daily financial data. The new theoretical framework combines an existing asset value estimation algorithm and obligation clearing algorithm to calculate the time evolution of systemic risk. The asset value estimation algorithm is used to estimate the asset values of the banks each day and the obligation clearing algorithm is used to calculate systemic risk given the tuples of data each day. This framework is applied to assess the systemic risk of the Nigerian banking system between 2008 and 2014 when the economy was hit by the financial meltdown. The main findings depict that the risk of the basic defaults was high during this period while contagious default seldom appeared. It is also found that the Nigerian banking system was more stable in 2010 and 2012 than in other years, while it was seriously unstable in 2008, 2011, and 2014. The findings would assist in monitoring systemic risk in the Nigerian banking system.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1986930
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1986930
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1986930
Template-Type: ReDIF-Article 1.0
Author-Name: Khaled Batayneh
Author-X-Name-First: Khaled
Author-X-Name-Last: Batayneh
Author-Name: Wasfi Al Salamat
Author-X-Name-First: Wasfi
Author-X-Name-Last: Al Salamat
Author-Name: Mohammad Q.M. Momani
Author-X-Name-First: Mohammad Q.M.
Author-X-Name-Last: Momani
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: The impact of inflation on the financial sector development: Empirical evidence from Jordan
Abstract:
In any economy, the financial sector plays a fundamentally important role in achieving economic growth and thus achieving sustainable economic development. Therefore, interest in this sector and the improvement of its performance is considered a strategic goal for any country. Accordingly, this study aims to analyze the short- and long-run impacts of inflation on the development of this sector on the Jordanian economy for the period from 1993 to 2018. To do so, the study uses an auto-regressive distributed lag bound testing approach, which is considered an advanced analytical model. Empirical findings confirmed that there is a statistically significant long- and short-run negative effect of inflation on financial sector development. On the contrary, there is a statistical significant long- and short-run positive impact of economic growth on financial sector performance. In addition, results confirmed that there is a positive support of the previous financial sector policies on financial sector performance in the current period.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1970869
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1970869
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1970869
Template-Type: ReDIF-Article 1.0
Author-Name: Fe Doukouré Charles
Author-X-Name-First: Fe Doukouré
Author-X-Name-Last: Charles
Author-Name: Evan Lau
Author-X-Name-First: Evan
Author-X-Name-Last: Lau
Title: African continental free trade area: Is there a trade potential for Côte d’Ivoire?
Abstract:
Many studies present the African Continental Free Trade Area (AfCFTA) as one of Africa’s most new trade issues. Previous assessments show that this AfCFTA will catalyze Intra African trade. The cumulative impact on Côte d’Ivoire’s exports in the long term is positive for other African countries without indicating potential partners. This study seeks to identify a potential partner to help policymakers to map out a better strategy. We use exports data from 2001 to 2016 on 45 African countries, and we compute an index to assess the gap. When asked if there are potential customers on the continent for Côte d’Ivoire from the perspective of the AfCFTA, it appears that yes. The results reveal great trade potentials for Côte d’Ivoire in Africa, at least in 25 countries. Among them, there are 8 Economic Community of West African States (ECOWAS) countries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1915932
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1915932
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1915932
Template-Type: ReDIF-Article 1.0
Author-Name: John-Morgan Bezuidenhout
Author-X-Name-First: John-Morgan
Author-X-Name-Last: Bezuidenhout
Author-Name: Gary van Vuuren
Author-X-Name-First: Gary
Author-X-Name-Last: van Vuuren
Author-Name: Yudhvir Seetharam
Author-X-Name-First: Yudhvir
Author-X-Name-Last: Seetharam
Title: Spectral analysis and the death of value investing
Abstract:
This study explores the redundancy of the value premium by conducting a Fourier analysis. The results illustrate periodicity in the value premium and merges the Adaptive Market Hypothesis with the Efficient Market hypothesis. The value premium is considered to be redundant due to structural economic changes, persistently low global interest rates and value investing’s underperformance relative to growth investment strategies. The Adaptive Market Hypothesis suggests that market efficiencies vary over time as risk and behavioral biases change with market conditions. We conducted a Fourier analysis and found a three-month cycle, a six-month cycle and a 10-year cycle in the value premium. The Fourier analysis illustrates the predictability of the value premium and the study explains the short-term cyclicality as behavioral biases. Furthermore, the longer cycles are better explained by rational asset pricing, perceived market risks and market efficiency. Historic value factor returns were sourced from value portfolios that were constructed by their rankings associated with their book to market ratios. Additionally, a combination portfolio of value and momentum was formed including returns from portfolios ranked on past price performances to value portfolios. The combination portfolio held an equal weighting in value and momentum.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1988380
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1988380
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1988380
Template-Type: ReDIF-Article 1.0
Author-Name: Carol Cheong
Author-X-Name-First: Carol
Author-X-Name-Last: Cheong
Author-Name: Huy Viet Hoang
Author-X-Name-First: Huy Viet
Author-X-Name-Last: Hoang
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Macroeconomic factors or firm-specific factors? An examination of the impact on corporate profitability before, during and after the global financial crisis
Abstract:
The purpose of this paper is to examine the impact of macroeconomic variables and firm-specific factors on corporate profitability in Singapore and Hong Kong before, during and after the global financial crisis. This paper uses the two-step system Generalized Method of Moments to examine the impact of macroeconomic and firm-specific factors on corporate profitability. The model includes firm-specific factors (firm size, leverage, liquidity, sales growth and previous year’s profitability) and macroeconomic factors (real GDP growth and inflation rate). Corporate profitability is represented by ROA, ROE and Tobin’s Q. Results from the pooled sample showed that past profitability, firm size and leverage have a strong relationship with firm performance. Our pooled sample results also showed that Hong Kong firms are more affected by macroeconomic factors during the global financial crisis than Singapore firms. Our study provides insights into the relationship between firm-specific factors, macroeconomic factors and firm performance under three different economic periods in two developed economies in the Asia-Pacific.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1959703
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1959703
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1959703
Template-Type: ReDIF-Article 1.0
Author-Name: Sayyed Mahdi Ziaei
Author-X-Name-First: Sayyed Mahdi
Author-X-Name-Last: Ziaei
Author-Name: Issa Ali
Author-X-Name-First: Issa
Author-X-Name-Last: Ali
Author-Name: Francesco Tajani
Author-X-Name-First: Francesco
Author-X-Name-Last: Tajani
Title: Commodity exports and macroeconomic performance: The case of palm oil in Malaysia
Abstract:
The objective of this paper is to contribute towards understanding the effects of palm oil production upon key macroeconomic variables in Malaysian economy. A dynamic general equilibrium model was employed in order to analyze the dynamic macroeconomic adjustment processes arising from palm oil production increase for Malaysian economy (the second biggest palm oil producer in world), operating under a managed float exchange rate regime. The model utilized in this paper is likely to be of interest to other palm oil-exporting economies with similar features such as that of Indonesia. Findings from this paper show that an increase in palm oil production would potentially result in an increase in private capital stock, private sector wealth, real income, public capital stock, human capital stock and non-palm oil output supply and demand. However, the revenue arising from the palm oil sector also has the potential to deteriorate the non-palm-oil trade balance through a slight loss of competitiveness from a real exchange rate appreciation.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1901388
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1901388
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1901388
Template-Type: ReDIF-Article 1.0
Author-Name: Bahrawar Said
Author-X-Name-First: Bahrawar
Author-X-Name-Last: Said
Author-Name: Shafiq Ur Rehman
Author-X-Name-First: Shafiq Ur
Author-X-Name-Last: Rehman
Author-Name: Rizwan Ullah
Author-X-Name-First: Rizwan
Author-X-Name-Last: Ullah
Author-Name: Javed Khan
Author-X-Name-First: Javed
Author-X-Name-Last: Khan
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Investor overreaction and global financial crisis: A case of Pakistan stock exchange
Abstract:
Recently, the investor overreaction catches the attention of the academicians and practitioners. The topic comes under the limelight of academicians and policymakers. This study, therefore, addresses investor overreaction and its relationship with the global financial crisis for the period of 2004–15. The study used stratified random sampling technique; equal allocation method of Krejcie and Morgan. By adopting the methodology of Debondt and Thaler, the study finds that there is highly significant overreaction (distinct reversal) in the stock market in the global-financial crisis period, which may attribute to the aggressive behavior of individual investors in the market. Overreaction has also been shown in the line graph shaded area which opposes the efficient market hypothesis and verifies the presence of a weak form of efficiency. Econometric tests are applied for robustness check that confirms weak form of efficiency in the PSX. The study has implications for both the investors and policymakers. This study is quintessential for those investors who have the aptitude to look introspectively and to evaluate their behavioral biases. Further, investors would learn to transmute behaviors and to build portfolios which will help them to stick to their long-term investment strategies and hence achieve their investment goals.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1966195
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1966195
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1966195
Template-Type: ReDIF-Article 1.0
Author-Name: Bashier Al-Abdulrazag
Author-X-Name-First: Bashier
Author-X-Name-Last: Al-Abdulrazag
Author-Name: Walid Mensi
Author-X-Name-First: Walid
Author-X-Name-Last: Mensi
Title: The optimal government size in the kingdom of Saudi Arabia: an ARDL bounds testing approach to cointegration
Abstract:
This study attempts to estimate the optimum government size in the kingdom of Saudi Arabia (KSA) using annual data covering the 1971–2019 period by applying the linear and nonlinear Autoregressive Distributed Lag $$\left({{\rm{ARDL}}} \right)$$ARDL Model. The main focus is whether the Armey curve is valid for KSA. The statistical diagnostic tests provide an evidence for the model adequacy and that the estimation results are reliable. Moreover, the ARDL short-run estimation results revealed that the speed of adjustment is (−0.82) indicating that it takes about 14 months to correct toward the long-run equilibrium due to a short-run shock. The NARDL estimation results revealed asymmetric relationship between government expenditures and economic growth. Further, a positive shock has a positive impact while a negative shock reduces economic growth. Based on the long-run estimation results, the optimum government size is 26.9 as a share of GDP, which is greater than the average share (24.2) during the study period. Based on such result, it is obvious that Saudi Arabia has a room to increase the expenditures share up to the optimal size estimated in the study.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.2001960
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2001960
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:2001960
Template-Type: ReDIF-Article 1.0
Author-Name: Simon Akumbo Eugene Mbilla
Author-X-Name-First: Simon Akumbo Eugene
Author-X-Name-Last: Mbilla
Author-Name: Peter Akurigo Atindaana
Author-X-Name-First: Peter Akurigo
Author-X-Name-Last: Atindaana
Author-Name: Samuel Gameli Gadzo
Author-X-Name-First: Samuel Gameli
Author-X-Name-Last: Gadzo
Author-Name: Abiola Adeniyi
Author-X-Name-First: Abiola
Author-X-Name-Last: Adeniyi
Author-Name: Idrisu Salifu
Author-X-Name-First: Idrisu
Author-X-Name-Last: Salifu
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Monetary policy and macro economic indicators: A review of a developing country’s perspectives 2002–2017
Abstract:
The purpose of the study was to examine the effect of monetary policy on key macroeconomic indicators in Ghana. The study used annual time series data from 2002 to 2017, which was sourced from the World Development Indicator (WDI) and the Bank of Ghana (BOG). The data were converted to Quarterly data between 2002Q1 and 2017Q4, which covers a sample period of sixteen years. The study employed the Autoregressive Distributed Lagged Model (ARDL) for analyzing the data. Unit root test was conducted using the Augmented Dickey-Fuller (ADF) tests, and the results of the analysis exhibited a cointegration realtionship among the variables of order one (1). Monetary policy changes affected lending rates by (0.32%) compared to the other variables. Overall, the results suggests that monetary policy affects macro economic indicators performance in Ghana. Based on the foregoing, the paper recommends that, in efforts to enhance the effectiveness of monetary policy, the need for policy intervention in determining the stance of fiscal policies, develop financial markets, and liberalize controlled interest rates.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1935530
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1935530
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1935530
Template-Type: ReDIF-Article 1.0
Author-Name: Philip C. Omoke
Author-X-Name-First: Philip C.
Author-X-Name-Last: Omoke
Author-Name: Silva Opuala–Charles
Author-X-Name-First: Silva
Author-X-Name-Last: Opuala–Charles
Author-Name: Mariam Camarero
Author-X-Name-First: Mariam
Author-X-Name-Last: Camarero
Title: Trade openness and economic growth nexus: Exploring the role of institutional quality in Nigeria
Abstract:
This study attempts to fill the prior knowledge gap in the nexus between trade openness and economic growth in Nigeria by incorporating the role of institutional quality. The study covers the period from 1984 to 2017 and employs three indicators of trade openness including total trade, import trade, and export trade. Cointegration among the variables is examined using the ARDL bounds testing approach. The results provide evidence of a long-run relationship among the variables. The estimates suggest that export trade has a significant positive impact on economic growth while the impact of import trade on economic growth is negative and significant. The results also show that the negative long-run effects of import trade on economic growth in Nigeria decreases as institutional quality (quality of governance) improves. These empirical results have important policy implications for Nigeria. Among others, this study highlights the needs to improve the quality of governance in the country. Good governance and quality institutions can help channel the dividends of trade openness into growth-enhancing activities.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2020.1868686
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1868686
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1868686
Template-Type: ReDIF-Article 1.0
Author-Name: Esubalew Tadele
Author-X-Name-First: Esubalew
Author-X-Name-Last: Tadele
Author-Name: Teshome Sirany
Author-X-Name-First: Teshome
Author-X-Name-Last: Sirany
Author-Name: Christian Nsiah
Author-X-Name-First: Christian
Author-X-Name-Last: Nsiah
Title: The relative choice over destiny in a country’s long-run economic growth and economic affluence
Abstract:
This paper examines an in-depth and systematic review of why some nations are so rich, while others remain so poor taking into account temporal and spatial dynamics applied for economic growth covariants. Growth literature underscores direct and indirect causes for economic growth. Likewise, economic and non-economic dynamics are thoroughly examined for countries’ long-run economic growth and relative wealth accumulation. Endogenous growth theories emphasized that investment in human capital, innovation, and knowledge are major contributors to economic growth. Empirics confirmed that time-variant (such as well-established institutions and their prominent role in devising property rights and policies) gives more emphasis towards shaping a country’s long-run economic growth than time-invariant exogenous attributes (like geography). Meanwhile, some nations did not industrialize being geographically advantageous, and the location of the country does not exclusively determine the fate of the nation’s economic success. Moreover, state capacity is vital to determining relative wealth accumulation and economic prosperity. The incidence of routine war undermines the fiscal capacity and leads to an extractive form of government and weakens public and private investments, and this sets a country into undesirable outcomes. In a nutshell, time-varying attributes become more flexible to adjust the fate of countries’ economic growth and destiny. Furthermore, it requires an intense investigation of what governs a nation’s economic successes or failures focusing on country-specific concerns. It needs a close and continuous rectification to reconsider the country’s institutional setup and policy frameworks towards endogenously rooted economic growth and development for the relative economic affluence.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1949133
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1949133
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1949133
Template-Type: ReDIF-Article 1.0
Author-Name: Jacque Bon-Isaac Aboy
Author-X-Name-First: Jacque Bon-Isaac
Author-X-Name-Last: Aboy
Author-Name: Joselito Magadia
Author-X-Name-First: Joselito
Author-X-Name-Last: Magadia
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Nonparametric performance hypothesis testing with the information ratio
Abstract:
This study proposes a nonparametric bootstrap-based test to compare performances between two portfolios in terms of their information ratio. This serves as an extension to the literature that tests performance between two portfolio investment strategies that uses Sharpe ratio. Monte Carlo experiments show that the test has appropriate sizes and is powerful to most of the scenarios. However, the test does not perform well in highly correlated portfolio returns, but is better when the mean of portfolio return is modeled using an autocorrelated process.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1902031
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1902031
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1902031
Template-Type: ReDIF-Article 1.0
Author-Name: Gourab Chakraborty
Author-X-Name-First: Gourab
Author-X-Name-Last: Chakraborty
Author-Name: G. R. Chandrashekhar
Author-X-Name-First: G. R.
Author-X-Name-Last: Chandrashekhar
Author-Name: G. Balasubramanian
Author-X-Name-First: G.
Author-X-Name-Last: Balasubramanian
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Measurement of extreme market risk: Insights from a comprehensive literature review
Abstract:
The experience of past financial market turmoil suggests that in addition to eroding investor wealth, the severe consequences of rare extreme market events can spillover and impair the broader real economies. In this context, this paper is an evaluation of the methodological and empirical advances in the measurement of the extreme market risk. This paper argues that a major reason for the origin of such risks post 1980s has been the unintended consequence of asymmetric monetary policy to sustain the rise of financial markets. Thereafter, this review identified the value at risk (VaR) and VaR-based alternative expected shortfall (ES) as the principal measures of extreme market risk. The deficiencies in the standard modelling approaches for VaR-ES measures have led to several advanced estimation methodologies. However, the lack of identification of optimal methodology, in the internal models approach (IMA) regime where financial institutions (FI’s) can choose suitable VaR-ES modelling technique incentivizes regulatory arbitrage and other inconsistencies. Therefore, this paper investigates the theoretical and empirical research literature on VaR and ES estimation for financial asset market prices. This paper finds that the extreme value theory (EVT) followed closely by the filtered historical simulation (FHS) are highly accurate methodologies. In addition, Mixture distributions, asymmetric and non-linear versions of the conditional quantile (CQ) approach, (volatility) asymmetry and long memory conditional volatility models, especially those assuming skewed and leptokurtic distributions offer accurate VaR and ES measures.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1920150
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1920150
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1920150
Template-Type: ReDIF-Article 1.0
Author-Name: Nazima Ellahi
Author-X-Name-First: Nazima
Author-X-Name-Last: Ellahi
Author-Name: Adiqa Kiani
Author-X-Name-First: Adiqa
Author-X-Name-Last: Kiani
Author-Name: Qaisar Malik
Author-X-Name-First: Qaisar
Author-X-Name-Last: Malik
Author-Name: Asif Raza
Author-X-Name-First: Asif
Author-X-Name-Last: Raza
Author-Name: Raazia Gul
Author-X-Name-First: Raazia
Author-X-Name-Last: Gul
Author-Name: Stephanos Papadamou
Author-X-Name-First: Stephanos
Author-X-Name-Last: Papadamou
Title: Institutional governance and financial sector development: Panel evidence from Asian economies
Abstract:
Current study aims to investigate the impact of institutional governance (GOV), trade openness (TOPEN), real output (RGDP), economic freedom (EFR), inflation rate (INFR) and real output growth on financial sector development (FSD) of selected Asian economies. A consolidated financial sector development index, representing banking sector and stock market is generated using Principal Component Analysis (PCA). The study conducted data analysis by applying panel estimation method of Generalized Method of Moments (GMM), and showed that trade openness, and real output moderate the financial development (FSD) through its positive interaction with institutional governance (GOV). The findings highlight that governance is an important and crucial driver of financial sector development and stock market development in four selected Asian economies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1890367
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1890367
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1890367
Template-Type: ReDIF-Article 1.0
Author-Name: Achmad Solihin
Author-X-Name-First: Achmad
Author-X-Name-Last: Solihin
Author-Name: Wahyu Wisnu Wardana
Author-X-Name-First: Wahyu Wisnu
Author-X-Name-Last: Wardana
Author-Name: Erfan Fiddin
Author-X-Name-First: Erfan
Author-X-Name-Last: Fiddin
Author-Name: Ni Made Sukartini
Author-X-Name-First: Ni Made
Author-X-Name-Last: Sukartini
Author-Name: Robert Read
Author-X-Name-First: Robert
Author-X-Name-Last: Read
Title: Do government policies drive economic growth convergence? Evidence from East Java, Indonesia
Abstract:
While Indonesia has been experiencing relatively considerable and stable economic growth in the last decades, the country is prone to income disparity across regions due to uneven distribution of population, natural resources and the persistent impacts of centralized development imposed by the New Order regime. This study examines the economic growth convergence in East Java, Indonesia, from 2010 to 2019 and explores the influence of government expenditure on education, health, and capital sector on the economic growth convergence. By considering spatial dependence across regions, the result shows no strong evidence of regional income convergence in East Java. Also, this research claims the presence of spillover effect of government expenditure on education and capital sector on regional income growth. Notably, higher government expenditure of the education sector in one region could stimulate higher economic growth of its neighboring regions. Conversely, higher government expenditure on the capital sector in one region may lower the economic growth of its surrounding regions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1992875
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1992875
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1992875
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Esaku
Author-X-Name-First: Stephen
Author-X-Name-Last: Esaku
Author-Name: Francesco Tajani
Author-X-Name-First: Francesco
Author-X-Name-Last: Tajani
Title: Does the shadow economy increase income inequality in the short- and long-run? Empirical evidence from Uganda
Abstract:
This paper investigates whether the size of the shadow economy increases income inequality in Uganda. This p3aper applies the autoregressive distributed lag (ARDL) bounds testing approach to cointegration, to test the long- and short-run relationship between the shadow economy and income inequality. The results indicate a positive and statistically significant relationship between the size of the shadow economy and income inequality in both the long-run and short-run, all else equal. The results show that a large size of the shadow economy significantly increases income inequality, in both the long- and short-run. This suggests that people who fail to be absorbed into the formal economy face fewer livelihood opportunities, giving them the incentive to operate in the shadow economy as a means of survival, for them and their families since there are fewer chances of success in the formal economy. Our findings suggest that income inequality could be partially driven by increasing informality in the country. The practical implication of these results is that policies aimed at tackling income inequality should also be directed at addressing the underlying factors that drive the shadow economy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1912896
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1912896
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1912896
Template-Type: ReDIF-Article 1.0
Author-Name: Sheunesu Zhou
Author-X-Name-First: Sheunesu
Author-X-Name-Last: Zhou
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Macroeconomic determinants of long-term sovereign bond yields in South Africa
Abstract:
This paper seeks to analyse the impact of government debt and other macroeconomic variables on the long term bond yield for South Africa. Recent increases in the government budget deficit and its corresponding borrowing has renewed interest in understanding fiscal dynamics within the economy. The study employs both the linear and non-linear Auto-regressive distributed lag (ARDL) technique to estimate the determinants of the long-term bond yield. Our results show that the short-term interest rate is the major determinant of the long term yield in both the short-run and long-run. Government debt and the US long term yield positively impact long term bond yields both in the short- and long-run. The rate of inflation, economic growth, nominal effective exchange rate and bank credit all have negative effects on the bond yield in the long-run. Tests for non-linearity reveal that the short-term interest rate has an asymmetric relationship with the long-term bond yield. However, we only establish non-linearity between government debt and bond yields in the long-run. We suggest complementarity between monetary policy and fiscal policy, a systematic program of deleveraging and implementation of structural changes aimed at increasing production.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1929678
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1929678
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1929678
Template-Type: ReDIF-Article 1.0
Author-Name: Asheesh Pandey
Author-X-Name-First: Asheesh
Author-X-Name-Last: Pandey
Author-Name: Anand Mittal
Author-X-Name-First: Anand
Author-X-Name-Last: Mittal
Author-Name: Arjun Mittal
Author-X-Name-First: Arjun
Author-X-Name-Last: Mittal
Author-Name: Walid Mensi
Author-X-Name-First: Walid
Author-X-Name-Last: Mensi
Title: Size effect alive or dead: Evidence from European markets
Abstract:
In this paper, we examine whether the size effect is present in four European markets viz. France, Germany, Spain and Italy. We also investigate whether the size effect can be explained through the sources as available in the literature. We employ prominent asset pricing models to ascertain if size anomaly in our sample countries passes the risk story. We find single-factor model i.e.capital asset pricing model to be still relevant in explaining size anomaly for Spain and Italy. We find FF3 factor model to be a suitable model to be explain for alphas in Germany, while we find that none of the asset pricing model is able to fully explain the size effect for France. Hence, we conclude that though size anomaly does not provide any opportunities to portfolio managers for making extra normal returns for their investors in three of the four sample countries. France, however, provides an opportunity to portfolio managers for exploiting size anomaly. Our findings have implications for portfolio managers, academia as well as regulators.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1897224
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1897224
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1897224
Template-Type: ReDIF-Article 1.0
Author-Name: Damien Kunjal
Author-X-Name-First: Damien
Author-X-Name-Last: Kunjal
Author-Name: Faeezah Peerbhai
Author-X-Name-First: Faeezah
Author-X-Name-Last: Peerbhai
Author-Name: Mohammed M Elgammal
Author-X-Name-First: Mohammed M
Author-X-Name-Last: Elgammal
Title: Investor overconfidence in the South African exchange traded fund market
Abstract:
Exchange Traded Funds (ETFs) have proven to be extremely popular amongst both retail and institutional investors. The increasing interest in this asset class may incite overconfidence in its’ investor base, which could lead to undesirable market effects such as security mispricing, excess trading volumes, and exacerbated market volatility. This study aims to examine the South African ETF market for presence of investor overconfidence. To achieve this objective, Vector Autoregression (VAR) models and their associated impulse response functions are employed to examine the relationship between the current trading activity and the historical market return. Consistent with the overconfidence hypothesis, a positive and significant relationship between current market turnover and lagged market returns is found for both ETFs with domestic benchmarks and ETFs with international benchmarks. Further analysis of panel VAR models and their associated impulse response functions suggest that the overconfidence bias also influences the trading activities of individual ETFs. These findings have important implications for various market participants.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1978190
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1978190
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1978190
Template-Type: ReDIF-Article 1.0
Author-Name: Dat Dinh Nguyen
Author-X-Name-First: Dat
Author-X-Name-Last: Dinh Nguyen
Author-Name: Tha Hien To
Author-X-Name-First: Tha Hien
Author-X-Name-Last: To
Author-Name: Duy Van Nguyen
Author-X-Name-First: Duy Van
Author-X-Name-Last: Nguyen
Author-Name: Huyen Phuong Do
Author-X-Name-First: Huyen
Author-X-Name-Last: Phuong Do
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Managerial overconfidence and dividend policy in Vietnamese enterprises
Abstract:
The dividend policy in an enterprise depends not only on the company’s strategy but also on the characteristics of the managers. In particular, the element of overconfidence of the CEO contributes to the decision-making process for the dividend. Therefore, this study is conducted to determine the effect of overconfident CEO on dividend policy through dividend yield and dividend payout. The study carried out an evaluation based on 576 companies listed on Vietnam’s stock market from 2014 to 2018. Panel data model with GLS (error correction model) is used in regression analysis. The analysis results show that CEO overconfidence has a positive impact on Dividend Payout and Dividend Yield. At the same time, the study also shows that the influence of CEO overconfidence on Dividend Payout is the same between state-owned and non-state enterprises and companies listed on different exchanges (HNX and HOSE). In addition, the results also indicate that there is no influence of CEO overconfidence on Dividend Yield in state-owned enterprises as well as companies listed on the HOSE. From the research results, the author also made some conclusions and recommendations for managers and investors.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1885195
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1885195
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1885195
Template-Type: ReDIF-Article 1.0
Author-Name: Naqeeb Ur Rehman
Author-X-Name-First: Naqeeb
Author-X-Name-Last: Ur Rehman
Author-Name: Eglantina Hysa
Author-X-Name-First: Eglantina
Author-X-Name-Last: Hysa
Author-Name: Wai Ching Poon
Author-X-Name-First: Wai Ching
Author-X-Name-Last: Poon
Title: The effect of financial development and remittances on economic growth
Abstract:
The purpose of this study is to examine the effect of financial development and remittances on economic growth across six Western Balkan countries (WBC) using panel data from 2000 to 2017. Previous studies have neglected the effect of financial development and remittances on economic growth with regard to WBC. Based on system GMM analysis, we found that financial development (broad money stock ratio) and remittances shows positive impact on economic growth across WBC. However, the interaction of financial development and remittances provide a significant and negative effect on economic growth. The results imply that remittances together with financial development substitutes the economic growth of WBC. In order to expand the financial system in the WBC, policies targeted to develop the non-deposit financial institutions and using the narrow interest rate margin policy to encourage investment and thus high economic growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1932060
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1932060
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1932060
Template-Type: ReDIF-Article 1.0
Author-Name: Fetene Bogale Hunegnaw
Author-X-Name-First: Fetene Bogale
Author-X-Name-Last: Hunegnaw
Author-Name: Adem Feto Bedhaso
Author-X-Name-First: Adem Feto
Author-X-Name-Last: Bedhaso
Author-Name: Christian Nsiah
Author-X-Name-First: Christian
Author-X-Name-Last: Nsiah
Title: A dynamic analysis on foreign bank entry Nexus economic growth in Sub-Sahara African countries
Abstract:
This study investigated the direct link between foreign bank entry and economic growth in Sub-Sahara African countries using a dynamic generalized method of moment estimator. It also studied a comparative analysis on banking environment for SSA countries that open and restrict banking industries to foreign ownership using descriptive analysis. The descriptive evidence suggests that SSA countries that allowed foreign bank entry have better banking service access, competition and depth than SSA countries that restrict banking industries to foreign ownership. Econometric estimation result shows a foreign bank asset share has a direct positive effect on economic growth. The findings of this study provide imperative policy implication to SSA countries that did not open their banking sector to foreign investment. They could open the door for foreign bank involvement in the banking industries and reap all the good benefits that SSA countries that open their banking industries to foreign investors are enjoying.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1991084
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1991084
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1991084
Template-Type: ReDIF-Article 1.0
Author-Name: Yazidu Ustarz
Author-X-Name-First: Yazidu
Author-X-Name-Last: Ustarz
Author-Name: Ashenafi Beyene Fanta
Author-X-Name-First: Ashenafi Beyene
Author-X-Name-Last: Fanta
Author-Name: Wai Ching Poon
Author-X-Name-First: Wai Ching
Author-X-Name-Last: Poon
Title: Financial development and economic growth in sub-Saharan Africa: A sectoral perspective
Abstract:
Research on the impact of financial development on economic growth remains inconclusive. Previous empirical examination of the link is based on aggregate GDP on the presumption that each economic sector responds identically to financial development. However, the extent of credit utilisation, as well as productivity of credit, may not necessarily remain the same across sectors. This study therefore seeks to contribute to the literature by examining the effect of financial development across sectors in sub-Saharan Africa using the Generalised Method of Moments (GMM) over the period 1990–2018. Indeed, the findings show that while financial development has a positive effect on the service and agricultural sectors, a certain threshold of financial development must be reached before it can positively contribute to the growth of the industrial sector. The findings are robust to a different estimation technique. With the industrial sector considered critical for economic transformation, our findings imply that policymakers in sub-Saharan Africa need to continue to promote financial development to spur industrialization.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1934976
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1934976
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1934976
Template-Type: ReDIF-Article 1.0
Author-Name: Pamela Efua Ofori
Author-X-Name-First: Pamela Efua
Author-X-Name-Last: Ofori
Author-Name: Daryna Grechyna
Author-X-Name-First: Daryna
Author-X-Name-Last: Grechyna
Author-Name: Muhammad Shafiullah
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shafiullah
Title: Remittances, natural resource rent and economic growth in Sub-Saharan Africa
Abstract:
Despite the established link between oil rent fluctuations and remittances received, its plausible joint effect on economic growth in Sub-Saharan Africa (SSA) remains unexplored. To fill this gap, first, we determine whether natural resource rent (composed of oil rent, forest rent and natural gas rent) reduces economic growth in SSA. Second, we examine whether positive macroeconomic signals such as remittances mitigate the negative effect of oil rents on economic growth in a sample of 43 SSA countries spanning 1990–2017. We employ the pooled ordinary least squares, fixed-effects, random-effects and generalized method of moments. The resulting empirical evidence established are: (1) there is a positive impact of forest rent on economic growth whilst oil rent and natural gas rent have a negative impact on economic growth (2) there is a positive marginal and net effect on economic growth from the interaction between remittances and oil rent. In addition, the unconditional effect of remittances on growth is positive. We further perform a threshold analysis to establish a critical ground that could also influence economic growth positively. This threshold is crucial because below these critical mass remittance inflows mitigate the negative incidence of oil rent on economic growth and above the threshold, negative oil rent on growth is completely nullified. This is relevant for policy implications because policymakers are provided with actionable levels of remittances which are easily attainable in sampled countries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1979305
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1979305
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1979305
Template-Type: ReDIF-Article 1.0
Author-Name: Abdul-Aziz Iddrisu
Author-X-Name-First: Abdul-Aziz
Author-X-Name-Last: Iddrisu
Author-Name: Imhotep Paul Alagidede
Author-X-Name-First: Imhotep Paul
Author-X-Name-Last: Alagidede
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Estimating bank of Ghana’s policy responses in the context of Taylor rule: Is the inflation target realistic?
Abstract:
Although literature acknowledges the nonlinearity in monetary policy behaviour of central banks, the appropriateness of the models used to capture the nonlinearity remains questionable. Moreover, the paucity of research on nonlinear monetary policy rules in the context of Africa and Ghana in particular is worrying, given the numerous breaches of the publicly announced inflation targets. The study estimates the Bank of Ghana’s policy responses over the inflation targeting period using the Taylor rule. We find that the Bank of Ghana reacts asymmetrically to inflation gap below and above the estimated inflation threshold of 16.4% with considerable inflation accommodation instead of targeting it. We question the logic behind the prevailing upper and lower bounds inflation target given the evidence to the contrary. The average inflation over the targeting period, the estimated inflation threshold and the structure of the Ghanaian economy raise questions of feasibility of achieving the inflation target on sustainable basis. Policy implications are discussed.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1988201
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1988201
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1988201
Template-Type: ReDIF-Article 1.0
Author-Name: Obsa Teferi Erena
Author-X-Name-First: Obsa Teferi
Author-X-Name-Last: Erena
Author-Name: Mesfin Mala Kalko
Author-X-Name-First: Mesfin Mala
Author-X-Name-Last: Kalko
Author-Name: Sara Adugna Debele
Author-X-Name-First: Sara Adugna
Author-X-Name-Last: Debele
Author-Name: Christian Nsiah
Author-X-Name-First: Christian
Author-X-Name-Last: Nsiah
Title: Technical efficiency, technological progress and productivity growth of large and medium manufacturing industries in Ethiopia: A data envelopment analysis
Abstract:
The purpose of this study is to assess empirically how the technical efficiency scores for 43 sub-sectors and their determinants over the period 2010 to 2017 show significant variation across the sub-sectors. The study applied a two-step approach for measuring technical efficiency and its determinants. A data envelopment analysis output-orientation (i.e. both CCR & BCC models) is used to estimate technical efficiency scores for 43 sub-sectors over the period 2010 to 2017. Malmquist productivity index (MPI) output orientation is also applied to compute technical efficiency change, technological progress, and productivity change. The estimated technical efficiency score shows significant variation across the sub-sectors. Thus, we used a Tobit regression model to scrutinize what defines the variation in technical efficiency scores using three years of panel data which covers 2015 to 2017. Moreover, the 43 sub-sectors were further grouped into 14 major sub-sectors and classified as public and private to examine whether there is a technical efficiency score discrepancy between the same sub-sectors operating under different ownership. For measuring overall technical efficiency, we used two output variables (i.e., value-added and operating surplus) and two input variables (i.e., total fixed assets and a total number of employees). When reducing the sub-sectors to fourteen major groups, the operating surplus was not included, thus we used value-added and total sales as output variables and total fixed assets, the total number of employees, and cost of raw materials used in the production process as input variables. To shed light on the source of inefficiency, technical efficiency is decomposed into pure technical efficiency and scale efficiency. This study found that the sector had experienced a 37 percent technical efficiency in overall average when the CCR model was used. The study also claims that public owned subsectors are less likely to be efficient than private subsectors. The regression results show the capital expenditure ratio has a significant positive influence on technical efficiency. The Malmquist index result also shows, on average, the sector had registered a 10.5% technological progress and a 13% productivity growth over the period 2010–2017. The findings of the study would have implications for policymakers, government, and firm owners in that it offers an insight into the source of productivity growth in the sector.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1997160
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1997160
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1997160
Template-Type: ReDIF-Article 1.0
Author-Name: Rohit Bansal
Author-X-Name-First: Rohit
Author-X-Name-Last: Bansal
Author-Name: Dharmendra Singh
Author-X-Name-First: Dharmendra
Author-X-Name-Last: Singh
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Efficiency drivers of insurers in GCC: an analysis incorporating company-specific and external environmental variables
Abstract:
The study aims to a comprehensive measure of listed insurance companies’ technical efficiency in GCC countries and benchmarking, peer count summary, and measuring productivity changes in the first stage. In the second stage, the technical efficiency, pure technical efficiency, and scale efficiency scores have been regressed with internal (company variables) and external environmental variables. This paper first examines financial freedom and reinsurance activities on 60 insurers’ efficiency from all GCC countries during 2016–2019. The results suggest a positive impact of economic freedom, solvency on technical efficiency components, and the negative effect of reinsurance ceding, market concentration on GCC insurers’ technical efficiency. In productivity changes, UAE companies are doing well as compared to other countries’ insurers. Overall, GCC insurers’ efficiency is improving with pure technical efficiency having a CAGR of 2.13% and scale efficiency a CAGR of 2.96%. Based on the peer count summary, only the UAE and Saudi Arabia’s companies can be benchmarked against another insurance company. Also, this research is one of the most comprehensive ones in the GCC region; this is the first study on an extensive data set to the best of our knowledge, including conventional insurers operating across GCC countries. This study is based on 60 insurers listed on the stock exchanges of six GCC countries. This will also be the first empirical evidence on the GCC insurers, which measures the impact of company-specific variables and unique environmental variables separately on the two components of technical efficiency using Tobit regression. The positive association of competition and financial freedom with technical efficiency may encourage regulators and policymakers to ensure less government intervention and give more support and freedom for a better competitive insurance industry.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1922179
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1922179
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1922179
Template-Type: ReDIF-Article 1.0
Author-Name: Fernando Zanella
Author-X-Name-First: Fernando
Author-X-Name-Last: Zanella
Author-Name: Peter Oyelere
Author-X-Name-First: Peter
Author-X-Name-Last: Oyelere
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Is financial development crucial for all economies?
Abstract:
The relationship between financial development and economic growth has long been recognized and acknowledged in the literature. However, the dynamics of the relationship is yet to be settled, as illustrated by contradictory theoretical and empirical findings. This paper investigates the relationship by splitting 108 countries into sub-groups holding a particular common specificity: level of competitiveness, the legal system, new business entry rate, and income level. Data for this study were collected for 108 countries from a variety of sources for the period 1980 to 2017. Given the large number of countries and periods covered by the study, to control for financial depth without losing country-specific features due to homogeneous aggregation, we employed the Dumitrescu-Hurlin Granger non-causality test to achieve the objectives of this study. The results of the study suggest that financial development plays a significant role for high-income countries, or countries with a high level of innovation, which in turn, correlated with countries with common law legal framework. However, such level of significance could not be established for developing countries
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1923883
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1923883
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1923883
Template-Type: ReDIF-Article 1.0
Author-Name: Chinnadurai Kathiravan
Author-X-Name-First: Chinnadurai
Author-X-Name-Last: Kathiravan
Author-Name: Murugesan Selvam
Author-X-Name-First: Murugesan
Author-X-Name-Last: Selvam
Author-Name: Balasundram Maniam
Author-X-Name-First: Balasundram
Author-X-Name-Last: Maniam
Author-Name: Munusamy Dharani
Author-X-Name-First: Munusamy
Author-X-Name-Last: Dharani
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Effect of weather on stock market: A literature review and research agenda
Abstract:
The paper presents a systematic review of the research work, published on the topic of weather effects and stock market behavior. The objectives of the study were to examine the current status of research, by collecting the literature, in the area of weather effects and stock market behavior. In the process, the study would reveal the current status to the budding researchers. In this study, the authors critically assessed and examined fifty one research studies, published from 1993 and 2019, in different regions across the globe. A systematic literature review for this study has been made using Google Scholar. The present study found that number of research works on the weather effects and stock market behavior had increased marginally during the recent time period, especially from the beginning of Twenty First Century. Among the different weather factors, temperature was wildly used for research. Finally, this paper reveals some significant research gap to advance the research agenda for future research.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1971353
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1971353
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1971353
Template-Type: ReDIF-Article 1.0
Author-Name: Khalid Adnan Saeed
Author-X-Name-First: Khalid Adnan
Author-X-Name-Last: Saeed
Author-Name: Muhammad Shafiullah
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shafiullah
Title: Revisiting the natural resource curse: A cross-country growth study
Abstract:
This paper revisits the original natural resource curse study conducted by Sachs and Warner to investigate the relationship between natural resource dependence and per capita growth in recent data consisting of 68 developing countries that includes 14 Middle East & North Africa (MENA) and 6 Gulf Cooperative Council (GCC) countries between 1994–2014. Using a cross-country data and modeling we find robust evidence of a negative association between per capita growth and natural resource dependence. This negative affect is especially prominent in oil-rich MENA countries. The presence of a natural resource curse presents challenges to policymakers especially in countries who have been taking measures to diversify their income-base.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.2000555
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2000555
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:2000555
Template-Type: ReDIF-Article 1.0
Author-Name: Esat Durguti
Author-X-Name-First: Esat
Author-X-Name-Last: Durguti
Author-Name: Qazim Tmava
Author-X-Name-First: Qazim
Author-X-Name-Last: Tmava
Author-Name: Filloreta Demiri-Kunoviku
Author-X-Name-First: Filloreta
Author-X-Name-Last: Demiri-Kunoviku
Author-Name: Enver Krasniqi
Author-X-Name-First: Enver
Author-X-Name-Last: Krasniqi
Author-Name: Wai Ching Poon
Author-X-Name-First: Wai Ching
Author-X-Name-Last: Poon
Title: Panel estimating effects of macroeconomic determinants on inflation: Evidence of Western Balkan
Abstract:
This study analyzes the relationship between macroeconomic variables that influence inflation. Through our research, we will analyze the influence of GDP growth, remittances, level of exports, level of imports, and foreign direct investments on the inflation rate for the Western Balkan. The research has applied panel data using dynamic approaches such as fixed effects, and Arellano–Bover/Blundell–Bond estimation to determine relationships between variables and their impact on inflation. The research used annual series data from 2003 to 2019 provided by the World Bank and the International Monetary Fund. Likewise, to test a stationary of data was applied three estimations for the unit root test and Johansen cointegration. The research results reveal that in the short run, all variables influence the inflation rate, except for foreign direct investment, which has insignificant influence. Moreover, the analyses through the Arellano–Bover/Blundell—Bond estimation reveal that GDP growth, imports, and foreign direct investments have a positive influence on the inflation rate, while, working remittances and exports have a negative influence on the inflation rate. These conclusions provide sufficient information for future debates and examination on macroeconomic variables that potentially affect inflation.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1942601
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1942601
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1942601
Template-Type: ReDIF-Article 1.0
Author-Name: Leena Ajit Kaushal
Author-X-Name-First: Leena Ajit
Author-X-Name-Last: Kaushal
Author-Name: Muhammad Shafiullah
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shafiullah
Title: Impact of institutional and regulatory quality on FDI inflow: case of a developing Indian economy
Abstract:
The study examines the impact of regulatory & institutional quality (IQ) on FDI inflows, focusing on select factors to explain evolving FDI patterns in India over 2006–2019. India, one of the top 5 FDI attracting nations in the Asian region, is taking various measures to improve IQ and encourages FDI. The reforms facilitating the Ease of starting business and reduction in EPU significantly and positively impacts FDI; however, the measures easing trade across border and resolving insolvency has a positive but insignificant impact of FDI. In addition, deteriorating Labor Freedom significantly inhibits FDI. The results demonstrate that improvement in IQ positively influences FDI; however, the IQ impact is insignificant in some cases due to the weak institutional structure. The study suggests that IQ factors tend to be pivotal in attracting FDI inflows, but India is yet to arrive.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1985201
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1985201
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1985201
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Esaku
Author-X-Name-First: Stephen
Author-X-Name-Last: Esaku
Author-Name: Miao Wang
Author-X-Name-First: Miao
Author-X-Name-Last: Wang
Title: The short- and long-run relationship between trade openness and economic growth in Uganda
Abstract:
Using data covering the period from 1983 to 2019, we apply the autoregressive distributed lag (ARDL) bound testing approach to investigate whether trade openness has spurred economic growth in Uganda. The extant literature shows that trade openness increases economic growth, but this empirical evidence remains contested. Our empirical results on the long-run relationship reveal the existence of a positive and statistically significant relationship between trade openness and economic growth. Except for the use of exports to measure trade openness, using openness index and imports to proxy for trade openness indicates that an increase in the above indexes leads to increased economic growth in the long-run. In the short-run, however, more openness, exports and imports lead to increased economic growth. This implies that a significant proportion of economic growth in Uganda has been due to short-run increase in the country’s openness, more exports and imports. This paper confirms that using openness and imports indexes to proxy for trade yields more robust results compared to the use of export indices. At the policy level, these results show that encouraging more trade and imports that embody technology or intermediate inputs is essential in the production process could increase economic growth in the long-run. In the short-run, expanding the scope of exports and imports is important for economic growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1999060
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1999060
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1999060
Template-Type: ReDIF-Article 1.0
Author-Name: El Mehdi Ferrouhi
Author-X-Name-First: El Mehdi
Author-X-Name-Last: Ferrouhi
Author-Name: Omar Kharbouch
Author-X-Name-First: Omar
Author-X-Name-Last: Kharbouch
Author-Name: Samir Aguenaou
Author-X-Name-First: Samir
Author-X-Name-Last: Aguenaou
Author-Name: Muhammad Naeem
Author-X-Name-First: Muhammad
Author-X-Name-Last: Naeem
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Calendar anomalies in African stock markets
Abstract:
In this paper, we investigate the day of the week and the month of the year effects in African stock markets, both in the Gregorian and the Hijri calendars. Specifically, we investigate Monday effect, Friday effect, January effect and Ramadan effect, from January 2009 to December 2019, using OLS regression with robust standard errors. January is the first month of the Gregorian calendar, while Ramadan is the 9th and the most sacred month of the lunar calendar, used in Muslim countries. The results obtained show the existence of Monday effect in BRVM and Namibia, Friday effect in Kenya and Namibia, January effect in Botswana and Zambia, December effect in Botswana, BRVM and Egypt and Ramadan effect in Tunisia.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1978639
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1978639
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1978639
Template-Type: ReDIF-Article 1.0
Author-Name: Sanderson Abel
Author-X-Name-First: Sanderson
Author-X-Name-Last: Abel
Author-Name: Juniours Marire
Author-X-Name-First: Juniours
Author-X-Name-Last: Marire
Author-Name: Vassilios Papavassiliou
Author-X-Name-First: Vassilios
Author-X-Name-Last: Papavassiliou
Title: Competition in the insurance sector – An application of Boone indicator
Abstract:
Competition in the insurance sector is an important element since it leads to the reduction in risk and uncertainty, enables efficient resources allocation, enhances product innovation, enhances economic growth and improves efficient production of financial services. The study evaluates competition in the insurance sector in Zimbabwe during the period 2010–2017. Of interest is the evolution of competition during the period when the economy had transitioned from hyperinflation. How competition evolved during this period is of interest due to the changes in macroeconomic management styles that were experienced after the hyperinflation period. Of novelty to this study is the use of the Boone Indicator, one of the new empirical industrial organisation methods. The method is premised on the idea that efficient firms achieve higher market shares or profits. The study established that competition was moderate in the insurance industry during the study period. The results further revealed that there was no significant difference in competition in the periods 2013–2017 and 2010–2012. The study recommends that the government should ensure that the macroeconomic environment is conducive for businesses to compete. The economy should be prevented from sliding into hyperinflationary environment, which negatively impacts policy holders as well as insurance companies. The government should put in place pro-growth policies to ensure insurance companies thrive. It has been shown that since the economy started experiencing moderate growth rates, there has been increased activity among insurance companies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1974154
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1974154
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1974154
Template-Type: ReDIF-Article 1.0
Author-Name: Abebaw Hailu Fikire
Author-X-Name-First: Abebaw Hailu
Author-X-Name-Last: Fikire
Author-Name: Francesco Tajani
Author-X-Name-First: Francesco
Author-X-Name-Last: Tajani
Title: Determinants of urban housing choice in Debre Berhan Town, North Shewa zone, Amhara Region, Ethiopia
Abstract:
The main objective of the study is to examine the determinants of urban housing choice in Debre Berhan town, Amhara Regional State, Ethiopia. For this purpose, the study used both primary and secondary data. The data were obtained from 395 household heads selected from four kebeles. A multinomial logit model was used to examine the determinants of urban housing choice. Accordingly, it is found that age, gender, educational level, the price of the housing, years of residence, income of the head and access to credit are the major the determinants of urban housing choice. This study suggests that town administration, zonal and the regional governments should work together with financial institution to provide housing loans to the households so as to construct or purchase house.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1885196
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1885196
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1885196
Template-Type: ReDIF-Article 1.0
Author-Name: Simon Abendin
Author-X-Name-First: Simon
Author-X-Name-Last: Abendin
Author-Name: Pingfang Duan
Author-X-Name-First: Pingfang
Author-X-Name-Last: Duan
Author-Name: Christian Nsiah
Author-X-Name-First: Christian
Author-X-Name-Last: Nsiah
Title: International trade and economic growth in Africa: The role of the digital economy
Abstract:
This paper examines the role the digital economy plays in international trade impacts on Africa’s economic growth based on 53 countries’ sample from 2000–2018. We further divided the sample into five sub-regions, and the results are estimated by POLS, random and fixed effects, and the GMM models. The findings showed that (1) trade only has positive effects on economic growth when interacted with the digital economy in the POLS estimations, (2) Trade has a significantly positive impact on economic prosperity without and with the interactive term in the RE, FE, and the sys-GMM estimations, (3) the output elasticities of capital and labor have positive and negative impacts on economic growth, respectively, (4) the regressions for the sub-sample yielded statistically significant differences in the output elasticities for the indicators. The study recommends that concentrated efforts be directed towards developing the digital economy to ensure international trade’s full economic effect in Africa.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1911767
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1911767
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1911767
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Farhan Basheer
Author-X-Name-First: Muhammad Farhan
Author-X-Name-Last: Basheer
Author-Name: Shuchi Gupta
Author-X-Name-First: Shuchi
Author-X-Name-Last: Gupta
Author-Name: Rabeeya Raoof
Author-X-Name-First: Rabeeya
Author-X-Name-Last: Raoof
Author-Name: Waeibrorheem Waemustafa
Author-X-Name-First: Waeibrorheem
Author-X-Name-Last: Waemustafa
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Revisiting the agency conflicts in family owned pyramidal business structures: A case of an emerging market
Abstract:
The agency problem strikes as an ethical, practical, and economic issue in equal measures. The principal objective of the current research is to trace the nature of the agency conflicts in the family-owned pyramidal business groups of corporate Malaysia and how they affect the firm value. It is argued that the principal͐–principal (PP) conflict is more severe in family-owned business firms. To achieve the objectives of the current study, the GMM and the fixed effect estimates are used. In addition, to find the difference between family-owned firms and family-owned firms in the pyramidal business, we have employed the Mann–Whitney test. The null hypothesis is accepted which indicates that the impact of the PP conflict among family firms is different from those in pyramidal business groups. The final sample of 420 firms listed on the Bursa Malaysia is chosen for the analysis. The results of the current study provide support to the hypothesized results that the PP conflict is severe in family-owned groups and has a significant effect on firm value. The findings of the current study also provide support that the PP conflict is prevalent in Malaysia, supporting the earlier evidence regarding the expropriation of minority shareholders rights reported in the studies carried out on samples of Malaysian non-financial firms. This is also in line with our measure of PP conflict severity, which is high in pyramidal family firms. Overall, the results provided support to the expropriation hypothesis. Thus, the findings of this study also confirm the view that in family-owned Malaysian firms, the ethical dilemmas of wealth expropriations do exist and are more intense in the pyramidal family-owned business structures. Instead of relying on traditional methods, the current study employed a synthetic measure to gauge the PP conflict. The study which is among the pioneer on the expropriation of minority shareholders will be helpful for policymakers, researchers and finance professionals in understanding the issues related to principal-principal conflict, and firm value in family-owned pyramidal business groups of Malaysia.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1926617
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1926617
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1926617
Template-Type: ReDIF-Article 1.0
Author-Name: Joshua Nsanyan Sandow
Author-X-Name-First: Joshua
Author-X-Name-Last: Nsanyan Sandow
Author-Name: Emmanuel Duodu
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Duodu
Author-Name: Eric Fosu Oteng-Abayie
Author-X-Name-First: Eric Fosu
Author-X-Name-Last: Oteng-Abayie
Author-Name: Yudhvir Seetharam
Author-X-Name-First: Yudhvir
Author-X-Name-Last: Seetharam
Title: Regulatory capital requirements and bank performance in Ghana: evidence from panel corrected standard error
Abstract:
Over the past fifteen years, the Bank of Ghana has revised the minimum capital requirement to stabilize the banking sector. Motivated by the unintended consequences of regulatory capital, this paper provides empirical evidence between minimum capital requirement and bank performance relationship in Ghana. We draw data on a sample of 20 universal banks spanning 2008 to 2017. The Panel Corrected Standard Errors (PCSE) estimation was adopted. The results indicate that the minimum capital requirement has a significant positive impact on bank performance measured by return on assets (ROA) and equity (ROE). However, the effects turned negative after 1.7% and 1.6% performance thresholds for ROA and ROE, respectively. Given this, the study establishes the relationship between capital requirement and bank performance in Ghana to be double-edged. The capital requirement improves bank performance initially, but bank performance worsens after the threshold values. Policy implications for Ghana’s banks, regulators, and policymakers have been provided based on the findings.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.2003503
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2003503
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:2003503
Template-Type: ReDIF-Article 1.0
Author-Name: S. N. Jator
Author-X-Name-First: S. N.
Author-X-Name-Last: Jator
Author-Name: R. K. Sahi
Author-X-Name-First: R. K.
Author-X-Name-Last: Sahi
Author-Name: M. I. Akinyemi
Author-X-Name-First: M. I.
Author-X-Name-Last: Akinyemi
Author-Name: D. Nyonna
Author-X-Name-First: D.
Author-X-Name-Last: Nyonna
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Exponentially fitted block backward differentiation formulas for pricing options
Abstract:
A family of Exponentially Fitted Block Backward Differentiation Formulas (EFBBDFs) whose coefficients depend on a parameter and step-size is developed and implemented on the Black–Scholes partial differential equation (PDE) for the valuation of options on a non-dividend-paying stock. Specific EFBBDFs of order 2 and 4 are applied to solve the PDE after reducing it into a system of ordinary differential equations via the method of lines. The methods are shown to be superior to the well-known Crank–Nicolson method since they are $$L$$L-stable and do not exhibit oscillations usually triggered by discontinuities inherent in the payoff function of financial contracts. We confirmed the accuracy of the methods by initially applying them to a prototype example based on the one-dimensional time-dependent convection–diffusion equation with a known analytical solution. It is demonstrated that the American put can be exercised early by computing the hedging parameter “delta”, which specifies the condition for early exercise of the put option. Although the methods can be used to price all vanilla options, we elect to focus on the put due to its optimality.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1875565
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1875565
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1875565
Template-Type: ReDIF-Article 1.0
Author-Name: Linh Hoang Vu
Author-X-Name-First: Linh Hoang
Author-X-Name-Last: Vu
Author-Name: Le Quy Dinh Nguyen
Author-X-Name-First: Le Quy Dinh
Author-X-Name-Last: Nguyen
Author-Name: Robert Read
Author-X-Name-First: Robert
Author-X-Name-Last: Read
Title: Agricultural productivity growth in vietnam in reform and post-reform period
Abstract:
This paper applies the Malmquist productivity index method to measure total factor productivity (TFP) growth in Vietnamese agriculture using panel data from 60 provinces in Vietnam during 1985–2000 when Vietnam implemented widespread de-collectivization, trade liberalization, and reformed her agriculture sector. This study indicates that most of the early growth in Vietnamese agriculture during the first reform period 1985–1990 was due to TFP growth in response to incentive reforms. During the second reform period 1990–1995, the growth rate of TFP fell, and Vietnam’s agricultural growth was mainly caused by drastic investment in capital. In the post-reform period (1995–2000), TFP growth increased again, though still much lower than 1985–1990. Overall, the TFP growth rate in the whole period is estimated at 1.96 percent, contributing to 38% of Vietnam’s agricultural growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1972524
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1972524
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1972524
Template-Type: ReDIF-Article 1.0
Author-Name: Bacem Benjlijel
Author-X-Name-First: Bacem
Author-X-Name-Last: Benjlijel
Author-Name: Hatem Mansali
Author-X-Name-First: Hatem
Author-X-Name-Last: Mansali
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: The expected sharpe ratio of efficient portfolios under estimation errors
Abstract:
This paper aims to develop a feasible estimator of the Sharpe ratio that the investor would expect from estimated efficient portfolios. Based on the analytical expression of the expected Sharpe ratio, we construct an estimator that captures all the errors involved in the estimated efficient portfolios. We conduct a simulation study and find that our estimator delivers the lowest mean square error with comparison to existing estimators. Our result is robust to sample size, to number of assets and to non-normality. It works well, particularly, with short sample sizes. The superior performance of the proposed estimator is confirmed through empirical analysis. The ex-ante method developed in this work allows the investor to assess the value of efficient portfolios before investing capital.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1943910
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1943910
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1943910
Template-Type: ReDIF-Article 1.0
Author-Name: Varsha Sureshkumar
Author-X-Name-First: Varsha
Author-X-Name-Last: Sureshkumar
Author-Name: P Balasubramanian
Author-X-Name-First: P
Author-X-Name-Last: Balasubramanian
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Risk and returns of Indian listed firms after demonetisation
Abstract:
This paper aims to understand the impact of demonetisation on the returns of listed firms in the NSE, as well as changes to their corresponding industry level systematic risk. Firstly, this paper examined a larger sample of Indian listed firms and a broader group of industries in its analysis compared to prior studies. Secondly, the changes to systematic risk due to demonetisation across industries with listed firms was measured. The study uses event study methodology over a thirteen-day event window (six days before and six days after the announcement) to test for abnormal returns across 1,054 listed firms. A regression analysis of 57 industry level returns is performed to test for changes in systematic risk. Significant negative abnormal returns are found for over 100 firms and 12 out of the 57 industry divisions in the sample. The same group of industries also show an increase in their systematic risk in the short run. This indicates that parts of the formal economy were also seriously affected by demonetisation. However, our paper does not find any long-term effect due to demonetisation.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1920688
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1920688
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1920688
Template-Type: ReDIF-Article 1.0
Author-Name: John Chiwuzulum Odozi
Author-X-Name-First: John Chiwuzulum
Author-X-Name-Last: Odozi
Author-Name: Abigail Gbemisola Adeyonu
Author-X-Name-First: Abigail Gbemisola
Author-X-Name-Last: Adeyonu
Author-Name: Christian Nsiah
Author-X-Name-First: Christian
Author-X-Name-Last: Nsiah
Title: Household-level determinants of employment and earnings in rural Nigeria
Abstract:
Despite the extensive literature on rural poverty outcome, the labour employment channel has not been carefully investigated for rural Nigeria. The paper used the socioeconomic data from the three waves of the Nigerian General Household Survey Panel (2010/2011, 2012/3013 and 2015/2016 to examine the nature of household employment. By exploiting the panel nature of the data, we used a logit model and fixed effect approach to analyze the factors determining the employment expansion and earnings. From the descriptive statistics, agricultural employment sectoral share remains substantial but declined over the period considered. The study finds that much of the employment in rural Nigeria during the period 2010 to 2015 is farm self-employment. Though declining, it is two times the non-farm employment share and five times wage employment share. Wage employment is least and declining during the period covered. Findings from the econometric analysis suggest rural programmes that promote rural infrastructural, human capital development, networking, higher income and the diversity of income. It is an imperative policy goal to create an enabling environment for productivity and employment-intensive growth across all sectors of the economy particularly in agriculture. .
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1982232
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1982232
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1982232
Template-Type: ReDIF-Article 1.0
Author-Name: Ranjeeta Sadhwani
Author-X-Name-First: Ranjeeta
Author-X-Name-Last: Sadhwani
Author-Name: M. U. R. Bhayo
Author-X-Name-First: M. U. R.
Author-X-Name-Last: Bhayo
Author-Name: Mohammed M Elgammal
Author-X-Name-First: Mohammed M
Author-X-Name-Last: Elgammal
Title: Momentum and disposition effect in the US stock market
Abstract:
This paper examines whether momentum drives the disposition effect and vice versa in the US stock market. The results from the analysis of the Fama-Macbethregressions show that the disposition effect drives momentum but not the other way around. Furthermore, we find that this relationship varies over time. Along with the disposition effect, size also has an impact on the momentum. Therefore, the relationship between momentum and disposition effect is examined based on size deciles, and results demonstrate that the relationship does not vary significantly with the size of stocks. However, both the cumulative returns and capital gain varies monotonically with the size of stocks.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1999004
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1999004
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1999004
Template-Type: ReDIF-Article 1.0
Author-Name: Aritra Pan
Author-X-Name-First: Aritra
Author-X-Name-Last: Pan
Author-Name: Arun Kumar Misra
Author-X-Name-First: Arun Kumar
Author-X-Name-Last: Misra
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: A comprehensive study on bid-ask spread and its determinants in India
Abstract:
Determinants of bid-ask spread have been explored significantly for low-frequency datasets in many developed markets. Researchers have identified share price, traded volume, market–capitalization, return volatility, and number of trades as the prime spread drivers. However, the validity of these determinants has not been explored in high-frequency trading. The present study attempts to articulate the validity of low-frequency determinants of the bid-ask spread in high-frequency trading. It used “bigglm” concept to estimate various determinants of spread, one of the study’s major contributions. The study found a positive relation between market–capitalization and spread, supporting the theory that a higher trading volume cannot decrease the bid-ask spread. Explanatory variables are all significant and show different impacts in different market conditions and sectors. For pooled data, share price, traded volume, quote return, trading frequency, and return volatility are in inverse relation with the spread. The study investigates sectoral determinants of the bid-ask spread to understand sector-specific influences. It also explores the influence of up and down market, settlement cycles, opening and closing intervals, and price and market-cap on determinants. The findings have significance regarding influence on the market microstructure for trading, designing of trading liquidity, and reduction of transaction cost.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1898735
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1898735
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1898735
Template-Type: ReDIF-Article 1.0
Author-Name: Denis M. Becker
Author-X-Name-First: Denis M.
Author-X-Name-Last: Becker
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: The difference between Modigliani–Miller and Miles–Ezzell and its consequences for the valuation of annuities
Abstract:
This paper addresses the differences between the Modigliani-Miller [M&M] model (1958, 1963) and the Miles-Ezzell [M&E] model (1980, 1985). The main difference between these two models concerns the stochasticity of the free cash flows. While M&M assumes a strictly stationary process, M&E’s process is a martingale. However, this subtle difference has not been fully exposed, and previous literature has produced partly erroneous statements or inconsistent valuation models. Therefore, the main objective of this paper is to illustrate and accentuate the effect of these two mutually exclusive stochastic processes on the timely behavior of cash flows, discount rates, and values of the firm, equity, debt, and tax shield. For this purpose, we perform a numerical experiment that allows the determination of values and discount rates by means of the risk-neutral approach. We show that in the M&E model, all cash flows and values are path-dependent, while they are not in M&M’s world. Furthermore, in M&E’s model, all discount rates are time-invariant, except for the discount rate applied to tax shields, which depends on the lifetime of the cash flows. Contrarily, in the M&M setup, all discount rates change across time, except for the constant discount rate of the tax shield. This has consequences for the applicability of the well-known present-value formula for annuities and for building consistent valuation models for both finite and perpetual cash flows.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2020.1862446
File-URL: http://hdl.handle.net/10.1080/23322039.2020.1862446
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1862446
Template-Type: ReDIF-Article 1.0
Author-Name: Teshager Mazengia Asratie
Author-X-Name-First: Teshager Mazengia
Author-X-Name-Last: Asratie
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Determinants of financial development in Ethiopia: ARDL approach
Abstract:
Sustainable economic growth requires financial sector development. However, financial development is low in Ethiopia. Hence, the main objective of the study was to examine determinants of financial development in Ethiopia. Annual data from 1980 to 2019 was used and examined by ARDL estimation technique. Private sector credit and money supply as percentage of GDP were used as dependent variables. Independent variables include external debt, reserve requirement, real exchange rate, lending interest rate, inflation, political freedom index, trade openness and economic growth. Broad money supply model is positively affected by political freedom index, economic growth and trade openness both in the short run and long run. While it is negatively affected by interest rate and reserve requirement. However, real exchange rate has negative effect in the long run and insignificant effect in the short run. On the other hand, credit to private sector model is positively affected by inflation, and political freedom, economic growth and trade openness. While it is negatively affected by external debt, reserve requirement and lending interest rate. Error correction estimation result of credit to private sector model shows the adjustment coefficient is −0.263 and statistically significant at 5% level of significance, which means short run deviation from long run equilibrium is adjusted at a rate of 26.3%. The adjustment coefficient for broad money supply model is −0.254. The study recommends that the government needs to improve trade and the quality of factors of production, reduce reserve requirement, reducing interest rate on lending, political.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1963063
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1963063
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1963063
Template-Type: ReDIF-Article 1.0
Author-Name: Somlanare Romuald Kinda
Author-X-Name-First: Somlanare Romuald
Author-X-Name-Last: Kinda
Author-Name: Muhammad Shafiullah
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shafiullah
Title: Does the green economy really foster food security in Sub-Saharan Africa?
Abstract:
Over the last decade, the green economy concept has emerged as a fundamental policy framework for sustainable development in developing countries. This paper contributes to the current debate by providing an empirical investigation of the effect of the green economy on food security in 35 Sub-Saharan African countries for the period of 2001–2015. The results provide evidence that green economy indicators have controversial effects on food security (food availability and the proportion of undernourished people). Indeed, the results show that biofuels contribute to decreased food security in Sub-Saharan African countries, whereas renewable energy improves food security. Carbon dioxide emissions have no effect on food security. The results are robust to alternative robustness checks, such as the two-step Generalized Method of Moments (GMM) system.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1921911
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1921911
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1921911
Template-Type: ReDIF-Article 1.0
Author-Name: Abebaw Hailu Fikire
Author-X-Name-First: Abebaw Hailu
Author-X-Name-Last: Fikire
Author-Name: Francesco Tajani
Author-X-Name-First: Francesco
Author-X-Name-Last: Tajani
Title: Determinants of residential house rental price in Debre Berhan Town, North Shewa Zone, Amhara Region, Ethiopia
Abstract:
This study aims to investigate the determinants of residential house rental price in Debre Berhan town, North Shewa Zone, Amhara Region, Ethiopia. For this purpose, the study used both primary and secondary data. The data were obtained from 385 sample respondents. Questionnaires were used to collect the necessary data. Descriptive and inferential statistics were employed to analyze the data. Ordinary least square estimation technique was used to examine the determinants of residential house rental price. It found that floor material, age of the house, land size, access to water, near to amenities and the numbers of the bedroom are the determinants of residential house rental price in Debre Berhan Town, North Shewa Zone. The study suggests that zonal and regional governments need to establish residential house rent control programs to stabilize the unaffordable rental price of houses in Debre Berhan Town.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1904650
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1904650
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1904650
Template-Type: ReDIF-Article 1.0
Author-Name: Yaregal Tilahun
Author-X-Name-First: Yaregal
Author-X-Name-Last: Tilahun
Author-Name: Lanouar Charfeddine
Author-X-Name-First: Lanouar
Author-X-Name-Last: Charfeddine
Title: The cost and benefit analysis of climate change adaptation strategies among smallholder crop producers in the case of Sekela district, West Gojjam zone, Ethiopia
Abstract:
Climate change has adversely affected the livelihoods of people in Ethiopia since a large proportion of the population is heavily dependent on agriculture as their adaptive capacities are perceived to be below. Therefore, this study aimed to identify determinants of farmer adaptation strategies with their costs and benefits of each adaptation strategy. The data were collected from 155 farm households using a random sampling method through semistructured questionnaires. The result of the multivariate probit model revealed that the likelihood of farmers to adopt adjustment of planting date, changing crop varieties, intercropping, crop rotation, irrigation, and minimum tillage were 51.6%, 61.9%, 56.1%, 38.1%, 10.3%, and 27.1%, respectively. The joint likelihood of using all adaptation strategies was 4.2%, while their failure to adopt all the adaptation strategies was 9.8%. Among the given adaptation options, intercropping, adjusting planting dates, crop rotation, and changing crop varieties are economically viable climate adaptation strategies. Regarding the intensity of adaptation, 78% of sampled respondents were used more than one adaptation option, and their NPV and BCR were higher when they used at least one adaptation option. Farmers who did not adopt any adaptation options were able to receive the lowest income per unit production. The study recommends that households should use multiple combinations of adaptation practices rather than the use of a single adaptation option. Thus, the government and stakeholders must provide educational and extension service, training, and updated climate information to smallholder crop producers to use and select the best and combination of adaptation strategies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1999590
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1999590
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1999590
Template-Type: ReDIF-Article 1.0
Author-Name: Subroto Rapih
Author-X-Name-First: Subroto
Author-X-Name-Last: Rapih
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: How international capital inflows and domestic financial institutional development affect domestic credit: Evidence from developing countries
Abstract:
This study examines the effects of international capital flows segmented by borrower type (i.e., banks versus other types of financial institutions) and the development of domestic financial institutions on the level of domestic credit in 74 developing countries between 2005 and 2017. Through dynamic panel data estimation, this study yields four main findings. First, domestic credit is closely associated with international capital inflows to the banking sector, although the increase of foreign capital inflows to financial institutions other than banks harms domestic credit. Second, the development of domestic financial institutions is essential for increasing domestic credit in developing countries. Third, increasing international capital inflows to the banking sector will stimulate the level of domestic credit in countries with less developed domestic financial institutions and vice versa. Fourth, greater uncertainty in global economic and financial market conditions suppresses domestic credit in developing countries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.2007614
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2007614
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:2007614
Template-Type: ReDIF-Article 1.0
Author-Name: Tarana Azimova
Author-X-Name-First: Tarana
Author-X-Name-Last: Azimova
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Does financial innovation improve performance: Case study of Turkey
Abstract:
The mutual funds’ performance over time can be driven by a number of dynamic determinants including financial innovation. In fact, financial innovation can be considered as a key factor for improving the performance and increasing the profitability of mutual funds. The purpose of this study is to examine the process of financial innovation in Turkey and its role in accelerating the development and improvement of the performance of the mutual funds industry. This study provides a framework to analyze and evaluate the developments in financial practices over the eight-year period from 2011 to 2018. The process of financial innovation is defined as new financial products and services. Based on panel analysis it is observed that the activity of mutual funds responded to a great extent to innovative market forces.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1917104
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1917104
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1917104
Template-Type: ReDIF-Article 1.0
Author-Name: Doyo Kena
Author-X-Name-First: Doyo
Author-X-Name-Last: Kena
Author-Name: Robert Read
Author-X-Name-First: Robert
Author-X-Name-Last: Read
Title: Pastoral household’s perceptions of non pastoral activities in Yabello district, Oromia region, Ethiopia
Abstract:
The study examined the pastoralists’ perception towards non-pastoral activities and the proportion of pastoralist income from diverse livelihood activities in the pastoral areas of the Yabello district. Data were obtained from a survey of 180 household heads selected using a simple random sampling technique. Key informant interviews and focus group discussions were undertaken to gather data having qualitative nature. Descriptive and inferential analyses were used to analyze the data. The result shows that livestock rearing and crop production (72.49%) were the major sources of income for the respondents. A greater proportion (40% i.e. cumulative percentages of those who agree and strongly agree) of the household support that crop cultivation is as important as livestock rearing. Greater proportions (88.8%) of pastoral households also support that, practicing non-pastoral non-farm activities reduces climate-related risks, and the majority support undertaking diverse activities than relying on a single income source. The results also indicated that younger household heads, households with larger family sizes and lower livestock holding, and closer to the nearest market had positive perceptions towards non-pastoral activities. Pastoralist perception towards non-pastoral activities is gaining positive pattern and thus indicating the need for policy and development practice in line with their choice and ensuring sustainable livelihood.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1966917
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1966917
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1966917
Template-Type: ReDIF-Article 1.0
Author-Name: Lap Luu
Author-X-Name-First: Lap
Author-X-Name-Last: Luu
Author-Name: Liem Nguyen
Author-X-Name-First: Liem
Author-X-Name-Last: Nguyen
Author-Name: Robert Read
Author-X-Name-First: Robert
Author-X-Name-Last: Read
Title: Short-term debt and trade credit: Evidence on a non-linear relationship
Abstract:
The literature on the relationship between bank credit and trade credit is mixed between the substitution and complementarity effects. The extant studies only investigate the linear relationship between the two factors, thus missing some important implications from any non-linear relationship that could exist. The current study investigates the linear and non-linear impacts of short-term bank debt on trade credit, using a sample of 622 listed non-financial firms in Vietnam from 2011 to 2019. The research results contribute to reconciling the mixed findings about the impact of short-term debt on trade credit by showing that short-term debt tends to reduce the use of the latter at high levels of short-term debt. However, at lower levels, the substitution effect is weaker. Together, the pattern between the two factors depicts an inverted U-shaped relationship. This implies that in the relation between the two short-term funding sources, the levels of short-term debt could indicate financial constraints firms face when accessing capital markets.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1975412
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1975412
File-Format: text/html
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1975412
Template-Type: ReDIF-Article 1.0
Author-Name: Nguyen Kim-Duc
Author-X-Name-First: Nguyen
Author-X-Name-Last: Kim-Duc
Author-Name: Hay Sinh
Author-X-Name-First: Hay
Author-X-Name-Last: Sinh
Author-Name: Tran Bich-Van
Author-X-Name-First: Tran
Author-X-Name-Last: Bich-Van
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Modeling the selection of comparable firms: A novel approach for business valuation in ASEAN nations
Abstract:
This study aims to develop systematic models for the selection of comparable firms for firm valuation. The conventional approach argues that indicators such as firm size, growth rate, and industry should be considered for the selection of peer firms. However, this is sometimes very difficult for appraisers because it is almost impossible to find firms that capture all these criteria, especially in developing countries. Guided by business valuation theory, three indicators—profitability, earnings growth rate, and systematic risk—are applied by this study to build systematic models that simultaneously consider the many criteria affecting firm value. Using firm-level data from non-financial enterprises with 18,418 firm-year observations collected from the six ASEAN nations’ stock exchange markets from 2010 to 2020, this study contributes to business valuation literature by developing systematic models for the selection of comparable firms. The results of this study are also practically significant for valuers because our models can be applied to peer group selection as well. Additional analysis shows that our models are more appropriate or suitable than models from previous conventional approaches that use the same industry or same firm financial characteristics.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 9
Year: 2021
Month: 01
X-DOI: 10.1080/23322039.2021.1958980
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1958980
File-Format: text/html
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Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1958980
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# input file: OAEF_A_2140520_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mandella Osei-Assibey Bonsu
Author-X-Name-First: Mandella
Author-X-Name-Last: Osei-Assibey Bonsu
Author-Name: Ying Wang
Author-X-Name-First: Ying
Author-X-Name-Last: Wang
Title: The triangular relationship between energy consumption, trade openness and economic growth: new empirical evidence
Abstract:
Our paper examines the triangular relationships between energy consumption, trade openness and economic growth of 45 countries from 1991 to 2014 using dynamic seemingly unrelated regression (DSUR) models. We confirm a bidirectional relationship among energy consumption and income, trade openness and income, trade openness and energy consumption for countries in the long run. Interestingly, the impact of energy consumption on economic growth is larger than the impact of trade openness, trade openness evidence larger impact on energy consumption than the impact of economic growth. However, the effect of economic growth on trade openness is the largest in the triangular relationships. We suggest that energy measures that aim to lessen energy usage in an economy will hinder economic growth. Our results provide insights for policymakers to understand and develop energy, trade, and environmental policies for sustainable development in the long run.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2140520
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2140520
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2140520
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# input file: OAEF_A_2109278_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Gideon Mensah
Author-X-Name-First: Gideon
Author-X-Name-Last: Mensah
Author-Name: Anthony Kofi Osei-Fosu
Author-X-Name-First: Anthony
Author-X-Name-Last: Kofi Osei-Fosu
Author-Name: Grace Nkansah Asante
Author-X-Name-First: Grace
Author-X-Name-Last: Nkansah Asante
Title: The Effects of Public Sector Management and Institutions on Stock Market Development in Sub- Saharan Africa
Abstract:
Recently, sub-Saharan Africa (SSA) stock markets have received an exceptional attention as a market of hope and future. Hence, policy-makers, investors and financial analysts have been striving to ameliorate the factors that are detrimental to stock market development in SSA. Given this, the primary focus in literature has been based on the role that institutions play in influencing stock market development in SSA. Hence, this study employed fixed and random effect estimations technique on a balanced panel data of six (6) selected SSA countries to explore the impact of public sector management and institutions on stock market development in SSA for the period 2005–2018. This study found that, on average, countries with quality public sector management and institutions have been able to improve on their stock market development compared with countries without quality public sector management and institutions. In disaggregating the impact of public sector management and institutions into West and East countries in SSA, the study further demonstrated that public sector management and institutions enhance stock market development in these countries in SSA. However, we found that the effect of public sector management and institutions is insignificant in the East Africa communities (EACs). Based on these results, the study recommends that governments in SSA should put in place stringent measures that seek to enhance public sector management and institutions within SSA countries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2109278
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2109278
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2109278
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# input file: OAEF_A_2124734_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mohd Shahidan Shaari
Author-X-Name-First: Mohd Shahidan
Author-X-Name-Last: Shaari
Author-Name: Miguel Angel Esquivias
Author-X-Name-First: Miguel Angel
Author-X-Name-Last: Esquivias
Author-Name: Abdul Rahim Ridzuan
Author-X-Name-First: Abdul Rahim
Author-X-Name-Last: Ridzuan
Author-Name: Nor Fadzilah Zainal
Author-X-Name-First: Nor
Author-X-Name-Last: Fadzilah Zainal
Author-Name: Lilik Sugiharti
Author-X-Name-First: Lilik
Author-X-Name-Last: Sugiharti
Title: The impacts of corruption and environmental degradation on foreign direct investment: new evidence from the ASEAN+3 countries
Abstract:
Foreign direct investment (FDI) plays a vital role in boosting economic growth and providing more job opportunities. Hence, it is imperative to investigate the factors that can spur FDI inflows in the Southeast Asia region (ASEAN) and its three largest trading partners: China, Japan, and South Korea (ASEAN+3). Besides, whether corruption can boost or decrease FDI inflows, and whether larger environmental degradation triggers FDI inflows have been sparsely explored by previous studies. The panel Autoregressive Distributed Lag (ARDL) approach is employed to analyze the period from 1995 to 2020. The results show evidence of the grabbing hand hypothesis in ASEAN+3 as decreasing corruption can positively impact FDI inflows in the long run. However, the results support that increasing environmental degradation has spurred FDI in the region, suggesting reformulating investment promotion policies towards more environmentally friendly ones. These findings are important for policymakers to formulate the right policies for boosting FDI. Punishment for those who act in a corrupt manner may act as a deterrent to would-be offenders. Using more renewable energy could help to reduce environmental degradation and boost FDI simultaneously.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2124734
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2124734
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2124734
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# input file: OAEF_A_2087288_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Keshab Khatri Chettri
Author-X-Name-First: Keshab
Author-X-Name-Last: Khatri Chettri
Title: Financial institutions depth and growth in Nepal: Sensitivity to the choice of depth proxy
Abstract:
This paper examines the long-run and short-run growth effects of financial institutions depth in Nepal along with the sensitivity to the choice of proxy representing financial depth. Using annual time-series data for the period from 1980 till 2019, obtained from Quarterly Economic Bulletins published by Nepal Rastra Bank, the study employed autoregressive distribute lag (ARDL) model with bounds testing procedures to examine cointegration. Domestic credit to private sector, broad money supply, total deposits and financial institution’s assets are used as proxies for financial institutions depth as indicated by World Bank. Real GDP is used to measure economic growth and the influence of macroeconomic environment is accounted by inflation and trade openness. The bounds tests found cointegration in economic growth functions and the regression results revealed that domestic credit to private sector performed better than other indicators in terms of its significant contribution to economic growth both in the long-run and the short-run. Money supply and financial deposits show significant positive contribution to growth in the long-run. The positive relationship of financial depth indicators with economic growth also supports the supply-leading (finance-led-growth) hypothesis in the long-run. Policies must be aimed at efficient allocation of affordable credit to profitable projects for short-run and long-run growth. Expansionary fiscal and monetary policy and long-term deposits are highly desirable for the long-run growth in Nepal.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2087288
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2087288
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2087288
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# input file: OAEF_A_2035492_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Chanyalew S. Aweke
Author-X-Name-First: Chanyalew S.
Author-X-Name-Last: Aweke
Author-Name: Maria Sassi
Author-X-Name-First: Maria
Author-X-Name-Last: Sassi
Author-Name: Edward Lahiff
Author-X-Name-First: Edward
Author-X-Name-Last: Lahiff
Author-Name: Muluken G. Wordofa
Author-X-Name-First: Muluken G.
Author-X-Name-Last: Wordofa
Title: Seasonality and food security among smallholder rural households in eastern Ethiopia: Evidence from panel data analysis
Abstract:
Food insecurity remains one of the major challenges in Ethiopia. There is scanty empirical evidence regarding the contribution of seasonality to household food and nutrition security. This study was conducted in eastern Ethiopia with the aim of examining seasonal household food and nutrition security and factors influencing this seasonal variation. Data were gathered from randomly selected households during pre- and post-harvest seasons. A Random Effects Generalized Least Squares (GLS) regression was employed for analysis. The result indicated considerable variation between the two seasons in terms of dietary diversity and food security. Households producing more food groups, cultivating larger size of land, having higher household income, keeping more livestock, owning cell phone, having access to cooperatives, and having access to improved drinking water as well as education were more likely to be more food secure across seasons. However, households keeping livestock in their dwelling units and households who had access to credit were negatively associated with seasonal food insecurity. Future interventions aiming at ensuring food security should pay attention to seasonality and mechanisms of improving diversified food production and household income as well as expanding education opportunities and access to cooperatives, infrastructure (mobile telephone), and sanitation.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2035492
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2035492
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2035492
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# input file: OAEF_A_2119694_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Amzul Rifin
Author-X-Name-First: Amzul
Author-X-Name-Last: Rifin
Title: Marketed surplus of Indonesian rice production
Abstract:
Indonesian rice production has exhibited a positive increasing trend over the years. On the other hand, rice retail prices tend to fluctuate, even though the country has imported rice. One reason for this is that not all of the rice produced is sold to the market or marketed surplus. The objective of this study is to analyse the marketed surplus of Indonesian rice production and its determinants. The rice farmers’ survey conducted by Statistics Indonesia in 2014 was utilised. The Heckman two-step procedure was utilised to address the sample selectivity bias. The results indicate that the rice marketed surplus in Indonesia was 50 percent, with the highest in Java at 57percent, while outside Java, the marketed surplus was 48 percent. From the variables analysed, three variables were significant, and the sign was consistent among locations. Meanwhile, the output price has different effects on the three locations.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2119694
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2119694
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2119694
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# input file: OAEF_A_2106629_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Kazeem Abimbola Sanusi
Author-X-Name-First: Kazeem Abimbola
Author-X-Name-Last: Sanusi
Author-Name: Forget Mingiri Kapingura
Author-X-Name-First: Forget Mingiri
Author-X-Name-Last: Kapingura
Title: On the relationship between oil price, exchange rate and stock market performance in South Africa: Further evidence from time-varying and regime switching approaches
Abstract:
The study examines the dynamics between oil price, exchange rate, and stock market performance in South Africa using DCC-GARCH, time-varying VAR, and multivariate Markov regime switching models. Monthly data on oil price, exchange rate, and market capitalization as a measure of stock performance from 2003(01) to 2019(7) were employed. The results of DCC-GARCH model show that dynamic conditional correlation among the variable was stable with few exceptionalities. The empirical findings from time-varying VAR show existence of feedbacks from stock market to oil price. Markov regime switching VAR model results show that exchange rate and market capitalization have significant effects on oil price in booming period. The study concludes that stock market performance provides an important policy help in stemming the erratic fluctuations in oil price. Appropriate knowledge of the linkage between oil price, exchange rate and stock market performance in South African economy is important because of her heavy reliance on oil importation. The upward change in oil price has so many overlapping effects on many sectors of the economy in form of increase in cost of goods and services (inflation) and lower standard of living among others. Hike in oil price is believed to also worsen the external value of Rands. This could send some dangerous signals to foreign investors in the stock market, which may undermine the performance of the stock market. Empirical knowledge of this dynamic could assist the policy makers to come up with mitigating policies to reduce the effects of oil price volatility on other economic fundamentals.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2106629
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2106629
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# input file: OAEF_A_2073003_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: An Nguyen
Author-X-Name-First: An
Author-X-Name-Last: Nguyen
Author-Name: Tuan Nguyen
Author-X-Name-First: Tuan
Author-X-Name-Last: Nguyen
Author-Name: Phuong Hoang
Author-X-Name-First: Phuong
Author-X-Name-Last: Hoang
Title: The impact of corporate governance quality on capital structure choices: does national governance quality matter?
Abstract:
This research investigates the moderating effect of national governance quality on the corporate governance—capital structure decision relationship. Using an instrumental variable estimation technique to analyze a multinational dataset containing 23,142 firm-year observations of 3,270 firms in 59 economies from 2004 to 2014, we find evidence for the moderating role of national governance quality. Specifically, a well-functioning firm-level governance system tends to force managers to increase borrowing toward an optimal level for shareholders. The strength of the force, however, seems to decrease as national governance quality increases. Our findings suggest that a transparent and investor-friendly business environment created by the government may complement the firm-level corporate governance mechanism by reducing agency problems, thus reducing the need to use leverage as a tool to discipline managers. The results are robust to different proxies for national governance quality, corporate governance quality, and firm leverage.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2073003
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2073003
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# input file: OAEF_A_2123889_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Endashaw Sisay
Author-X-Name-First: Endashaw
Author-X-Name-Last: Sisay
Author-Name: Wondimhunegn Atilaw
Author-X-Name-First: Wondimhunegn
Author-X-Name-Last: Atilaw
Author-Name: Tecklebirhan Adisu
Author-X-Name-First: Tecklebirhan
Author-X-Name-Last: Adisu
Title: Impact of economic sectors on inflation rate: Evidence from Ethiopia
Abstract:
It is unclear how sectoral growth in the agriculture, industrial, and service sectors affects inflation, and the topic is also quite rare. Accordingly, the researchers in this paper examine the long- and short-term effects of agriculture, service, and industry sectors on inflation rates. In order to achieve this, the researchers applied an autoregressive distributed lag model from 1975 to 2019. In order to determine the direction of causation, the Granger causality test was conducted. The results clearly demonstrate the negative relationship between agriculture, services, population, and inflation over the long term. In the short run, previous inflation, the service sector, the second lag in population, and the agricultural sector do not reduce inflation. The industrial sector and the first lag of the population can lower inflation rates. Thus, the industry sector in the long run and the service and agricultural sectors in the short run are inefficient at reducing inflation. Inflation and the agricultural sector are causally linked in both directions. Additionally, unidirectional causality runs from industry and the service sector to inflation. Early researchers have not examined the impact of the service, industry, and agriculture sectors on inflation rate, thus offering a unique contribution to policy makers. Panel data are not used to compare the sectoral responsibility for reducing inflation in other African countries with researchers. Practically, the agriculture and service sectors on the short run, along with the industry sector on the long run, both need attention.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2123889
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2123889
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# input file: OAEF_A_2101220_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Phuc Van Nguyen
Author-X-Name-First: Phuc
Author-X-Name-Last: Van Nguyen
Author-Name: Duc Hong Vo
Author-X-Name-First: Duc Hong
Author-X-Name-Last: Vo
Author-Name: Toan Pham-Khanh Tran
Author-X-Name-First: Toan Pham-Khanh
Author-X-Name-Last: Tran
Author-Name: Ngoc Phu Tran
Author-X-Name-First: Ngoc Phu
Author-X-Name-Last: Tran
Title: Public spending and informal economy in the Asian countries
Abstract:
The informal economy is a complex phenomenon present, to a large extent, in both developing and developed countries. Despite an increasing focus on the nexus between public spending and the informal economy, little is known about the moderating role of budget imbalance in this relationship. This study investigates how a budget imbalance moderates the effects of public spending on the informal economy of 32 Asian countries from 2000 to 2017. We have employed the generalized method of moments and various second-generation tests in this analysis to ensure the approach is appropriate and the findings are robust. Our results indicate that increasing public spending and budget imbalance will increase the informal economy size. Interestingly, the effect of public expenditure on the informal economy will enhance with an increase in the budget imbalance. Additionally, we also find that tax burden and economic growth contribute to the increased informal economy in Asian countries. This study also offers some useful policy implications for reducing the informal economy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2101220
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2101220
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# input file: OAEF_A_2048341_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Aschale Mekuria Shitaye
Author-X-Name-First: Aschale Mekuria
Author-X-Name-Last: Shitaye
Title: Affordability of residential house rent market value in Hawassa city
Abstract:
The urban housing situation in Ethiopia is a wide gap between housing demand and actual supply in all urban centers of the country. Generally, the study aims to examine the affordability of residential house rent market value. Specifically, the study aims to assess the characteristics of rental housing, examined rent affordability; identify factors that determined rental affordability in Hawassa city, Sidama Regional State, Ethiopia. The study employed both primary and secondary data. Primary data were obtained from 219 rental households through questioners. For data analysis, the study employed both descriptive and inferential statistics. Logistics regression estimation technique was used to examine the affordability of residential house rent market value. About 68.04% of surveyed households were paid 30% or less of their monthly income to residential house rent, and 31.96% of a household were spent more than the thresholds’ income level. The findings of the study revealed that household income, marital status, number of rooms, transport access and house typology are the determinants of residential house rent market value affordability in Hawassa city, Sidama region, Ethiopia. The study suggests that government should be focused on constructing public houses, controlling the effects of illegal brokers and subsidizes private house builders through credit access, tax break down for imported construction materials and provision of land with low lease.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2048341
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2048341
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# input file: OAEF_A_2139883_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mengistu Bululta
Author-X-Name-First: Mengistu
Author-X-Name-Last: Bululta
Author-Name: Haile Tamiru
Author-X-Name-First: Haile
Author-X-Name-Last: Tamiru
Author-Name: Tariku Ayele
Author-X-Name-First: Tariku
Author-X-Name-Last: Ayele
Title: Determinants of farmland degradation among farming households in West Guji Zone, Ethiopia
Abstract:
This paper aimed to examine the determinants of farmland degradation in the West Guji Zone. The study employed data collected in 2020 from a sample of 385 farm households selected using a simple random sampling technique. An ordered probit model was run to examine the association of explanatory variables with the severity of farmland degradation. Farm plot assessment results indicate that most farm plots were categorized as slightly degraded, followed by moderate, non-degraded, and severe degradation statuses. The study indicated that the main causes of farmland degradation were intensive cultivation without fallow, deforestation, high precipitation, overgrazing, steep slopes, and wind. The ordered probit results revealed that age of household heads, number of plots, and slope of the farmland positively and significantly influenced the severity of farmland degradation, while sex of household heads, soil conservation status, family size, education, land-to-labor ratio, and extension contact were negatively and significantly associated with the severity of farmland degradation. Therefore, the study suggests the provision of training to farming households, promotion of cost-effective modern feed resources and homemade biogas, implementation of a participatory management approach, scaling-up existing land management practices, ensuring the sustainability of natural resource use, and a close linkage between farmers and extension agents to minimize farmland degradation.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2139883
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2139883
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# input file: OAEF_A_2040126_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Trung Duc Nguyen
Author-X-Name-First: Trung Duc
Author-X-Name-Last: Nguyen
Author-Name: Quynh Lan Thi Du
Author-X-Name-First: Quynh Lan Thi
Author-X-Name-Last: Du
Title: The effect of financial inclusion on bank stability: Evidence from ASEAN
Abstract:
After the recent global financial crisis of 2008, the attention of researchers and politicians has focused on both financial inclusion and bank stability. However, we still know little of how the former impacts the stability of financial services providers. This paper focuses on financial inclusion and its influence on bank stability. By using a sample of 102 banks in six countries of ASEAN over the period 2008–19, we achieve the result that the index of financial inclusion has a positive relationship with Zscore and a negative effect on the standard deviation of deposit growth rates and nonperforming loan ratio, which also means that higher level of financial inclusion contributes to greater bank stability. Or, to make it clearer, in an inclusive financial sector, those banks can increase more stable customer deposits and safe loans by providing banking services. The indices calculated for each dimension of financial inclusion, including accessibility, availability, and usage of the formal bank system, also have the same results. Our findings have important policy implications that ASEAN policymakers do not have to face a tradeoff between focusing on reforms to promote financial inclusion and focusing on further improvements in bank stability.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2040126
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2040126
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# input file: OAEF_A_2132641_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Nenavath Sreenu
Author-X-Name-First: Nenavath
Author-X-Name-Last: Sreenu
Author-Name: Ashis Kumar Pradhan
Author-X-Name-First: Ashis Kumar
Author-X-Name-Last: Pradhan
Author-Name: Vinh Vo Xuan
Author-X-Name-First: Vinh Vo
Author-X-Name-Last: Xuan
Author-Name: B. Koteswara Rao Naik
Author-X-Name-First: B. Koteswara Rao
Author-X-Name-Last: Naik
Title: Impact of accounting conservatism on IPO under-pricing: evidence from India
Abstract:
In this paper, we investigate whether the use of accounting conservatism in India decreases IPO underpricing, which is of attention to stakeholders and supervisors. Furthermore, the study examines how asymmetry information affects the implication of accounting conservatism for IPOs. Based on a regression analysis of 527 firms that went public through IPOs of “A” shares listed on the national stock exchanges between 2000 and 2020, the paper also examines whether the relationship between conservatism and under-pricing is robust to alternative measures of accounting conservatism, mean regressions, sample exclusions, and endogenous treatment models. The research study finds that accounting conservatism is negatively associated with the degree of IPO under-pricing, and the association between accounting conservatism and IPO under-pricing is more perceptible when information asymmetry is high. The paper’s originality should shed light on what drives IPO underpricing and how it could be affected by accounting conservatism in an Indian economy, and provide find evidence that legal origin, a factor linked to the practice of conservatism, influences the relationship between under-pricing and conservatism.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2132641
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2132641
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# input file: OAEF_A_2068241_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Houda BenMabrouk
Author-X-Name-First: Houda
Author-X-Name-Last: BenMabrouk
Author-Name: Wafa HadjMohamed
Author-X-Name-First: Wafa
Author-X-Name-Last: HadjMohamed
Title: Oil shocks and the volatility of BRICS and G7 markets: SVAR analysis
Abstract:
Based on the Structural Vector Auto regression (SVAR) model, we study the impact of oil shocks on the volatility of the BRICS and G7 markets. We decompose oil shocks into three types: oil supply shocks, aggregate demand shocks and oil-specific demand shocks. The results indicate that there is a significant impact of oil shocks on both markets but this impact differs according to the nature of the shock and according to the studied market. We find that the reaction of all the considered market volatilities is more intensive for a demand shock especially for a specific demand shock than for a supply shock. BRICS and G7 markets volatilities react very similarly on impact to oil-specific demand shocks, while their responses present some differences to aggregate demand shocks and oil supply shocks. Our results reflect the changes experienced by the BRICS and G7 economies in recent years.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2068241
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2068241
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2068241
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# input file: OAEF_A_2143147_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Kabiru Hannafi Ibrahim
Author-X-Name-First: Kabiru Hannafi
Author-X-Name-Last: Ibrahim
Author-Name: Rossanto Dwi Handoyo
Author-X-Name-First: Rossanto Dwi
Author-X-Name-Last: Handoyo
Author-Name: Wasiaturrahma Wasiaturrahma
Author-X-Name-First: Wasiaturrahma
Author-X-Name-Last: Wasiaturrahma
Author-Name: Tamat Sarmidi
Author-X-Name-First: Tamat
Author-X-Name-Last: Sarmidi
Title: Services trade and infrastructure development: Evidence from African countries
Abstract:
Using a dynamic system GMM estimate, this study analyzed the impact of services trade on the development of infrastructure in 38 African countries over the period 2000–2020. Telecommunications, trade/transport-related, and port infrastructures were modelled as the dependent variables on services trade openness. Other sets of control variables include real GDP, financial development, gross fixed capital formation, external debt, population density, urbanization, exchange rate, and services value-added. Our empirical strategy revealed that regardless of the infrastructure indicator used in the estimate, services trade, GDP, financial development, external debt, and services value-added significantly promote the development of infrastructure in the continent. Capital formation increases trade/transport-related and reduces port infrastructure while population density increases trade/transport-related and port infrastructure. The finding further indicates that urbanization increases telecommunications and reduces trade/transport-related infrastructure. The exchange rate reduces the development of telecommunications and port infrastructure. The findings are therefore vital to present policies related to services trade and infrastructure development in African countries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2143147
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2143147
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# input file: OAEF_A_2106635_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Zhuwei Li
Author-X-Name-First: Zhuwei
Author-X-Name-Last: Li
Author-Name: Xiaoshan Wang
Author-X-Name-First: Xiaoshan
Author-X-Name-Last: Wang
Author-Name: Chenyang Kang
Author-X-Name-First: Chenyang
Author-X-Name-Last: Kang
Title: The impact of price limit system on the comprehensive quality of the stock market: Research on long-term and short-term effects based on submarkets
Abstract:
We construct a difference-in-differences simultaneous equation to study the long-term impact of price limit system on the comprehensive quality of the stock market. Moreover, we use event study method to further test short-term effect. Results show that after the setting of price limit system in China, the quality of total market and the Shenzhen stock market improves to a certain extent. But for the Shanghai stock market, in the long term, the setting of price limit system can reduce liquidity and market efficiency, in the short term, it could cause trading interference effect and price discovery delay effect; nonetheless, it could stabilize volatility and suppress volatility spillover effect.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2106635
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2106635
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2106635
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# input file: OAEF_A_2048484_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Benedict Arthur
Author-X-Name-First: Benedict
Author-X-Name-Last: Arthur
Author-Name: Millicent Selase Afenya
Author-X-Name-First: Millicent
Author-X-Name-Last: Selase Afenya
Author-Name: Michael Asiedu
Author-X-Name-First: Michael
Author-X-Name-Last: Asiedu
Author-Name: Rebecca Aduku
Author-X-Name-First: Rebecca
Author-X-Name-Last: Aduku
Title: The bilateral J-curve between Ghana and her key trading partners
Abstract:
This study examines the J-Curve phenomenon of a developing country for the case of Ghana and its major trade partners: Switzerland (Swiss) and China. Using quarterly bilateral data from Q1-1995 to Q4-2018 to investigate the impact of currency depreciation on the bilateral trade balance in the short and the long run, it was established that the depreciation of Ghana Cedis in recent years could be considered as a successful policy for the trade balance improvement of Ghana. First, the real depreciation of Ghana Cedis improves Ghana’s trade balance with China and the Swiss after worsening the trade balance in the short run. Second, in the long run, the Ghana trade balance is improved from a real depreciation of Cedis, which formed 3.235 percent and 1.594 percent of Ghana’s total trade share with China and Swiss, respectively. Third, the estimates show evidence of the J-Curve phenomenon only in the cases of China, not for the Swiss. Additionally, the real income of trading partners has a positive and significant effect in the long run, indicating that an increase in the real income of partners has an important role in determining imports from Ghana. However, there is no significant effect on Ghana’s real income on the trade balance. Lastly, the results from diagnostic tests show that the estimated relationships have been stable and reliable over the last 24 years. Consequently, in line with the study results, the authors recommend several policy implications to improve the trade balance in Ghana.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2048484
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2048484
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# input file: OAEF_A_2008586_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Horace Phiri
Author-X-Name-First: Horace
Author-X-Name-Last: Phiri
Title: Public investment and export diversification in low skilled labor force economies. Evidence from sub Saharan Africa
Abstract:
Export diversification is a means for sustainable economic growth in low-income countries. Consequently, public investment is made in various sectors to attain diversification. In this study, we assessed the long-run elasticity of export diversification to various forms of public expenditure in economies with a dominant unskilled labor force. Public investments in agriculture, education, manufacturing and mining, and transport and ICT were found to promote diversification in the long term, but all were inconsequential in the short term except for education. We conclude that for countries where a larger proportion of the labor force is unskilled public investment in public expenditures in economic and supporting sectors can encourage export diversification. However, outcomes are as dependent on the quantity of investment as they do on quality. Deliberate strategies to promote diversification should be encouraged.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2008586
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2008586
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2008586
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# input file: OAEF_A_2145750_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Suresh G
Author-X-Name-First: Suresh
Author-X-Name-Last: G
Author-Name: Naveen Kumara R
Author-X-Name-First: Naveen Kumara
Author-X-Name-Last: R
Author-Name: Natchimuthu Natchimuthu
Author-X-Name-First: Natchimuthu
Author-X-Name-Last: Natchimuthu
Title: Are there bubbles in sectoral indices? Evidence from national stock exchange
Abstract:
Trading at prices above their fundamental values has been referred to as stock market Bubbles. These Bubbles, when Busted, can lead to a market Crash. From experience, it is a well-known fact that Bubbles initially occur in one particular sector and later spread to the aggregate markets, leading to the collapse of the entire market. This paper attempts to test the existence of bubbles in Indian Sectoral Indices. Previous studies have proven that sectoral indices do not mimic the market behaviour and the reaction of the sectors tends to be different compared to the market’s response. In that context, the paper aims to explore the existence of bubbles sector-wise rather than aggregate market-wise. The presence of bubbles is confirmed through the Superior and flawless method called the GSADF test is more flexible and reliable than RADF (Rolling Augmented Dickey-Fuller) and Supremum Augmented Dickey–Fuller (SADF) methods. Findings reveal that not all sectors experience bubbles at the same time. During the study period, the Automobile, financial services, Media and Private sector banking sectors experienced bubbles. Detected bubbles were also found at different times in these sectors. The study helps investors who focus investments in a specific sector to capitalise on price movements once they can time-stamp the occurrence of bubbles. The study provides essential input for investors in taking timely investment decisions. Further results of our study could enable policymakers to instil corrective actions to put the markets back on track when the index falsely deviates from intrinsic values.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2145750
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2145750
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# input file: OAEF_A_2054526_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Esther Sri Astuti Soeryaningrum Agustin
Author-X-Name-First: Esther Sri Astuti Soeryaningrum
Author-X-Name-Last: Agustin
Author-Name: Rina Martini
Author-X-Name-First: Rina
Author-X-Name-Last: Martini
Author-Name: Budi Setiyono
Author-X-Name-First: Budi
Author-X-Name-Last: Setiyono
Title: Evaluating rural tourism competitiveness: Application of PROMETHEE-GAIA method
Abstract:
This study aims to analyze the factors that determine rural tourism competitiveness in Indonesia, measure the tourism competitiveness in each rural tourism, and discover the gap between rural tourism in four provinces. This study adopts the Travel and Tourism Competitiveness Report (TTCR) Model from the World Economic Forum, and we develop the combination between the PROMETHEE method and GAIA plane. This study finds that Giri Emas is rural tourism with the highest score of competitiveness index compared to others. Generally, the tourism sector potential in Indonesia is great and must be developed with additional sense of policy to have a better performance. Stakeholders need to give attention to the Health and Hygiene sub-pillar to be ready during pandemic and post-pandemic. This study encourages policymakers to develop an appropriate strategy that can make the performance of the tourism sector better. Managerial implications are that rural tourism needs to approach various aspects other than the tourist attraction factors. Policymakers should give priority to health facilities and capacities as part of the pandemic response. This study measures the tourism competitiveness of villages with semi-structured interviews and questionnaires. Therefore, it will portray a more detail tourism in Indonesia.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2054526
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2054526
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# input file: OAEF_A_2122189_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Khalid Adnan Saeed
Author-X-Name-First: Khalid Adnan
Author-X-Name-Last: Saeed
Title: Determinants of institutional quality and per capita growth in natural resource-dependent countries
Abstract:
Institutional quality has both short-term and long-term impacts on economic growth. Its short-term impact comes from the quality of institutions ex ante while its long-term impact comes from the quality of institutions ex post. Ex post institutions are shaped by the direct impact of resource dependence on regime type. The goal of this paper is to identify the components of institutional quality that has the most impact on per capita growth in resource-rich developing countries. I investigate the relationship between resource wealth and institutions and their impact on per capita growth by deconstructing institutional quality in a panel of 58 developing countries in the period between 1996 and 2014. I ask if the effect of resource wealth on growth depends on the quality of institutions, then which underlying component(s) of institutional quality have the most effect on this relationship? Results show that voice and accountability have the most influence in shaping institutional quality in a sample of developing countries, and there is evidence that it has the most relevant and significant effect on growth compared to other components of institutional quality.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2122189
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2122189
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# input file: OAEF_A_2122179_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Huy Pham
Author-X-Name-First: Huy
Author-X-Name-Last: Pham
Author-Name: Vikash Ramiah
Author-X-Name-First: Vikash
Author-X-Name-Last: Ramiah
Author-Name: Hanh Le
Author-X-Name-First: Hanh
Author-X-Name-Last: Le
Author-Name: Nisreen Moosa
Author-X-Name-First: Nisreen
Author-X-Name-Last: Moosa
Author-Name: Osama Al-Hares
Author-X-Name-First: Osama
Author-X-Name-Last: Al-Hares
Title: The effect of the royal wedding on the UK stock market
Abstract:
We assess the effect of the recent royal wedding of Prince Harry and Meghan Markle on various sectors of the UK stock market over the period between November 2017 and May 2018. For this purpose, the event study methodology is used to estimate abnormal returns and conduct several robustness tests such as the Corrado ranking test, the Chesney non-parametric conditional distribution approach, the Fama-French five-factor model, the market model, allowing for market integration, and the removal of firm-specific information. In addition, we use various ARCH-type models to capture changes in systematic risk. The results show that the effect of the royal wedding is limited to few sectors. We also find that a positive national and investor mood does not always boost sectoral stock returns. In addition, we observe that announcements related to the royal wedding led to changes in both short-term and long-term systematic risk.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2122179
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2122179
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# input file: OAEF_A_2159736_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Emmanuel Joel Aikins Abakah
Author-X-Name-First: Emmanuel Joel Aikins
Author-X-Name-Last: Abakah
Author-Name: Guglielmo Maria Caporale
Author-X-Name-First: Guglielmo Maria
Author-X-Name-Last: Caporale
Author-Name: Luis Alberiko Gil-Alana
Author-X-Name-First: Luis Alberiko
Author-X-Name-Last: Gil-Alana
Title: The effects of us covid-19 policy responses on cryptocurrencies, fintech and artificial intelligence stocks: A fractional integration analysis
Abstract:
This paper assesses the impact of US policy responses to the Covid-19 pandemic on various technology-related assets such as cryptocurrencies, financial technology, and artificial intelligence stocks using fractional integration techniques. More precisely, it analyzes the behavior of the percentage returns in the case of nine major coins (Bitcoin—BITC, Stella—STEL, Litecoin—LITE, Ethereum—ETHE, XRP (Ripple), Dash, Monero—MONE, NEM, Tether—TETH) and two technology-related stock market indices (the KBW NASDAQ Technology Index—KFTX, and the NASDAQ Artificial Intelligence index—AI) over the period 1 January 2020–5 March 2021. The results suggest that fiscal measures such as debt relief and fiscal policy announcements had positive effects on the series examined during the pandemic, when an increased mortality rate tended instead to drive them down; by contrast, monetary measures and announcements appear to have had very little impact and the Covid-19 containment measures none at all.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2159736
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2159736
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# input file: OAEF_A_2148365_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Seungho Baek
Author-X-Name-First: Seungho
Author-X-Name-Last: Baek
Author-Name: Kwan Yong Lee
Author-X-Name-First: Kwan Yong
Author-X-Name-Last: Lee
Title: Monetary policy, COVID-19 immunization, and risk in the US stock markets
Abstract:
We examine how monetary policy of the Federal Reserve System, COVID-19 mortality cases, and vaccinations are associated with the US stock market volatility during the pandemic period. Using the wavelet coherence analysis, we first find that there is a positive relationship between the volatility and death tolls. Second, while in the short term the sizable interest rate cut causes market instability, in the intermediate term it stabilizes the market. Third, vaccinations and the volatility have a negative relationship. Finally, the monetary policy and the volatility have much stronger coherency than the vaccination and the movements. These findings are consistent with panel regression results. Specifically, we find that the systemic COVID-19 shock in the US stock market is alleviated by an increase in the number of COVID-19 vaccination doses administered and a low and stable change in the effective federal funds rate. Furthermore, our results show that the monetary policy influences the stock market volatility significantly more than the vaccination, regardless of firm size and industry type. Thus, this study helps policymakers cope with possible systemic shocks from other infectious diseases, considering the magnitude of monetary and health policy and their short/intermediate/long-term lagging effectiveness in reducing market volatility.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2148365
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2148365
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# input file: OAEF_A_2107765_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jamel Boukhatem
Author-X-Name-First: Jamel
Author-X-Name-Last: Boukhatem
Author-Name: Mouldi Djelassi
Author-X-Name-First: Mouldi
Author-X-Name-Last: Djelassi
Title: The bank-lending channel of monetary policy transmission in a dual banking system: empirical evidence from panel VAR modeling
Abstract:
This paper applied the panel VAR approach and the Impulse Response Functions to investigate the differences in the monetary transmission processes of Islamic and conventional banks using disaggregated bank-level data for Saudi Arabia over the period 2008Q1–2020Q4. Our findings show that: i) Islamic banks play a significant role in transmitting monetary policy decisions to the real economy through the balance sheet channel; ii) Islamic banks’ deposits are more responsive to oil price shocks than Islamic financing; iii) the reaction of Islamic banks to monetary policy and price shocks is relatively weaker than that of conventional banks, suggesting the existence of rigidities, such as excess liquidity, inertia in changing return rates, and the lack of funding and investment sources, and iv) the relatively significant responses of Islamic banks to various shocks make it easier for the Saudi central bank to achieve macroeconomic goals through monetary policy actions in a dual-banking system.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2107765
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2107765
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# input file: OAEF_A_2041260_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Netsanet Gizaw
Author-X-Name-First: Netsanet
Author-X-Name-Last: Gizaw
Author-Name: Jemal Abafita
Author-X-Name-First: Jemal
Author-X-Name-Last: Abafita
Author-Name: Tesfaye Melaku Merra
Author-X-Name-First: Tesfaye Melaku
Author-X-Name-Last: Merra
Title: Impact of coffee exports on economic growth in Ethiopia; An empirical investigation
Abstract:
The major objective of this study was to examine the impact of Coffee exports on economic growth in Ethiopia. The study employed an extended generalized Cobb–Douglas production function model using data from the National Bank of Ethiopia and World Bank data base from 1980 to 2017. All the variables were non stationary at level and integrated of order I (1), and then co-integration test was conducted to ensure the existence of long-run relationship using Johansen’s approach. Consequently, all the variables confirmed co-integartion, and the conventional VECM was estimated to extract both short-run and long-run relationships, and finally, Granger causality test was conducted to diagnose the direction of causation. The finding of the study revealed that coffee exports have insignificant short-run impact on economic growth, but significant positive impact in long run. The result from causality exerted bidirectional relationship holds in Ethiopia’s coffee exports, likewise the result from IRF revealed coffee exports has a positive impact on long-run economic growth. Besides, labor force, capital formation, non-coffee exports and real effective exchange rates included in the model were found positive and significant impact in long run. Furthermore, the coefficient of ECT is −0.4883 that shows any deviations from long-run equilibrium is corrected at 48.83% annually and converges towards its long-run equilibrium. Based on the findings, it is recommended that a long-run policy towards exports in general and coffee export in particular is believed to provide significant impact on economic growth. Thus, increasing efficiency of the sector and exporting coffee would enable Ethiopia to sustain domestic economic growth. Besides, values had better be added to coffee beans before exporting and when this is done, it will lead to a higher economic growth in long run.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2041260
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2041260
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# input file: OAEF_A_2087289_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Randa Mohammed Shams Addin Al-Mawsheki
Author-X-Name-First: Randa Mohammed Shams
Author-X-Name-Last: Addin Al-Mawsheki
Title: Effect of working capital policies on firms’ financial performance
Abstract:
This study focuses on short-term investment and financing decisions influenced by a firm’s working capital policy and the effect of working capital policies on the financial performance of manufacturing firms in Malaysia. Working capital policies were measured by working capital financing and investment policies. Working capital investment policy was measured by the ratio of current assets to total assets. Working capital financing policy was categorized as conservative working capital financing policy, aggressive working capital financing policy, and matching working capital financing policy. This study considered matching working capital financing policy, which was not considered in previous empirical studies. The data included 147 firms with 1470 firm-year observations for the period from 2010 to 2019. The results revealed that the current asset to total asset ratio significantly negatively affected firms’ financial performance. Meanwhile, a conservative working capital financing policy was positively and significantly related to a firm’s financial performance. The finding implies that Malaysian manufacturing firms can increase their operating income by adopting an aggressive working capital investment policy. The finding also implies that Malaysian manufacturing firms can increase their operating income by implementing a conservative working capital financing policy rather than a matching or an aggressive working capital financing policy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2087289
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2087289
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# input file: OAEF_A_2111812_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Khiem Dieu Truong
Author-X-Name-First: Khiem Dieu
Author-X-Name-Last: Truong
Title: Corporate governance and financial distress: An endogenous switching regression model approach in vietnam
Abstract:
This study aims to determine the impact of Corporate Governance on the relationship between the macro and micro factors causing financial distress in 240 Vietnamese listed non-financial firms. The study also investigates the marginal benefits of different corporate governance practices by applying an endogenous switching regression model (ESRM). The research clarifies that a firm with strong corporate governance practice has a low probability of financial distress compared to a weak corporate governance firm. Moreover, the risk of financial distress is significantly reduced when improving the corporate governance practice. This paper contributes empirical evidence on the predominant benefit of strong corporate governance practices and marginal benefit in risk mitigation in enhancing corporate governance. The article suggests that Vietnamese firms should implement strong corporate governance to overcome the risk of financial distress.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2111812
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111812
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# input file: OAEF_A_2150132_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Tyler Hull
Author-X-Name-First: Tyler
Author-X-Name-Last: Hull
Author-Name: Luna Y. Goldblatt
Author-X-Name-First: Luna
Author-X-Name-Last: Y. Goldblatt
Title: Are California venture capitalists the best venture capitalists?
Abstract:
We test if California VCs significantly outperform VCs from other US states. We additionally test in which instances California VCs outperform the other VC concentrated states of Massachusetts and New York. We find that VCs from California, Massachusetts, and New York have significantly greater probabilities of successfully exiting their investments than VCs from other states. Additionally, we show that California VCs are even more adept than VCs from Massachusetts and New York at 1. Early-stage investments, 2. Helping their entrepreneurial firms receive future rounds of financing, and 3. Helping their backed entrepreneurial firms receive higher IPO valuations and achieve superior post-IPO accounting ratios. Additional results suggest that VCs from California, Massachusetts, and New York are not only adept at selecting firms in which they invest in and continue to invest in, but they also enhance the value of the firms they select by means of monitoring their investments.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2150132
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2150132
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# input file: OAEF_A_2021478_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Thanh Quang Ngo
Author-X-Name-First: Thanh Quang
Author-X-Name-Last: Ngo
Author-Name: Khai Duc Luu
Author-X-Name-First: Khai Duc
Author-X-Name-Last: Luu
Author-Name: Phuc Ngoc Doan
Author-X-Name-First: Phuc Ngoc
Author-X-Name-Last: Doan
Author-Name: Hoa Thi Hoang Nguyen
Author-X-Name-First: Hoa Thi Hoang
Author-X-Name-Last: Nguyen
Author-Name: Lai Thi Cam Phan
Author-X-Name-First: Lai Thi Cam
Author-X-Name-Last: Phan
Author-Name: Phuoc Huu Vo
Author-X-Name-First: Phuoc Huu
Author-X-Name-Last: Vo
Author-Name: Thi Viet Thuy Ha
Author-X-Name-First: Thi Viet Thuy
Author-X-Name-Last: Ha
Author-Name: Danh Ngoc Nguyen
Author-X-Name-First: Danh Ngoc
Author-X-Name-Last: Nguyen
Title: Irrigation in farmers’ land-use choices: Panel-data evidence from Viet Nam
Abstract:
Irrigation and land use are crucial issues in rural sustainable development. The current study modifies the sustainable framework of livelihoods to clarify the role of irrigation management in farmers’ land-use choices. A five-wave panel dataset of 1,534 farms for the period 2008–2016 in Viet Nam (with a total of 7,669 observations) is used for analyzing the influence of irrigation management on land-use selections, employing a fixed-effects model. Irrigation management is investigated in six aspects: (i) the physical conditions, (ii) the ownership of facilities, (iii) the operations, (iv) the management responsibility shift, (v) the decision-making, and (vi) the maintenance. The results reveal that the overall effects of irrigation management are so different, depending on the types of land uses. On top of that, different aspects of irrigation management have diversified influences on types of land uses. The findings lead to several important implications related to irrigation management that are relevant to farmers and policymakers. Different stakeholders, organizations/institutions, and farming households play differently effective roles in irrigation management. In general, policies can be conducted through the development of a lined irrigation network, and decision-making in operations of irrigation, maintenance of irrigation, and irrigation maintenance should give more power to farmers’ groups.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2021478
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2021478
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# input file: OAEF_A_2132631_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: T Ravikumar
Author-X-Name-First: T
Author-X-Name-Last: Ravikumar
Author-Name: B Suresha
Author-X-Name-First: B
Author-X-Name-Last: Suresha
Author-Name: N Prakash
Author-X-Name-First: N
Author-X-Name-Last: Prakash
Author-Name: Kiran Vazirani
Author-X-Name-First: Kiran
Author-X-Name-Last: Vazirani
Author-Name: T.A. Krishna
Author-X-Name-First: T.A.
Author-X-Name-Last: Krishna
Title: Digital financial literacy among adults in India: measurement and validation
Abstract:
The ongoing COVID-19 pandemic has considerably promoted the usage of Digital Financial Services (DFS) in India. Therefore, exploring the various determinants influencing the DFS users is crucial for the DFS providers to understand their customers better. This study aims to identify, measure, and validate the determinants of Digital Financial Literacy (DFL) from the Indian adults who use Digital Financial Services. A sample of 384 adult DFS users from India was surveyed using a self-administered questionnaire in 2021. A multidimensional scale was developed to measure the Digital Financial Literacy in this study. The results exhibit that Digital Knowledge, Financial Knowledge, Knowledge of DFS, Awareness of Digital Finance Risk, Digital Finance Risk Control, Knowledge of Customer Right, Product Suitability, Product Quality, Gendered Social Norm, Practical Application of Knowledge and Skill, Self-determination to use the Knowledge and Skill and Decision Making are the determinants of DFL among the adults in India. Further, the users of DFS without DFL will face numerous challenges such as inability to complete the transaction, financial loss and privacy breach, etc. Hence, the study concludes that DFL is prerequisite to use DFS effectively.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2132631
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2132631
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# input file: OAEF_A_2132634_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Miklesh Prasad Yadav
Author-X-Name-First: Miklesh Prasad
Author-X-Name-Last: Yadav
Author-Name: Sudhi Sharma
Author-X-Name-First: Sudhi
Author-X-Name-Last: Sharma
Author-Name: Vaibhav Aggarwal
Author-X-Name-First: Vaibhav
Author-X-Name-Last: Aggarwal
Author-Name: Indira Bhardwaj
Author-X-Name-First: Indira
Author-X-Name-Last: Bhardwaj
Title: Correlations and volatility spillover from China to Asian and Latin American Countries: Identifying diversification and hedging opportunities
Abstract:
China is considered the largest emerging economy and thus investors perceived as an attractive investment. We examine the spillover effect from Chinese stock exchange to stock exchanges of Asia and Latin America, namely, India, Indonesia, Mexico, and Brazil. For empirical purpose, the study employs VARMA-Multivariate Generalized Autoregressive Conditional Heteroskedasticity (MGARCH) model with BEKK, diagonal, Constant Conditional Correlation (CCC), and finally, Dynamic Conditional Correlation (DCC) specifications. DCC model outperforms among others and identifies two diversification opportunities with Mexican (MEXICAN) and Indian stock market (BSE). Finally, the hedge ratio and portfolio weights have been calculated. The hedge ratios between China and Mexico (SSE/MEX), and China and India (SSE/BSE) were 0.01 and 0.06, respectively. This implies that a $1 long position in Chinese market (SSE) could be hedged with a 1 cent short position in Mexico (MEXICAN) and a 6 cent short position in the Indian Market (BSE). The findings of this paper provide an insight into investors and policymakers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2132634
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2132634
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# input file: OAEF_A_2082670_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Divine Kwaku Kutortse
Author-X-Name-First: Divine Kwaku
Author-X-Name-Last: Kutortse
Title: Residential energy demand elasticity in Ghana: an application of the quadratic almost ideal demand systems (QUAIDS) model
Abstract:
The paper seeks to analyze residential energy use patterns and the price and energy expenditure responsiveness of household demand for residential energy in Ghana, using GLSS 7 data, the multivariate probit model, and the Quadratic Almost Ideal Demand System (QUAIDS) model. The study focuses on four main fuels; firewood, charcoal, and others (FCO), LPG, electricity, and kerosene. The results show that the demand for all household energy fuels in Ghana was significantly influenced by price, income, and social demographic factors. Household demand for electricity and LPG fuels are income elastic with values greater than 1, while FCO and kerosene fuels are income inelastic. The own-price elasticity also shows modern fuel (LPG and electricity) as the most responsive fuel to a price increase, even though all energy fuels are price inelastic and negative. The complementary cross-price elasticity of all fuels estimated must be carefully interpreted in the context of the cultural factors, socioeconomic factors, and the unique purposes of each fuel. After a robustness check was done in correcting for bias arising from zero energy expenditure, the study finds that the own-price elasticity for modern energy fuel (LGP and ECG) reduced slightly, even though the demand for all energy fuel remains negative and price inelastic. The study includes implications for policies geared towards reducing the price of residential energy fuels and policies to ensure clean and efficient residential energy fuels are readily accessible for consumption.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2082670
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2082670
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# input file: OAEF_A_2125523_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Buthiena Kharabsheh
Author-X-Name-First: Buthiena
Author-X-Name-Last: Kharabsheh
Author-Name: Hussam A. Al-Shammari
Author-X-Name-First: Hussam A.
Author-X-Name-Last: Al-Shammari
Author-Name: Nosiaba Al-Numerat
Author-X-Name-First: Nosiaba
Author-X-Name-Last: Al-Numerat
Title: Corporate social responsibility and CEO compensation: the moderating effect of corporate governance
Abstract:
This study attempts to provide empirical evidence on the real motivation of CEOs to engage in corporate social responsibility. Based on the Agency and Stakeholder theories, the power of each component in the CEO compensation structure is employed. Moreover, a corporate governance index was developed to test how engagement in CSR activities affected CEO compensation in different governance practices. This study employs panel data analysis, utilizing 44 Jordanian industrial companies over the period 2010–2018. The main estimation method used in the present study was the generalized least square random effect (GLS). The findings of this paper revealed that an increase in CSR activities was accompanied by an increase in the CEO cash component compensation. Furthermore, this positive relationship was found to be more pronounced in firms with weak corporate governance, and thus supported the overinvestment hypothesis suggested by agency theory. These findings are robust under the dynamic panel estimator generalized method of moments (GMM) and using different measures of CSR. Our results implied important insights, showing that increasing CSR in the absence of effective monitoring facilitated CEOs’ self-seeking behavior that eventually may harm corporate value.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2125523
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2125523
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# input file: OAEF_A_2039343_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Emmanuel Agyapong Wiafe
Author-X-Name-First: Emmanuel Agyapong
Author-X-Name-Last: Wiafe
Author-Name: Christopher Quaidoo
Author-X-Name-First: Christopher
Author-X-Name-Last: Quaidoo
Author-Name: Samuel Sekyi
Author-X-Name-First: Samuel
Author-X-Name-Last: Sekyi
Title: Monetary policy effectiveness in the advent of mobile money activity: Empirical evidence from Ghana
Abstract:
Financial development impacts a country’s economic growth and development. Due to this, many nations have sought new ways to bring about financial sector development. For developing economies, innovations in the financial sector are a sure bet for the development of financial inclusion. Mobile money is one of them. However, as the financial sector innovate, the Central Bank may lose control, rendering monetary policy ineffective. Therefore, this study examines one such innovation’s effect on monetary policy effectiveness. Using SVAR and monthly data spanning from January 2012 to December 2018, the study found that monetary policy becomes less effective under mobile money growth. The study further revealed that policy rates respond to mobile money growth in Ghana. In conducting monetary policy in Ghana, the study recommends that the monetary policy authority includes mobile money activity.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2039343
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2039343
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# input file: OAEF_A_2118680_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yukiko Konno
Author-X-Name-First: Yukiko
Author-X-Name-Last: Konno
Title: Research on performance forecasting bias in start-up companies
Abstract:
If a company’s corporate performance forecasting bias is not zero and it continues to over- or under-predict actual performance, capital investments and employment will deviate from their expected levels. Therefore, forecast bias is a very important issue for a company’s management. However, few empirical studies exist on corporate performance forecasting bias in start-up companies, given the data limitations. Most existing studies have primarily analysed listed companies, and few studies particularly targeted small, medium and micro or start-up companies. Therefore, this study uses data from start-up companies that received loans from the Japan Finance Corporation (JFC) to investigate how new start-up companies’ performance forecasting bias is affected by their attributes and past performance forecasts. The results of the analysis showed that company size, profitability and optimism of past performance forecasts had a positive impact on performance forecasting bias. The results of this research contribute to the elaboration of corporate performance forecasts and are expected to be useful for corporate management when formulating management strategies and engaging in resource allocation, stakeholder decision making and policymaking.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2118680
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2118680
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# input file: OAEF_A_2030505_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Hien Nguyen
Author-X-Name-First: Hien
Author-X-Name-Last: Nguyen
Title: Firm equity risk, bank lending standards, and the macroeconomy
Abstract:
This paper analyzes the impact of US firms’ equity risk on bank lending standards and on the macroeconomy for two groups: small and medium-large firms. The results indicate that a higher level of firm risk leads to a higher percentage of banks tightening their lending standards on commercial and industrial (C&I) loans, with a much larger effect for medium-large firms. The finding provides support for the Risk Management Hypothesis, under which banks decrease lending to risky borrowers to reduce credit risk. In addition, we found a one-for-one relationship between firm equity risk and C&I loan spread, signaling the channel of how firm risk transfers through the banking system to the rest of the economy. Finally, the impacts of an increase in firm risk on bank lending standards and the economy are amplified in a recession compared to an expansion.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2030505
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2030505
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# input file: OAEF_A_2017100_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Sattar Khan
Author-X-Name-First: Sattar
Author-X-Name-Last: Khan
Author-Name: Yasir Kamal
Author-X-Name-First: Yasir
Author-X-Name-Last: Kamal
Title: Family business groups and earnings manipulation: An emerging economy perspective
Abstract:
This paper examines the influence of family business groups' affiliated and non-affiliated firms on earnings manipulation on a sample of Pakistani listed firms for the period of 2014 to 2019. The sample of this paper consists of 323 listed firms from the Pakistan Stock Exchange. Data were manually collected from the annual reports of the companies and State Bank of Pakistan sources. OLS and The Panel data models are used to validate the hypotheses of the study. Two proxies of earnings management have been used: one is discretionary accruals and the other is real activity manipulation. The study findings show a negative relationship of family business groups' affiliated firms with accrual-based earnings manipulation. Additionally, the magnitude of earnings manipulation is more in non-affiliated firms as compared to family business group affiliated firms. This study provides rare and initial evidence of family business groups’ relationship with earnings manipulation in Pakistan; moreover, this study extends the literature on scarce literature related to Family business groups and earnings manipulation.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2017100
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2017100
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# input file: OAEF_A_2087287_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Guizhou Wang
Author-X-Name-First: Guizhou
Author-X-Name-Last: Wang
Author-Name: Kjell Hausken
Author-X-Name-First: Kjell
Author-X-Name-Last: Hausken
Title: A Bitcoin price prediction model assuming oscillatory growth and lengthening cycles
Abstract:
This article’s motivation is to understand the volatile Bitcoin price increase. The objective is to develop price estimation methods. The methodology is to present five differential equation models estimated against the 23 July 2010–21 June 2021 Bitcoin data. The findings are that Gompertz growth fits the damped oscillations and lengthening cycles well, and tracks the early data better with the weighted least squares method. Gompertz growth combined with charged capacitor growth tracks the early data even better. Logistic growth is too slow to track the early data. Logistic growth combined with charged capacitor growth to some extent tracks the early data. Pure charged capacitor growth is unrealistic. The dates for the future bull market maxima depend to a low degree on the growth model carrying capacity approached asymptotically, assumed to match gold at $10 trillion, and to be 50 times higher. The implications for traders are to focus on the large standard deviations. Investors should understand the growth potential compared with other asset classes. Regulators should ensure financial stability by focusing on the fluctuations. Central banks should adjust the money supply while acknowledging. Bitcoin competition. Collective units should understand Bitcoin growth models to determine whether to accept Bitcoin transactions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2087287
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2087287
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# input file: OAEF_A_2158007_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Hilary Tinotenda Muguto
Author-X-Name-First: Hilary Tinotenda
Author-X-Name-Last: Muguto
Author-Name: Lorraine Muguto
Author-X-Name-First: Lorraine
Author-X-Name-Last: Muguto
Author-Name: Azra Bhayat
Author-X-Name-First: Azra
Author-X-Name-Last: Bhayat
Author-Name: Hawaa Ncalane
Author-X-Name-First: Hawaa
Author-X-Name-Last: Ncalane
Author-Name: Kara Jasmine Jack
Author-X-Name-First: Kara Jasmine
Author-X-Name-Last: Jack
Author-Name: Saadia Abdullah
Author-X-Name-First: Saadia
Author-X-Name-Last: Abdullah
Author-Name: Thabile Siphesihle Nkosi
Author-X-Name-First: Thabile Siphesihle
Author-X-Name-Last: Nkosi
Author-Name: Paul-Francois Muzindutsi
Author-X-Name-First: Paul-Francois
Author-X-Name-Last: Muzindutsi
Title: The impact of investor sentiment on sectoral returns and volatility: Evidence from the Johannesburg stock exchange
Abstract:
This study investigated the impact of investor sentiment impact on sectoral returns and their volatility on the Johannesburg Stock Exchange using a proxy-based composite investor sentiment index and generalised autoregressive conditional heteroscedasticity models. Overall, findings showed a negative relationship between prevailing sentiment and subsequent returns and a positive relationship between investor sentiment and sector returns volatilities. Additionally, there was evidence of variability of sentiment effects on the sector returns and volatilities. Accordingly, firms that raise financing through the stock market, portfolio managers with investments thereon and policymakers seeking to ensure that markets operate efficiently need to consider the impact of market-wide investor sentiment on volatility and returns.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2158007
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2158007
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# input file: OAEF_A_2085378_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Muhammad Jawad
Author-X-Name-First: Muhammad
Author-X-Name-Last: Jawad
Author-Name: Munazza Naz
Author-X-Name-First: Munazza
Author-X-Name-Last: Naz
Author-Name: Sohail Rizwan
Author-X-Name-First: Sohail
Author-X-Name-Last: Rizwan
Author-Name: Zaib Maroof
Author-X-Name-First: Zaib
Author-X-Name-Last: Maroof
Author-Name: Nauman Waheed
Author-X-Name-First: Nauman
Author-X-Name-Last: Waheed
Author-Name: Afkar Majeed
Author-X-Name-First: Afkar
Author-X-Name-Last: Majeed
Author-Name: Tahani Rashid
Author-X-Name-First: Tahani
Author-X-Name-Last: Rashid
Title: Impact of long run investment of stock in developed & developing economies
Abstract:
The current investigation explained the dissemination of long-term share yields grounded on the historic record of share marketplace outcome in an extensive cross section of 39 developing and developed nations in time span from 1841 to 2021. Our wide-ranging data set sample mitigates apprehensions over survivor and informal data biases that outbreak other work in this range. A bootstrap simulation analysis suggests considerable ambiguity about long-horizon share market effects, and we approximate a 12% probability that a diversified stockholder with a 30-year venture time horizon will lose comparative to inflation. The findings oppose the predictable guidance that shares are safe investment avenue over long holding time periods.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2085378
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2085378
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# input file: OAEF_A_2041261_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yasin Ahmed
Author-X-Name-First: Yasin
Author-X-Name-Last: Ahmed
Author-Name: Erimase Tesfye
Author-X-Name-First: Erimase
Author-X-Name-Last: Tesfye
Author-Name: Mohammed Ahmed Yasin
Author-X-Name-First: Mohammed
Author-X-Name-Last: Ahmed Yasin
Title: Farmers’ willingness to pay for rehabilitation of degraded natural resources under watershed development: The case of Belesa districts, Amhara region of Ethiopia
Abstract:
This study aims to analyze farmers’ willingness to contribute labor for the ongoing natural resource rehabilitation interventions in watershed development in East and West Belesa Districts, Amhara region. The aim of the study to assesses farmers’ intervention in natural resource rehabilitation activities and examines the mean willingness to pay family labor required for public watershed development activities from the two districts; a total of 501 households were selected by using a multistage sampling technique. The collected data were analyzed using a descriptive and econometrics model. In the econometric part, the mixed logit model is used to analyze the mean willingness to contribute to family labor. The descriptive result showed that farmers have to improve the watershed ecosystem service through soil and water conservation, area enclosure, forestation, and reforestation natural resource management intervention methods. The mean willingness to pay contribution results from the mixed logit, revealing that the sampled households are willing to contribute for livestock fodder availability 0.79 labors per month means Farmer’s Contribute 8 daily labors per months for watershed management activity for stabilizing spring water flow 0.80 labors per month, for reduced soil erosion 0.14 labors per month, and increase crop productivity 0.09 labors per month, respectively. The results important for policymakers and extension workers not to expect all farmers’ have homogeneous daily labor contribute to public watershed development activity.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2041261
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2041261
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# input file: OAEF_A_2127483_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Oanh Tran
Author-X-Name-First: Oanh
Author-X-Name-Last: Tran
Author-Name: Ha Nguyen
Author-X-Name-First: Ha
Author-X-Name-Last: Nguyen
Title: The interdependence of gold, US dollar and stock market in the context of COVID-19 pandemic: an insight into analysis in Asia and Europe
Abstract:
Using the panel data vector autoregression (PVAR) model, this study examines the correlation between the stock market, gold price and USD exchange rate in the context of the COVID-19 pandemic in 55 Asian and 32 European countries from 11 March 2021 to 29 October 2021. The results of Granger causality test show that in Asian countries, there is a bidirectional causality between stock market and gold price. In addition, there is a unidirectional relationship between the stock market and the USD exchange rate, while the gold price and the USD exchange rate are completely independent of each other. Meanwhile, in European countries, stock market, gold price and USD exchange rate have a causal relationship at 1% significant level. The results of the impulse-response function analysis show that, in Asia, the stock market has a negative impact on the gold price and a positive effect on the USD exchange rate. In Europe, the stock market has a negative impact on the other two markets in the short term. The variance decomposition results suggest that, in Europe, the stock market return explains 2.5% for the gold price shock and 6.2% for the USD exchange rate shock from the tenth period. Meanwhile, these figures in the Asian countries are 1.6% and 3.2%, respectively.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2127483
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2127483
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# input file: OAEF_A_2104779_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Solomon Tilahun Mengistu
Author-X-Name-First: Solomon
Author-X-Name-Last: Tilahun Mengistu
Title: Does fiscal policy stimulate economic growth in Ethiopia? ARDL approach
Abstract:
In recent years, a vast literature has appeared on the relationship between fiscal policy and long-run economic growth. With the aim to give an overview of the recent discussion and establish a point of departure for future research, this study used time series techniques and rigor empirical model to investigate the link between various components of fiscal policy on Ethiopia’s economic growth on annual data for 35 years. It employed the autoregressive distributed lag estimation technique. Results from the bound tests showed that there was a long-run relationship between the variables. Disaggregating government expenditure into productive and unproductive and tax revenue into distortionary and non-distortionary, this study found unproductive expenditure and non-distortionary tax revenue to be neutral to growth as predicted by economic theory. Moreover, productive expenditure has a positive effect on growth while there was evidence of distortionary effects on growth of distortionary taxes. These results give the right signal topolicymakers in Ethiopia in formulating expenditure and tax policies to ensure unproductive expenditures are reduced while at the same time boosting public investment. Furthermore, there is need to encourage private investment in the country.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2104779
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2104779
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# input file: OAEF_A_2109277_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Deeksha Gupta
Author-X-Name-First: Deeksha
Author-X-Name-Last: Gupta
Author-Name: Rahul Kumar
Author-X-Name-First: Rahul
Author-X-Name-Last: Kumar
Author-Name: Subir Chattopadhyay
Author-X-Name-First: Subir
Author-X-Name-Last: Chattopadhyay
Title: The impact of corporate spin-offs on shareholders’ wealth: Empirical evidence from India
Abstract:
Corporate restructuring is a widely adopted mode of improving efficiency and firm performance and has been studied in different country contexts such as the US, Australia, and Europe. The aim of this paper is to examine the impact of spin-off announcements on the stock prices of parent firms in the Indian context. In addition, we also investigate the price effect anomaly through two subsamples of high-price scripts and low-price scripts. The study is conducted on a sample of 221 Indian firms listed in BSE (Bombay Stock Exchange) from 2003 to 2020 which have announced the spin-offs. We employ event study methodology and find that spin-offs have a significantly positive impact on the stock prices of the parent firm. We observe the highest abnormal return of 1.35% on +1 day post the event. The interval-wise analysis gives the highest CAAR of 2.64% in (+1, +5) interval. The analysis of the price behavior of stocks at different price levels suggests that the low-price script outperformed the high-price script in each event window with a CAAR of 3.90% in high-price script and 7.16% in low-price script for the event window from −10 to +10.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2109277
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2109277
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# input file: OAEF_A_2091088_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Fang Yang
Author-X-Name-First: Fang
Author-X-Name-Last: Yang
Author-Name: Wei Liu
Author-X-Name-First: Wei
Author-X-Name-Last: Liu
Author-Name: Ting Wen
Author-X-Name-First: Ting
Author-X-Name-Last: Wen
Title: The rural household’s entrepreneurship under the land certification in China
Abstract:
As China’s economic growth slows down and the pressure of the economic downward increases gradually, the agricultural and rural economic development faces more serious challenges. Fortunately, thanks to the China’s rural land certification, it guarantees the security and stability of property rights of land, and provides a huge development space for rural household’s entrepreneurship, which promotes agricultural and rural economy greatly. In order to investigate the impact of the land certification on rural household’s entrepreneurship in China, this paper uses China Rural Household Panel Survey data for the empirical analysis based on the panel Logit model. The results show that: (1) The land certification increases the probability of agricultural entrepreneurship by at least 25%, but it has no significant influences on non-agricultural entrepreneurship. (2) The rural land certification with boundary influences agricultural entrepreneurship more significant than that without boundary, and the land certification to household is more beneficial for agricultural rural household’s entrepreneurship than that without to household. (3) The land certification mainly increases probability of agricultural entrepreneurship through the land transfer, labor allocation, and capital allocation. Moreover, the research of this study highlights the importance of standardizing rural labor market and accelerating land financial reform in creating conditions for agricultural entrepreneurship, which can provide effective data support for future rural policy-making.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2091088
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2091088
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# input file: OAEF_A_2101222_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Tarjo Tarjo
Author-X-Name-First: Tarjo
Author-X-Name-Last: Tarjo
Author-Name: Henryan Vishnu Vidyantha
Author-X-Name-First: Henryan Vishnu
Author-X-Name-Last: Vidyantha
Author-Name: Alexander Anggono
Author-X-Name-First: Alexander
Author-X-Name-Last: Anggono
Author-Name: Rita Yuliana
Author-X-Name-First: Rita
Author-X-Name-Last: Yuliana
Author-Name: Siti Musyarofah
Author-X-Name-First: Siti
Author-X-Name-Last: Musyarofah
Title: The effect of enterprise risk management on prevention and detection fraud in Indonesia’s local government
Abstract:
It may sound familiar to use Enterprise Risk Management (ERM) to prevent and identify fraud. However, the use of this well-known strategy in municipal administration is still uncommon. Fraud is a major concern in local government fiscal management. We acquired 151 data points from the Supervisory Apparatus of Local Government Agencies in Indonesia using a questionnaire. To test the hypothesis, this study employs regression analysis. According to the findings, the control environment, risk assessment, control activities, information and communication, and monitoring all have a significant impact on fraud prevention and detection. This work contributes empirically to the use of Enterprises Risk Management to minimize and identify fraud in Indonesian local governments.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2101222
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2101222
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# input file: OAEF_A_2101226_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Júlio Vicente Cateia
Author-X-Name-First: Júlio
Author-X-Name-Last: Vicente Cateia
Author-Name: Luc Savard
Author-X-Name-First: Luc
Author-X-Name-Last: Savard
Author-Name: Clailton Ataídes de Freitas
Author-X-Name-First: Clailton
Author-X-Name-Last: Ataídes de Freitas
Title: Economic impacts of infrastructure investment with different funding mechanisms: evidence from Guinea-Bissau
Abstract:
This study aims to analyze the economic impacts of infrastructure investment in Africa, focusing on the Guinea-Bissau economy. Through a dynamic CGE model, we find that the natural resource revenues (or aid)-funded infrastructure investments generate externalities that increase factor returns. The private investment improvements propagate externalities effects on GDP and job opportunities outcomes. Household income and consumption were positively impacted, though the poorer benefited the most. The income inequality has reduced. However, funding by the mix of debt and direct taxes produces opposite effects. We suggest a potential pro-poor growth agenda in Africa.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2101226
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2101226
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# input file: OAEF_A_2141884_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ephraim Matanda
Author-X-Name-First: Ephraim
Author-X-Name-Last: Matanda
Author-Name: Eriyoti Chikodza
Author-X-Name-First: Eriyoti
Author-X-Name-Last: Chikodza
Author-Name: Farai Kwenda
Author-X-Name-First: Farai
Author-X-Name-Last: Kwenda
Title: Fuzzy structural risk of default for banks in Southern Africa
Abstract:
This paper proposes and examines a new structural risk of default model for banks in frictional and fuzzy financial markets. It is motivated by the need to fill the shortcomings of probability-based credit risk metric models that are characterised by unrealistic assumptions such as crisply precise and constant risk-free rates of return. The problem investigated here specifically proposes a new Kealhofer–Merton–Vasicek (KMV)-type model for estimation of the risk of default for banks extended for both market friction represented by transaction costs and uncertainty modelled by fuzziness. The novel risk of default model is then validated using cross-sectional financial data of eight commercial banks drawn from several emerging economies in Southern Africa. The results from the proposed model are fairly stable and consistent compared to those from hazard function and structural credit risk models currently used in the markets. The model is relevant in that it fairly captures practical conditions faced by banks that influence their risks of default in their quest to improve financial performance and shareholders’ wealth. The study recommends that banks in frictional and fuzzy financial markets, such as those in emerging economies, can adopt and implement the proposed risk of the default model.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2141884
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2141884
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# input file: OAEF_A_2083477_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Samuel Nyakarimi
Author-X-Name-First: Samuel
Author-X-Name-Last: Nyakarimi
Title: Probable earning manipulation and fraud in banking sector. Empirical study from East Africa
Abstract:
The aim of the study was to determine extent of earning manipulations and possible fraudulent activities in banking sector. The study involved banks in East Africa where the financial statements of 34 banks in Kenya, 30 banks in Tanzania and 20 banks in Uganda were analysed. The study used Beneish model to classify banks as manipulators and non-manipulators. Later, probit regression model was applied based on the results of Beneish model to reclassify the banks as fraudulent or otherwise. The study revealed that 79.4% of Kenyan, 83.3% of Tanzanian and 70% of Ugandan banks could be non-manipulators. Further analysis showed that 79.4%, 76.7% and 80% of Kenyan, Tanzanian and Ugandan banks, respectively, were possibly not engaged in fraudulent activities. The study concluded that some banks could have been involved in earning management and fraud. The study contributes earning management literature by providing evidence that earning management is rife in banking sectors in less-developed countries though banks have strict regulations. The study further contributes to mechanisms of reclassification of institutions as either fraudulent or otherwise. The study recommends that financial statements prepared must be given professional autonomy. Further, it was recommended that the auditors should emphasise computations of ratios by financial statement prepared in order to give a clear, true and fair view of financial position of organizations. The study findings can be used by the management, regulators and government bodies in less developed and developing countries to develop policies that would seal the loopholes that fraudsters use.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2083477
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2083477
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# input file: OAEF_A_2132646_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Josephine Ofosu-Mensah Ababio
Author-X-Name-First: Josephine
Author-X-Name-Last: Ofosu-Mensah Ababio
Author-Name: Anthony Q.Q. Aboagye
Author-X-Name-First: Anthony Q.Q.
Author-X-Name-Last: Aboagye
Author-Name: Charles Barnor
Author-X-Name-First: Charles
Author-X-Name-Last: Barnor
Author-Name: Samuel Kwaku Agyei
Author-X-Name-First: Samuel Kwaku
Author-X-Name-Last: Agyei
Title: Foreign and domestic private investment in developing and emerging economies: A review of literature
Abstract:
This study surveys and synthesizes the literature on foreign and domestic private investment over the period 1980–2022 with evidence from developing and emerging economies. The documentary sources method was used to examine one hundred and forty (140) peer-reviewed articles (selected based on source, journal of publication, database, time frame, relevance language, geographical restrictions, and search descriptions) published in a broad range of internationally recognized journals, with special analytical focus placed on forty (40) recent articles. It provides fresh evidence that literature on overall private investment and that of foreign direct investment have been given paramount interest and attention, but domestic private investment has received relatively diminutive attention to date. This review will serve as a roadmap, indicating the current state, contributions made, and unsolved issues in the extant studies as well as situating works to enrich the literature. It, therefore, offers specific directions for researchers, academics, and practitioners.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2132646
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2132646
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# input file: OAEF_A_2144328_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Justus Blaschke
Author-X-Name-First: Justus
Author-X-Name-Last: Blaschke
Title: Gender differences in financial literacy among teenagers - Can confidence bridge the gap?
Abstract:
This paper investigates the moderating effect of confidence on the gender gap in financial literacy based on a nationwide survey of German high school students. Two measures of confidence are applied while controlling for cognitive abilities and several independent variables. This study shows that confidence is indeed a strong force in bridging the gender gap, especially for everyday financial concepts. However, significant sex differences persist for more sophisticated financial literacy tasks when confidence variables are introduced in the regression models. Moreover, this paper indicates a significant confidence gap between male and female participants and finds that explanatory characteristics of confidence vary with gender as well. Expertise in the form of increased mathematical abilities and economic education is suggested as a promising confidence-building measure for women. The results suggest that differentiating financial literacy into basic and sophisticated literacy greatly increases interpretability when studying gender differences. Furthermore, the findings have important practical implications for understanding and, thus, closing the gender gap in financial literacy and highlight the political need for financial education in early stages of life that combines theoretical knowledge with confidence building measures.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2144328
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2144328
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# input file: OAEF_A_2095770_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Winnie Thebuho
Author-X-Name-First: Winnie
Author-X-Name-Last: Thebuho
Author-Name: Pieter Opperman
Author-X-Name-First: Pieter
Author-X-Name-Last: Opperman
Author-Name: Lee-Ann Steenkamp
Author-X-Name-First: Lee-Ann
Author-X-Name-Last: Steenkamp
Title: The asymmetric effect of financial development on energy consumption in sub-Saharan Africa
Abstract:
Sub-Saharan Africa (SSA) ranks lowest globally in respect of energy access rates. The resulting high energy poverty impedes sustainable economic growth and aggravates the overall poverty which is prevalent in SSA countries. A better understanding of the relationship between financial development and energy consumption can contribute to enhancing sustainable development in SSA. The existing literature presents conflicting evidence regarding this relationship. Our objective is to investigate the symmetric and asymmetric relationships between financial development and energy consumption in SSA, using annual data from 1990 to 2016. The Autoregressive Distributed Lag (ARDL) panel estimator was employed to test for the linear relationship and symmetric effects of the long-run and short-run coefficients. The asymmetry was determined by decomposing financial development into positive and negative components, employing the non-linear ARDL (NARDL) method. The results reveal that a positive financial development shock is positively linked with energy consumption in the long-run implying that further financial development intensifies energy consumption. Results of the negative shock in financial development is positively linked with energy consumption in the long-run implying that the reduction in financial development could decrease energy consumption.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2095770
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2095770
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# input file: OAEF_A_2132638_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Haitham Nobanee
Author-X-Name-First: Haitham
Author-X-Name-Last: Nobanee
Author-Name: Hiba Shanti
Author-X-Name-First: Hiba
Author-X-Name-Last: Shanti
Author-Name: Hind Aldhanhani
Author-X-Name-First: Hind
Author-X-Name-Last: Aldhanhani
Author-Name: Abdulrahman Alblooshi
Author-X-Name-First: Abdulrahman
Author-X-Name-Last: Alblooshi
Author-Name: Essa Alali
Author-X-Name-First: Essa
Author-X-Name-Last: Alali
Title: Big data and credit risk assessment: a bibliometric review, current streams, and directions for future research
Abstract:
This study aims to track the structural development of academic research on credit risk assessment and big data using bibliometric analysis. The bibliography is obtained from the Scopus database and contains all studies with citations published between 2012 and 2021. The study’s findings suggest that credit risk assessment and big data are vast fields that have increased significantly in the last nine years. Chinese researchers and organizations contributed the most to the documents. The current study concludes that several possibilities exist to improve the knowledge of credit risk assessment and big data.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2132638
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2132638
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2132638
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# input file: OAEF_A_2111792_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Edward Marfo-Yiadom
Author-X-Name-First: Edward
Author-X-Name-Last: Marfo-Yiadom
Author-Name: George Tweneboah
Author-X-Name-First: George
Author-X-Name-Last: Tweneboah
Title: The role of national culture in financial innovation and bank stability transmission
Abstract:
This paper examines the role of national culture in the transmission process through which the growth in credit to the private sector can lead to bank stability in 107 countries over 2005 and 2017. We performed the examination using the quantile regression and the dynamic generalised method of moment to explore asymmetry properties in the panel dataset and address endogeneity challenges that can affect the efficiency of the results. We found that national culture dimensions influence the impact of financial innovation on bank stability. On the specific effect of national culture, we found that higher levels of indulgence and long-term orientation serve as a substitute for financial innovation in promoting bank stability. Higher levels of individuality and masculinity have no effects on the impact of financial innovation on bank stability. Higher power distance and uncertainty avoidance complement the relationship between financial innovation and bank stability. Finally, countries with lower levels of indulgence and long-term orientation can increase access to bank credit to boost banking system stability. The implication is that regulators should consider the cultural orientation of their communities in promoting sound financial intermediation.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2111792
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111792
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# input file: OAEF_A_2087291_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Nadia Klarita Rahayu
Author-X-Name-First: Nadia Klarita
Author-X-Name-Last: Rahayu
Author-Name: Iman Harymawan
Author-X-Name-First: Iman
Author-X-Name-Last: Harymawan
Author-Name: Mohammad Nasih
Author-X-Name-First: Mohammad
Author-X-Name-Last: Nasih
Author-Name: John Nowland
Author-X-Name-First: John
Author-X-Name-Last: Nowland
Title: Director pay slice, the remuneration committee, and firm financial performance
Abstract:
This study aimed to analyze the relationship between the director pay slice and firm financial performance. This study used 1024 observations from companies listed on the Indonesia Stock Exchange from 2011 to 2019. The analytical technique used in this study was ordinary least square regression with a cluster model approach and fixed effects using the STATA 16.0 software. This study partially found that director pay slice and the existence of a remuneration committee are positively and significantly related to the company’s current and future performance. Furthermore, this study indicates that companies with a high director pay slice and remuneration committees tend to have a better level of performance because the presence of a remuneration committee helps to align the relationship between the director pay slice and firm financial performance. This study has implications for developing countries regarding effective corporate governance by analyzing the governance in Indonesia. Our study’s overarching goal was to understand the relationship between the director’s pay slice and the firm’s financial performance through the overall analysis.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2087291
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2087291
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# input file: OAEF_A_2119693_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Stephen Chellakan
Author-X-Name-First: Stephen
Author-X-Name-Last: Chellakan
Author-Name: Muhammad Abrar Ul Haq
Author-X-Name-First: Muhammad
Author-X-Name-Last: Abrar Ul Haq
Author-Name: Farheen Akram
Author-X-Name-First: Farheen
Author-X-Name-Last: Akram
Author-Name: Gazi Md Nurul Islam
Author-X-Name-First: Gazi Md Nurul
Author-X-Name-Last: Islam
Author-Name: Vinodh Natarajan
Author-X-Name-First: Vinodh
Author-X-Name-Last: Natarajan
Title: Association of air quality parameters and socio-demographic towards the human health in India using regression analysis
Abstract:
This paper investigates the socio-economic impact of air pollution on human health in India. The data on vehicle emissions and health effects are obtained from secondary sources, and data relating to the source of fuel, type of kitchen, household income, age, education, respondents’ social class, and air-related diseases were collected through a primary source. Face-to-face interviews were conducted to collect primary data from selected 300 households using a structured questionnaire in rural and urban areas in India. The study results show that the higher-income households use alternative clean fuels like Liquefied Petroleum Gas (LPG) and electricity. The results indicate that the solid fuel users who used a kitchen without a partition wall were mostly affected by air-related diseases compared to other fuel users. The regression results indicate that the age of the household head has a positive 9.3%, gender of the household head has a negative 35.5%, the social class (caste) has a positive 20%, education of the household head has a negative 11.8%, household income has a negative 62.8%, kitchen type has a positive 23.7%, type of stove has a negative 30.7%, and type of fuel has a positive 33.1% effect on air related diseases. The study concluded that there is a need to prioritize promoting income and employment opportunities for the poor rural community. The infrastructure development activities could reduce the pollution from the vehicle. Implementing environmental education programs and campaigns could reduce the health problems in rural and urban areas in India.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2119693
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2119693
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# input file: OAEF_A_2079211_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yemareshet Hailu Demeke
Author-X-Name-First: Yemareshet
Author-X-Name-Last: Hailu Demeke
Title: Youth unemployment and political instability: evidence from IGAD member countries
Abstract:
Evidence show that IGAD member countries are the most political unstable countries in the world. On the other hand, literatures on the subject reveal that youth unemployment contributes the most towards the political instability across the world. Nonetheless, investigation on the effect of youth unemployment on political instability particularly in IGAD member countries is very scanty. Thus, the objective of the current study is to investigate the effect of youth unemployment on political instability in IGAD member countries. For this purpose, the necessary secondary data is collected from ICRG, WDI and ILO on five selected IGAD member countries. To find out the effect of youth unemployment on political instability; fixed effect model, instrumental variable fixed effect model and one step system GMM estimation on dynamic panel data have been employed. The analysis result revealed that there is a significant effect of youth unemployment on political instability in IGAD member countries. This region specifically needs a sound youth employment policy not only for the sake of youths but also for the relief of government reducing the burden of controlling continuous internal instabilities. Moreover, in region-wise the IGAD countries better to have common youth employment creation policies so that they can manage the internal conflicts arises here and then.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2079211
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2079211
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# input file: OAEF_A_2093430_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Muazu Ibrahim
Author-X-Name-First: Muazu
Author-X-Name-Last: Ibrahim
Author-Name: Olufemi Adewale Aluko
Author-X-Name-First: Olufemi Adewale
Author-X-Name-Last: Aluko
Author-Name: Xuan Vinh Vo
Author-X-Name-First: Xuan Vinh
Author-X-Name-Last: Vo
Title: The role of inflation in financial development–economic growth link in sub-Saharan Africa
Abstract:
The impact of financial development (FD) on economic growth (EG) is well documented. However, studies on how inflation mediates the impact of FD on EG produce inconclusive findings. Meanwhile, the tripartite relationship among FD, inflation and EG is particularly crucial for sub-Saharan African countries given that these countries are largely inflationary on the back of under-developed financial sectors and low EG. The inconclusive evidence presented by the existing studies limits policy making. This study therefore re-examines whether inflation mediates the FD–EG nexus by utilizing a panel data obtained from 36 countries in sub-Saharan Africa. The study uses the sample splitting threshold approach to investigate this relationship. The findings identify inflation thresholds of 7.65% and 6.76% at which the impact of FD on EG changes sign. Specifically, irrespective of the indicator of FD, higher FD significantly increases EG at low inflation rates. However, beyond the estimated thresholds, the impact of FD on EG is insignificant, revealing that higher inflation does not support the growth-enhancing effect of FD. The research recommends that inflation should be kept below the identified thresholds for FD to spur EG.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2093430
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2093430
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# input file: OAEF_A_2128585_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Abel Mawuko Agoba
Author-X-Name-First: Abel Mawuko
Author-X-Name-Last: Agoba
Author-Name: Ebenezer Bugri Anarfo
Author-X-Name-First: Ebenezer Bugri
Author-X-Name-Last: Anarfo
Author-Name: Yakubu Awudu Sare
Author-X-Name-First: Yakubu
Author-X-Name-Last: Awudu Sare
Title: Harnessing the synergies of independent central banks and human capital for enhanced financial sector development in Africa
Abstract:
Using panel data from 2004 to 2012, we employ a two-step system GMM estimation technique, with robust standard errors, collapsed instruments and illus-trate marginal effects of central bank independence on financial development in Africa. We also examine the moderating roles of human capital, proxied by literacy rates on the CBI-financial development nexus. We find that, in countries with higher literacy rates/human capital, the positive impact of dejure CBI on financial development is enhanced. Higher literacy rates however, worsen the negative impact of de facto CBO on financial devel-opment. Independent central banks can be made more effective in achieving financial development through governments improving literacy rates. The study is the first to empirically examine the impact of central bank independence on financial development using both dejure and de facto CBI measures and literacy rates in explaining this relationship
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2128585
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2128585
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# input file: OAEF_A_2038861_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Forget Mingiri Kapingura
Author-X-Name-First: Forget Mingiri
Author-X-Name-Last: Kapingura
Author-Name: Nwabisa Mkosana
Author-X-Name-First: Nwabisa
Author-X-Name-Last: Mkosana
Author-Name: Suhal Kusairi
Author-X-Name-First: Suhal
Author-X-Name-Last: Kusairi
Title: Financial sector development and macroeconomic volatility: Case of the Southern African Development Community region
Abstract:
The study examines the effect of financial sector development on macroeconomic volatility in the Southern African Development Community (SADC) region for the period 1980–2018 employing the Cross-Sectionally Augmented Autoregressive Distributed Lag (CS-ARDL) model. The empirical findings show that banking variables have a negative and significant effect on growth volatility in the SADC countries. Also, stock market capitalisation, which is a measure of capital market development, was also found to have a negative effect on macroeconomic volatility when looking at the whole financial sector. The results suggest that a well-developed capital market where both the stock market and banking sector are thriving mitigates macroeconomic volatility. The empirical results however reveal that when the stock market is dominant, there is bound to be macroeconomic volatility. The results imply that pursuing the development of the overall financial system reduces macroeconomic volatility in a country as well as the region. Authorities should therefore ensure that policies geared towards development of the entire financial system are pursued.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2038861
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2038861
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# input file: OAEF_A_2122958_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yen Nguyen
Author-X-Name-First: Yen
Author-X-Name-Last: Nguyen
Author-Name: Liem Nguyen
Author-X-Name-First: Liem
Author-X-Name-Last: Nguyen
Title: Funding liquidity, bank capital, and lending growth in a developing country
Abstract:
The purpose of this paper is to examine the impacts of funding liquidity and bank capital on lending growth using panel data estimation techniques on a sample of banks in Vietnam from 2005 to 2021. The research shows that funding liquidity and capital have a positive impact on lending growth, confirming the important role of deposits and capital on bank lending activities. There is evidence that capital and funding liquidity can be substitutes to maintain growth in lending, and capital can help address agency problems associated with increased lending. Finally, we perform quantile regression to further investigate whether the above links hold across the distribution of lending growth, and find that the coefficients of funding liquidity, capital and their interaction term remain significant. Based on the research findings, we propose relevant implications for the maintenance of sustainable growth and stability of banks in this market.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2122958
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2122958
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# input file: OAEF_A_2114174_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Oanh Kim Thi Tran
Author-X-Name-First: Oanh Kim Thi
Author-X-Name-Last: Tran
Title: Does there exist an optimal budget balance to improve economic growth? empirical evidence from Asian countries
Abstract:
Using panel data regression of 48 countries during 2000–2019, the research aims to examine the role of budget balance on economic growth in Asia. Also, with the application of Panel Threshold Regression (PTR), the author tests the nonlinear relationship and to identify an optimal budget balance threshold to achieve the most effective economic growth. The study shows that the lower national budget deficit level is remained, the greater economic growth in Asia is driven. Additionally, it is revealed that an effective economic growth is best promoted with budget balance ranging from 22.6935% GDP to 25.1950% GDP. However, only a few of nations in the sample have achieved the optimal threshold of budget balance above during the period of research. Meanwhile, several countries in Asia have been suffering from the budget deficit for many years. Therefore, in order to stabilize the economic development, most of the Asian countries should adjust the national budget revenue and expenditure process to keep the balance properly.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2114174
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2114174
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# input file: OAEF_A_2106633_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Tanakorn Likitapiwat
Author-X-Name-First: Tanakorn
Author-X-Name-Last: Likitapiwat
Author-Name: Sirimon Treepongkaruna
Author-X-Name-First: Sirimon
Author-X-Name-Last: Treepongkaruna
Title: It’s COVID-19 chaos! Is the temporary restriction on short selling in Thailand effective?
Abstract:
This paper evaluates the effectiveness of the COVID-19 temporarily led restriction on short selling by the Stock Exchange of Thailand (SET). We investigate the causal effect of short selling restriction on return, volatility and market quality from 2 September 2019 to 30 September 2020. Exploiting this short selling restriction as a natural experiment, we conduct difference-in-difference analyses and find that the uptick restriction on short selling worsens market quality with higher spread, lower market depth, and order imbalance. In addition, we find an increase in volatility during the restriction and a negative return surrounding the announcement date. This implies that the restriction increases the trading costs and price impact and fails to tame the volatile market and reduce returns.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2106633
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2106633
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# input file: OAEF_A_2111783_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Shivaprasad S P
Author-X-Name-First: Shivaprasad
Author-X-Name-Last: S P
Author-Name: Geetha E
Author-X-Name-First: Geetha
Author-X-Name-Last: E
Author-Name: Raghavendra Acharya
Author-X-Name-First: Raghavendra
Author-X-Name-Last: Acharya
Author-Name: Vidya Bai G
Author-X-Name-First: Vidya Bai
Author-X-Name-Last: G
Author-Name: Rajeev Matha
Author-X-Name-First: Rajeev
Author-X-Name-Last: Matha
Title: Are Options Trading Strategies Really Effective for Hedging in the Indian Derivatives Market?
Abstract:
Hedging being a predominant financial concern, is considered as a robust method of managing investment risks. Literature evinces that the covered call strategy provides nominal returns alongside effective hedging. However, studies have not compared the hedging effectiveness of covered call, covered put, collar, and synthetic long call strategies in the equity segment. The study evaluates the hedging effectiveness of option trading strategies by applying them to the companies of the top six National Stock Exchange (NSE) sector indices for twelve years, from 2009 to 2020 under volatile and neutral market conditions. The study collects data of 18,720 option contracts and considers 3744 observations for each strategy. The panel regression analysis approach is being incorporated into the study. Hausman test results determine the appropriate model between fixed and random effects. Furthermore, the study compares the mean scores of selected strategies to identify significant differences between the groups using the Games-Howell Post Hoc Tukey Test. The study recommended covered call and covered put strategies effectively hedge the investment in both market conditions. The study’s findings help retail investors choose a better hedging strategy and employ the same in their trading, specific to the market condition. Future studies can apply and compare the effectiveness of these strategies in other emerging derivative markets.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2111783
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111783
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# input file: OAEF_A_2106634_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Palka Chhillar
Author-X-Name-First: Palka
Author-X-Name-Last: Chhillar
Author-Name: Ramana V Lellapalli
Author-X-Name-First: Ramana V
Author-X-Name-Last: Lellapalli
Title: Role of earnings management and capital structure in signalling early stage of financial distress: a firm life cycle perspective
Abstract:
Globally, the unravelling of the corporate scandals leading to big multinational firms stumbling down to bankruptcy suits caused enormous loss of wealth to the investors. This study explores how the earnings management and capital structure can signal an early stage of the distressed financial condition of firms during the firm life cycle in Indian listed companies. The sample firms for the study are the non-financial firms listed on the Bombay Stock Exchange. The study uses fixed-effects and random-effects analyses. The findings of the study indicate that discretionary accruals quality can predict the early stage of financial distress in the decline stage of firm life cycle. Understanding the information embedded in the discretionary accruals and leverage during various life cycle stages can lead to better investing, financing, operating and policy-related decisions. This study provides novel insights into the relationship between earnings management and firm life cycle. Focusing on the inter-relationship between financial distress signalling, earnings management, capital structure and firm life cycle, this work adds significantly to the finance literature.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2106634
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2106634
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# input file: OAEF_A_2060551_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Chuka Ifediora
Author-X-Name-First: Chuka
Author-X-Name-Last: Ifediora
Author-Name: Kenechukwu Onochie Offor
Author-X-Name-First: Kenechukwu Onochie
Author-X-Name-Last: Offor
Author-Name: Eze Festus Eze
Author-X-Name-First: Eze Festus
Author-X-Name-Last: Eze
Author-Name: Samuel Manyo Takon
Author-X-Name-First: Samuel Manyo
Author-X-Name-Last: Takon
Author-Name: Anthony Eboselume Ageme
Author-X-Name-First: Anthony Eboselume
Author-X-Name-Last: Ageme
Author-Name: Godwin Imo Ibe
Author-X-Name-First: Godwin Imo
Author-X-Name-Last: Ibe
Author-Name: Josaphat U. J. Onwumere
Author-X-Name-First: Josaphat U. J.
Author-X-Name-Last: Onwumere
Title: Financial inclusion and its impact on economic growth: Empirical evidence from sub-Saharan Africa
Abstract:
This study examines the impact of financial inclusion on economic growth using panel data of 22 sub-Sahara African (SSA) countries during the period spanning from 2012 to 2018. The study employs the system Generalized Method of Moments (GMM). Using a composite index of financial inclusion as well as individual financial inclusion indicators, we discovered that the availability dimension of financial inclusion, penetration dimension of financial inclusion and composite financial inclusion (all indicators put together) significantly and positively impact economic growth while the usage dimension of financial inclusion improves economic growth but not significantly. Also, bank branches and ATMs have positive and significant impact on economic growth, deposit accounts and outstanding loans promote economic growth but not significantly while outstanding deposits adversely affects economic growth. In addition, findings for mobile money indicators from 2012 to 2018 revealed that mobile money agents weaken economic growth while mobile money accounts and mobile money transactions foster economic growth but not significantly. This implies that financial education policies which help Africans better understand the potential benefits of the usage of banking services should be pursued.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2060551
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2060551
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# input file: OAEF_A_2114175_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Khoa Dang Duong
Author-X-Name-First: Khoa Dang
Author-X-Name-Last: Duong
Author-Name: Man Minh Tran
Author-X-Name-First: Man Minh
Author-X-Name-Last: Tran
Author-Name: Diep Van Nguyen
Author-X-Name-First: Diep Van
Author-X-Name-Last: Nguyen
Author-Name: Hoa Thanh Phan Le
Author-X-Name-First: Hoa Thanh Phan
Author-X-Name-Last: Le
Title: How fears index and liquidity affect returns of ivol puzzle before and during the Covid-19 pandemic
Abstract:
This study examines the impacts of investor sentiment and liquidity on the idiosyncratic volatility (IVOL) anomaly returns in Vietnam before and during the COVID-19. We construct an internet search-based measure of sentiment (FEARS) from the Google Trends Search Volume Index of Vietnam’s financial and economic search terms from December 2010 to December 2020. We employ Two-Stage Least Squares (2SLS) regressions and univariate portfolio testing to examine the existence of IVOL anomaly in Vietnam after controlling for FEARS sentiment index and liquidity proxies. Our findings document the persistence of the IVOL anomaly in the Vietnam stock market before the pandemic. However, the IVOL anomaly disappears during the pandemic. In addition, increasing investor fear sentiment reduces stock returns during the pandemic. Our robustness tests indicate that the IVOL anomaly persists in the high FEARS, low FEARS, and high turnover subsample before the pandemic. Our results contribute new evidence of how the FEARS index and liquidity help explain the IVOL puzzle before and during the pandemic. Our findings align with the trade-off theory, the efficient market theory, the attention-driven theory, and prior literature.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2114175
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2114175
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# input file: OAEF_A_2085292_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Walid M. A. Ahmed
Author-X-Name-First: Walid M. A.
Author-X-Name-Last: Ahmed
Author-Name: Mohamed A.E. Sleem
Author-X-Name-First: Mohamed A.E.
Author-X-Name-Last: Sleem
Title: Time-frequency moment interdependence of equity, oil, and gold markets during the COVID-19 pandemic
Abstract:
Like no other calamitous event in recent memory, the COVID-19 pandemic has plunged the world’s financial system into disarray, triggering systemic risk spillovers across markets. In this study, we use 5-minute index futures price data to examine the multiscale interdependence structure of global equity, gold, and oil markets prior to and following the COVID-19 outbreak, in terms of the first four realized moments of their respective return distributions (i.e., mean, variance, skewness, and kurtosis). With respect to the equity-gold nexus, we find that stock (gold) returns and volatility negatively (positively) lead their gold (stock) counterparts at medium- and long-term scales in the pandemic period, while asymmetry risk in stock markets positively leads its counterpart in gold markets at the same scales before and during the early months of the health crisis. Concerning the oil-equity nexus, our results reveal a positive (negative) co-movement between asymmetry risks at short- and medium-term scales in January-April (May-July) 2020, whereas heavy tail risks are positively synchronized at low frequencies in the turbulent period of March-April 2020. Some policy implications are derived from the analysis.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2085292
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2085292
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# input file: OAEF_A_2119705_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Goodness C. Aye
Author-X-Name-First: Goodness C.
Author-X-Name-Last: Aye
Author-Name: Nicholas M. Odhiambo
Author-X-Name-First: Nicholas M.
Author-X-Name-Last: Odhiambo
Title: Dynamic effect of fiscal policy on wealth inequality: Evidence from middle-income countries
Abstract:
The study examined the dynamic effect of fiscal policy on wealth inequality in middle-income countries using panel data from 2010 to 2018 and the system Generalized Method of Moments (GMM) method. Two measures of fiscal policy were considered, namely government expenses and taxes on income, profits and capital gains. GDP per capita and adult population were used as control variables. The findings of this study show that while taxes on income, profits and capital gains have a significant negative effect on wealth inequality, government expenses have no effect whatsoever on wealth inequality.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2119705
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2119705
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# input file: OAEF_A_2068784_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Kenneth Ofori-Boateng
Author-X-Name-First: Kenneth
Author-X-Name-Last: Ofori-Boateng
Author-Name: Williams Ohemeng
Author-X-Name-First: Williams
Author-X-Name-Last: Ohemeng
Author-Name: Ernest Ahawaadong Boro
Author-X-Name-First: Ernest
Author-X-Name-Last: Ahawaadong Boro
Author-Name: Elvis Kwame Agyapong
Author-X-Name-First: Elvis
Author-X-Name-Last: Kwame Agyapong
Title: Efficiency, market structure and performance of the insurance industry in an emerging economy
Abstract:
This paper investigated the structure of the market, efficiency and performance (profitability) of the general insurance industry in the Ghanaian economy. The overriding objective was to evaluate the impact that regulatory informed market structure would have on the pricing behaviour; examining the hypothesis of the Structure Conduct Performance (SCP) for the general insurance market. Using data comprising a panel of 29 general insurance firms from 2008–2019, the paper used the Herfindahl Hirschman Index and the concentration ratio to measure the SCP in addition to computing efficiency as a measure for the Efficient Structure (ES) hypothesis. Using a Panel Corrected Standard Error and settling on Random Effect techniques, the paper found no evidence to suggest collusive firm behaviour among general insurers. The findings therefore supported the ES hypothesis, and rejected the SCP hypothesis. The paper presents insight into understanding the behaviour of insurance companies in the new markets inspired by regulation.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2068784
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2068784
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# input file: OAEF_A_2026660_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Nguyen Minh Ha
Author-X-Name-First: Nguyen
Author-X-Name-Last: Minh Ha
Author-Name: Pham Tan Minh
Author-X-Name-First: Pham
Author-X-Name-Last: Tan Minh
Author-Name: Quan Minh Quoc Binh
Author-X-Name-First: Quan Minh Quoc
Author-X-Name-Last: Binh
Title: The determinants of tax revenue: A study of Southeast Asia
Abstract:
This study identifies the determinants of tax revenue in Southeast Asia based on a balanced dataset of eight countries. By employing static (pooled Ordinary Least Squares (OLS), fixed effects (FE) model, random effects (RE) model and Driscoll-Kraay standard error) as well as dynamic panel data (system–generalized method of moments) regression techniques, we show that the openness of the economy, foreign direct investment (FDI), the ratio of foreign debt to the gross domestic product (GDP), the share of value added in industry to GDP have positive impacts on tax revenue, and official development assistance has a negative impact. We suggest that Southeast Asian countries design better policies in international trade as well as attract FDI, speed up the process of economic restructuring, and enhance the capacity to mobilize, manage, and use foreign debt and assistance in order to collect more taxes.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2026660
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2026660
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# input file: OAEF_A_2135834_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Abhilash
Author-X-Name-First:
Author-X-Name-Last: Abhilash
Author-Name: Sandeep S Shenoy
Author-X-Name-First: Sandeep S
Author-X-Name-Last: Shenoy
Author-Name: Dasharathraj K Shetty
Author-X-Name-First: Dasharathraj K
Author-X-Name-Last: Shetty
Title: A state-of-the-art overview of green bond markets: Evidence from technology empowered systematic literature review
Abstract:
Though the green bond markets are growing expeditiously, the summary overview of this market literature is sparse. This study addresses the gap by employing a bibliometric analysis through a systematic review of the literature approach and provides a state-of-the-art overview of the current trends, status, and future development of the green bond markets. To do so, the study reviewed 265 articles retrieved from the Scopus database spanning from 2011 to 2022. Akin to this, the study unpacks the publication trend, most influencing articles, prolific authors, top contributing journals, countries, as well as affiliations in green bond research. The review shows that the publication trend has surged exponentially with an annual growth rate of 55.12%. The study also reveals major themes such as sustainable development, sustainability, green bonds, sustainable finance, green finance, and sustainable investment. The findings of the study suggest curating future research with the main emphasis on multiple types of green bonds, the impact of various green projects, the attention of various market participants, and the incorporation of advanced technology for the development of the green bond market. The study will help policymakers, regulators, and academicians to promote sustainability.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2135834
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2135834
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# input file: OAEF_A_2153411_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yue Li
Author-X-Name-First: Yue
Author-X-Name-Last: Li
Author-Name: Zariyawati Mohd Ashhari
Author-X-Name-First: Zariyawati
Author-X-Name-Last: Mohd Ashhari
Author-Name: Yaojun Fan
Author-X-Name-First: Yaojun
Author-X-Name-Last: Fan
Title: Financial sustainability and capital leverage of microfinance institutions in China: The mediating role of profitability
Abstract:
This study primarily investigates the effect of financial sustainability on capital leverage in microfinance setting. In doing this, this study looks at operating performance of 45 commercial microfinance institutions under current dual pressure of downturn and deleveraging in China. Empirically, this study employs the system GMM to observe a robustly small and negative impact of financial sustainability on capital leverage. Furthermore, this study presents a conclusion with evidence by mediation analysis that profitability exhibits a suppressing effect on the relationship between financial sustainability and capital leverage. Theoretically, this study verifies that the impact of financial sustainability on capital structure obeys the pecking order theory.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2153411
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2153411
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# input file: OAEF_A_2080897_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Teshager Mazengia Asratie
Author-X-Name-First: Teshager Mazengia
Author-X-Name-Last: Asratie
Title: Determinants of electricity production from renewable source excluding hydroelectricity in selected East African countries: Panel ARDL approach
Abstract:
Though East Africa has ample resource endowments for electricity production, the region has the lowest performance in generating electricity, and millions of people are living without access to electricity. To fill the electricity gap countries used fossil fuels as the major source of energy, but electricity production from a renewable resource is lower. Therefore, this study aimed to identify determinant factors of electricity production from renewable resources excluding hydropower sources. Panel data for five East African countries for the period 1998 to 2019 were used, and it was examined using pooled mean group panel ARDL estimation technique. The estimation result revealed that in the long- and short-run GDP per capita growth, population growth, energy consumption per capita, and energy import have a positive significant effect on electricity production from renewable resources other than hydropower, while political instability, electricity production from hydropower, and electricity production from oil, gas, and coal have a negative significant effect. However, in the short run, energy use and resource rent percentage of GDP have positive and negative significant effects, respectively, but in the long run, the two variables have no significant effect. Error correction coefficient is negative 0.64, which indicates that the deviation from long-run disequilibrium adjusts toward equilibrium at a rate of 64% per year. Based on the results, this study recommends that the government improve the performance of GDP growth by quality education, lower lending interest rate, improving political stability through controlling internal conflicts caused by differences in religion and ethnicity, and improving energy security.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2080897
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2080897
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# input file: OAEF_A_2090662_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mouna Mrad
Author-X-Name-First: Mouna
Author-X-Name-Last: Mrad
Title: Accounting conservatism and corporate cross- listing: The mediating effect of the corporate governance
Abstract:
The purpose of this paper is to investigate the relationship between accounting conservatism and companies’ cross- listing decision and the mediating role of the corporate governance mechanisms: board of directors’ characteristics and ownership structure, on this relationship. Using a sample of 60 French companies for the period 2014–2019, we find new evidence of a reverse causation relationship between accounting conservatism and cross-listing decision in the United States (US). Thus, cross-listed firms in the US are more likely to exhibit more conservative financial reports. In the reverse causality sense, more conservative firms are more likely to cross-list in the US since they can support a higher level of cross-listing costs and satisfy the higher disclosure and governance requirements which allow them to benefit from a better valuation. Our findings also support the new prediction that better governance leads to higher levels of accounting conservatism, implying a mediating impact on the relationship between accounting conservatism and cross-listing decision.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2090662
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2090662
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# input file: OAEF_A_2132645_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Abdullah
Author-X-Name-First: Abdullah
Author-X-Name-Last:
Author-Name: Muhammad Arsalan Hashmi
Author-X-Name-First: Muhammad Arsalan
Author-X-Name-Last: Hashmi
Author-Name: Abdul Mateen
Author-X-Name-First: Abdul
Author-X-Name-Last: Mateen
Author-Name: Yousuf Ali Badshah
Author-X-Name-First: Yousuf Ali
Author-X-Name-Last: Badshah
Author-Name: Muhammad Sikander Iqbal
Author-X-Name-First: Muhammad Sikander
Author-X-Name-Last: Iqbal
Title: Does tax aggressiveness and cost of debt affect firm performance? The moderating role of political connections
Abstract:
Firms in emerging economies continue to suffer as a consequence of tax evasion, high cost of financing, political interference, weak governance systems, and bureaucratic institutions. In order to understand how these challenges complicate commercial activities, this study examines how tax aggressiveness, cost of debt, and political connections affect firm performance in Pakistan. Unlike previous research, we also explore if political connections moderate the association between (i) tax aggressiveness and firm performance and (ii) cost of debt and firm performance. Our robust empirical analysis reveals that tax aggressive firms have weaker performance while politically connected firms have better performance, ceteris paribus. Further, we find that tax aggressive firms having politically connected board members have better performance as compared to their non-connected counterparts. Similarly, firms with a high cost of debt and politically connected board members have better performance as compared to non-connected firms. Thus, we argue that political connections help connected firms in overcoming the adverse consequences of tax aggressiveness and the high cost of debt through their influence in procuring government projects, subsidies, and other benefits. Therefore, policymakers are advised to restrict politically connected board members from extending favors and concessions to connected firms. We also encourage shareholders to exercise their voting power and monitoring capabilities for mitigating agency problems inherent in politically connected firms.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2132645
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2132645
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# input file: OAEF_A_2061103_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ibrahim N. Khatatbeh
Author-X-Name-First: Ibrahim N.
Author-X-Name-Last: Khatatbeh
Author-Name: Wasfi Al Salamat
Author-X-Name-First: Wasfi
Author-X-Name-Last: Al Salamat
Author-Name: Mohammed N. Abu-Alfoul
Author-X-Name-First: Mohammed N.
Author-X-Name-Last: Abu-Alfoul
Author-Name: Jamil J. Jaber
Author-X-Name-First: Jamil J.
Author-X-Name-Last: Jaber
Title: Is there any financial kuznets curve in Jordan? a structural time series analysis
Abstract:
This paper investigates the notion of the financial Kuznets curve in an emerging country—Jordan. Both variants of the financial Kuznets curve (growth financial Kuznets curve and inequality financial Kuznets curve) have been examined using different time series methodologies applying to a sample period from 1993 to 2017. The unobserved components model results provide evidence for both variants of the financial Kuznets curve when using private credit to GDP as a proxy for financial-sector development. Moreover, non-nested model tests suggest that financial intermediaries are relatively more important than stock markets for income inequality. Overall, this paper provides evidence for the financial Kuznets curve in emerging countries. Moreover, it provides new insights for policymakers in Jordan in their challenge to boost economic growth and decelerate income inequality, by reversing the trend towards the concentration of power in the financial sector and creating public-financial institutions that provide affordable credit to small businesses and households.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2061103
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2061103
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# input file: OAEF_A_2111781_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Emmanuel Abokyi
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Abokyi
Title: The impact of agricultural marketing program on farm investment: Evidence from Ghana
Abstract:
This study investigates the impact of agricultural marketing program on smallholder investment behavior. The study is based on cross-sectional household data from a survey of 507 smallholder maize farmers from rural communities in Ghana. The study employed propensity score matching (PSM) to estimate the average treatment effect of the marketing program on farmers’ investment behavior. The results show that smallholder farmers’ participation in buffer stock marketing program is influenced positively by gender, transportation cost and access to extension service and negatively by marital status among others. Overall, the results show that the buffer stock marketing program has positive impacts on smallholder farmers’ investment behavior of increasing input usage, farm expansion and yield smallholder farmers. However, the highest impact is on farm expansion. The results of the study reveal that the marketing program stimulates investment in farm size expansion more than in inputs usage. To derive the most impact from the program, a possible review of the program could look at strategy of focusing on the implementation of the program in rural areas rather than in peri-urban areas where land access is more constrained. This study contributes to a better understanding of f farmers’ investment behavior of input usage and farm expansion. This knowledge could help policymakers and development organizations shape future interventions for increased uptake.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2111781
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111781
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# input file: OAEF_A_2095767_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ho Thuy Tien
Author-X-Name-First: Ho
Author-X-Name-Last: Thuy Tien
Title: Oil price shocks and Vietnam’s macroeconomic fundamentals: quantile-on-quantile approach
Abstract:
This study aims to explore the asymmetric relationships between global oil prices and the selected Vietnam macroeconomic indicators using both quantile-on-quantile regression and Granger causality in quantile frameworks. The macroeconomic factors under study, as expected, have a strong relationship with oil price changes. The results suggest that oil prices have a positive impact on the exchange rate, inflation, GDP, and stock market prices across major quantiles, while there is a significantly negative relationship between the unemployment rate and oil prices in the middle-upper quantile. The results of this article offer considerable policy implications for governments, investors, and policymakers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2095767
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2095767
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# input file: OAEF_A_2150134_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Marina Maniati
Author-X-Name-First: Marina
Author-X-Name-Last: Maniati
Author-Name: Emeritus Sambracos
Author-X-Name-First: Emeritus
Author-X-Name-Last: Sambracos
Author-Name: Sokratis Sklavos
Author-X-Name-First: Sokratis
Author-X-Name-Last: Sklavos
Title: A Neural Network approach for integrating banks’ decision in shipping finance
Abstract:
Forecasting refers to the process of predicting future trends by lying on data from the past. An error in forecasting can lead to significant business losses especially in banking industry where decisions are taken in a highly volatile and uncertain environment due to the dynamic changes in world economy. In this paper, we study both the effectuations of the exogenous factors in the tanker shipping-related financial market and the modulation of the credibility coefficient as an internal factor in shipping banks that may affect their decision to either increase or decrease loans within tanker shipping sector by adopting the artificial neural network technique. Within this context, we modeled a unique network that adjusts 88 macroeconomic indices to the real data of 89 shipping banks within a period of T = 5 years time. The main contribution of this study is the understanding of the relation between bias and either exogenous or unpredictable factors in the market as a key factor in the financing decision policy of a shipping bank for the forthcoming year T + 1.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2150134
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2150134
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# input file: OAEF_A_2035917_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Bayelign Abebe Zelalem
Author-X-Name-First: Bayelign Abebe
Author-X-Name-Last: Zelalem
Author-Name: Ayalew Ali Abebe
Author-X-Name-First: Ayalew Ali
Author-X-Name-Last: Abebe
Title: Balance sheet and income statement effect on dividend policy of private commercial banks in Ethiopia
Abstract:
The study analyzes the impact of balance sheet and income statement on the cash dividends of private commercial banks in Ethiopia. The independent variables employed include liquidity, asset size, leverage, and growth, which are components of the balance sheet, and profitability which is a component of both the balance sheet and the income statement during the period 2010–2020. The generalized moment (GMM) model was used to determine the most important variables that private banks consider when making dividend decisions. In addition, further tests are performed to corroborate the basic findings. Profitability, size, and liquidity are statistically significant characteristics that positively influence the dividend policy of Dashen bank, Wegagen bank, United bank, Lion international bank, Cooperative bank of Oromia, Awash international bank, Bank of Abyssinia, and Nib international bank. Growth and leverage, on the other hand, have a negative and considerable impact on the dividend policy of private commercial banks. The study suggests that the dividend policy of Ethiopian private commercial banks is influenced by both the balance sheet and the income statement. When determining dividend policy, managers of Ethiopian private commercial banks should consider profitability, asset size, liquidity, leverage, and growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2035917
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2035917
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# input file: OAEF_A_2156677_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mohammad Anamul Haque
Author-X-Name-First: Mohammad Anamul
Author-X-Name-Last: Haque
Author-Name: Zhang Biqiong
Author-X-Name-First: Zhang
Author-X-Name-Last: Biqiong
Author-Name: Muhammad Usman Arshad
Author-X-Name-First: Muhammad Usman
Author-X-Name-Last: Arshad
Author-Name: Nazia Yasmin
Author-X-Name-First: Nazia
Author-X-Name-Last: Yasmin
Title: Role of uncertainty for FDI inflow: Panel econometric analysis of selected high-income nations
Abstract:
The purpose of this study is to evaluate the influence of economic policy uncertainty in determining the FDI inflow for 19 economies with higher incomes between 2000 and 2021. Using the panel Ardl approach, the data were examined. The dynamic fixed effect approach was selected for assessing the necessary set of hypotheses based on the significance of the Hausman test. Increasing levels of economic policy uncertainty, exchange rate, and inflation rate discourage foreign investors from investing in the host country, whereas trade openness and real growth rate increase investors’ confidence in increasing FDI inflow in the host country. The economic implications of the study include the political stability of the host country and the uniformity of government policies, particularly in favor of international investors. This study contributes to the existing body of knowledge on FDI by examining the long-term and short-term effects of uncertainty for the high-income group. The findings of the study apply to higher-income economies. In the future, comparative time-series analysis may be used to assess studies on an individual or regional basis for other groups as well.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2156677
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2156677
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# input file: OAEF_A_2106636_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Samuel Kwaku Agyei
Author-X-Name-First: Samuel Kwaku
Author-X-Name-Last: Agyei
Author-Name: Nathaniel Kwapong Obuobi
Author-X-Name-First: Nathaniel Kwapong
Author-X-Name-Last: Obuobi
Author-Name: Mohammed Zangina Isshaq
Author-X-Name-First: Mohammed Zangina
Author-X-Name-Last: Isshaq
Author-Name: Mac Junior Abeka
Author-X-Name-First: Mac Junior
Author-X-Name-Last: Abeka
Author-Name: John Gartchie Gatsi
Author-X-Name-First: John Gartchie
Author-X-Name-Last: Gatsi
Author-Name: Ebenezer Boateng
Author-X-Name-First: Ebenezer
Author-X-Name-Last: Boateng
Author-Name: Emmanuel Kwakye Amoah
Author-X-Name-First: Emmanuel Kwakye
Author-X-Name-Last: Amoah
Title: Country-Level corporate governance and Foreign Portfolio Investments in Sub-Saharan Africa: The moderating role of institutional quality
Abstract:
Given the declining volumes of Foreign Portfolio Investments (FPI) in Africa, the study sought to examine the moderating role institutional quality (INST) plays in the relationship between country-level corporate governance (CG) and FPI in Sub-Saharan Africa. This is motivated by arguments from the hierarchy of institutions hypothesis, which posits that the quality of political institutions (INST) determine the strength of economic institutions (CG) and how they affect economic activities. Data was collected on 33 SSA countries from 2009 to 2017 and analysed using the systems GMM approach. The results revealed that economies characterised by strict adherence to international auditing and reporting standards, ethically behaved firms, effective corporate boards, and well-regulated security markets tend to attract more FPI inflows, even though weak shareholder protection regimes are likely to deter FPI. We also confirmed the positive impact of robust institutions in luring FPI into SSA. Finally, we found the FPI-CG nexus to be significantly moderated by the quality of institutions prevalent in a country. This implies that the effectiveness of country-level corporate governance mechanisms can be affected by the existing institutions, thereby impacting the level of FPI an economy receives. We recommend that SSA firms take pragmatic steps to develop and practice sound CG mechanisms while the institutional setting in SSA is strengthened to harness more FPI inflows to support their economic growth agenda.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2106636
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2106636
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# input file: OAEF_A_2024952_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Nicholas Apergis
Author-X-Name-First: Nicholas
Author-X-Name-Last: Apergis
Title: Convergence in non-performing loans across EU banks: The role of COVID-19
Abstract:
Given the impact of the COVID-19 pandemic on the European real economy, European banks are likely expected to be confronted by a wave of non-performing loans. Focusing on a sample of large banks in the EU area over the pre and during the COVID-19 pandemic period, the analysis shows an extended degree of divergence during the pandemic crisis, with GDP, bank profitability and risk being held the responsible factors. The findings imply that potential plans to deal with NPLs should explicitly consider strategies running from bank restructuring and resolutions to recapitalisation or any other rescue measures.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2024952
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2024952
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# input file: OAEF_A_2101224_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Muhammad Ahmad
Author-X-Name-First: Muhammad
Author-X-Name-Last: Ahmad
Author-Name: Rabia Bashir
Author-X-Name-First: Rabia
Author-X-Name-Last: Bashir
Author-Name: Hamid Waqas
Author-X-Name-First: Hamid
Author-X-Name-Last: Waqas
Title: Working capital management and firm performance: are their effects same in covid 19 compared to financial crisis 2008?
Abstract:
The recent covid 19 has increased the challenges for worldwide businesses to manage working capital. Compared to the studies on the financial crisis of 2008, management of working capital and firm performance relation during the covid 19 is less studied, particularly in developing countries. Therefore, this study examined the working capital management and firm performance relation in 577 firms from three Asian developing countries from 2004 to 2020. The working capital measurement includes working capital investment policy, working capital financing policy, cash conversion cycle (CCC), and net working capital (NWC). Firm performance is measured by return on assets (ROA) and Tobin’s Q (TQ). To examine the working capital management and firm performance during the crisis 2008 and covid 19, Kruskal-Wallis test is used. Results revealed that working capital management and firm performance were more affected during covid 19 than crisis 2008 period. In addition, this study compared the working capital management and firm performance relation for covid 19 and crisis 2008 using the dynamic panel system generalized method of moments (GMM). Results showed the difference in the effect of working capital management on firm performance during the covid 19 period as compared to the crisis 2008 period. CATAR significantly and negatively influenced ROA but significantly and positively influenced TQ. In contrast, CLTAR and CCC significantly and positively influenced ROA but significantly and negatively influenced TQ. NWC significantly and positively influenced ROA only. To the best of our knowledge, this study is the first empirical research study to extend cross-country analysis in respect of non-financial firms to the developing countries’ context. The results of this study provide important managerial implications for firms. The different results for different firm performance proxies imply that firm managers must adopt the working capital policies which are profitable for firms and shareholders. Thus, firms in developing countries would be able to optimize their working capital according to the economic conditions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2101224
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2101224
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# input file: OAEF_A_2095765_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: H Maduku
Author-X-Name-First: H
Author-X-Name-Last: Maduku
Author-Name: M.F Zerihun
Author-X-Name-First: M.F
Author-X-Name-Last: Zerihun
Title: Qualitative analysis of transiting from informal to formal sector: The case of manufacturing and service businesses in Gauteng province of South Africa
Abstract:
The objective of this paper was to establish challenges and benefits on formalisation in South Africa using a qualitative approach. To meet the objective, 15 interviews were carried out with owners of small businesses that had just formalized in Johannesburg and Pretoria. This study contributes to the existing knowledge on small business formalisation by bringing evidence from formalised businesses. The research does so through asking unique questions that cannot be answered quantitatively. Using themes for analysis, the study found conditional formalisation, high levels of bureaucracy, unsustainable fees, information asymmetry, credit or capital unavailability and corruption as key challenges being faced by emerging entrepreneurs. In addition, the study also identified increased chances to benefit from BEE, improved access to information to supply the public sector, improved chances of securing credit, increased credibility of the business and better access to markets as the benefits that entrepreneurs derive from formalisation. This study recommends that informal businesses be supported through skills training initiatives and expanded credit opportunities so that they can be of better size and capacity to formalise.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2095765
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2095765
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# input file: OAEF_A_2125658_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ezo Emako
Author-X-Name-First: Ezo
Author-X-Name-Last: Emako
Author-Name: Seid Nuru
Author-X-Name-First: Seid
Author-X-Name-Last: Nuru
Author-Name: Mesfin Menza
Author-X-Name-First: Mesfin
Author-X-Name-Last: Menza
Title: The effect of foreign direct investment on structural transformation in developing countries
Abstract:
This paper investigates the effects of foreign direct investment (FDI) on structural transformation using panel data from 44 developing countries and four newly industrialized countries from 1990 to 2018 by employing the generalized method of moment approach of Arellano-Bond (1991). The estimated results suggest that FDI inflows have a positive significant effect on the structural transformation. In addition, the paper explores the channels through which FDI affects structural transformation. The Principal Component Analysis (PCA) indicates that structural change contributes 55.95 percent to structural transformation, followed by capital accumulation (37.92 percent) and economic growth (6.13 percent). Particularly, manufacturing and service-sector output and employment growth, as well as urbanization, are major pathways via which FDI fosters structural transformation in developing countries. Therefore, special consideration should be given to FDI motivated by manufacturing exports, as well as policies that boost absorption capacity and enable labor mobility in developing countries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2125658
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2125658
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# input file: OAEF_A_2107768_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: SocratesKraido Majune
Author-X-Name-First: SocratesKraido
Author-X-Name-Last: Majune
Author-Name: Kamau John Gathiaka
Author-X-Name-First: Kamau John
Author-X-Name-Last: Gathiaka
Author-Name: Michael Ndwiga
Author-X-Name-First: Michael
Author-X-Name-Last: Ndwiga
Title: Trade agreements and survival of service exports from Kenya
Abstract:
This study investigates the effect of GATS, a service-specific trade agreement, on the survival of service exports from Kenya to 176 countries between 1995 and 2019. Services are classified at a 1-digit level: travel, transport, computer and information, construction, financial, insurance, government, other business, and personal, cultural, and recreational services. The discrete-time probit model with random effects reveals that GATS reduces the survival of service exports by 0.78%. At the category level, GATS only increases the survival of construction and government services. GATS also reduces the survival of Kenya’s exports to Africa when geographical regions are considered. However, GATS boosts the survival of services when it is interacted with the quality of institutions and the Services Trade Restrictiveness Index (STRI). Accordingly, reducing regulations and general improvement of the quality of institutions can help countries reap the benefits of a service-specific trade agreement fully.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2107768
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2107768
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# input file: OAEF_A_2056362_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Karmi Visser
Author-X-Name-First: Karmi
Author-X-Name-Last: Visser
Author-Name: Gerbus Swart
Author-X-Name-First: Gerbus
Author-X-Name-Last: Swart
Author-Name: Joggie Pretorius
Author-X-Name-First: Joggie
Author-X-Name-Last: Pretorius
Author-Name: Lin-Marie Esterhuyzen
Author-X-Name-First: Lin-Marie
Author-X-Name-Last: Esterhuyzen
Author-Name: Tanja Verster
Author-X-Name-First: Tanja
Author-X-Name-Last: Verster
Author-Name: Erika Fourie
Author-X-Name-First: Erika
Author-X-Name-Last: Fourie
Title: Customer comfort limit utilisation: Management tool informing credit limit-setting strategy decisions to improve profitability
Abstract:
The key criteria for making business decisions is profit, so when making credit limit-setting strategy decisions, profitability will be the most important driver. The profitability of a credit limit-setting strategy is dependent on the customer’s utilisation of the limits set by the strategy. This points towards a need to determine the extent to which a limit can be increased before a customer’s utilisation will decline beyond the point of being profitable. This paper sets out to define a Customer Comfort Limit Utilisation (CCLU) measure that can be used to gauge a customer’s level of comfort (in terms of limit utilisation) with a newly proposed limit. The CCLU is defined as a function of the customer’s limit utilisation and credit limit; in simpler terms, it can be viewed as a function of balance growth vs limit growth. The neural network model that predicted utilisation first and then the CCLU based on the resulting utilisation values was selected as the final model. Once the final model was determined, it was then verified whether profitability could be improved by using a CCLU measure as a management tool when making limit-setting strategy decisions. It was found that strategies involving CCLU values could lead to increased profitability since CCLU values near 100 (i.e. the customer is 100% comfortable with the new limit and will utilise to the same extent as the previous one) are associated with higher key performance metrics levels.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2056362
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2056362
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# input file: OAEF_A_2109282_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Solomon Ahimah-Agyakwah
Author-X-Name-First: Solomon
Author-X-Name-Last: Ahimah-Agyakwah
Author-Name: Edward Nketiah-Amponsah
Author-X-Name-First: Edward
Author-X-Name-Last: Nketiah-Amponsah
Author-Name: Frank Agyire-Tettey
Author-X-Name-First: Frank
Author-X-Name-Last: Agyire-Tettey
Title: Urbanization and poverty in Sub-Saharan Africa: evidence from dynamic panel data analysis of selected urbanizing countries
Abstract:
Urbanization in Sub-Saharan Africa (SSA) is generally highlighted as a puzzle that deviates from the stylized facts in the literature. Using data from a panel of 29 urbanizing countries in SSA from 1985 to 2019, the study employs the two-step system generalized methods of moments to investigate the effect of urbanization on the Poverty Headcount ratio and Poverty Gap. The estimated urbanization elasticities of poverty indicate that at growth rates, a 1 percentage point increase in urbanization rate induces 0.04 and 0.05 (0.07 and 0.09) percentage points decrease in the Poverty Headcount ratio and Poverty Gap in the short-run (long-run), respectively. Similarly, at levels, a 1 percent increase in urbanization level induces 0.22 and 0.32 (0.60 and 0.68) percent decrease in the Poverty Headcount ratio and Poverty Gap in the short-run (long-run), respectively. Consistently, these results show stronger effect of urbanization on the depth of poverty relative to the incidence of poverty. These findings reappraise the literature on the urbanization of poverty in SSA as well as provide a nuanced understanding of the effect of urbanization on the different class of poverty measures. Notwithstanding, the poverty reduction potential of urbanization is not automatic and requires enormous investment in public infrastructure to achieve.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2109282
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2109282
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# input file: OAEF_A_2149491_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Beshir M. Ali
Author-X-Name-First: Beshir M.
Author-X-Name-Last: Ali
Author-Name: Ioannis Manikas
Author-X-Name-First: Ioannis
Author-X-Name-Last: Manikas
Author-Name: Balan Sundarakani
Author-X-Name-First: Balan
Author-X-Name-Last: Sundarakani
Title: Food security in the United Arab Emirates: External cereal supply risks
Abstract:
The coronavirus pandemic and the Russian invasion of Ukraine have exposed the vulnerability of the food systems of import-dependent countries to supply chain disruptions. This study measured the short-term external cereal supply risks for the United Arab Emirates (UAE) by applying the Herfindahl–Hirschman Concentration Index (HHI) and the Shannon–Wiener Diversity Index (SWI) during 2012–2020. We measured the security of UAE’s external cereal supplies by taking the degree of UAE’s cereal import dependency, the level of political- and business-related risks of UAE’s cereal supplying countries, and the distance between UAE and its supplying countries into account. The results of the index values generally imply that UAE’s cereal external supply risk has been low during the sample period. However, the external wheat supply risk has increased since 2017. This was mainly attributable to UAE’s increasing dependence on less secured countries, i.e. countries with higher levels of risk assessment values such as Russia. UAE has heavily been dependent on one or two, mostly price competitive, sources for its cereal imports, which also raises the external cereal supply risk. The UAE’s increasing dependence on Russia as the main source of cereals and the increasing consolidation of sources pose a serious threat to sustaining food security.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2149491
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2149491
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# input file: OAEF_A_2137988_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Lindokuhle Talent Zungu
Author-X-Name-First: Lindokuhle Talent
Author-X-Name-Last: Zungu
Author-Name: Lorraine Greyling
Author-X-Name-First: Lorraine
Author-X-Name-Last: Greyling
Author-Name: Irrshad Kaseeram
Author-X-Name-First: Irrshad
Author-X-Name-Last: Kaseeram
Title: Financial development and income inequality: a nonlinear econometric analysis of 21 African countries, 1990-2019
Abstract:
From 1990 to 2019, this study examines the nonlinear dynamic impact of financial development on income inequality in an unconventional policy regime in a panel of 21 African countries. More importantly, we use Panel Smooth Transition Regression to extend the existing debate on this subject, with roots back to the seminal work of G-J and many others, and add a twist by distinguishing between a conventional (1990–1999) and unconventional policy regime (2000–2019), as well as the threshold level at which financial development reduces inequality. Our baseline results will be supported by the Generalized Method of Moments. The PSTR model was chosen because it can account for features that dynamic panel techniques cannot, such as endogeneity, homogeneity, cross-country variability, and time instability within the model. We found evidence of a non-linear effect between the two variables, with the threshold found to be 21.90% of GDP, below which financial development reduces inequality in Africa, and this confirms the U-shape in unconventional policy regimes and the G-J in conventional policy regimes. Unconventional monetary policies were found to trigger the financial-inequality relationships. The focal policy recommendation is that the financial sector be given adequate consideration and recognition by, inter alia, implementing appropriate financial reforms, developing an adequate investment strategy, and maintaining spending on science and technology investment in African countries below the threshold. Again, when implementing unconventional monetary policies in African countries, extreme caution is required.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2137988
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2137988
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# input file: OAEF_A_2043509_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Tadesse Zenebe Lema
Author-X-Name-First: Tadesse Zenebe
Author-X-Name-Last: Lema
Author-Name: Solomon Estifanos Masresha
Author-X-Name-First: Solomon Estifanos
Author-X-Name-Last: Masresha
Author-Name: Markew Mengsitie Neway
Author-X-Name-First: Markew Mengsitie
Author-X-Name-Last: Neway
Author-Name: Eshetu Molla Demeke
Author-X-Name-First: Eshetu Molla
Author-X-Name-Last: Demeke
Title: Analysis of the technical efficiency of barley production in North Shewa Zone of Amhara regional state, Ethiopia
Abstract:
Inefficiency in barley production is among the challenges to agricultural transformation in Ethiopia. North Shewa zone of Amhara regional state is not exception in this regard. As such addressing inefficiency is among the crucial efforts for agricultural transformation. The objective of the current study was to analyze the technical efficiency of barley production in north Shewa zone of Amhara regional state, Ethiopia. For this purpose 385 farm households were randomly selected from four purposively selected districts in the zone. The one-step maximum likelihood estimation result of the Cobb-Douglas production function result reveals that seed application, DAP fertilizer application, UREA fertilizer application, land under barley production, labor and oxen ownership have a positive and significant effect on barley production. The predicted average technical efficiency score is found to be 85.06 percent implying that given existing input mix and technology it is possible to increase the production of barley on average by 14.94%. The study found that education, non/off farm income, access to market information, access to extension service and tropical livestock unit are found to have a positive and significant effect on the technical efficiency of barley production while distance from the market and marital status (divorced) have a negative significant effect on technical efficiency of barley production. The result suggests that the government should encourage farmers vocational trainings and participation in off/non-farm activities, improve access to market information, access to extension services, livestock ownership and access to market to improve barley production efficiency.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2043509
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2043509
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# input file: OAEF_A_2048483_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Dereje Regasa
Author-X-Name-First: Dereje
Author-X-Name-Last: Regasa
Author-Name: Bekele Abraham
Author-X-Name-First: Bekele
Author-X-Name-Last: Abraham
Title: Financial constraints and trade credit: Evidence from Ethiopian firms
Abstract:
There is an extensive literature that links firms’ access to formal financial services and trade credit. This is more relevant for firms operating in financially less developed countries. These firms could potentially face a binding bank loan constraint due to the distortions related to information asymmetry and moral hazard. Against this backcloth, this paper will explore the relationship between trade credit and financial constraints for Ethiopian firms. The main objective of this study is to explore the relationship between trade credit practice and financial constraints for Ethiopian manufacturing and service firms. We exploit the repeated cross-sectional data of 2011 and 2015 made available by the World Bank’s Ethiopian Enterprise Survey. To address the endogeneity problem between financial constraint and trade credit, the paper employs an instrumental variable (IV) approach. We find a negative relationship between financial constraint and trade credit use. In particular, financially constrained firms have a trade credit use which is about 10 to 18 percentage points lower than unconstrained firms, suggesting that bank credit constrained firms are also trade credit constrained. One policy implication is that addressing constraints in formal financing is more likely to increase the availability of alternative forms of finance such as trade credit.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2048483
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2048483
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# input file: OAEF_A_2037251_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yohanes Mean Duli
Author-X-Name-First: Yohanes
Author-X-Name-Last: Mean Duli
Author-Name: Wihana Kirana Jaya
Author-X-Name-First: Wihana
Author-X-Name-Last: Kirana Jaya
Author-Name: Samsubar Saleh
Author-X-Name-First: Samsubar
Author-X-Name-Last: Saleh
Author-Name: Evita H. Pangaribowo
Author-X-Name-First: Evita H.
Author-X-Name-Last: Pangaribowo
Author-Name: Goodness Aye
Author-X-Name-First: Goodness
Author-X-Name-Last: Aye
Title: Why do some regions exhibit a greater degree of manufacturing export and entrepreneurship activities than others? Evidence from Indonesia
Abstract:
Manufacturing export and entrepreneurship have become increasingly important for economic development. However, there is limited information systems research examining the role of regional ICT infrastructure, knowledge infrastructure, democracy, and the number of foreign tourists for entrepreneurship activities and manufacturing export. This study investigates the impact of ICT infrastructure, knowledge infrastructure, democracy, and the number of foreign tourists on entrepreneurship activities and manufacturing export. Using The PLS-SEM, we found that foreign tourists positively and significantly impact manufacturing exports while knowledge infrastructure and entrepreneurship activities negatively affect manufacturing exports. The findings also supported the significant role of ICT infrastructure and foreign tourists in entrepreneurship activities. This result offers practical implications for policymakers in designing a roadmap of entrepreneurship and manufacturing export policies in developing countries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2037251
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2037251
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# input file: OAEF_A_2139884_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mosab I Tabash
Author-X-Name-First: Mosab I
Author-X-Name-Last: Tabash
Author-Name: Muzaffar Asad
Author-X-Name-First: Muzaffar
Author-X-Name-Last: Asad
Author-Name: Ather Azim Khan
Author-X-Name-First: Ather Azim
Author-X-Name-Last: Khan
Author-Name: Umaid A Sheikh
Author-X-Name-First: Umaid A
Author-X-Name-Last: Sheikh
Author-Name: Zaheerudin Babar
Author-X-Name-First: Zaheerudin
Author-X-Name-Last: Babar
Title: Role of 2008 financial contagion in effecting the mediating role of stock market indices between the exchange rates and oil prices: Application of the unrestricted VAR
Abstract:
This research article explores the mediating role of stock market indexes on the link between exchange rate variations and oil prices by utilizing unrestricted VAR. Previously mainstream research only explained the direct dynamism between the two variables. However, any transmission mechanism for explaining the transmission of shocks from oil prices toward the currency rates has been ignored. Therefore, we have utilized multiple traditional unit root testing procedures followed by a co-integration technique by Johansen (1988). We find that stock market indexes serve as a transmission channel between oil price variability and exchange rate during the pre and post financial recession. Moreover, the dynamic inverse association between the local currency depreciation and stock indices shows the bidirectional return spillover during the pre-contraction period. After the contraction period, the mediating role of stock market indexes is still evident but without the dynamic association between exchange rate and stock indexes. However, during the pre-recession, the transmission mechanism of shocks from the stock indices toward the exchange rate is triggered by oil price negative shocks, whereas after the crisis, the shocks from the stock indices towards the exchange rate are mainly due to positive oil price shocks. This research contributes to the mainstream literature by challenging the theoretical models about the direct dynamism between oil prices and currency and found the mediating role of stock market indexes by utilizing a portfolio balanced approach
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2139884
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2139884
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# input file: OAEF_A_2114177_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Neeraj Gupta
Author-X-Name-First: Neeraj
Author-X-Name-Last: Gupta
Author-Name: Sachin Mittal
Author-X-Name-First: Sachin
Author-X-Name-Last: Mittal
Author-Name: Tarun Agarwal
Author-X-Name-First: Tarun
Author-X-Name-Last: Agarwal
Author-Name: Priti Bakhshi
Author-X-Name-First: Priti
Author-X-Name-Last: Bakhshi
Author-Name: Minati Sahoo
Author-X-Name-First: Minati
Author-X-Name-Last: Sahoo
Title: Ownership concentration and bank performance: Evidence from India
Abstract:
The purpose of this study is to examine the impact of ownership concentration on the performance of Indian commercial banks. A panel data approach has been used in this study. Particularly, the effect estimation and GMM has been used in this study to examine the relationship between ownership concentration and bank performance during 2009–2010 to 2018–2019. The findings reveal that the largest shareholder impacts the bank’s performance positively. The results are robust across the various proxies of bank performance, and sub-samples based on ownership and size of the bank. The present study may be useful for Indian banking regulators and investors to understand the impact of ownership concentration on bank performance.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2114177
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2114177
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2114177
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# input file: OAEF_A_2151113_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Hassen Guenich
Author-X-Name-First: Hassen
Author-X-Name-Last: Guenich
Author-Name: Khalfaoui Hamdi
Author-X-Name-First: Khalfaoui
Author-X-Name-Last: Hamdi
Author-Name: Néjib Chouaibi
Author-X-Name-First: Néjib
Author-X-Name-Last: Chouaibi
Title: Asymmetric response of Investor sentiment to Economic Policy Uncertainty, interest rates and oil price uncertainty: Evidence from OECD countries
Abstract:
The question of the economic policy uncertainty, interest rate and oil price volatility and their effects on investor sentiment is rarely addressed by the literature. Thus, we are motivated to provide new insights into the study of these effects based on asymmetric analysis. Our empirical study is based on the monthly frequency of 22 OECD countries and ranges from January 2000 to June 2021. Using the Nonlinear Autoregressive Distributed Lag (NARDL) panel model, we find that economic policy uncertainty, interest rate and oil price uncertainty have disproportionately asymmetric effects on OECD investor sentiment in the short and long run. Indeed, when occurring volatility of these variables, investors will certainly adopt, according to their sentiments, different directions and strategies of investment decision-making.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2151113
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2151113
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# input file: OAEF_A_2087299_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mihret Wolde
Author-X-Name-First: Mihret
Author-X-Name-Last: Wolde
Author-Name: Leta Sera
Author-X-Name-First: Leta
Author-X-Name-Last: Sera
Author-Name: Tesfaye Melaku Merra
Author-X-Name-First: Tesfaye Melaku
Author-X-Name-Last: Merra
Title: Causal relationship between income inequality and economic growth in Ethiopia
Abstract:
The aim of this study was to see the direction of causality and to investigate the existence of a long-run relationship between income inequality and economic growth in Ethiopia. The study has employed annual time series data over the period of 1980 up to 2017. This study is conducted by utilizing the Autoregressive Distributive Lag (ARDL) techniques. The ARDL bounds testing approach has been used for cointegration and the error correction method (ECM). The unit root problem is tested by the use of the ADF unit root test and the Phillips-Perron test. The researcher concluded that there is a negative relationship between income inequality and economic growth in the long run. However, in the short run, there is a positive relationship. The magnitude of the ETC coefficient is −1.004961 justified about 100.4961 percent, and the disequilibrium annually converges towards long-run equilibrium. In addition, VECM granger causality tests show that unidirectional causality runs from economic growth to income inequality both in the short and long run. The government should focus their efforts on the middle and poorest classes to reduce inequality and support sustainable economic growth of Ethiopia.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2087299
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2087299
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# input file: OAEF_A_2052401_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Isabella Jebiwott Kiplagat
Author-X-Name-First: Isabella Jebiwott
Author-X-Name-Last: Kiplagat
Author-Name: Mercy G Mugo
Author-X-Name-First: Mercy G
Author-X-Name-Last: Mugo
Author-Name: Martine O. Oleche
Author-X-Name-First: Martine O.
Author-X-Name-Last: Oleche
Author-Name: Francesco Tajani
Author-X-Name-First: Francesco
Author-X-Name-Last: Tajani
Title: EFFECT OF SYNERGY BETWEEN PROVIDER AND CONSUMER QUALITY OF HEALTHCARE ON CHILD HEALTH IN Kenya
Abstract:
Besides access to health services, quality of health care is recognized as a key element in putting an end to preventable childhood illnesses. While the quality of health care and its effects on health is often assessed at the facility level, consumers of health care are co-producers of quality health care since they are capable of using their knowledge and resources to enhance their own health and that of their children. Using the 2014 Kenya Demographic Health Survey data, this study sought to examine the interaction effect of the provider and consumer quality of health care on child health as measured by child weight-for-age (WAZ). Controlling for potential endogeneity, the results of the Two-Stage-Residual-Inclusion model show that the coefficient of the interaction between provider quality of health care as indicated by a dispensary, a health center and a private clinic and consumer quality of healthcare index was positive and significant. This suggests that consumer quality of health care enhances child health given the provider quality of health care. Policies targeted at addressing quality of health care should thus focus on simultaneously improving both supply and demand side quality of health care. Other variables that were key in influencing child nutritional status include; child sex and sex, twin birth and belonging to a higher wealth index.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2052401
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2052401
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# input file: OAEF_A_2022273_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Serebour Quaicoe
Author-X-Name-First: Serebour
Author-X-Name-Last: Quaicoe
Title: Estimating the modulating role of economic development on the effect of elections on government expenditure in Africa
Abstract:
The study contributes to the political economy debate in Africa by examining the extent to which economic development mediates the effect of elections on government expenditure. To this end, the study employs macrodata spanning 1985–2015 on 43 African countries for the analysis. Robust evidence from the system GMM estimator shows that: (1) election periods significantly induce government expenditure in Africa, and (2) economic development is significant in reducing the use of fiscal surprise in election periods. Policy recommendations are provided in the end.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2022273
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2022273
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# input file: OAEF_A_2085608_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Omolola Oluwatoyin Adeola
Author-X-Name-First: Omolola Oluwatoyin
Author-X-Name-Last: Adeola
Author-Name: Meshach Jesse Aziakpono
Author-X-Name-First: Meshach Jesse
Author-X-Name-Last: Aziakpono
Title: Unlocking the relationship between capital flows and economic growth in a small open economy of Kenya: An empirical investigation
Abstract:
This study examines the relative effects of the different types of international financial flows on economic performance in Kenya both in the long- and short-runs using the autoregressive distributed lag model (ARDL) bounds approach and data for the period 1970 to 2017. This is against the backdrop of the government of Kenya which has targeted attracting foreign capital inflows as one of the key measures to achieving the economic pillar of the Kenya Vision 2030. The aim is to achieve an economic growth rate of 10 per cent annually and sustaining the same until 2030. After a very rigorous and careful model selection exercise, the results robustly reveal a very strong long-run causality running solely from portfolio equity to economic growth with a positive and significant effect on economic growth. In the short-run, the effect of portfolio equity on economic growth is also very positively strong. In contrast, all the other capital flows have very weak long-run relationship with economic growth with causality running only from economic growth to the capital flows.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2085608
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2085608
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# input file: OAEF_A_2024723_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Garoui Nassreddine
Author-X-Name-First: Garoui
Author-X-Name-Last: Nassreddine
Title: Structural analysis of factors influencing environmental disclosure
Abstract:
Environmental management issues have become a global concern and many governments have developed policies that include environmental regulations. Under this framework, companies have become responding to the demands of all different parties to legitimize their actions. Studies have increased in the field of environmental reporting, but unfortunately, this does not indicate an increase in companies’ awareness of the factors that determine the preparation of sustainability reports and the disclosure of environmental information. This paper uses the qualitative research technique to study the factors influencing environmental information disclosure. A structural analysis approach is applied to establish the interrelationship between the various factors. From our analysis, it has been found that profitability, gender diversity and board independence are the important and critical factors that influence environmental information disclosure. At the end of the research, technical use restrictions of interpretive structural modeling were discussed, and then proposals for developing the research were discussed.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2024723
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2024723
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# input file: OAEF_A_2148359_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Dick Chune Midamba
Author-X-Name-First: Dick Chune
Author-X-Name-Last: Midamba
Author-Name: Ogei Kizito
Author-X-Name-First: Ogei
Author-X-Name-Last: Kizito
Title: Determinants of access to trainings on post – harvest loss management among maize farmers in Uganda: a binary logistic regression approach
Abstract:
Post-harvest losses (PHL) reported in maize production put Sub-Saharan African countries at higher risks of food insecurity. Recent studies reported that higher percentage of PHLs occur during the production stage when farmers are in full control of the crop, suggesting that farmers are not equipped with PHL management skills. This study therefore aimed at assessing the determinants of access to trainings on PHL management among maize farmers in Uganda. Primary data were drawn from 246 randomly sampled farmers in Alebtong District followed by Binary logit analysis. The results depicted that majority of the farmers (58%) did not have access to PHL management trainings. However, those who had access sourced it from extension workers (40.65%), farmers’ groups (22.76%) and farmer-to-farmer trainings (12.20%). The main barriers limiting access to the trainings were unawareness of the PHL trainings and inaccessibility of the training centers. Farm size, group membership, maize output and marital status had positive effect on farmers’ access to PHL management trainings while farm location, and distance to the training centers had a negative effect on access to PHL management trainings. Based on the findings, there is need for public sensitization on the benefits of the PHL trainings, farmers should also be motivated to join farmer-based groups and association where they would learn more about the PHL trainings. In addition, the government should open more training centers and employ more training agents so that many farmers can be reached and trained on how to handle and mitigate PHLs in maize.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2148359
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2148359
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# input file: OAEF_A_2113495_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ayalew Ali Abebe
Author-X-Name-First: Ayalew
Author-X-Name-Last: Ali Abebe
Title: The effect of IFRS on the financial ratios: Evidence from banking sector in the emerging economy
Abstract:
Financial ratios are ratios that are used to measure a company’s performance by analyzing its financial records. In light of this claim, this study investigates the effect of IFRS on the financial ratios among seventeen (17) Ethiopian commercial banks. The research hypotheses are addressed by comparing financial ratios computed under Ethiopian GAAP with those computed under the IFRS regime from 2016 to 2020 using Wilcoxon Signed Rank and the Normality Test. The finding revealed that IFRS has a significant effect on the liquidity ratio of commercial banks in Ethiopia, and banks reported higher liquidity under IFRS than under Ethiopian GAAP. The finding also revealed that IFRS has a significant effect on commercial banks’ return on equity and that banks recorded a higher return on equity under IFRS than under Ethiopian GAAP. Moreover, the study found IFRS has a significant effect on the leverage ratio of commercial banks in Ethiopia, and banks reported lower leverage under Ethiopian GAAP than under IFRS. However, the finding revealed that IFRS has an insignificant effect on the return on assets of commercial banks in Ethiopia, and banks recorded a lower return on assets under IFRS than under Ethiopian GAAP. The study concluded that the difference in return on equity, liquidity, and leverage of commercial banks following the adoption of IFRS is significant. Therefore, investors and financial analysts should pay close attention to the return on equity (ROE), liquidity ratio (LR), and leverage (LEV) because they are significantly affected by the adoption of IFRS.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2113495
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2113495
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# input file: OAEF_A_2145748_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Adane Melak Beyene
Author-X-Name-First: Adane Melak
Author-X-Name-Last: Beyene
Author-Name: Ayele Tesfahun Gashu
Author-X-Name-First: Ayele Tesfahun
Author-X-Name-Last: Gashu
Author-Name: Misganaw Anteneh Tegegne
Author-X-Name-First: Misganaw Anteneh
Author-X-Name-Last: Tegegne
Author-Name: Atrsaw Anteneh Mihertie
Author-X-Name-First: Atrsaw
Author-X-Name-Last: Anteneh Mihertie
Title: Is the longstanding local rice cultivar “X-Jigna” being replaced by the improved variety “Shaga” in fogera plain, Northwest Ethiopia?
Abstract:
This study investigates how far and by what factors the local rice cultivar X-Jigna is being replaced by the improved variety Shaga in the Fogera plain, Ethiopia. It applied a mixed-method research design. The explanatory method was used to analyze qualitative data, while simple descriptive and inferential statistics were used to analyze quantitative data. As a result, the adoption level of improved rice varieties was found to be too low (15%), while the vast majority of rice-growing households used X-Jigna. However, the explanatory analysis highlighted that Shaga outperforms X-Jigna in resilience to diseases and shattering, higher grain yield, and softness of injera and flour density traits. Consequently, its percentage share of area coverage increased from 1 to 12, while X-Jigna’s decreased from 95 to 84 within a short time. This phenomenon demonstrates great strides have been made in replacing X-Jigna with Shaga. Based on the results of logistic regression analysis, age, educational background, and experience in rice cultivation of household heads, land-owned size, and road and credit access significantly influence adoption decisions. Therefore, it is suggested that offering youth-oriented extension services, expanding education services, improving road infrastructure, and reducing bureaucracy in credit services are areas to be emphasized to improve adoption.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2145748
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2145748
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# input file: OAEF_A_2026005_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Nguyen Minh Ha
Author-X-Name-First: Nguyen
Author-X-Name-Last: Minh Ha
Author-Name: Tran Thi Phuong Trang
Author-X-Name-First: Tran Thi
Author-X-Name-Last: Phuong Trang
Author-Name: Pham Minh Vuong
Author-X-Name-First: Pham Minh
Author-X-Name-Last: Vuong
Title: Relationship between tax avoidance and institutional ownership over business cost of debt
Abstract:
Beginning with classical theories on finance, such as the capital structure theory, the trade-off theory of capital structure, and the pecking order theory, the literature shows a negative correlation between tax avoidance and institutional ownership with respect to the business cost of debt. However, the impact of tax avoidance and institutional ownership on corporate debt policy in Vietnam is an under-researched topic. The aim of the study is to identify the effect of those mentioned factors on business borrowing policy, using data on 207 companies listed on the Ho Chi Minh City Stock Exchange (HOSE) in Vietnam from 2008 to 2016. The study employs model proposed by Lim in 2009 to achieve mentioned research object with Feasible Generalized Least Squares (FGLS) method to overcome for any defection. The study results show no conclusive empirical evidence of a relationship between business’s cost of debt and tax avoidance and institutional ownership. This result contrasts with the conclusion in previous studies and can be explained by the characteristics of the funding market in Vietnam where financial organizations often focus on business results and management efficiency in making lending decisions and this characteristic is at no sign of change soon.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2026005
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2026005
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# input file: OAEF_A_2062911_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Achraf Haddad
Author-X-Name-First: Achraf
Author-X-Name-Last: Haddad
Author-Name: Mohamed Naceur Souissi
Author-X-Name-First: Mohamed Naceur
Author-X-Name-Last: Souissi
Title: The impact of Shariah Advisory Board characteristics on the financial performance of Islamic banks
Abstract:
Theoretical approaches and demonstrated repertoires in the Islamic finance literature have formed a divergent and inconsistent system that did not truly value the importance of the Shariah Advisory Board’s quality and practices. The real impacts generated by the Shariah Advisory Board on the Islamic banks’ financial performance have not yet been thoroughly investigated in detail. While these impacts need the development of a metrological, dynamic, and methodological investigation, we delved into the specific effect of Shariah Advisory Board on the Islamic banks’ financial performance in all continents. To explore the relationship between the selected variables through the application of the fixed and random effects method, we used 180 Islamic banks from 56 countries during the period (2010–2019). The empirical results revealed that the Shariah Advisory Board size, the number of meetings and the presence of Shariah advisers improved the Islamic banks’ financial performance of Islamic banks. However, the presence of financial or accounting experts in the Shariah Advisory Board deteriorated their financial performance. Because the real impacts generated by the Shariah Advisory Board on the Islamic banks’ financial performance are not yet investigated in detail, we analyzed not only the practical symptoms of the Shariah Advisory Board’s effects on the Islamic banks’ financial performance, but also, we tried to solve the ambiguity, and we provide the first detailed analysis that concentrated on the impacts of the determinants’ quality of the Shariah Advisory Board on the Islamic banks’ financial performance.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2062911
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2062911
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# input file: OAEF_A_2066764_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ioannis Chasiotis
Author-X-Name-First: Ioannis
Author-X-Name-Last: Chasiotis
Author-Name: Dimitrios Konstantios
Author-X-Name-First: Dimitrios
Author-X-Name-Last: Konstantios
Author-Name: Vassilios-Christos Naoum
Author-X-Name-First: Vassilios-Christos
Author-X-Name-Last: Naoum
Title: Asymmetries in the capital structure speed of adjustment: The idiosyncratic case of the maritime industry
Abstract:
This study investigates asymmetries in the capital structure speed of adjustment in the case of a capital-intensive industry. Employing a sample of globally listed maritime, manufacturing and services firms between 1995 and 2020, we estimate a regime-switching partial adjustment model, to test whether the capital structure speed of adjustment depends on a firm’s positioning relative to the target. After accounting for the fractional, bounded nature of leverage ratios using a DPF estimator we document that maritime firms exhibit a higher (lower) speed of adjustment when they lie below (above) their target. Our empirical findings suggest that this asymmetric behavior holds across industries but is more profound in maritime firms emphasizing this industry’s particularity.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2066764
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2066764
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# input file: OAEF_A_1999058_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Kunwar Sanjay Tomar
Author-X-Name-First: Kunwar Sanjay
Author-X-Name-Last: Tomar
Author-Name: Subodh Kesharwani
Author-X-Name-First: Subodh
Author-X-Name-Last: Kesharwani
Title: Asymmetric effect of monetary policy on Indian stock market sectors: Do monetary policy stimulus transpire the same effect on all sectors?
Abstract:
Most studies for the monetary policy effect on stock markets have concentrated on using the primary index to proxy the stock market. The present paper, avoiding “aggregation bias”, seeks to unbundle the effect of monetary policy on the stock market in two ways. First, the non-linear model is used. Second, sector-level monetary policy variable association and strength is known. Nonlinear Auto-Regressive Distributed Lag method (NARDL) has been used to separate the effect of monetary policy implications. The positive and negative separation of monetary policy variables shows meaningful information relating to each sector. Furthermore, the NARDL model provides the Error Correction equation for future prediction of the sector performance. The Error Correction Term (ECT) is significant for all the sectors, besides Information Technology. While ECT is highest for the Power sector, the lowest is reported for the Metal sector. Inflation increase has substantially more effect on sectors then its decrease. For short-run, real exchange rate positive (REER_POS (−2)), with a lag of 2 months, is effective for all the sectors. The health care sector stands out in its sensitivity to monetary policy variables. The asymmetric response of the Sector equity markets to monetary policy variables throws new insight for the policymakers, business managers, and fund managers. The nonlinearity can be helpful for business managers to relate revenue and valuation to monetary policy. Likewise, the portfolio fund managers can prepare for the expected changes in the economy to reallocate and rebalance their portfolios.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.1999058
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1999058
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# input file: OAEF_A_2067022_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Sergii Arkhiiereiev
Author-X-Name-First: Sergii
Author-X-Name-Last: Arkhiiereiev
Author-Name: Anastasiia Mytrofanova
Author-X-Name-First: Anastasiia
Author-X-Name-Last: Mytrofanova
Title: Measuring the international business sector and its two-decade dynamics in OECD countries
Abstract:
The aim of this study is to assess the contribution of the international business sector (IBS) to the development of the national economy. A new index has been developed, which is expressed as a primary income share and makes it possible to analyze IBS structure both by the primary income from abroad (received) share and by the value added export share. This study analyzes the long-term development trends of IBS and its structural shifts for OECD and top non-OECD countries. Our new index has increased markedly in OECD countries, where IBS generated a third of primary income in the middle of the second decade of the analyzed period. In contrast, in top non-OECD member countries, this index grew slowly, while IBS generated about one-fifth of primary income. To analyze qualitative shifts in IBS growth in terms of cluster analysis OECD countries have been grouped according to the prevailing IBS models. The results showed that OECD countries changed their basic IBS model moving from the Partial model to the Dual one. It is the change in this basic model that accounts for the long-term trend of increasing gap in the development level of IBS in OECD and top non-OECD countries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2067022
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2067022
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2067022
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# input file: OAEF_A_2066762_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ali A. Shehadeh
Author-X-Name-First: Ali A.
Author-X-Name-Last: Shehadeh
Author-Name: Sadam M. Alwadi
Author-X-Name-First: Sadam M.
Author-X-Name-Last: Alwadi
Author-Name: Mohammad I. Almaharmeh
Author-X-Name-First: Mohammad I.
Author-X-Name-Last: Almaharmeh
Title: Detecting and Analysing Possible Outliers in Global Stock Market Returns
Abstract:
We employ a Boxplot method for detecting and analyzing outlying daily returns of 14 international stock market indices sampled from around the world. The main objective of the paper is to provide an extensive analysis of the main characteristics, features and effects of the detected outlier returns. The results show that from about 4–10% of observations constitute outlying returns with an average of 6%. Conservatively, about 1.4% of return series are extreme outliers. Negative outliers are found more frequent, influential, severe and transmissible. The bulk of detected outliers are found to be in the magnitude of three standard deviations. Also, outliers tend to cluster together, both within individual return series over time and across stock markets. We find a sequential pattern in outlier occurrence within individual return series, and a concurrent pattern across stock markets. Moreover, adjusting for outlying returns leads to a decrease in standard deviation, negative skewness and kurtosis by about 18%, 74% and 69% on average, respectively. We do not find consistent evidence that advanced and well-developed stock markets have less frequent and/or sever outliers. Overall, the results and analysis of the paper provide important considerations about international stock market returns which are relevant to stock investment, portfolio and risk management. The results show that the best (worst) outlying returns which represent about only 1% of the return observations have an enormous effect on the stock return performance and realization.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2066762
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2066762
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# input file: OAEF_A_2106630_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Minh H. Do
Author-X-Name-First: Minh H.
Author-X-Name-Last: Do
Author-Name: Vo Thanh Tam
Author-X-Name-First: Vo
Author-X-Name-Last: Thanh Tam
Author-Name: Nguyen Kim-Duc
Author-X-Name-First: Nguyen
Author-X-Name-Last: Kim-Duc
Title: Investigating intellectual capital: The role of intellectual property rights reform
Abstract:
We investigate the impact of intellectual capital (IC) on firm performance (FP). This study contributes to the literature on IC by extending the IC components and exploring the moderating effect of intellectual property right (IPR) reform on the IC–FP association. An analysis of a dataset of non-financial enterprises with 6,303 firm-year observations collected from ASEAN member countries from 2009 to 2019 reveals thatFP is positively related to IC and IC components. Human capital is found to be the leading element because it exerts direct as well as indirect influences on FP. On the other hand, IPR determines both significance and the strength of the relationship between IP and FP.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2106630
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2106630
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# input file: OAEF_A_2101241_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Conrad Murendo
Author-X-Name-First: Conrad
Author-X-Name-Last: Murendo
Author-Name: Grown Chirongwe
Author-X-Name-First: Grown
Author-X-Name-Last: Chirongwe
Author-Name: Givious Sisito
Author-X-Name-First: Givious
Author-X-Name-Last: Sisito
Title: Food expenditure shares and income elasticities in Zimbabwe: Accounting for gender and poverty differences
Abstract:
This study analysed food expenditure patterns and income elasticities differentiated by gender of household head and income levels. Data came from 32, 256 households drawn from the Zimbabwe Poverty, Income, Consumption and Expenditure Survey of 2017. Female headed households had higher vegetable and fruit expenditures while male headed households had higher expenditure shares on animal protein sources. Poorer households had poor dietary choices characterized by higher consumption of starchy foods and lower consumption of fruits, eggs, and milk. All income elasticities of all food items and groups were positive, indicating they were normal goods and increasing income will contribute to more diversified diets. Richer groups spend a lower share of their income on food compared to their poorer counterparts. The income elasticities for vegetables, bread, maize, and poultry were high for the poorest households, implying an increase in income would substantially increase their consumption. Policies aimed at increasing household income are vital to improve food consumption. Poor households and male headed households allocated higher proportion of income to food budget than the non-poor and female headed households. Food aid and social protection schemes, for example, income transfers should target very poor households to help them get access to better diets and cushion them from food price increase. Food consumption patterns and income elasticities varied by gender of household head and income group. Therefore, targeted food policies should be formulated based on specific food demand patterns for each group of households.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2101241
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2101241
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# input file: OAEF_A_2098608_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Meseret Dame Tafa
Author-X-Name-First: Meseret
Author-X-Name-Last: Dame Tafa
Author-Name: Solomon Tessema Worku
Author-X-Name-First: Solomon
Author-X-Name-Last: Tessema Worku
Title: Determinants of private commercial banks deposit in Ethiopia
Abstract:
This study aimed to investigate the determinant of private commercial bank deposits in Ethiopia over eighteen years (2000–2017). To achieve the research objectives, an explanatory research design and a quantitative research approach were employed. In addition, the study has targeted sixteen private commercial banks currently operating in Ethiopia. Data obtained from selected banks were analyzed by using descriptive statistics and random effect model analysis. The regression result shows that three internal variables such as loan to deposit ratio, profitability and the number of bank branches and two macroeconomic variables such as unemployment rate and economic growth rate have a significant effect on the total deposit of private commercial banks. Based on the study finding, researchers recommended that all private commercial banks are required to aggressively expand their branches comparatively to the commercial bank of Ethiopia, and government bodies should give more attention to sustainable economic growth and should work on unemployment reduction.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2098608
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2098608
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# input file: OAEF_A_2018163_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mohd Atif
Author-X-Name-First: Mohd
Author-X-Name-Last: Atif
Author-Name: Mustafa Raza Rabbani
Author-X-Name-First: Mustafa
Author-X-Name-Last: Raza Rabbani
Author-Name: Hana Bawazir
Author-X-Name-First: Hana
Author-X-Name-Last: Bawazir
Author-Name: Iqbal Thonse Hawaldar
Author-X-Name-First: Iqbal Thonse
Author-X-Name-Last: Hawaldar
Author-Name: Daouia Chebab
Author-X-Name-First: Daouia
Author-X-Name-Last: Chebab
Author-Name: Sitara Karim
Author-X-Name-First: Sitara
Author-X-Name-Last: Karim
Author-Name: Amani AlAbbas
Author-X-Name-First: Amani
Author-X-Name-Last: AlAbbas
Title: Oil price changes and stock returns: Fresh evidence from oil exporting and oil importing countries
Abstract:
The study examines the vital connection between stock returns and oil price changes for oil exporting/importing countries separately. We present evidence employing granger causality, impulse response and error variance decomposition based on panel vector autoregression. The results of panel granger causality suggested that after oil price crash owing to covid-19 pandemic, the interdependence between oil and stock price changes increased. Similar results were revealed by impulse response graphs and forecast error variance decomposition. Specifically, in the period marked by the rapid outbreak of the covid-19 pandemic, causality from oil to stocks increased. Although we found that both oil exporting and oil importing countries were affected in a similar way, oil price changes had a larger impact on oil exporting countries. The findings of the present study have implications for investors and fund managers. By incorporating crude oil price in the prediction models, the accuracy of stock returns forecast can be improved.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2018163
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2018163
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# input file: OAEF_A_2023264_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Sami Gharbi
Author-X-Name-First: Sami
Author-X-Name-Last: Gharbi
Author-Name: Hidaya Othmani
Author-X-Name-First: Hidaya
Author-X-Name-Last: Othmani
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Threshold effect in the relationship between family ownership and firm performance: A panel smooth transition regression analysis
Abstract:
This paper examines the relationship between family ownership and firm performance over the period 2009–2017 for a large sample of French-listed firms. Previous research showed that family ownership can bring both benefits and costs to firms. Empirical results in whether it enhances or undermines firm performance are inconclusive. This paper aims to further our understanding of the complex relationship between family ownership and firm performance. It clarifies how family owners influence on firm performance depends on their ownership levels. By performing Panel Smooth Transition Regression model (PSTR), we find that the relationship between family ownership and firm performance is non-linear. The model has one threshold at the 37.62% of family ownership and two extreme regimes. The results show that below the threshold, the relation is negative. Family members have fewer incentives to bear the cost of effective monitoring. However, above the estimated threshold, family ownership has a positive impact on firm performance. This paper supports the view that family owners are more motivated to enhance performance when they hold large stake of capital in the firm as family wealth is closely related to firm profitability. These findings provide useful insights for investors seeking investment opportunities in firms with family ownership as the latter constitute a large proportion of publicly listed firms in the world.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2023264
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2023264
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# input file: OAEF_A_2087285_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Tasew Tadesse
Author-X-Name-First: Tasew
Author-X-Name-Last: Tadesse
Author-Name: Tariku Gebremedhin Zeleke
Author-X-Name-First: Tariku
Author-X-Name-Last: Gebremedhin Zeleke
Title: The impact of the productive safety net program (PSNP) on food security and asset accumulation of rural households’: evidence from Gedeo zone, Southern Ethiopia
Abstract:
Ethiopia’s productive safety net program (PSNP) is aimed at providing transfers to the food insecure people in chronically food-insecure woredas. The program’s objectives include improving food security, protecting assets, and strengthening household and community resilience to shocks. This study evaluates the impact of PSNP on the beneficiary households’ food security, income, and asset holdings in the Gedeo administrative zone of Southern Ethiopia. We use survey data from 395 randomly selected households, out of which 195 are beneficiaries and 197 non-beneficiaries. Methodologically, we employ the propensity score matching (PSM) method to assess the impact of the PSNP on the welfare of beneficiary households. For this purpose, we use two specific outcomes of the PSNP: food security and asset holdings of participating households. Using the propensity score matching method, we find that the PSNP enhances the consumption expenditure, daily calorie intake, and annual income of participating households relative to a similar group of non-participating poor households. Our findings suggest that the PSNP is vital to improving income and food security at the household level in chronically food-insecure areas.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2087285
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2087285
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# input file: OAEF_A_2095772_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Muhammad Ishfaq
Author-X-Name-First: Muhammad
Author-X-Name-Last: Ishfaq
Author-Name: Muhammad Usman Arshad
Author-X-Name-First: Muhammad Usman
Author-X-Name-Last: Arshad
Author-Name: Muhammad Kashif Durrani
Author-X-Name-First: Muhammad Kashif
Author-X-Name-Last: Durrani
Author-Name: Muhammad Saleem Ashraf
Author-X-Name-First: Muhammad Saleem
Author-X-Name-Last: Ashraf
Author-Name: Ahmad Qammar
Author-X-Name-First: Ahmad
Author-X-Name-Last: Qammar
Title: Foreign exchange markets, behavior of options volatility and bid-ask spread around macroeconomic announcements
Abstract:
The purpose of this study is to examine the role of options volatility and bid-ask spread as microstructural variables in determining whether the foreign exchange market’s price formation process in response to macroeconomic announcements is characterised by changes in risk perception and transaction costs. The findings suggest that behavioural characteristics of market participants appear to trump macroeconomic considerations. The volatility indices and bid-ask spreads were found more sensitive to announcements than forex returns, which directly imply weak assimilation of common knowledge into exchange rates. The forex returns, bid-ask spread, and volatility indices demonstrated less vulnerability towards Chinese announcements than the USA, UK, Japan, and Euro. Moreover, findings distinctly signify the role of China as a global liquidity provider by reducing trading costs in the foreign exchange markets. The implications suggest that core macroeconomic models should incorporate agents’ heterogeneous expectations based on risk perceptions than the order flow approach.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2095772
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2095772
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# input file: OAEF_A_2148366_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Gilbert K. Amoako
Author-X-Name-First: Gilbert K.
Author-X-Name-Last: Amoako
Author-Name: Ebenezer Boateng
Author-X-Name-First: Ebenezer
Author-X-Name-Last: Boateng
Author-Name: Emmanuel Asafo-Adjei
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Asafo-Adjei
Author-Name: Daniel Kofi Amoanyi
Author-X-Name-First: Daniel Kofi
Author-X-Name-Last: Amoanyi
Author-Name: Anokye Mohammed Adam
Author-X-Name-First: Anokye Mohammed
Author-X-Name-Last: Adam
Title: Contagion and Interdependencies: A Dynamic Connectedness approach among Implied Volatilities
Abstract:
This study employs the TVP-VAR approach to capture the degree of interdependencies and contagion among sixteen implied volatilities. The 16 daily implied volatility indices comprise the implied volatility from various financial assets, such as conventional equities, commodities, and currencies, in national, regional, or worldwide indexes. After missing data were expunged, the daily data span between 5 August 2016 and 18 August 2021 inclusive, yielding 1758 observations. We reveal strong evidence to support that the network of implied volatilities is highly connected. Nonetheless, dynamic connectedness varies across time demonstrating that the markets are heterogenous and adaptive. The rise in connectedness during crisis and non-crisis periods indicates that both contagion and interdependencies are germane to implied volatilities. The outcome from the net directional connectedness underscores that the CBOE Euro Currency Volatility, CBOE Crude Oil Volatility, CBOE Gold Volatility, Hang Seng Index (HSI) and CAC 40 VIX are net persistent receivers whereas CBOE Russell 2000 Volatility, CBOE NASDAQ 100 Volatility, DJIA Volatility, CBOE VIX and CBOE OEX Implied Volatility are persistent net transmitters. The size and direction of net connectedness enlighten investors to pair persistent net receivers and transmitters. Practical, policy and theoretical implications are provided.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2148366
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2148366
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# input file: OAEF_A_2152937_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Harsimran Sandhu
Author-X-Name-First: Harsimran
Author-X-Name-Last: Sandhu
Title: Low price anchors in equity market
Abstract:
This study investigates whether firm’s management uses split ratios to target low price anchors in order to impact post-split ownership. We report anchoring bias for the lowest ranges of prices in the equity market and find specific price anchors among individual investors in the secondary equity market. Initial founders/promoters may use these price anchors and target-specific post-split prices to achieve the desired ownership structure between individual and institutional investors. This study addresses the role of nominal prices in choosing to split shares in the context of a firm’s ownership structure. Our findings amplify the fact that the psychological biases of individual investor behaviour depend on share price levels, which affects the ownership structure of a firm. Our study makes three contributions. First, we provide evidence for anchoring basis among individual investors for the lowest price ranges. Thus, companies use higher split ratios to target the lowest price ranges to disperse ownership among individual investors. Second, we find that institutional investors reduce ownership in companies that target the lowest price anchors post-split. Third, promoters may use price anchors to disperse ownership among individual investors, thus maintaining control.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2152937
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2152937
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# input file: OAEF_A_2103924_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: John MacCarthy
Author-X-Name-First: John
Author-X-Name-Last: MacCarthy
Author-Name: Helena Ahulu
Author-X-Name-First: Helena
Author-X-Name-Last: Ahulu
Author-Name: Rose Thor
Author-X-Name-First: Rose
Author-X-Name-Last: Thor
Title: The asymmetric and non-linear relationship between capital flight and economic growth nexus
Abstract:
The paper sought to explore the effect of capital flight on the economic growth nexus in Ghana. The study used quarterly time series data from 1976 to 2020 to test three hypotheses. The paper used non-linear autoregressive distributive lagged employing unit root test, co-integration test, and Wald test to assess the asymmetrical relationship among the variables. The study posits that both the positive and negative changes in capital flight affect economic growth significantly. Again, the study revealed that capital flight and other macroeconomic variables explain about 75.28% of economic growth. Furthermore, the model can restore the short-run relationship to the dynamic long-long equilibrium at the speed of 35.6%. The study recommends that government economic policymakers build economic confidence by stabilizing economic conditions in the country to reduce the incentives for capital outflows. Further, as a priority, the government must formulate strategies to recover looted public funds by corrupt public officials stacked in foreign accounts and inject them into the economy to boost economic growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2103924
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2103924
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# input file: OAEF_A_2139885_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Rakibul Islam
Author-X-Name-First: Rakibul
Author-X-Name-Last: Islam
Title: Herd behavior in the Bangladeshi banking sector
Abstract:
This study aims to investigate the existence and nature of herding behavior in the banking sector in Bangladesh. It uses daily closing prices of 30 listed commercial banks from January 2007 to December 2018 to detect herding. This study confirms the presence of herding in the banking industry for the whole study period. Further, it finds herding in the banking sector during the domestic financial crisis and no herding in the Global financial crisis. By separating the study period into a rising market and a falling market condition, this paper finds asymmetry in herding behavior in the banking sector. This phenomenon is further confirmed when the extreme market condition of the bull and bear phase is used. Investors in the banking industry flock together ignoring any private information to reap the market return at the bull period while they avoid the crowd during the bear phase.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2139885
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2139885
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# input file: OAEF_A_2111813_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jing Liu
Author-X-Name-First: Jing
Author-X-Name-Last: Liu
Title: Alumni network, CEO turnover, and stock price crash risk: evidence from China
Abstract:
This paper empirically tests the impact of CEO’s alumni relationships on the stock price crash risk during CEO turnover. Empirical tests find that CEOs’ advantage among alumni networks will increase stock price crash risk during CEO turnover to some degree. However, this effect is built on the CEO’s power inside the firm that was established during the long tenure on the position. Further research finds that analysts’ following can exacerbate the release of bad news, however, it seems that the either internal corporate governance or external cannot effectively monitor the opportunistic behavior of CEOs on the whole. In addition, the positive effect of alumni network on stock price crash risk mainly exists in the regions where the legal environment is weak, that is, a sound legal environment can effectively prevent the opportunistic behavior of managers. Besides, the experience of the M.B.A program may strengthen the CEO’s tendency to take advantage of alumni connections to withhold bad news. This paper sheds light on the risk that social connection may bring and conducts to a more comprehensive understanding of the role that social network plays in business activities.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2111813
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111813
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2111813
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# input file: OAEF_A_2123887_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Gilbert Dagunga
Author-X-Name-First: Gilbert
Author-X-Name-Last: Dagunga
Author-Name: Shaibu Baanni Azumah
Author-X-Name-First: Shaibu Baanni
Author-X-Name-Last: Azumah
Author-Name: Abraham Zakaria
Author-X-Name-First: Abraham
Author-X-Name-Last: Zakaria
Author-Name: Nathaniel A. Boateng
Author-X-Name-First: Nathaniel A.
Author-X-Name-Last: Boateng
Author-Name: Kwadwo B. Mensah
Author-X-Name-First: Kwadwo B.
Author-X-Name-Last: Mensah
Author-Name: Ethel S. Boateng
Author-X-Name-First: Ethel S.
Author-X-Name-Last: Boateng
Author-Name: Emile M. Tsekpo
Author-X-Name-First: Emile M.
Author-X-Name-Last: Tsekpo
Author-Name: Philip Kankam
Author-X-Name-First: Philip
Author-X-Name-Last: Kankam
Title: Savings and economic diversification among youth in Ghana: implications for policy and practice
Abstract:
Savings remain a critical mechanism for capital accumulation for the purpose of investment in developing countries like Ghana. Using data from the Next Generation Cocoa Youth Programme (MASO) implemented by Solidaridad and partners, a bias correcting count data model was applied to determine the drivers of savings, and the impact of savings on youth economic diversification. The results showed that youth trust on financial institutions as well as usage of mobile phones for digital marketing have a positive and significant effect on their decision to save at 1% significance level. The parametric results revealed a significant positive impact of savings on youth economic diversification at 1% significance level. There is thus the need for the promotion of savings among the youth as a tool by national youth policy to reduce youth unemployment in Ghana.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2123887
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2123887
File-Format: text/html
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2123887
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# input file: OAEF_A_2148364_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Shirwan Rafiq Sdiq
Author-X-Name-First: Shirwan Rafiq
Author-X-Name-Last: Sdiq
Author-Name: Hariem A. Abdullah
Author-X-Name-First: Hariem A.
Author-X-Name-Last: Abdullah
Title: Examining the effect of agency cost on capital structure-financial performance nexus: empirical evidence for emerging market
Abstract:
Despite the long history of testing agency theory, it is yet standing undefeated. This study examines the relationship between capital structure and firm performance in an emerging economy, Iraq. Moreover, it seeks to find an answer for the question “does agency cost moderates the relationship between capital structure and financial performance?” in the case of a developing industrial sector. Data was collected from published financial statements from the Iraqi Stock Exchange. The study sample consists of several companies from industrial sector listed on ISX over the period 2004–2020. Firm performance is measured using both accounting data and market indicator. Agency cost is measured through operating expense ratio and asset utilization ratio. Testing for short-term and long-term parameters between groups, pooled mean group estimation method is used for data analysis. The results manifest evidence to support agency theory in explaining the relationship between capital structure and financial performance. Moreover, strong interactions are found indicating that agency cost has a considerable impact on the capital structure and firm performance association, that is, agency cost moderates the relationship between capital structure and firm performance. These results are robust checking various methods and diagnostics checks. These results are key evidence from an emerging country, Iraq to support the agency theory arguments. The results provide significant insights for managers of the sector particularly for the current rapid development in the sector.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2148364
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2148364
File-Format: text/html
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2148364
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# input file: OAEF_A_2111811_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Trang M. T. Phung
Author-X-Name-First: Trang M. T.
Author-X-Name-Last: Phung
Author-Name: Wei-Huei Hsu
Author-X-Name-First: Wei-Huei
Author-X-Name-Last: Hsu
Author-Name: Michael J. Naylor
Author-X-Name-First: Michael J.
Author-X-Name-Last: Naylor
Author-Name: Martin R. Young
Author-X-Name-First: Martin R.
Author-X-Name-Last: Young
Title: Perceived risk and debt behaviour in the stock market: A survey of investors in Vietnam
Abstract:
While informal debt is often used as a funding source for retail investors, very little is known about the characteristics of its sources and use. This is particularly true in emerging markets where the use of informal debt is widespread. We examine the determinants of the use of informal debt of individual investors in the Vietnam stock market and find that perceived risk has a positive impact on informal debt decisions, that borrowing sources are primarily from parents and friends and that experience, wealth and borrowing sources have a positive impact. We also find that women perceive higher risks in stock investments than men do.The policy implication is that informal debt sources play a significant part in stock market development, and therefore, a greater level of attention needs to be paid to them. Policies need to be developed that increase and manage informal sources of investment finance.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2111811
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111811
File-Format: text/html
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2111811
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# input file: OAEF_A_2141424_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Bashier Al-Abdulrazag
Author-X-Name-First: Bashier
Author-X-Name-Last: Al-Abdulrazag
Author-Name: Musa Foudeh
Author-X-Name-First: Musa
Author-X-Name-Last: Foudeh
Title: Does inflation reduce remittance outflows in Saudi Arabia?
Abstract:
This study examines the potential relationship between inflation and remittance outflows in Saudi Arabia over the period 1971–2019 by applying the autoregressive distributed lag (ARDL) model. As a pioneering study in Saudi Arabia, the paper addresses an important literature gap. The statistical tests reveal the model’s reliability and the existence of a long-run equilibrium among the variables. Moreover, the empirical results show a significant negative impact of inflation has on remittance outflows, and the short-run and long elasticities of remittance with respect to inflation are 0.26% and 0.32% respectively. These results suggest that despite the weak elasticity of remittance outflows to the inflation rate, an increase in general prices would reduce remittance outflows in Saudi Arabia. Moreover, we find that the capital investment indicator has a more significant effect on the volume of remittance outflows. Therefore, policymakers in Saudi Arabia should apply appropriate actions to reduce the outflows of foreign workers by urging private companies to hire more Saudi workers, increasing capital investment and encouraging foreign workers, especially those with high incomes, to invest in Saudi Arabia by facilitating their ownership of financial market shares and real estate units.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2141424
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2141424
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2141424
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# input file: OAEF_A_2009089_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Teamrat Kahssay Gebremariam
Author-X-Name-First: Teamrat Kahssay
Author-X-Name-Last: Gebremariam
Author-Name: Sun Ying
Author-X-Name-First: Sun
Author-X-Name-Last: Ying
Title: The foreign direct investment-Export performance nexus: An ARDL based empirical evidence from Ethiopia
Abstract:
Ethiopia is one of the top FDI destinations in Africa and the leading FDI receiver in east Africa. However, little is known about the direct impact of the FDI on the Ethiopian export performance. This study was conducted to fill this gap. As a result, the main objective of this study was to examine the empirical relationship between foreign direct investment and export performance in Ethiopia by using an annual time series data for the period 1992–2018. The analysis was based on the autoregressive distributed lag (ARDL) model. The long-run model result, which was estimated after a proper application of pre-estimation tests, displayed that the relationship between FDI and export performance was insignificant. The estimated long-run equation also revealed that an increase in the real GDP resulted in an improved export performance in Ethiopia. The coefficient of the real effective exchange rate index in the long-run equation implies that depreciation of the exchange rate improves the export performance. According to the short-run and long-run estimation results, the study provides recommendations to improve Ethiopian export performance. First, national economic policies have to be directed toward keeping the overall health of the economy safe and achieving fast and sustainable growth. Second, with regarding to exchange rate management, long-term effects need to be considered. Finally, attracting more foreign firms to engage in value addition activities for the primary agricultural products would also play a role in enhancing the export performance.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2009089
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2009089
File-Format: text/html
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2009089
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# input file: OAEF_A_2121356_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Stephanie Efua Frimpong
Author-X-Name-First: Stephanie Efua
Author-X-Name-Last: Frimpong
Author-Name: Gloria Agyapong
Author-X-Name-First: Gloria
Author-X-Name-Last: Agyapong
Author-Name: Daniel Agyapong
Author-X-Name-First: Daniel
Author-X-Name-Last: Agyapong
Title: Financial literacy, access to digital finance and performance of SMEs: Evidence From Central region of Ghana
Abstract:
This paper expands on financial literacy, access to digital finance, and SME performance in the Central Region of Ghana. First, the study analysed SMEs’ digital platform knowledge and utilisation. It examined the relationship between financial literacy, access to digital finance, and SME performance. The paper discussed the mediating influence of access to digital finance on SMEs’ financial literacy and performance. The study employed the quantitative research approach. Using the purposive sampling technique, a total of 400 responses were gathered from SMEs in Cape Coast, Mankessim, Assin Fosu, Agona Swedru, and Kasoa. The study used self-administered questionnaires to collect data. SPSS was employed to evaluate descriptive statistics. Results show that SMEs in the study areas use Mobile Money more than any other digital platform. PLS-SEM was used to investigate the relationship between financial literacy, digital finance, and SME performance. It was found that financial literacy positively affects access to digital finance. Also, access to digital finance improved performance. Access to digital finance mediates the relationship between financial literacy and SME performance. Access to digital finance is as crucial as financial literacy for increasing performance. Therefore, using digital platforms to trade would boost business performance. Digital trading platform providers should improve advertising and make their systems user-friendly.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2121356
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2121356
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# input file: OAEF_A_2146630_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Wondimhunegn Atilaw Woldetensaye
Author-X-Name-First: Wondimhunegn
Author-X-Name-Last: Atilaw Woldetensaye
Author-Name: Endashaw Sisay Sirah
Author-X-Name-First: Endashaw
Author-X-Name-Last: Sisay Sirah
Author-Name: Agumas Shiferaw
Author-X-Name-First: Agumas
Author-X-Name-Last: Shiferaw
Title: Foreign direct investments nexus unemployment in East African IGAD member countries a panel data approach
Abstract:
This study aims to examine between foreign direct investments nexus unemployment in the Intergovernmental Authority for Development member countries from East Africa. The study employed panel data approach for member countries from the year of 1996–2021. It concluded that annual unemployment rate, annual population growth rate, and economic growth of the host countries have significant impacts on foreign direct investments. Since the purpose of this study was to examine the relations ship between foreign direct investment and unemployment, and the findings of the study determined that foreign direct investment has a significant negative impact on unemployment. Additionally, the impact of these host countries was confirmed to be the same as cross-sectional entities of member countries. According to the study, the public sector should create a climate that attracts foreign direct investments there by absorbing unemployed groups and driving employment rates upward.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2146630
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2146630
File-Format: text/html
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2146630
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# input file: OAEF_A_2069207_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mohammed Issah
Author-X-Name-First: Mohammed
Author-X-Name-Last: Issah
Author-Name: Samuel Antwi
Author-X-Name-First: Samuel
Author-X-Name-Last: Antwi
Author-Name: Solomon Kofi Antwi
Author-X-Name-First: Solomon Kofi
Author-X-Name-Last: Antwi
Author-Name: Patience Amarh
Author-X-Name-First: Patience
Author-X-Name-Last: Amarh
Title: ANTI-MONEY LAUNDERING REGULATIONS AND BANKING SECTOR STABILITY IN Africa
Abstract:
The study econometrically analysed anti-money laundering regulations and banking sector stability in Africa. A panel data on 51 African countries over the period of 2012 to 2019 were used. Secondary data were sourced from the World Bank’s indicators, the IMF, the Basel Institute on Governance other financial websites. The two-staged Generalised Moment Method (GMM) was used to analyse the effect of AML regulations on banking sector stability and the effects of the different levels of AML effectiveness and its impact on the banking sector stability in Africa. The study discovered that AML regulations had a significant positive effect on the stability of banking sectors in African countries. This indicated that whether there was high effectiveness or low effectiveness of the AML regulations, it would still have a positive impact on the stability of the banking sector of the country.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2069207
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2069207
File-Format: text/html
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2069207
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# input file: OAEF_A_2127487_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Madiha Munir
Author-X-Name-First: Madiha
Author-X-Name-Last: Munir
Author-Name: Saira Tufail
Author-X-Name-First: Saira
Author-X-Name-Last: Tufail
Author-Name: Ather Maqsood Ahmed
Author-X-Name-First: Ather Maqsood
Author-X-Name-Last: Ahmed
Title: Interest rate pass-through and cost channel of monetary policy: Evidence from minimum distance estimation of DSGE model for Pakistan
Abstract:
Understanding the monetary policy transmission mechanism is pivotal for the design of an effective monetary policy. In this regard, the coexistence of interest rate and cost channel of monetary policy has raised important implications for the conduct of monetary policy. This article estimates a New Keynesian model to quantify the strength of interest rate and cost channel by estimating retail rate stickiness and share of firms considering interest rate in their marginal cost function. It examines the extent of interest rate pass-through and cost channel for exogenous monetary policy shock and endogenous movement in official rate arising due to other financial, nominal, and real shocks in the economy. The trade-off between the degree of pass-through and cost channel of monetary policy has also been examined. The minimum distance estimation of the Dynamic Stochastic General Equilibrium (DSGE) model has confirmed that the degree and nature of interest rate pass-through depend on the nature of shock hitting the economy and the cost channel exists only for monetary and financial shocks. A weak trade-off also exists between the degree of pass-through and cost channel of monetary policy. The study recommends that coordination between central banks and financial and non-financial firms is essential for effective stabilization through monetary policy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2127487
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2127487
File-Format: text/html
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2127487
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# input file: OAEF_A_2078459_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Sodiq Arogundade
Author-X-Name-First: Sodiq
Author-X-Name-Last: Arogundade
Author-Name: Biyase Mduduzi
Author-X-Name-First: Biyase
Author-X-Name-Last: Mduduzi
Author-Name: Hinaunye Eita
Author-X-Name-First: Hinaunye
Author-X-Name-Last: Eita
Title: Foreign direct investment and poverty in sub-Saharan African countries: The role of host absorptive capacity
Abstract:
This study examines the role of human capital and institutional quality on the impact of foreign direct investment (FDI) on poverty in sub-Sahara Africa (SSA). In achieving this, a balanced panel of 30 SSA countries from 1996 to 2018 was explored using fixed-effect instrumental regression, fixed effect panel threshold model, and the heterogenous Granger-causality test. There are three main important findings from this empirical study: (1) FDI does not have a direct impact on the incidence and intensity of poverty. (2) the impact of FDI is contingent on the absorptive capacity of the host country. The study further reveals that FDI will alleviate poverty conditions if interacted with human capital and institutional quality at a given threshold. (3) bidirectional causality between FDI and poverty. This study recommends that in addition to FDI’s promotional policies, governments of SSA countries need to improve investment in human capital. It is also important for SSA countries to embark on public sector reforms, as investments do not thrive in an environment characterized by high corruption or political instability.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2078459
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2078459
File-Format: text/html
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2078459
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# input file: OAEF_A_2103922_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yolanda Pena-Boquete
Author-X-Name-First: Yolanda
Author-X-Name-Last: Pena-Boquete
Author-Name: Aizhan Samambayeva
Author-X-Name-First: Aizhan
Author-X-Name-Last: Samambayeva
Author-Name: Olzhas Zhorayev
Author-X-Name-First: Olzhas
Author-X-Name-Last: Zhorayev
Title: Effects of public expenditure assignment by regions in Kazakhstan to reduce infant and child mortality
Abstract:
Health resources are an important factor to reduce infant and child mortality. However, taking into account budget constraints, it is very difficult to increase public health resources for all regions within a country at the same time. For this reason, in this paper, we assess the effects of the regional health government expenditure assignment as well as the regional health resources available such as beds or paediatricians. We estimate a dynamic model using a system-GMM (Generalised Method of Moments) to explain infant and child-mortality in Kazakhstan during the period 2000–2018. In this period, Kazakhstan experiences a sharp decrease in infant and child mortality reaching the target values from sustainable development goals (SDG). We evaluate several variables to capture the effects of public health resources assignment, such as expenditure per capita, expenditure depending on previous year mortality rates as well as health facilities resources for children by region. Results show that an increase in health expenditure per capita in those regions with high mortality levels is particularly relevant to reduce infant mortality while health facilities are actually more important to reduce an under-5 mortality rate.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2103922
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2103922
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2103922
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# input file: OAEF_A_2038862_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Belesity Bekalu Ayenew
Author-X-Name-First: Belesity Bekalu
Author-X-Name-Last: Ayenew
Title: The effect of foreign direct investment on the economic growth of Sub-Saharan African countries: An empirical approach
Abstract:
The impact of foreign direct investment on the host country’s economic growth has been a source of debate in past theoretical and empirical investigations. The PMG/ARDL model, which has a practical advantage in examining the effect of foreign direct investment in the short and long run, has received little attention in prior empirical investigations. This study investigates the effect of foreign direct investment on the economic growth of Sub-Saharan African countries. The study examined panel data from 22 nations in Sub-Saharan Africa from 1988 to 2019. The PMG/ARDL model was used to look at the short- and long-term effects of foreign direct investment on economic growth. The panel unit root test and panel co-integration test were employed to improve the model’s estimation. According to the findings, in the long run, foreign direct investment has a favorable and significant effect, but it is statistically insignificant in the short run. The study concludes that foreign direct investment boosts long-term economic growth. As a result, countries in Sub-Saharan Africa should focus on attracting foreign direct investment.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2038862
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2038862
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# input file: OAEF_A_2082027_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Seyram Pearl Kumah
Author-X-Name-First: Seyram Pearl
Author-X-Name-Last: Kumah
Author-Name: Jones Odei-Mensah
Author-X-Name-First: Jones
Author-X-Name-Last: Odei-Mensah
Title: Do cryptocurrencies and crude oil influence each other? Evidence from wavelet-based quantile-in-quantile approach
Abstract:
This study investigates the asymmetric shock transmission mechanisms between seven large cryptocurrencies and crude oil at different market conditions across time. Wavelet technique was used to decompose the daily return series of the assets into wavelet scales to capture trading horizons. We applied quantile regression (QR) and quantile-in-quantile Regression (QQR) on the decomposed series to capture the bear (bull) market conditions. Applying the QR, we found Ethereum, Steller, Ripple and Monero as hedges for oil market volatility at all market regimes from medium to long terms. The QR undermined the hedging properties of Bitcoin, Litecoin and Das, suggesting possible spread of market disruptions from these markets to crude oil market. We observe from QQR that the assets have negative influence on each other at bear market but positive influence at bull market across time, signifying hedging possibilities for both assets in bear market. The significance of our finding is strengthened by the recent rise in the market share of cryptocurrencies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2082027
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2082027
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2082027
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# input file: OAEF_A_2028976_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Gildas Kadoukpè Magbondé
Author-X-Name-First: Gildas Kadoukpè
Author-X-Name-Last: Magbondé
Author-Name: Mamadou Abdoulaye Konté
Author-X-Name-First: Mamadou Abdoulaye
Author-X-Name-Last: Konté
Author-Name: Muhammad Shafiullah
Author-X-Name-First: Muhammad
Author-X-Name-Last: Shafiullah
Title: Developing countries’ economic fundamentals and FDI inflows: The moderating role of institutions
Abstract:
This paper provides evidence on the moderating effects of institutions on the marginal effects of human capital, financial development, and macroeconomic policies on foreign direct investment (FDI) inflows, based on large panel data of 124 developing countries—spanning from 2002 to 2018—and generalised method of moments (GMM) estimators. The findings suggest that only financial development has a positive and significant direct effect on FDI inflows to developing countries. Importantly, improving the quality of institutions moderates the marginal effect of human capital on FDI inflows. Drawing on these findings, policymakers in developing countries are advised to undertake a set of reforms to upgrade the quality of institutions, improve financial institutions and markets, and scale up investments in human capital.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2028976
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2028976
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# input file: OAEF_A_2142315_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ammar Jreisat
Author-X-Name-First: Ammar
Author-X-Name-Last: Jreisat
Author-Name: Mustafa Raza Rabbani
Author-X-Name-First: Mustafa Raza
Author-X-Name-Last: Rabbani
Author-Name: Sara Omran
Author-X-Name-First: Sara
Author-X-Name-Last: Omran
Author-Name: Somar Al-Mohamad
Author-X-Name-First: Somar
Author-X-Name-Last: Al-Mohamad
Author-Name: Walid Bakry
Author-X-Name-First: Walid
Author-X-Name-Last: Bakry
Title: An examination of the banking efficiency of the BRICS countries: A perspective derived from the oil price volatility
Abstract:
This study examines the influence of Oil Price Volatility on Banks efficiency within the BRICS countries (Brazil, Russia, India, China, and South Africa) noting the importance of the banking sector efficiency as a tool to ensure financial stability in the region. Being able to measure efficiency levels in banks determines how successful a bank is in managing its operations and achieving its goals. A sample data of 112 banks was selected using the Bank Scope database over the time interval 2003 to 2018 to inspect banking sector relative efficiency following a non-parametric methodology known as Data Envelopment Analysis (DEA). The paper applies a two-stage model to process the empirical results consisting in using the Data Envelopment Analysis (DEA) to identify the scores of banks efficiency at a first stage (Stage 1) and determining how volatility in Oil price has impact on these scores of efficiencies on a second stage (Stage 2). Findings of the study indicate that the Chinese banking system shows the highest efficiency (90%), followed by the South Africa (87%), followed by the Brazilian and Indian banking system with efficiency level of (77%), the Russian bank industry revealed the lowest efficient banking system with level of efficiency (50%).
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2142315
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2142315
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# input file: OAEF_A_2114171_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Bernice Nkrumah-Boadu
Author-X-Name-First: Bernice
Author-X-Name-Last: Nkrumah-Boadu
Author-Name: Peterson Owusu Junior
Author-X-Name-First: Peterson
Author-X-Name-Last: Owusu Junior
Author-Name: AnokyeM Adam
Author-X-Name-First: AnokyeM
Author-X-Name-Last: Adam
Author-Name: Emmanuel Asafo-Adjei
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Asafo-Adjei
Title: Safe haven, hedge and diversification for African stocks: cryptocurrencies versus gold in time-frequency perspective
Abstract:
The specific properties of assets such as cryptocurrencies, gold, and stocks have welcomed more empirical studies in assessing their nexus. As a result, market conditions, whether good or bad, become imperative to assess the benefits of safe have, hedges or diversification. Also, the presence of uncertainties in markets may have asymmetrical effects which make it necessary to assess their impact over time. The emergence of COVID-19 pandemic as a global uncertainty has altered the dynamics of most financial markets. Consequently, this may influence the lead/lag relationships in most financial time series at various frequencies to contribute to the heterogeneous nature of market participants. Hence, the study examines the interdependencies between cryptocurrencies, selected stocks markets of Africa, and Gold returns in a time-frequency domain before and during the COVID-19 pandemic. Using a day-to-day observations, from August 8th, 2015 to May 5th, 2020, we assess the benefits of portfolio diversification, hedges, and safe haven with the bi-wavelet technique. The findings reveal that gold and cryptocurrencies provide a safe haven, diversification and, hedge for investors of African stock especially in the Ghanaian stock market (short-term) and also during this COVID-19 period. These findings contribute to the literature on financial market interdependencies, asymmetries to demonstrate financial market participants’ diverse investment horizons. Again, policymakers and governments of these stock markets should institute a sound system of controls in regulating stock markets. This will enable the benefits of safe haven, hedges or diversification to be efficiently realized for Gold and Cryptocurrencies during different market conditions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2114171
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2114171
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# input file: OAEF_A_2048482_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Admire Chawarika
Author-X-Name-First: Admire
Author-X-Name-Last: Chawarika
Author-Name: Faustino Madzokere
Author-X-Name-First: Faustino
Author-X-Name-Last: Madzokere
Author-Name: Agrippa Murimbika
Author-X-Name-First: Agrippa
Author-X-Name-Last: Murimbika
Title: Regional trade agreements and agricultural trade: An analysis of Zimbabwe’s agricultural trade flows
Abstract:
The main aim of the study was to assess the impact of Economic Partnership Agreement (EPA) and Southern African Development Community Free Trade Area (SADC-FTA) on Zimbabwe’s agricultural trade flows. Results highlight that Zimbabwe’s membership in EPA initiated in 2012, enhanced the country’s agricultural trade flows by 307.96%. Membership in SADC-FTA initiated in 2008 has enhanced the country’s agricultural trade flows by 437.09%. Other independent variables including exchange rates and GDP negatively impacted the country’s agricultural trade flows. From the empirical findings, it is critical for the government to conduct impact assessments.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2048482
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2048482
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# input file: OAEF_A_2150133_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Syed Faisal Shah
Author-X-Name-First: Syed Faisal
Author-X-Name-Last: Shah
Author-Name: Mohamed Albaity
Author-X-Name-First: Mohamed
Author-X-Name-Last: Albaity
Title: Bank return heterogeneity, do governance, sentiment, and uncertainty matter?
Abstract:
This paper examined the impacts of; investor sentiment, governance, and uncertainty on bank stock returns in the Middle East and North Africa (MENA) and Gulf Cooperation Council (GCC) region countries. The sample consisted of 173 conventional and Islamic banks based in the MENA region and 68 conventional and Islamic banks based in the GCC region from 2010–2020. Also, this study employed the Two-step system Generalized Method of Moments (GMM) estimator. The selection of this estimator prevented endogeneity issues related to the variables used in this study. This research found that individual sentiment and uncertainty negatively affected bank stock returns while governance positively influenced bank stock returns. The regression coefficients from the interaction of the governance indicators and conventional banks variable showed a positive and significant effect on bank stock returns in the MENA region, except for the interaction of the rule of law and voice and accountability in conventional banks, showing a negative effect. The GCC countries showed similar results. However, the outcomes were insignificant. Regarding the control variables, the loan ratio and inflation were negative, and bank size and the GDP showed positive and significant effects on bank stock returns throughout all models, excluding the loan ratio and bank size in the GCC region. Overall, the banking sectors of the MENA region countries were sensitive to; investor sentiment, uncertainty, and country-level governance indicators.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2150133
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2150133
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# input file: OAEF_A_2034281_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jonas Osei-Adu
Author-X-Name-First: Jonas
Author-X-Name-Last: Osei-Adu
Author-Name: Robert Aidoo
Author-X-Name-First: Robert
Author-X-Name-Last: Aidoo
Author-Name: Simon Cudjoe Fialor
Author-X-Name-First: Simon Cudjoe
Author-X-Name-Last: Fialor
Author-Name: Stella Ama Ennin
Author-X-Name-First: Stella Ama
Author-X-Name-Last: Ennin
Author-Name: Kingsley Osei
Author-X-Name-First: Kingsley
Author-X-Name-Last: Osei
Author-Name: Bright Owusu Asante
Author-X-Name-First: Bright Owusu
Author-X-Name-Last: Asante
Title: Profitability of positive selection technique for seed yam production in Ghana and Nigeria
Abstract:
Over the years, the traditional seed system has failed to deliver quality seed yam for propagation. This is due to the high incidence and severity of the yam mosaic virus leading to yield losses of 52.6%–65.4%. The Positive Selection (PS) technique has shown promise as a possible mitigation measure. This study was therefore aimed at evaluating the profitability of seed-yam production through the use of PS technique as a viral mitigation measure. Three hundred and sixty-eight (368) seed yam farmers across Ghana and Nigeria were sampled. Profitability was determined using Return on Investment (ROI) and Benefit Cost Ratio (BCR) analysis. Regression analysis was applied for the determinants. Result from this study indicates that seed yam production is more profitable when the effect of the yam mosaic virus is mitigated using PS technique with a net return of US$ 3,417.98/ha compared to US$ 1,795.58/ha for non-use. This implies the use of PS technique can increase seed yam profitability by 26.69%. Sex, farmer experience in yam production, education, migration status, extension contact, off-farm income and use of PS technique were significant determinants of profitability. It is therefore recommended that the PS technique be widely disseminated as a mitigation strategy for the control of the yam mosaic virus disease.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2034281
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2034281
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# input file: OAEF_A_2049478_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Rabia Sabri
Author-X-Name-First: Rabia
Author-X-Name-Last: Sabri
Author-Name: Abdul Aziz Abdul Rahman
Author-X-Name-First: Abdul Aziz
Author-X-Name-Last: Abdul Rahman
Author-Name: Abdelrhman Meero
Author-X-Name-First: Abdelrhman
Author-X-Name-Last: Meero
Author-Name: Liaqat Ali Abro
Author-X-Name-First: Liaqat Ali
Author-X-Name-Last: Abro
Author-Name: Muhammad AsadUllah
Author-X-Name-First: Muhammad
Author-X-Name-Last: AsadUllah
Title: Forecasting Turkish lira against the US Dollars via forecasting approaches
Abstract:
The aim of this study is to predict the Turkish Lira’s exchange rate against the US Dollar by combining models . As a result, the authors include three univariate forecasting models: ARIMA, Naive, and Exponential smoothing, and one multivariate model: NARDL for the first time with Artificial Neural Network model. To the best of our knowledge, it is a unique study to integrate univariate models, ANN with NARDL. The researchers utilize two combination criteria to forecast the Turkish Lira, namely, equal weightage and var-cor. The findings conclude that the combination of NARDL and Naive outperforms all standalone and combined time series techniques. The results indicate that the Turkish Lira’s currency rate against the USD is strongly reliant on recent time-series observations with symmetric and asymmetric behavior of macro-economic fundamentals.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2049478
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2049478
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# input file: OAEF_A_2020484_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Esubalew Tadele
Author-X-Name-First: Esubalew
Author-X-Name-Last: Tadele
Author-Name: Tewabe Hibistu
Author-X-Name-First: Tewabe
Author-X-Name-Last: Hibistu
Author-Name: Salvatore Ercolano
Author-X-Name-First: Salvatore
Author-X-Name-Last: Ercolano
Title: Spatial production distribution, economic viability and value chain features of teff in Ethiopia: Systematic review
Abstract:
Teff is the most preferred and most commercialized cereal crop in Ethiopia. it’s one of the underutilized crops. It’s nutrient-dense and well-suited to Ethiopia’s growing conditions, but little has been invested to tap into its domestic and international markets. This review focus on the regional teff production distribution, economic significance, and value chain of teff in Ethiopia. The country has a chance in teff specialization and value-added products will likely contribute to generating more incomes, reduce poverty and sustain growth. But unable to overcoming of constraints and seizing opportunities associated with the value chain and its components. Mainly due to teff producing and value addition practice is insufficient and generally depends on conventional practices, and its marketplace is restricted local and the government imposes an export ban on it to limit the upward pressure on domestic grain prices and address local food security. Hence, in a nutshell, value chain development aimed at stimulating economic growth and increasing competitiveness is a vital issue. To take advantage of growing domestic and international demand for teff, the domestic teff industry must invest heavily in improving teff production methods, opening up and expanding its international market to ensure its status as a superglobal food and a contributor to global food security gains. This needs simultaneously investments and policy support networks, which are coordinated with all relevant stakeholders.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2020484
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2020484
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# input file: OAEF_A_2127220_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ahmed Bossman
Author-X-Name-First: Ahmed
Author-X-Name-Last: Bossman
Author-Name: Samuel Kwaku Agyei
Author-X-Name-First: Samuel Kwaku
Author-X-Name-Last: Agyei
Author-Name: Oliver Asiamah
Author-X-Name-First: Oliver
Author-X-Name-Last: Asiamah
Author-Name: Ellen Animah Agyei
Author-X-Name-First: Ellen Animah
Author-X-Name-Last: Agyei
Author-Name: Emmanuel Yaw Arhin
Author-X-Name-First: Emmanuel Yaw
Author-X-Name-Last: Arhin
Author-Name: Edward Marfo-Yiadom
Author-X-Name-First: Edward
Author-X-Name-Last: Marfo-Yiadom
Title: Dividend policy and performance of listed firms on Ghana stock exchange
Abstract:
We examined the dividend policy and financial performance nexus among listed firms in Ghana, having controlled for firm age, size, capital structure, governance, and financial sector clean-up. We employed the system dynamic general method of moments (GMM) estimation technique with data from 2015 to 2019. In addition to dividend payout, new proxies of dividend policy (dividend capacity and free cash flow savings) were employed to ascertain their impact on firm performance in a period filled with financial sector reforms and clean-ups. We found a significant effect of dividend capacity on Return on Assets and Return on Equity. Free cash flow savings was found to have a direct and significant effect on Return on Assets and Return on Equity but an indirect relationship with both Tobin’s Q and stock price. Our findings indicate that while dividend capacity and free cash flow savings are positively connected with firm performance, dividend payout detrimentally affects owners’ wealth during crisis periods. The findings divulged a detrimental effect of financial sector clean-ups on the performance of non-financial firms only. It is recommended that corporations maintain a balance between dividend payout and free cash flow savings to attract all classes of investors. Governments and market regulators alike must take practical steps to roll out policies on financial sector reforms and/or clean-ups to mitigate the detrimental impacts of inadvertent reforms and/or clean-ups on other sectors of the economy. Investors, market regulators, and governments seek to benefit from the findings of our study.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2127220
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2127220
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# input file: OAEF_A_2096200_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Nyoman Sri Subawa
Author-X-Name-First: Nyoman Sri
Author-X-Name-Last: Subawa
Author-Name: Ni Wayan Widhiasthini
Author-X-Name-First: Ni Wayan
Author-X-Name-Last: Widhiasthini
Author-Name: Ni Putu Intan Permatasari
Author-X-Name-First: Ni Putu Intan
Author-X-Name-Last: Permatasari
Author-Name: Ni Nyoman Sri Wisudawati
Author-X-Name-First: Ni Nyoman
Author-X-Name-Last: Sri Wisudawati
Title: MSMEs envisaged as the economy spearhead for Bali in the covid-19 pandemic situation
Abstract:
As a region that relies on the tourism sector as the priority then, when the Covid-19 pandemic hit the world, Bali became one of the most affected regions. Efforts are being made to drive the MSME sector in overcoming the financial crisis. The problem discussed was how the impact of MSMEs as the economy spearhead in the Covid-19 pandemic situation. The urgency of this research is to contribute to the practice of community empowerment through the MSME sector. The research method used is a qualitative method with a case study approach, to explore and comprehensively describe the phenomena that occurred in the MSME sector. This research was conducted in Bali Province, the determination of informants was carried out purposively. The results showed that MSMEs had become the economy spearheaded during the pandemic, become a solution to economic growth, accommodated the process of quadrant shifting from tourism performer into MSME performer, implemented economy digitization at various stages, and business activities. The sharing economy pattern has been formed in MSME business practices, through various related business sectors. The findings of this study are (1) a change in the mindset of the people who initially had a mentality as workers, now have an entrepreneurial spirit, and (2) the application of the sharing economy as an exchange of values in the MSME sector. The limitation of the research is that the research location is only in one area. The social implication is that MSME becomes a solution to prevent the potential social vulnerability.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2096200
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2096200
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# input file: OAEF_A_2147703_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Phuong Bui
Author-X-Name-First: Phuong
Author-X-Name-Last: Bui
Author-Name: Hai Ngo
Author-X-Name-First: Hai
Author-X-Name-Last: Ngo
Author-Name: Khuong Nguyen
Author-X-Name-First: Khuong
Author-X-Name-Last: Nguyen
Author-Name: Nguyen Liem
Author-X-Name-First: Nguyen
Author-X-Name-Last: Liem
Title: External financing and earnings management: Evidence in Vietnam
Abstract:
This paper investigates the effect of external financing on earnings management in Vietnam, a bank-dominated economy. Using a sample of 494 listed non-financial firms from 2009 to 2018, we find that external financing is positively related to earnings management, implying that firms have incentives to manage earnings raising external fund. Additionally, earnings are manipulated when firms conduct capital raising by issuing either equity or debt. However, compared to debt financing, earnings are managed more aggressively when firms are involved in equity financing activities. Finally, we extend the literature by showing that equity is especially destructive at high levels. These findings lend credence to the argument that firms issuing equity have stronger incentives to manage earnings than debt issuers and call for thorough monitoring and scrutiny of stakeholders towards this type of issuance.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2147703
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2147703
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# input file: OAEF_A_2149447_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Wakitole Dadi
Author-X-Name-First: Wakitole
Author-X-Name-Last: Dadi
Author-Name: Messay Mulegeta
Author-X-Name-First: Messay
Author-X-Name-Last: Mulegeta
Author-Name: Negussie Simie
Author-X-Name-First: Negussie
Author-X-Name-Last: Simie
Title: Urbanization and its effects on income diversification of farming households in Adama district, Ethiopia
Abstract:
Urbanization remains a public policy challenge in developing countries, particularly in Sub-Saharan Africa, where fast growth rates have been observed. This study aims to investigate the effect of urbanization on the income diversification of farm households in the Adama district of the Oromia regional state. We used data collected from two groups of farm households based on their distance from the urban center. Families residing close to urban areas are categorized as treated and controlled for the remaining counterpart. The study employed both descriptive and inferential data analysis. Multinomial logistic regression analysis revealed that farming households in urban areas diversify their income to farm and unskilled non-farm activities more than rural households far away from urban centers. The research shows that increasing urbanization by one unit causes a decrease in farming activities by 32%, and farming and non-farm activities increase by 24%. The result also indicated that households with higher age and their consumption expenditure determinant factors for more likely to diversify their income to unskilled non-farm activities. The result proved that urbanization limits farming households’ capacity to generate income from agriculture and pushes them to diversify to non-farming income-generating activities. Governments should therefore design robust strategies and facilitate the provision of agricultural technologies. The regional state and small financial enterprises should also assist displaced households in expanding their income-generating activities.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2149447
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2149447
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# input file: OAEF_A_2132643_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Huong Thi Thanh Tran
Author-X-Name-First: Huong Thi Thanh
Author-X-Name-Last: Tran
Author-Name: Ha Thi Thu Le
Author-X-Name-First: Ha Thi Thu
Author-X-Name-Last: Le
Author-Name: Nga Thanh Nguyen
Author-X-Name-First: Nga Thanh
Author-X-Name-Last: Nguyen
Author-Name: Tue Thi Minh Pham
Author-X-Name-First: Tue Thi Minh
Author-X-Name-Last: Pham
Author-Name: Huyen Thanh Hoang
Author-X-Name-First: Huyen Thanh
Author-X-Name-Last: Hoang
Title: The effect of financial inclusion on multidimensional poverty: the case of Vietnam
Abstract:
Poverty reduction has become a top goal in the socio-economic development strategies of countries and a topic of interest for researchers. A number of prior empirical studies have identified the importance of financial inclusion to poverty reduction. However, most of these studies assess the effect of financial inclusion on income poverty reduction. There are relatively few studies evaluating the impact of financial inclusion, especially in terms of household use of financial products and services, on multidimensional poverty reduction. This study uses a multivariate probit model with a dataset from Vietnam to estimate the effect of financial inclusion in terms of household use of financial products and services and other factors on multidimensional poverty. The results show that financial inclusion reduces multidimensional poverty. Specifically, households owning bank accounts, having savings at banks, using debit cards, credit cards, or investing in stocks or bonds are less likely to fall into multidimensional poverty. Based on the findings, we provide several recommendations for policymakers to increase the level of households’ use of financial products and services.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2132643
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2132643
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# input file: OAEF_A_2111056_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Evans Kulu
Author-X-Name-First: Evans
Author-X-Name-Last: Kulu
Author-Name: William Gabriel Brafu-Insaidoo
Author-X-Name-First: William Gabriel
Author-X-Name-Last: Brafu-Insaidoo
Author-Name: Eric Amoo Bondzie
Author-X-Name-First: Eric
Author-X-Name-Last: Amoo Bondzie
Author-Name: James Atta Peprah
Author-X-Name-First: James
Author-X-Name-Last: Atta Peprah
Title: Inefficiency and Gaps in Financial Stability in sub-Saharan Africa
Abstract:
Using the Stochastic Frontier Analysis on data for 33 sub-Saharan African countries over the period 2007 to 2018, we determine the drivers of the inefficiencies in financial stability and also estimate the existing financial stability gaps. The results confirm that credit to the private sector and the level of unemployment are significant drivers of financial stability in SSA, while employment, domestic savings, and regulatory quality significantly decrease the inefficiencies in financial stability. Further, it is revealed that government domestic debt arrears promote financial stability inefficiencies in SSA. Countries within the East Africa Community Countries (EAC) have the highest mean efficiency and the least financial stability gap for the period studied. It is therefore recommended that government borrowing from the domestic economy should be towards projects that have undergone proper appraisal as a means to reduce arrears accumulation. Employment is recommended to improve income while encouraging domestic savings as a conscious effort to enable the financial sector to perform its intended essential role in the economy
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2111056
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111056
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# input file: OAEF_A_2106632_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Lj Basson
Author-X-Name-First: Lj
Author-X-Name-Last: Basson
Author-Name: Suné Ferreira-Schenk
Author-X-Name-First: Suné
Author-X-Name-Last: Ferreira-Schenk
Author-Name: Zandri Dickason-Koekemoer
Author-X-Name-First: Zandri
Author-X-Name-Last: Dickason-Koekemoer
Title: The performance of zero-cost option derivative strategies during turbulent market conditions in developing and developed countries
Abstract:
Financial markets behave in a volatile manner at certain stages in their maturity. These volatile conditions pose a market risk to an investor that can be limited by imposing derivatives strategies within the investment objective. The aim of this paper is to provide investors with a trading strategy to effectively manage turbulent market conditions (such as during the Covid-19 pandemic) by implementing a strategy that has a continuous approach of implementation. The study chose to include three main turbulent market periods such as the Dotcom bubble (1995–2005), the financial crisis (2008–2009), and more recently the COVID-19 pandemic (2020). Stock indices from six different stock exchange countries were chosen for comparison (also aligned to different geographical locations and developing versus developed economies) who were most likely to be affected by the extreme market events. Zero-cost collars are option-based strategies that can be used by investors to provide costless protection for stock or index investment. This strategy is obtained by setting equal the price obtained and the price paid for the components of the strategy. Previous literature has to date, not explored the potential outcomes for such procedures of different frequency intervals and the effect thereof on the performance in turbulent and non-turbulent market conditions. It was observed that moderate levels of market volatility combined with high-performing indices provide the scenario for the zero-cost collar to result in respectable returns. Furthermore, in order to add to this performance the strike level of the put option contract needs to be increased. Consequently, respectable results will be produced during periods of both significant market downturns.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2106632
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2106632
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# input file: OAEF_A_2046323_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Bongumusa Prince Makhoba
Author-X-Name-First: Bongumusa Prince
Author-X-Name-Last: Makhoba
Author-Name: Irrshad Kaseeram
Author-X-Name-First: Irrshad
Author-X-Name-Last: Kaseeram
Author-Name: Lorraine Greyling
Author-X-Name-First: Lorraine
Author-X-Name-Last: Greyling
Title: Asymmetric effects of public debt on economic growth: Evidence from emerging and frontier SADC economies
Abstract:
This study interrogates asymmetric effect of public debt on economic growth among selected emerging and frontier SADC economies. The study estimates a smooth transition regression (STAR) to analyse asymmetric relationship between public debt and economic growth using time series data from 2000 to 2018, extracted from the World Development Indicators. The findings indicate a strong evidence of a significant asymmetric relationship between public debt and growth among emerging and frontier SADC members under consideration. The results revealed the inverted U-Shape effect of public debt on growth in South Africa. While the results for Botswana, Namibia, Zambia and Zimbabwe indicate that there is a U-Shape relationship between public debt and economic growth. The study suggest that policymakers ought to consider curbing public debt level within a sustainable threshold target in order to reduce accompanying debt serving costs, and efficiently use public finances consistent with sustainable economic expansion.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2046323
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2046323
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# input file: OAEF_A_2106631_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Pierre J Venter
Author-X-Name-First: Pierre J
Author-X-Name-Last: Venter
Author-Name: Alexis Levendis
Author-X-Name-First: Alexis
Author-X-Name-Last: Levendis
Author-Name: Eben Mare
Author-X-Name-First: Eben
Author-X-Name-Last: Mare
Title: Collateralised option pricing in a South African context: A Univariate GARCH approach
Abstract:
In this paper, the generalised autoregressive heteroskedasticity (GARCH) model is applied to the pricing of collateralised options in the South African equity market. Symmetric GARCH and nonlinear asymmetric GARCH (AGARCH) models are considered. The models are used to price fully collateralised and zero collateral options (European, Asian, and lookback options). The effect of collateral is illustrated by the difference between zero collateral and fully collateralised option price surfaces. Finally, the effect of asymmetry is shown by the difference between the symmetric and asymmetric GARCH option price surfaces.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2106631
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2106631
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# input file: OAEF_A_2071012_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Aschale Mekuria Shitaye
Author-X-Name-First: Aschale Mekuria
Author-X-Name-Last: Shitaye
Title: Micro and small scale enterprises growth and ownership structure in Hawassa city, Sidama region, Ethiopia
Abstract:
The general objective of the study is to examine the nexus between micro and small enterprise growth and ownership structure in Hawassa city, Sidama regional state, Ethiopia. The study used a 4-year dynamic panel data from 2017 to 2020, obtained from Hawassa city trade and industry bureau. Both descriptive statistics and econometric methods have been used to analyze the nexus between growth of micro and small enterprises and ownership structure and other driving factors. System GMM estimation technique was employed to analyze a dynamic panel data model. The result of the study reveals that ownership structure, previous year enterprise growth (persistence of growth) and numbers of permanent employees enhance the growth of micro and small enterprises, while age of enterprises, wage and profit of enterprises appear to be a binding constraint to their growth. This study suggests that enterprises should increase their business partners to enhance their financial capacity and to share managerial skill each other and increase the number of permanent employees.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2071012
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2071012
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# input file: OAEF_A_2114167_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Sugiharso Safuan
Author-X-Name-First: Sugiharso
Author-X-Name-Last: Safuan
Author-Name: Muzafar Shah Habibullah
Author-X-Name-First: Muzafar Shah
Author-X-Name-Last: Habibullah
Author-Name: Eric Alexander Sugandi
Author-X-Name-First: Eric Alexander
Author-X-Name-Last: Sugandi
Title: Eradicating tax evasion in Indonesia through financial sector development
Abstract:
Many developing countries, like Indonesia, struggle with tax evasion. It reduces government revenues, impeding government activities and a country’s economic development. In this study, we look at the topic of tax evasion in Indonesia from 1980 to 2019. Using the “modified-cash-deposit-ratio” technique, we estimate the scale of tax evasion in Indonesia. We specifically calculate the loss in tax revenue caused by Indonesia’s shadow economy. Using a variety of estimators, we then evaluate whether financial development can eliminate tax evasion. To estimate the long-run model for Indonesian tax evasion, we used Ordinary Least Squares with robust standard error (OLS-robust), Autoregressive Distributed Lag (ARDL), Dynamic OLS (DOLS), and Robust Least Squares-M-Estimation (RLE-ME). Our findings reveal that there is a non-linear long-run link between tax evasion and financial development in Indonesia, with an inverted U-shape curve indicating that a lower (higher) level of financial development corresponds to a higher (lower) level of tax evasion. An important policy implication is that the Indonesian government and the Central Bank of Indonesia should embark on programmes to increase financial inclusion, provide easy access to credit arrangements and financial facilities, and implement information technology-based financial systems capable of transmitting data to tax authorities.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2114167
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2114167
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# input file: OAEF_A_2071387_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Michael Karikari Appiah
Author-X-Name-First: Michael Karikari
Author-X-Name-Last: Appiah
Author-Name: Rosemary Anderson Akolaa
Author-X-Name-First: Rosemary
Author-X-Name-Last: Anderson Akolaa
Author-Name: Angela Kyerewaa Ayisi-Addo
Author-X-Name-First: Angela Kyerewaa
Author-X-Name-Last: Ayisi-Addo
Title: Modeling the impact of macroenvironmental forces on investment in Renewable Energy Technologies in Ghana: the moderating role of Entrepreneurship orientation dimensions
Abstract:
Since 2011, successive Governments in Ghana have developed, and implemented Renewable Energy Master Plan to leverage macroenvironmental forces and encourage indigenous investment in Renewable Energy Technologies (RETs), but the actual impacts are yet to be felt by Ghanaians. The main objectives of the study are to: examine the impacts of Macroenvironment Forces (MF) on Small and Medium Enterprises’ (SMEs) investment intentions in RETs, and determine the moderating effects of Entrepreneurship Orientation (EO) dimensions (viz. proactiveness, competitive aggression, innovativeness, and risk-taken) on the relationship between MF and SMEs’ investment intentions. A total of 240 usable responses were received through self-administered survey questionnaires among Ghanaian SMEs. Variance-Based Partial Least Square Equation Modelling (PLS-SEM) approach was used for the data analyses and hypotheses testing. The results revealed that MF had significant and positive relationship with SMEs’ intention to invest in RETs. Moreover, the results showed that proactiveness, competitive aggressive, and innovation had direct effects on intention to invest in RETs. Again, the results showed that EO dimensions significantly moderated the relationship between MF and investment intentions in RETs. The implications of these results include extending previous MF works by evaluating MF, EO, and investment intention relationships in a developing country context, which has been largely ignored in previous studies. Again, this paper provides insights into the value of macroenvironment scanning and assessment which could lead to better investment intentions in clean, affordable, and reliable energy service. Besides, the efficacy of EO in MF-investment intentions relationship has been well established in this paper.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2071387
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2071387
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# input file: OAEF_A_2014640_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Huei-Hwa Lai
Author-X-Name-First: Huei-Hwa
Author-X-Name-Last: Lai
Author-Name: Tzu-Pu Chang
Author-X-Name-First: Tzu-Pu
Author-X-Name-Last: Chang
Author-Name: Cheng-Han Hu
Author-X-Name-First: Cheng-Han
Author-X-Name-Last: Hu
Author-Name: Po-Ching Chou
Author-X-Name-First: Po-Ching
Author-X-Name-Last: Chou
Title: Can google search volume index predict the returns and trading volumes of stocks in a retail investor dominant market
Abstract:
This research examines whether Google search volume index (GSVI), a proxy of investor attention, can predict the excess returns and abnormal trading volumes of TPEx 50 index constituents. It also explores the motive underlying GSVI based on positive or negative shocks to stock prices. The empirical data include 48 companies from TPEx 50 index constituents and cover a period from 1 September 2016 to 31 August 2019. The empirical results present that (1) lagged GSVI negatively affects current excess returns, perhaps due to the characteristics of TPEx, in which there are a higher proportion of retail investors, smaller listed companies, and a higher information asymmetry problem. (2) Lagged GSVI can positively affect abnormal current trading volumes. (3) If GSVI is driven by positive shocks, then it can predict excess returns and abnormal trading volumes positively.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2014640
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2014640
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# input file: OAEF_A_2093431_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Girma Mulugeta Emeru
Author-X-Name-First: Girma Mulugeta
Author-X-Name-Last: Emeru
Author-Name: Abebaw Hailu Fikire
Author-X-Name-First: Abebaw Hailu
Author-X-Name-Last: Fikire
Author-Name: Zemenu Bires Beza
Author-X-Name-First: Zemenu Bires
Author-X-Name-Last: Beza
Title: Determinants of urban households’ livelihood diversification strategies in North Shewa Zone, Ethiopia
Abstract:
Livelihood diversification is important for urban development to end poverty and food insecurity problems. In Ethiopia, urban livelihood diversification is quite low specifically in North Shewa Zone. Therefore, this study aims to identify the determinants of livelihood diversification strategies for urban households in the North Shewa Zone. The data were collected through both primary and secondary data collection methods. A multistage sampling technique was employed to select 398 household heads from three urban areas of the North Shewa Zone. A multinomial logistic regression model was employed to analyze the determinant of livelihood diversification strategies in the study area. The results of the model revealed that livelihood diversification strategies were determined by the age of the household head, education status, family size, credit access, market access, and training and extension service positively and the dependency ratio was negative. The study recommends that the zonal and regional governments of Ethiopia should develop a comprehensive urban development policy that could empower off-farm and non-farm urban livelihood diversification strategies besides the farm activities.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2093431
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2093431
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# input file: OAEF_A_2111791_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Tilahun Aemiro Tehulu
Author-X-Name-First: Tilahun Aemiro
Author-X-Name-Last: Tehulu
Title: Capital adjustment process and credit growth of microfinance institutions: Evidence from Sub-Saharan Africa
Abstract:
The purpose of this study is twofold: First, we examine the capital adjustment process using a partial adjustment framework and second, we test whether capitalization impacts the credit growth of microfinance institutions (MFIs) through the deviation (i.e. the divergence between the actual capital ratio and the implicit long-run target capital). To this end, we use an unbalanced panel dataset of 127 MFIs across 31 countries in Sub-Saharan Africa (SSA) during 2004–2014. We apply the Arellano-Bover/Blundell-Bond two-step Generalized Method of Moments (GMM) Windmeijer bias-corrected standard errors for estimating both the capital and lending models. Standard errors for the long-run effects in the capital equation are approximated with the Delta method. Our findings reveal that profitability contributes to the capitalization of MFIs, whereas portfolio risk and liquidity are negatively associated with MFI capital. We also find that large-scale MFIs have lower capitalization, while small-scale MFIs have higher capitalization relative to medium scale MFIs consistent with the “too big to fail” hypothesis. Nevertheless, we uncover that the legal status of MFIs, deposit growth and economic growth have no direct effects on capitalization. The findings also confirm that there is a capital adjustment difficulty in the microfinance industry in SSA. The constant of the model is also statistically significant and has the highest economic significance suggesting that the capital ratio fluctuates mainly around a firm-specific unobserved time-invariant component. The findings, however, fail to support the hypothesis that capitalization impacts MFI lending behavior through the deviation.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2111791
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111791
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# input file: OAEF_A_2025667_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Delphin Kamanda Espoir
Author-X-Name-First: Delphin Kamanda
Author-X-Name-Last: Espoir
Title: Convergence or divergence patterns in income distribution across countries: A new evidence from a club clustering algorithm
Abstract:
Since globalisation accelerated in the early 1990s, income inequality has increased in most developed countries and in some middle-income countries, including China and India. Also, inequality has declined in most countries of Latin America and the Caribbean and in many Sub-Saharan African and South Asian countries. This observation corroborates the neoclassical models of convergence that predict that, in the long-run, income distribution will tend to converge across countries. In this study, I examined whether there has been convergence in inequality between 2000 and 2015. To this end, I constructed a large panel of Gini indices of 142 countries and tested for the existence of convergence clubs using the econometric methodology proposed by Phillips and Sul. The results indicate that there is no uniform convergence to one club. Instead, I found that countries’ income inequalities are converging into five different clubs. This finding is different from those reported by the few existing c
ross-country studies on convergence in inequality. Furthermore, the analysis reveals strong evidence that between-club inequality increases, while within-club inequality decreases over the years. Between-club inequality is found to be determined by population growth, population density and the ratio of physical to human capital.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2025667
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2025667
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# input file: OAEF_A_2061682_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Samuel Kwaku Agyei
Author-X-Name-First: Samuel Kwaku
Author-X-Name-Last: Agyei
Author-Name: Anokye Mohammed Adam
Author-X-Name-First: Anokye Mohammed
Author-X-Name-Last: Adam
Author-Name: Ahmed Bossman
Author-X-Name-First: Ahmed
Author-X-Name-Last: Bossman
Author-Name: Oliver Asiamah
Author-X-Name-First: Oliver
Author-X-Name-Last: Asiamah
Author-Name: Peterson Owusu Junior
Author-X-Name-First: Peterson
Author-X-Name-Last: Owusu Junior
Author-Name: Roberta Asafo-Adjei
Author-X-Name-First: Roberta
Author-X-Name-Last: Asafo-Adjei
Author-Name: Emmanuel Asafo-Adjei
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Asafo-Adjei
Title: Does volatility in cryptocurrencies drive the interconnectedness between the cryptocurrencies market? Insights from wavelets
Abstract:
We present a multi-scale and time-frequency analysis of the degree of integration and the lead-lag relationship between six cryptocurrencies (i.e., Bitcoin, Bitcoincash, Ethereum, Litecoin, Ripple, and Tether) and the cryptocurrency-implied volatility index (VCRIX). As a result, the wavelet techniques—bi-wavelet, partial wavelet, bivariate contemporary correlations (BCC), wavelet multiple correlations (WMC) and wavelet multiple cross-correlations (WMCC) are applied. Findings from the study provide that the interdependencies between the cryptocurrencies and VCRIX are high and mostly positive across investment horizons. Furthermore, the comovements between the cryptocurrencies designate long memory dynamics. The high comovements between cryptocurrencies are highly influenced by idiosyncratic shocks they possess rather than the VCRIX. In addition, the BCC and the WMC indicate that there is a high integration among all the cryptocurrencies. Categorically, the VCRIX could not lead or lag the interdependencies among the cryptocurrencies in the WMCC analysis. Findings from the study, therefore, divulge that investing in a single or few cryptocurrencies is highly risky due to the adverse impact of the VCRIX on individual cryptocurrencies. In general, investors should effectively hedge against volatilities in the cryptocurrency markets due to the significant predictive ability of VCRIX as an effective proxy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2061682
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2061682
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# input file: OAEF_A_2075600_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Canh Thi Nguyen
Author-X-Name-First: Canh Thi
Author-X-Name-Last: Nguyen
Author-Name: Liem Thanh Nguyen
Author-X-Name-First: Liem Thanh
Author-X-Name-Last: Nguyen
Author-Name: Nhu Quynh Nguyen
Author-X-Name-First: Nhu Quynh
Author-X-Name-Last: Nguyen
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: Corporate social responsibility and financial performance: The case in Vietnam
Abstract:
This study aims to examine the impact of corporate social responsibility (CSR) on the financial performance of Vietnamese listed companies from 2012 to 2017. The study uses Fixed effects model and System Generalized Method of Moments to estimate models. The study contributes by analyzing the impact of social responsibility under three perspectives, namely economic, environmental and social responsibility in a developing country’s setting. The results suggest that overall CSR disclosure has a negative impact on firm performance, but the perspectives provide a more complete view: environmental responsibility shows a clear negative influence, while social responsibility demonstrates a preferable but weak impact on financial performance. The economic aspect does not show a significant effect on firm performance. The most burdensome category of CSR is the environment-related one, which calls for more careful employment of this investment and governmental support to ensure that it is more efficient.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2075600
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2075600
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# input file: OAEF_A_2093821_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Haile Ademe Ayalew
Author-X-Name-First: Haile
Author-X-Name-Last: Ademe Ayalew
Author-Name: Pratap C. Mohanty
Author-X-Name-First: Pratap C.
Author-X-Name-Last: Mohanty
Title: Do remittances affect labour participation decisions and hours worked? Evidence from Ethiopia
Abstract:
The present study examines the impact of remittances (foreign and domestic) on labour participation decisions and hours worked in Ethiopia. By exploiting nationally representative panel data obtained from the Ethiopian Socio-Economic Survey (ESS) 2013/14 and 2015/16, this study finds that receiving foreign remittances has a negative impact on the adult labour participation decisions and hours worked in Ethiopia. Its effect is also conditional on occupation, gender, and residential location. However, the impact of domestic remittances on the decision to participate in the non-domestic labour activity is mixed by residential location. Labour participation decisions for rural adults has increased but decreased for the urban. Its effect on the labour participation decisions in temporary paid jobs is also positive. On the other hand, this study finds that child labour participation decisions and hours worked are neither affected by the amount of foreign and domestic remittances nor by remittance-receiving status. The econometric technique applied logit and Tobit models, and a robustness check has been carried out using the per adult equivalent amount of remittances. This study suggested that further studies to identify causes for the negative effects on labour participation decisions and hours worked are critical to designing an appropriate policy. However, since it increases adult labour participation in rural areas and participation in temporary paid jobs, enabling policies to increase domestic remittances are highly important.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2093821
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2093821
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# input file: OAEF_A_2085605_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Edward Ebo Onumah
Author-X-Name-First: Edward Ebo
Author-X-Name-Last: Onumah
Author-Name: Prince Addey Owusu
Author-X-Name-First: Prince
Author-X-Name-Last: Addey Owusu
Author-Name: Akwasi Mensah-Bonsu
Author-X-Name-First: Akwasi
Author-X-Name-Last: Mensah-Bonsu
Author-Name: Henry Acquah Degraft
Author-X-Name-First: Henry
Author-X-Name-Last: Acquah Degraft
Title: Rice price volatility and transmission: implications for food security in Ghana
Abstract:
This paper examines price volatility and transmission of rice markets in Ghana and draws implications for food security. Using monthly rice price data from 2013 to 2019, the paper uses the Autoregressive Distributed Lag (ARDL) with an Error Correction Model (ECM) to ascertain the availability and accessibility of rice, whilst the Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model is considered to measure the stability of the commodity. The paper finds evidence of cointegration between the World and Ghana’s rice market. Findings confirm cointegration in Ghana’s regional markets for both imported and domestically produced rice. This ensures stable long-run relationship, allowing trade flows that guarantees rice availability. The corrections in short-run deviations of price ensure continuous accessibility of rice in the country. Estimates from the volatility model suggest high fluctuation in prices, implying that stability in the prices of rice is an issue across all regional markets. The paper recommends efforts in increasing domestic production to enhance availability and accessibility of rice. Stakeholders along the rice value chain should be encouraged to invest in competitive rice production. Government should leverage rice prices with giant import countries to reduce the cost of importation for stable price on the market.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2085605
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2085605
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# input file: OAEF_A_2114163_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Tri M. Hoang
Author-X-Name-First: Tri M.
Author-X-Name-Last: Hoang
Title: Active portfolio management for the emerging and frontier markets: the use of multivariate time series forecasts
Abstract:
Employing both the mean-variance framework and the common portfolio risk-optimization, this study adds to the investment research by examining how ideal holdings for emerging and frontier markets (EFM) of the four global regions (Asian, Europe, and Commonwealth of Independent States (Eastern + Central), Africa, and Latin America and the Caribbean) differ from the benchmark (MSCI EFM (World) index) weights. MSCI previously stood for Morgan Stanley Capital International. The optimal weights were computed for the MSCI Asia, MSCI Europe, MSCI Africa, MSCI Latin America, and MSCI Caribbean for four unique schemes: historical variance (HV), global-minimum variance (GMV), μ-fixed minimum variance (MV), and market timing (MT). The portfolio study shows that the market timing (MT) portfolio performs well, with only the fixed minimum variance (MV) portfolio outperforming it overall. In terms of steady and positive returns in 2019 and beyond, the MT portfolio emerges as the best. Also, the volatility forecasts generated from multivariate time series models can be successfully converted into higher portfolio returns using quantitative investment approaches if the right balance of volatility modelling and portfolio strategy is determined. Given the well-functioning MT portfolio, this study offers some implications for scholars and funding managers based on the risk-return trade-off.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2114163
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2114163
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# input file: OAEF_A_2109273_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Nguyen Chi Hai
Author-X-Name-First: Nguyen Chi
Author-X-Name-Last: Hai
Author-Name: Huynh Ngoc Chuong
Author-X-Name-First: Huynh Ngoc
Author-X-Name-Last: Chuong
Author-Name: Tra Trung
Author-X-Name-First: Tra
Author-X-Name-Last: Trung
Title: Linkages and development of local industrial space: Research in the key economic region of Southern Vietnam
Abstract:
The aim of this study is not only to define the industrial development space of the region in Vietnam, but also to assess the linkage in local industrial development. Research space in the Southern Key Economic Region—Vietnam’s most vibrant industrial production region—is based on the approach in both aspects: output value and agglomeration of production enterprises through the number of businesses. By taking a diversified approach from defining the growth linkage indicator to simulating the industrial structure pattern by the network, and using the regression model with the industrial production enterprise data of the Region in the period 2011 − 2019. The research result shows that there has been a significant increase in the linkage to the development of industrial space in the Region. Besides, the pattern of industrial development space of the Region has both increased the production value in the central areas and spread the industrial bases established in other localities in the Region. From scientific findings, this paper gives policy implications as well as contributes to some improvements in assessing, analyzing and verifying industrial development space in the locality, especially for developing economies like Vietnam.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2109273
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2109273
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# input file: OAEF_A_2037250_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Teguh Dartanto
Author-X-Name-First: Teguh
Author-X-Name-Last: Dartanto
Title: Natural disasters, mitigation and household welfare in Indonesia: Evidence from a large-scale longitudinal survey
Abstract:
Households around the world as well as in Indonesia have become exposed to a wider variety of vulnerabilities and risks in recent years due to an increase in the intensity and scope of natural disasters. This study aims to comprehensively examine the impact of natural disasters on Indonesian household welfare (consumption and poverty) using the Indonesian Family Life Survey (IFLS) of Wave 3 and 4. This study finds that households in rural areas are the most vulnerable to natural disasters; the average asset losses and medical/funeral costs from natural disasters are roughly USD 2,190/household. Our econometric models confirm that earthquakes are the most destructive disaster to affect household welfare, whereas droughts, forest fires, floods, and other disasters appear to have only moderate effects. Earthquakes reduce households’ probability of being non-poor by 5 percentage points. Disaster mitigation and preparedness play a significant role in reducing the devastating impacts of disasters and in lessening households’ vulnerability to poverty. The policy recommendations resulting from this study include advancing the provision of life and health insurance, promoting food buffers, and increasing households’ access to formal credit institutions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2037250
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2037250
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# input file: OAEF_A_2024358_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Trang Van Thi Do
Author-X-Name-First: Trang Van Thi
Author-X-Name-Last: Do
Author-Name: Duong Thuy Phan
Author-X-Name-First: Duong Thuy
Author-X-Name-Last: Phan
Title: Debt maturity structure and investment decisions: Evidence of listed companies on Vietnam’s stock market
Abstract:
The article analyzes the impact of debt maturity structure and other factors on investment decisions of enterprises listed on the Vietnam’s stock market from 2010 to 2019. Data used in this study are acquired from the financial statements of 558 enterprises listed on both the Ho Chi Minh and Hanoi stock exchanges in the period 2010–2019, from the FiinPro database. S-GMM regression method is utilised to analyze the influence of debt maturity structure and other factors on investment decisions of listed companies. The analysis results shows that the debt maturity structure has a positive impact on the investment decision of the enterprises. Besides, the profitability of total assets and the fixed assets turnover also have a positive impact on the investment decision of the enterprise, while liquidity and cash flow have a negative impact on investment decisions. Based on empirical results, the study proposes some recommendations to help the managers of listed companies to build a reasonable debt maturity structure in the direction of using more long-term debts to increase investment efficiency. At the same time, the study recommends some policy implications for the Government in managing macroeconomic policies in order to create favourable conditions for businesses to access many long-term capital sources.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2024358
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2024358
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# input file: OAEF_A_2132644_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Muhammad Bilal
Author-X-Name-First: Muhammad
Author-X-Name-Last: Bilal
Author-Name: Bernhard Brümmer
Author-X-Name-First: Bernhard
Author-X-Name-Last: Brümmer
Author-Name: Jan Barkmann
Author-X-Name-First: Jan
Author-X-Name-Last: Barkmann
Title: A discussion on the outcomes of adopted agricultural technological products and specific sustainable development goals: Evidence from Pakistan
Abstract:
Establishing a link between specific sustainable development goals (SDGs) and the outcomes of adopted agricultural technological products is lacking in developing countries. Therefore, this study aims to address food security SDG 02 by adopting crop protection products of multinational brands versus sub-standard crop protection products SDG 12 by smallholder farming households. We employ endogenous switching probit models using a survey of smallholder farming households in the cotton-wheat zone in Pakistan. Full information maximum likelihood estimates illustrate that comparative advantage guide the adoption of crop protection products of multinational brands (CMBs). Our findings suggest that adopting CMBs rather than sub-standard crop protection products may translate as a responsible farming practice if assuming the use of crop protection products is inevitable. In sum, CMBs enhance food security and can play a vital role in the current debate on responsible consumption and production, particularly for sustainable development. Our findings also indicate that promoting agricultural extension information via radio broadcasts has a significant and positive relationship with adoption. Hence, it stands out as the most promising policy option.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2132644
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2132644
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# input file: OAEF_A_2023270_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Vo Xuan Hoi
Author-X-Name-First: Vo Xuan
Author-X-Name-Last: Hoi
Author-Name: Nguyen Duc Quyen
Author-X-Name-First: Nguyen Duc
Author-X-Name-Last: Quyen
Author-Name: Do Thi Thanh Xuan
Author-X-Name-First: Do Thi Thanh
Author-X-Name-Last: Xuan
Author-Name: Bui Ngoc Tan
Author-X-Name-First: Bui Ngoc
Author-X-Name-Last: Tan
Author-Name: Nguyen Thi Phuong Thao
Author-X-Name-First: Nguyen Thi Phuong
Author-X-Name-Last: Thao
Author-Name: Le The Phiet
Author-X-Name-First: Le The
Author-X-Name-Last: Phiet
Author-Name: Nguyen Dat
Author-X-Name-First: Nguyen
Author-X-Name-Last: Dat
Author-Name: Thai Thanh Ha
Author-X-Name-First: Thai Thanh
Author-X-Name-Last: Ha
Author-Name: Le Duc Niem
Author-X-Name-First: Le Duc
Author-X-Name-Last: Niem
Title: Training, technology upgrading, and total factor productivity improvement of farms: A case of cassava (Manihot esculenta Crantz) production in Dak Lak province, Vietnam
Abstract:
This study focused on analyzing the determinants of technology upgrading and productivity growth in cassava production of farms in Dak Lak province from 2015 to 2018. Using the Data Envelopment Analysis method (DEA) to obtain the Malmquist indices of the total factor productivity (TFPCH) and decomposing it into technical efficiency change (EFCH) and technological change (TECHCH), we found a general improvement in productivity of the farms. Meanwhile, general technology upgrading was observed, but the technical efficiency of the farms was reduced. From logistic regression analyses, it is shown that institutional factors such as technical training and accessibility to banks and economic factors such as capital stock of farms increase the probability of productivity growth in the farms. However, technical training is the only factor that significantly contributed to the likelihood of the technology upgrading of the farms. In particular, we did not find household characteristics such as gender, ethnicity, schooling, and experience in cassava production significantly impact the farms’ technology upgrading and productivity growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2023270
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2023270
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# input file: OAEF_A_2068240_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Sayantan Kundu
Author-X-Name-First: Sayantan
Author-X-Name-Last: Kundu
Author-Name: Kamran Quddus
Author-X-Name-First: Kamran
Author-X-Name-Last: Quddus
Author-Name: Nistala Jagannath Sharma
Author-X-Name-First: Nistala
Author-X-Name-Last: Jagannath Sharma
Title: Does halo effect of innovative firms moderate the impact of working capital efficiency on firm value? Evidence from India
Abstract:
The purpose of this study is to examine whether perceived innovativeness moderates the relationship between working capital management (WCM) and firm value. The study uses a sample of 200 listed Indian firms for 2015–2019. The firms are classified into innovative and non-innovative categories using the OECD and the EU Industrial R&D Investment Scoreboard 2018. Using OLS and GMM-DPD estimations, the study finds in accordance with the prior literature that a sample of firms exhibits a positive relationship between WCM efficiency and firm value. The original contribution of the paper is finding that low R&D and high R&D firms are treated differently when investors factor WCM into prices. The firms belonging to industries that are perceived to be innovative are not penalised in terms of valuation even if they follow inefficient WCM. However, firms that belong to industry sectors that are perceived to be non-innovative experience a drop in their valuation if their WCM is inefficient. The authors argue that this difference is due to the halo effect of innovative firms. The results imply that the halo effect obscures the true valuation. Hence, investors should learn to avoid valuing innovative firms’ WCM based merely on their classification into an innovative industry sector.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2068240
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2068240
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# input file: OAEF_A_2139916_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Nga Nguyen Hong
Author-X-Name-First: Nga
Author-X-Name-Last: Nguyen Hong
Author-Name: Loan Vo Thi Kim
Author-X-Name-First: Loan
Author-X-Name-Last: Vo Thi Kim
Author-Name: An Pham Hoang
Author-X-Name-First: An
Author-X-Name-Last: Pham Hoang
Author-Name: Cuong Tran Quoc Khanh
Author-X-Name-First: Cuong
Author-X-Name-Last: Tran Quoc Khanh
Title: Understanding exchange rate pass-through in Vietnam
Abstract:
Price stability is the ultimate objective of the State Bank of Vietnam (SBV). In addition, in a small export-led economy, such as Vietnam, the study of exchange rate volatility is crucial for the country’s economy due to its impact on inflation via exchange rate pass-through (ERPT). This study investigated ERPT in Vietnam by employing both autoregressive distributed lag (ARDL) and nonlinear-ARDL (NARDL) approaches with data spanning from January 2009 to May 2020. Our main findings suggest that the exchange rate and money supply are the two most important factors influencing the consumer price index (CPI) and explain the change in the CPI structure using the threshold model. In addition, the transition to a central-rate mechanism successfully lowered the inflation rate in Vietnam. Furthermore, the NARDL model displays short- and long-run exchange rate asymmetries. Based on this evidence, several policy implications are provided to support price-level stability.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2139916
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2139916
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# input file: OAEF_A_2124737_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Alemayehu Abebe Wake
Author-X-Name-First: Alemayehu Abebe
Author-X-Name-Last: Wake
Author-Name: Teferi Tolera
Author-X-Name-First: Teferi
Author-X-Name-Last: Tolera
Author-Name: Tamiru Chalchisa Geleto
Author-X-Name-First: Tamiru
Author-X-Name-Last: Chalchisa Geleto
Title: Impacts Of Fishing On The Rural Household Income; Evidence From Ethiopian Rift-Valley
Abstract:
Fish farming is a vital resource to fight poverty and food insecurity through the diversification of income sources. However, little has been investigated on its actual contributions to increase household income. This study envisages the impacts of fishing on the household income in Lume District, Ethiopian Rift valley. The quasi-experimental research design was used. Both qualitative and quantitative data were collected from both primary and secondary sources. Two-stage stratified sampling procedures were employed and about 374 sample households (about 202 non-fishing and 172 fishing households) were randomly selected. Structured interview schedules, key informant interviews, and focused group discussions were employed to collect the relevant data. Descriptive statistics (frequency, percentage, mean, and standard deviation) and the Propensity score matching method were employed to analyze the data. STATA V.13 software was used as an analytical tool. Fishing and non-fishing households had earned an annual income of about 36,914.85 and 31,768.43 Ethiopian Birr per year respectively. The model output reveals that the average treatment effect on the treated is about ETB 5146.42 and the mean difference in the average effect of the treatment on the treated between the matched treatment and control groups was found to be statistically significant at a 5% significance level. Overall, participation in fishing has generated about a 7.5% increase in farm annual income of treated households over control groups. It can be concluded that participation in fishing has brought a positive and significant impact on improving a household’s annual income status in the study area. Therefore, special attention should be given by governmental and non-governmental organizations to improve the fish and aquaculture sector in the area through the introduction and dissemination of innovations that can enhance fish productivity in the study area.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2124737
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2124737
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# input file: OAEF_A_2114172_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mohammad Shahfaraz Khan
Author-X-Name-First: Mohammad Shahfaraz
Author-X-Name-Last: Khan
Author-Name: Mohd Yousuf Javed
Author-X-Name-First: Mohd Yousuf
Author-X-Name-Last: Javed
Author-Name: Mohammad Hasan
Author-X-Name-First: Mohammad
Author-X-Name-Last: Hasan
Title: Do sustainable investments propel the national economy? Evidence from manufacturing and service sectors in India
Abstract:
This study is conducted to identify the various sustainability initiatives by the Indian manufacturing and service industry, which are listed in BSE 100. Moreover, the present study indicates the impact of sustainability initiatives on financial performance.A comparative analysis has been conducted between the manufacturing and service sectors. The present study is descriptive and causal design. The sample contains 75 firms listed on BSE 100 and data collected from CMIE Prowess IQ. Panel data regression has been used to check the effect of sustainability measures on financial performance. The significant findings of this study are that investing in sustainability measures has a significant impact on the financial performance of the companies in both sectors; however, in the service sector, sustainability has more impact than in the manufacturing industry. The study’s implications have been classified into broad categories: academic and managerial implications.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2114172
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2114172
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# input file: OAEF_A_2043571_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Hwai-Shuh Shieh
Author-X-Name-First: Hwai-Shuh
Author-X-Name-Last: Shieh
Author-Name: Yang Li
Author-X-Name-First: Yang
Author-X-Name-Last: Li
Author-Name: Jin-Li Hu
Author-X-Name-First: Jin-Li
Author-X-Name-Last: Hu
Author-Name: Yong-Ze Ang
Author-X-Name-First: Yong-Ze
Author-X-Name-Last: Ang
Title: A Comparison of Efficiency of Life Insurance Companies in Mainland China and Taiwan Using Bootstrapped Truncated Regression Approach
Abstract:
For strategic and competitive insights, this study measures and benchmarks the comparative operating efficiencies of insurance companies in Taiwan and mainland China. We employ the two-stage DEA with the bootstrapped truncated regression approach to examine the overall efficiency of insurance companies in Taiwan and mainland China during 2005-2011. Empirical results reveal that the savings rate, elderly population percentage, and business freedom positively affect the managerial efficiency of life insurance companies in Taiwan and mainland China, while GDP growth rate, inflation rate, corruption index, and climate risk negatively affect their managerial efficiency.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2043571
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2043571
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# input file: OAEF_A_2111057_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Hasan Mukhibad
Author-X-Name-First: Hasan
Author-X-Name-Last: Mukhibad
Author-Name: Ahmad Nurkhin
Author-X-Name-First: Ahmad
Author-X-Name-Last: Nurkhin
Author-Name: Kuat Waluyo Jati
Author-X-Name-First: Kuat
Author-X-Name-Last: Waluyo Jati
Author-Name: Prabowo Yudo Jayanto
Author-X-Name-First: Prabowo
Author-X-Name-Last: Yudo Jayanto
Title: Corporate governance and Islamic law compliance risk
Abstract:
This study examines the influence of the Shariah Supervisory Board (SSB), Board of Directors (BOD), Risk Officers (RO), Audit Committee, and market competition (Lerner) on the Islamic Law Compliance Risk (ILCR). We use a sample of full-fledged Islamic banks in Indonesia with an observation period of 2009–2019. Data analysis uses Fixed Effect Model (FEM). Our results show that SSB and BOD are not proven to be able to control ILCR. ILCR can be decreased by increasing the number of audit committees and the proportion of independent RO. In addition, the Lerner index has a positive influence ILCR. The results of the robustness test also confirm the results of this study. This research extends the previous studies on evaluating the risk-taking of Islamic Banks beyond the common risk (insolvency, liquidity, credit, and market), particularly the unique risks faced by Islamic banks. This study recommends increasing the effectiveness of SSB and BOD supervision on bank operations, increasing the ILCR.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2111057
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111057
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# input file: OAEF_A_2124665_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Khalil Alnabulsi
Author-X-Name-First: Khalil
Author-X-Name-Last: Alnabulsi
Author-Name: Emira Kozarević
Author-X-Name-First: Emira
Author-X-Name-Last: Kozarević
Author-Name: Abdelaziz Hakimi
Author-X-Name-First: Abdelaziz
Author-X-Name-Last: Hakimi
Title: Assessing the determinants of non-performing loans under financial crisis and health crisis: evidence from the MENA banks
Abstract:
The main objective of this paper is to investigate determinants of non-performing loans in the Middle East and North Africa region by exploring the role of bank-specific and macroeconomic factors, particularly in the period of the global financial crisis, as well as the COVID-19 pandemic, as a health crisis that translates to an economic crisis. This study includes 74 banks belonging to 11 MENA countries over the period 2005–2020 and uses the two-stage system generalized method of moment estimator. To conduct a comparative analysis, the whole sample is divided into two sub-samples. The first one is related to the Middle East countries and the second one covers North African countries. The empirical findings indicate that the level of non-performing loans is more sensitive to bank specifics than macroeconomic factors. When it comes to macroeconomic factors, macroeconomic environment and institutional quality significantly affect the level of NPLs. However, no significant effect has been detected regarding the impact of the COVID-19 pandemic.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2124665
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2124665
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# input file: OAEF_A_2111782_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Kentaro Koyama
Author-X-Name-First: Kentaro
Author-X-Name-Last: Koyama
Title: The Bank of Japan’s equity exchange-traded funds purchasing operation and its impact on equity returns
Abstract:
The Bank of Japan (BoJ) conducts an unconventional monetary policy that includes exchange-traded fund (ETF) purchases, which can be expected to affect aggregate equity indices. As equity ETF purchases represent a unique and exceptional monetary policy framework, there are few studies on how such purchases have affected the stock markets or the real economy. The motivation of this paper is therefore to reveal the effectiveness of the BoJ’s equity ETF purchases and contribute to the broad literature on unconventional monetary policy by providing new insights. Ordinary least squares regression analysis is conducted to examine the effects of the BoJ’s ETF purchases and determine whether they are predictable, the effect of expected versus unexpected purchases on aggregate equity indexes differs, and price effects are long lasting. Since the October 2014 increase in the annual volume of ETF purchases by the BoJ, such purchases have become less predictable. Expected purchases do not affect prices, whereas unexpected purchases have a significant, positive price impact. However, this impact is found to be temporary in nature.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2111782
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111782
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2111782
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# input file: OAEF_A_2157118_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Umar Farooq
Author-X-Name-First: Umar
Author-X-Name-Last: Farooq
Author-Name: Mosab I. Tabash
Author-X-Name-First: Mosab I.
Author-X-Name-Last: Tabash
Author-Name: Suhaib Anagreh
Author-X-Name-First: Suhaib
Author-X-Name-Last: Anagreh
Author-Name: Mamdouh Abdulaziz Saleh Al-Faryan
Author-X-Name-First: Mamdouh Abdulaziz
Author-X-Name-Last: Saleh Al-Faryan
Title: Economic policy uncertainty and corporate investment: Does quality of governance matter?
Abstract:
A stable economic condition is crucial for an organization’s success. Any fluctuation in economic policy directly influences corporate-level decisions. However, exercising better governance can mitigate the adverse effect of such unstable economic conditions. Owing to this, the current research tends to disclose the impact of economic policy uncertainty (EPU) on corporate investment decisions and how this impact varies across countries having better governance quality. To achieve the underlying objective, we use the data for the years 2010–2019 of publicly listed enterprises from 6 Asian economies. The empirical analysis was performed by employing the generalized least square (GLS) and GMM techniques. The statistical analysis reveals an inverse relationship between EPU and corporate investment while a direct relationship between governance quality and corporate investment. In addition to individual impact, better governance quality can mitigate the magnitude of the adverse impact of EPU on corporate investment. Better governance can diversify the negative impacts of EPU by protecting investor rights, eliminating information asymmetric, and enhancing policy stability. Based on empirical analysis, the policy officials are directed to exert efforts for exercising better governance. Similarly, corporate managers are advised to consider the current economic situation while formulating any strategy relating to physical investment. This study is innovative as it reinforces the significance of better governance in disentangling the adverse impacts of EPU on corporate investment.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2157118
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2157118
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# input file: OAEF_A_2142308_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Thando Mkhombo
Author-X-Name-First: Thando
Author-X-Name-Last: Mkhombo
Author-Name: Andrew Phiri
Author-X-Name-First: Andrew
Author-X-Name-Last: Phiri
Title: Investigating Fisher effect in SACU countries: A wavelet coherence approach
Abstract:
The purpose of this study is to examine the time-frequency relationship in the Fisher’s effect for South African Customs Union (SACU) countries using continuous wavelet transforms. We use the Wavelet power spectrum to decompose the nominal interest rate and inflation rate across a time frequency space and then employ wavelet coherence tools to investigate the synchronization of the pair of time-series in a time-frequency space. The wavelet tools prove to be a powerful tool in harmonizing seemingly conflicting empirical evidences found in previous literature. Our findings indicate similar co-movement between interest rates and inflation for SACU countries in the post-2000 period, with stronger Fisher effects existing around the global financial crisis, and evidence of reverse lead-lag dynamics at higher frequencies during crisis period. However, subsequent to the crisis period lower frequency oscillation become increasingly dominant as higher frequency components lose their significance up until the COVID-19 pandemic when the high-frequency components re-appear. All-in-all, our findings have important academic and policy implications.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2142308
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2142308
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# input file: OAEF_A_2074627_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Dominic Chakuri
Author-X-Name-First: Dominic
Author-X-Name-Last: Chakuri
Author-Name: Freda Elikplim Asem
Author-X-Name-First: Freda Elikplim
Author-X-Name-Last: Asem
Author-Name: Edward Ebo Onumah
Author-X-Name-First: Edward
Author-X-Name-Last: Ebo Onumah
Title: Bayesian technical efficiency analysis of groundnut production in Ghana
Abstract:
This paper considered Bayesian Stochastic Frontier Model to analyse technical efficiency and their determinants of groundnut farmers in Ghana. The paper used a cross-sectional data of three-hundred (300) observations to obtain posterior distributions of the farmers’ technical efficiency levels. All computations were done using Markov Chain Monte Carlo methods (MCMC). Results revealed that the groundnut farmers produce at an increasing return to scale of 1.10. Average technical efficiency of the farmers was found to be 70.5%, ranging from a minimum of 13.0% to a maximum of 95.1%. Frequency of extension visit, educational level and gender of the farmers were identified to significantly explain inefficiency of the farmers. The paper concluded that groundnut farmers in the northern part of Ghana are operating in the first stage of the production function and could increase their frontier output by 29.5%.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2074627
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2074627
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# input file: OAEF_A_2111786_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Anzel Van den Bergh-Lindeque
Author-X-Name-First: Anzel
Author-X-Name-Last: Van den Bergh-Lindeque
Author-Name: Sune Ferreira-Schenk
Author-X-Name-First: Sune
Author-X-Name-Last: Ferreira-Schenk
Author-Name: Zandri Dickason-Koekemoer
Author-X-Name-First: Zandri
Author-X-Name-Last: Dickason-Koekemoer
Author-Name: Thomas Habanabakize
Author-X-Name-First: Thomas
Author-X-Name-Last: Habanabakize
Title: What makes risk-averse investors tick? A practitioners guide
Abstract:
The real challenge to many practitioners in the financial and investment sector is to accurately profile risk-averse investors to still be inclusive of these investors in the wealth creation process. This study aims to profile risk-averse investors through a structural equation model based on endogenous and exogenous factors. The final sample size consisted of 463 individual investors in the economic hub of South Africa, Gauteng province. These endogenous and exogenous factors may bring about increases or decreases in the risk tolerance levels of investors and accordingly, influence their decisions to initiate, amend or terminate financial behaviours. These factors significantly contributed towards explaining low-risk tolerance behaviour, which assisted with the successful development of a model to profile the risk tolerance behaviour of risk-averse investors. This risk profiling model makes a remarkable and unique contribution to the field of study and the financial industry, since it will assist financial practitioners to profile the risk tolerance behaviour of risk-averse investors more accurately, which will lead to the successful implementation of investment strategies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2111786
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111786
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# input file: OAEF_A_1986932_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Janet Sigara Nyamamba
Author-X-Name-First: Janet Sigara
Author-X-Name-Last: Nyamamba
Author-Name: Oscar Ingasia Ayuya
Author-X-Name-First: Oscar Ingasia
Author-X-Name-Last: Ayuya
Author-Name: Kenneth Waluse Sibiko
Author-X-Name-First: Kenneth Waluse
Author-X-Name-Last: Sibiko
Title: Determinants of side selling behaviour in emerging sorghum supply chains in Kisumu County, Kenya
Abstract:
Vertical coordination in agriculture has received popularity in recent years. They have emerged to transform farm enterprises from subsistence farming to commercially oriented production. Despite the importance attached to them, some farm enterprise owners are involved in side selling even though they are committed to specific vertical coordination strategic options. Factors influencing this behaviour are still unclear in the empirical literature. This study intends to bridge this gap by determining the extent of side selling in sorghum supply chains in Kisumu County. A stratified sampling technique was used to collect data from 266 sorghum farm enterprises. Primary data was obtained through interviews using a pre-tested semi-structured questionnaire administered by trained enumerators. The study used Fractional Response Model to determine the extent of side selling among sorghum farm enterprises. Results from Fractional Response Model reveal that farming experience, better prices from alternative markets, neighbourhood effect, frequency of contacts, low bargaining power and network externalities influence side selling positively. Whereas other forms of income, land size, credit access and trust reduces the probability of side selling. These results indicate that policymakers should generate policies that will strengthen the legal institutions in agriculture regarding breaching of agreements reducing the side selling behaviours of sorghum producers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.1986932
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1986932
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# input file: OAEF_A_2139915_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ricardo Ferraz
Author-X-Name-First: Ricardo
Author-X-Name-Last: Ferraz
Title: The golden age of the world economy and Portuguese economic growth: applied study, 1950-2018
Abstract:
During the Golden Age (1950–1973), Portugal stood out in the international scene, converging economically with the group of more industrialised economies. In this paper, we start by analysing the main factors that explain the extraordinary economic performance of Portugal during that crucial period of its history. Next, we construct and estimate a dynamic model to quantify the relationship between those factors and the Portuguese economic growth in the time horizon that stretches from the Golden Age to present days. The results obtained show that investment and international trade have been contributing positively to economic growth of Portugal in the last decades, 1950–2018. The conclusions of this paper, which are in line with the international literature, reinforce the importance for Portuguese decision-makers to adopt political measures to open the economy and to create favourable conditions for investment in order to obtain a faster economic growth that allows a robust convergence with the most industrialized nations.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2139915
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2139915
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# input file: OAEF_A_2114658_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Thanh Phuc Nguyen
Author-X-Name-First: Thanh Phuc
Author-X-Name-Last: Nguyen
Author-Name: Tho Ngoc Tran
Author-X-Name-First: Tho Ngoc
Author-X-Name-Last: Tran
Author-Name: Thi Thu Hong Dinh
Author-X-Name-First: Thi Thu Hong
Author-X-Name-Last: Dinh
Author-Name: Tri M. Hoang
Author-X-Name-First: Tri M.
Author-X-Name-Last: Hoang
Author-Name: Trang Duong Thi Thuy
Author-X-Name-First: Trang
Author-X-Name-Last: Duong Thi Thuy
Title: Drivers of climate change in selected emerging countries: the ecological effects of monetary restrictions and expansions
Abstract:
Drivers of environmental quality have recently been identified in a large body of literature. However, the ecological effects of both regimes of monetary policy remain under-explored so far. Moreover, previous studies use limited samples and econometric approaches. Climate change from the empirical perspective of the country’s monetary policy has recently become a promising avenue to investigate. Motivated by the aforementioned research gaps and increasing attention from energy researchers and policy-makers, this research aims to test the monetary restrictions and expansion on climate change represented by CO2 emissions, after controlling other significant drivers. We use a dataset from 1998 to 2018 for a sample of 14 selected emerging economies and quantitatively advanced techniques for panel data analysis, such as Ordinary Least Squares (OLS), Dynamic OLS, Fully-Modified OLS, and Panel Quantile Regression. We also use a two-step system generalized method of moments to avoid concerns about endogeneity and heteroskedasticity issues. We find strong evidence that contractionary and expansionary monetary policy both eliminate and escalate the environmental degradation through an increase in CO2 emissions, respectively. Moreover, these ecological effects of monetary policy interestingly appear in the middle and large quantiles of CO2 levels. Based on these findings, the research offers some key implications for policymakers looking to initiate green monetary policy for carbon abatement.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2114658
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2114658
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# input file: OAEF_A_1978706_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Navitha Singh Sewpersadh
Author-X-Name-First: Navitha Singh
Author-X-Name-Last: Sewpersadh
Title: An econometric analysis of financial distress determinants from an emerging economy governance perspective
Abstract:
During times of distress, companies are compelled to reassess operational policies and reengineer strategic formulations to discern value maximising uses for limited resources. The executive’s agility to react to financial distress determines the probability of bankruptcy. Proper governance drives sound and sustainable, value maximising decision-making, while inept practices lead to value diminishing, self-serving behaviour that financially constrains companies, resulting in an acceleration of financial distress. This study examined the correlation between financial distress and corporate governance within a sample of 116 listed South African companies using the GMM estimation. Key financial distress determinants were found to be audit committees and shareholder activism (proxied by equity ownership) that may deter investor apathy, “director opportunism” and CEO dominance. Also, long-tenured CEOs and post-graduate directors possess contextually enriched latent knowledge that may assist distressed firms, particularly if the trade-offs between director’s remuneration and governance is well managed. Furthermore, the K-score model served as a robust financial distress proxy since it allowed the interrogation of grey zone companies. These findings provided financial distress determinants aiding decision-making for ailing businesses to avoid liquidation, which can be of use to regulatory bodies and policymakers in developing sustainable governance strategies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.1978706
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1978706
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# input file: OAEF_A_2099501_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Minh Ngoc Ngo
Author-X-Name-First: Minh Ngoc
Author-X-Name-Last: Ngo
Author-Name: Thuc Ngoc Nguyen
Author-X-Name-First: Thuc Ngoc
Author-X-Name-Last: Nguyen
Title: Financial development and business growth: A case of the Southern Key Economic Region
Abstract:
This paper employs generalized methods of moment (GMM) to analyze the enterprise data set collected from the General Statistics Office in the period 2005–2018 to provide insight on the influence of financial development on business growth: the case of the Southern Key Economic Zone (SKEZ). The empirical results indicate that financial development plays an important role in business growth. However, providing financing to offset scale has the potential to increase sales but reduce business growth. Thus, businesses in the SKEZ need to carry out some following points. First, corporate managers not only focus on growth and considering as important as sales and productivity throughout their operations but on strengthening the depth of the financial system to allow businesses to get favorable conditions to receive external financial sources. Second, policymakers should promote a well-developed financial system that can ease credit constraints for businesses.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2099501
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2099501
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2099501
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# input file: OAEF_A_2087286_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Le Ha Diem Chi
Author-X-Name-First: Le Ha Diem
Author-X-Name-Last: Chi
Author-Name: Le Dinh Hac
Author-X-Name-First: Le Dinh
Author-X-Name-Last: Hac
Author-Name: Nguyen Quang Nhat
Author-X-Name-First: Nguyen Quang
Author-X-Name-Last: Nhat
Author-Name: Bui Thi Thu Hang
Author-X-Name-First: Bui Thi Thu
Author-X-Name-Last: Hang
Title: Corporate environmental responsibility and financial performance: The moderating role of ownership structure and listing status of Vietnam banks
Abstract:
The study aims to provide empirical evidence for a one-way relationship between corporate environmental responsibility (CER) and financial performance (FP) in the banking industry, with special consideration into the moderating role of legal regulations and ownership structures. Net interest margin (NIM), return on assets (ROA), return on equity (ROE) are selected to measure FP while the content analysis method is adopted to examine CER. The study used regression analysis with the two-step system generalised method of moments (Sys-GMM) on a sample of 29 Vietnamese commercial banks from 2012 to 2019, and the positive impacts of CER on banks’ FP were identified. Analysis of these data revealed that listed banks have a higher level of information disclosure than unlisted banks, but the positive relationship between CER and FP is weaker in listed banks. Similarly, while state-owned banks have a higher degree of disclosure than privately-controlled banks, the relationship between their CER and FP is weaker. The paper also provides some recommendations and suggests future research implications.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2087286
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2087286
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# input file: OAEF_A_2050495_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Onyebuchi Iwegbu
Author-X-Name-First: Onyebuchi
Author-X-Name-Last: Iwegbu
Author-Name: Kainu Justine
Author-X-Name-First: Kainu
Author-X-Name-Last: Justine
Author-Name: Leonardo Chaves Borges Cardoso
Author-X-Name-First: Leonardo Chaves
Author-X-Name-Last: Borges Cardoso
Title: Regional financial integration, financial development and industrial sector growth in ECOWAS: Does institution matter?
Abstract:
Regional economies seek to promote growth through industrialisation and literature suggests that developing the financial system, integrating the financial system within a sound institutional framework can promote industrial output. This study fills the gap by examining the impact of financial development and regional financial integration on ECOWAS’ industrial sector. This study assesses whether regional financial integration and financial development have a stronger effect on the growth of the industrial sector of ECOWAS member countries that have high level of institutional quality than it does in countries with lower level. Major findings from the study reveals that deepening regional financial integration can only enhance the industrial output of ECOWAS member countries that has sound institutional quality framework; this is important and is a strong enhancing factor for member countries experiencing low industrial sector output. Credit to the private sector alone both for countries with low industrial output and countries with high industrial output does not improve the level of industrial performance. However, for countries that have low industrial output with a stronger institutional quality framework, increases in credit to the private sector will increase the level of industrial output compared to countries with a higher level of industrial output. Increasing the level of money in circulation alone does not improve industrial sector performance; the quantum channeled as credit to the private sector does. An improved institutional framework must be set in place together with an enhanced flow of credit to the private sector in ECOWAS.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2050495
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2050495
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# input file: OAEF_A_2008587_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Patricia Pinamang Acheampong
Author-X-Name-First: Patricia Pinamang
Author-X-Name-Last: Acheampong
Author-Name: Monica Addison
Author-X-Name-First: Monica
Author-X-Name-Last: Addison
Author-Name: Camillus Abawiera Wongnaa
Author-X-Name-First: Camillus Abawiera
Author-X-Name-Last: Wongnaa
Title: Assessment of impact of adoption of improved cassava varieties on yields in Ghana: An endogenous switching approach
Abstract:
The paper assesses the potential impact of the adoption of improved cassava varieties on yields of smallholder farmers. Agricultural intensification is associated with increasing yields per hectare through the use of improved varieties. Studies have established the relationship between adoption and yield, yet this relationship is understudied in the cross-national literature. Using cross-sectional data collected from a randomly selected sample of 1,176 farmers dispersed across Ghana and employing an endogenous switching regression model, the causal impact of improved variety adoption was estimated. Our results revealed that adoption decisions were conditioned by age, extension access, extension visits, awareness and farm size. Also, adoption had a significant positive impact on cassava yields. Adopters had 18 t/ha increases in yields and non-adopters should they have adopted had increases of 10 t/ha. Strategies to resource research extension linkage system to promote and create awareness about the existing improved cassava varieties for increased adoption are recommended.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2008587
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2008587
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# input file: OAEF_A_2028975_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Lindokuhle T Zungu
Author-X-Name-First: Lindokuhle T
Author-X-Name-Last: Zungu
Author-Name: Bongumusa P Makhoba
Author-X-Name-First: Bongumusa P
Author-X-Name-Last: Makhoba
Author-Name: Lorraine Greyling
Author-X-Name-First: Lorraine
Author-X-Name-Last: Greyling
Title: A scrutiny into fiscal policy in the South African economy: A Bayesian approach with hierarchical priors
Abstract:
This study analyses the impact of fiscal policy on the South African economy during the period 1972Q1-2020Q2. The study adopted quarterly time series data to estimate a Bayesian Vector Autoregression (BVAR) model with the selection of hierarchical priors. The variables employed for empirical investigation included GDP, government expenditure, public debt, and gross fixed-capital formation. The results of the study show that an unexpected shock in government expenditure and public debt has a significant negative and persistent impact on economic growth in South Africa, while an unexpected shock in investment has a significant positive effect on economic growth. The findings suggest that escalating public expenditure and public debt lead to economic contraction. This implies that policy-makers ought to be cautious of excessive government expenditure and public debt to achieve fiscal consolidation. Policy-makers ought to focus on addressing structural challenges through the implementation of sound structural reform policies that aim to attract investment consistent with job creation, development and growth in South Africa’s economy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2028975
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2028975
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# input file: OAEF_A_2109274_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Abdullah A. Aljughaiman
Author-X-Name-First: Abdullah A.
Author-X-Name-Last: Aljughaiman
Author-Name: Mohammed Albarrak
Author-X-Name-First: Mohammed
Author-X-Name-Last: Albarrak
Author-Name: Ngan Duong Cao
Author-X-Name-First: Ngan Duong
Author-X-Name-Last: Cao
Author-Name: Vu Quang Trinh
Author-X-Name-First: Vu Quang
Author-X-Name-Last: Trinh
Title: Cost of equity, debt financing policy, and the role of female directors
Abstract:
We examine the role of female directors on firm cost of equity in the context of US-listed firms, and further explore the mediating impact of debt financing policy on such association. Using a dataset of 4619 non-financial firm-year observations covering the period of 2008–2019, we find that firms with female directors on boards are likely to exhibit a lower cost of equity, through relying on a less risky financing decision. The indirect effect is found to take up around 45% of the female-cost of equity association. In addition, our analysis also indicates that the lower debt financing levels are realised only if female representation reaches a critical mass of around 28%. Our findings provide important implications for firms in balancing the gender ratio within their boards to level out their risk-taking through their financing decisions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2109274
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2109274
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# input file: OAEF_A_2058157_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Akindele John Ogunsola
Author-X-Name-First: Akindele John
Author-X-Name-Last: Ogunsola
Author-Name: Christian Kakese Tipoy
Author-X-Name-First: Christian Kakese
Author-X-Name-Last: Tipoy
Title: Determinants of energy consumption: The case of African oil exporting countries
Abstract:
Persistent energy consumption issues are ascribed to the failure of energy planners to understand the various macroeconomic factors that influence energy consumption. Therefore, we investigated the factors influencing energy consumption in six net African oil-exporting countries (AOECs) between 1980 and 2018. Our contribution to the literature is the use of estimators; cross-sectional autoregressive distributed lag (CS-ARDL) and cross-sectional distributed lag (CS-DL) modelling approaches, which take into account the time dynamics, the heterogeneity of different countries and cross-sectional dependence, to explore the relationship between energy consumption and its major determinants, such as openness, economic structure and per capita income. The results revealed that per capita income did not impact significantly on energy consumption in AOECs during the period under study, while trade openness had a positive and significant effect on it. The third variable of interest, namely economic structure, had a negative and significant effect on energy consumption. These results led to various recommendation for policymakers and future research in the concluding section.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2058157
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2058157
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# input file: OAEF_A_2122184_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Norhamiza Ishak
Author-X-Name-First: Norhamiza
Author-X-Name-Last: Ishak
Author-Name: Aminah Shari
Author-X-Name-First: Aminah
Author-X-Name-Last: Shari
Author-Name: Minah Japang
Author-X-Name-First: Minah
Author-X-Name-Last: Japang
Author-Name: Fithriah Ab Rahim
Author-X-Name-First: Fithriah
Author-X-Name-Last: Ab Rahim
Title: Performance of islamic equity and fixed-income funds during the covid-19 pandemic in Malaysia
Abstract:
This article discussed the impact of Covid-19 pandemic on the performance of Equity and Fixed-Income Islamic unit trusts in Malaysia. The study adopted two methods of analysis; (i) empirical analysis using conventional methodologies such as Sharpe, Treynor and Jensen in comparing the 2019 and 2020 performance of Malaysian Islamic fixed-income and Islamic equity unit trust funds, whilst run (ii) in-depth performance review on Islamic unit trusts using systematic literature review. The findings show that both the Islamic unit trust funds and fixed-income equity demonstrated fairly good performance, indicating an outperformed indicator as compared to the established benchmark during the Covid-19 pandemic. Thus, given significant positive insight to the investors would profiting from Islamic mutual or unit trust funds, by offering decent hedging for long-run investment. Second, risk-averting investors may benefit from investing in the diversified portfolios of Islamic equity funds as they have been proven to perform marginally better than conventional funds owing to better risk management.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2122184
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2122184
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# input file: OAEF_A_2012988_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mesele Belay Zegeye
Author-X-Name-First: Mesele Belay
Author-X-Name-Last: Zegeye
Author-Name: Abebaw Hailu Fikire
Author-X-Name-First: Abebaw Hailu
Author-X-Name-Last: Fikire
Author-Name: Anteneh Bezualem Assefa
Author-X-Name-First: Anteneh Bezualem
Author-X-Name-Last: Assefa
Title: Impact of Agricultural Technology Adoption on Food Consumption Expenditure: Evidence from Rural Amhara Region, Ethiopia
Abstract:
The purpose of this study is to examine the impact of agricultural technology adoption on household food consumption expenditure in rural Amhara regional state, Ethiopia. The study is based on the data obtained from the Ethiopian Socioeconomic Survey collected in 2015/16. Household-level data were taken from 656 rural farm households in the Amhara region of Ethiopia. The study used the endogenous switching regression model to estimate the impacts of agricultural technology adoption on household food consumption expenditure per adult equivalent per annum. The result of the study reveals that adopting agricultural technology significantly increases household food consumption expenditure per adult equivalent. Moreover, the difference in household food consumption expenditure per adult equivalent between the actual and counterfactual scenarios is very high. The findings of the study reveal that broader investment in agricultural technology and increased access and adoption of agricultural technologies significantly improve the welfare of farm households.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2012988
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2012988
File-Format: text/html
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# input file: OAEF_A_2154311_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Dasauki Musa
Author-X-Name-First: Dasauki
Author-X-Name-Last: Musa
Author-Name: Oladapo Awolaja
Author-X-Name-First: Oladapo
Author-X-Name-Last: Awolaja
Author-Name: Kwarbai Jerry
Author-X-Name-First: Kwarbai
Author-X-Name-Last: Jerry
Author-Name: Iyabo Okedina
Author-X-Name-First: Iyabo
Author-X-Name-Last: Okedina
Author-Name: Edy-Ewoh Uduakobong
Author-X-Name-First: Edy-Ewoh
Author-X-Name-Last: Uduakobong
Author-Name: Ifayemi Olayinka
Author-X-Name-First: Ifayemi
Author-X-Name-Last: Olayinka
Title: Is the influence of oil prices changes on oil and gas stock prices in Nigeria symmetric or asymmetric?
Abstract:
Overdependence on oil revenue has exposed the economy to shocks from oil price variations. In this paper, we investigated the relationship between oil price on the stock prices of oil and gas firms quoted in the Nigerian Stock Exchange market. In doing so, the ARDL and NARDL approach is applied to estimate quarterly data from 2009q1 to 2016q3. The result from the study showed that negative and positive oil price shocks have a positive long-run influence on stock prices (oil & gas). The evidence further showed that the long-run and short-run impact of an oil price increase on the oil and gas stock price index is similar to that of an oil price decrease. The oil and gas stock price responds positively to oil price shocks in the long run. Therefore, the portfolio managers, potential investors and policymakers in the oil-exporting countries should diversify investments to reduce exposure to risk and uncertainty that may arise to disruptions in the demand and supply for oil and gas or during periods of declining oil prices induced by negative global economic events.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2154311
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2154311
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# input file: OAEF_A_2064079_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Dony Abdul Chalid
Author-X-Name-First: Dony Abdul
Author-X-Name-Last: Chalid
Author-Name: Rangga Handika
Author-X-Name-First: Rangga
Author-X-Name-Last: Handika
Title: Comovement and contagion in commodity markets
Abstract:
This article investigates comovement and contagions in the commodities markets. We examine the comovement by analyzing the unconditional correlation coefficients. We document that commodities tend to partially integrate. We perform contagion tests by identifying coexceedances and estimating multinomial logit to explain the joint occurrence of those coexceedances. We document that commodities price changes tend to affect the probability of both positive and negative coexceedances. Overall, we conclude that there are comovement and contagions among commodities. However, the degrees of comovement and contagion are different among commodities and between positive and negative extreme returns. The contagion among commodities is asymmetric.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2064079
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2064079
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# input file: OAEF_A_2137985_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Eric Amoo Bondzie
Author-X-Name-First: Eric Amoo
Author-X-Name-Last: Bondzie
Author-Name: Mark Kojo Armah
Author-X-Name-First: Mark Kojo
Author-X-Name-Last: Armah
Title: A DSGE model of fiscal stabilizers and informality in Sub-Sahara Africa
Abstract:
This paper investigates the effects of fiscal impulses on macroeconomic variables within a New-Keynesian DSGE framework featuring an informal economy that allows for the examination of the effectiveness of automatic stabilizers in stimulating some selected sub-Saharan African (SSA) economies during crises. Stabilizers were modelled such that fiscal instruments react to their own lagged values and the official sector output. The results indicate that tax hikes lead to sizeable tax evasion and reallocation of factor inputs from the official sector to the shadow sector making the standard aggregate estimates of fiscal policies ineffective while government spending shocks slow down activities in the shadow sector. The findings also showed that automatic stabilizers on government spending (income taxes) stabilized the economy by reducing (raising) output levels even in the presence of the shadow economy. For policy implications, effective implementation of government policies should incorporate the informal sector in macroeconomic modelling, especially for countries with a large informal sector.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2137985
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2137985
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# input file: OAEF_A_2045719_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ismail O. Fasanya
Author-X-Name-First: Ismail O.
Author-X-Name-Last: Fasanya
Author-Name: Oluwafunmilayo A. Akinwale
Author-X-Name-First: Oluwafunmilayo A.
Author-X-Name-Last: Akinwale
Title: Exchange Rate Shocks and Sectoral Stock Returns in Nigeria: Do Asymmetry and Structural Breaks Matter?
Abstract:
This study examines the effect of exchange rate shocks on ten (10) sectoral stock returns in Nigeria from January 2007 to December 2018. The autoregressive distributed lag and nonlinear autoregressive distributed lag are employed to examine symmetric and asymmetric relationship between exchange rate and sectoral stock returns. The result shows that only financial service sector moves in an asymmetric fashion in the short and long period without taking account of structural breaks and with structural breaks, none of the sectoral stock returns were asymmetric. The result shows that exchange rate movement affects the sectors differently. Therefore, this study concludes that a single model cannot fit all the sectoral stock returns because all sectors respond differently to exchange rate movements and the information about a particular sector cannot be used to forecast other sectors. These results offer important insights for investors, regulators and policymakers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2045719
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2045719
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# input file: OAEF_A_2142313_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Takele Atnafu Delele
Author-X-Name-First: Takele Atnafu
Author-X-Name-Last: Delele
Author-Name: Almaz Giziew Adugna
Author-X-Name-First: Almaz Giziew
Author-X-Name-Last: Adugna
Author-Name: Birhanu Melesse Gelaw
Author-X-Name-First: Birhanu Melesse
Author-X-Name-Last: Gelaw
Title: Determinants of soybean (Glycine max.) market supply in Northwestern Ethiopia
Abstract:
Suitable agro ecology and tremendous soybean potential of Ethiopia is the key to produce the crop in large-scale and maintaining a steady supply on the market. Although its demand rises quickly for export and local processing, the current production status is much below the market demand. The factors influencing the supply of soybeans in Northwestern Ethiopia were the main subject of this study. The sample households were chosen using a multistage sampling technique. In this study, data were gathered from 228 respondents that were randomly drawn. The data were obtained mainly from sampled soybean growers via structured interviews with key informant interviews and focus groups for triangulation. Descriptive statistics and multiple linear regression models were employed to analyze the data including one way ANOVA and t-tests. The findings showed that soybean producers’ average productivity was 1.21 tons ha−1, much below the national average of 2.15 tons ha−1, due to the sparse usage of improved seed, fertilizer, and other recommended packages. According to the model results, productivity, lagged price, market information, prior experience with soybean farms, cultivated land, weekly extension contacts, education (preparatory school completion), and credit access all had a positive and significant impact on the quantity of soybean market supply. The results showed that soybeans are the most lucrative and important cash crop for producers in the study area. The availability of improved soybean technologies with full recommended packages boosts their productivity and enables them to guarantee sustainable market supply in order to meet the increased market demand.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2142313
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2142313
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# input file: OAEF_A_2078460_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Uweis Abdulahi Ali Bare
Author-X-Name-First: Uweis Abdulahi
Author-X-Name-Last: Ali Bare
Author-Name: Yasmin Bani
Author-X-Name-First: Yasmin
Author-X-Name-Last: Bani
Author-Name: Normaz Wana Ismail
Author-X-Name-First: Normaz Wana
Author-X-Name-Last: Ismail
Author-Name: Anitha Rosland
Author-X-Name-First: Anitha
Author-X-Name-Last: Rosland
Title: Does financial development mediate the impact of remittances on sustainable human capital investment? New insights from SSA countries
Abstract:
Remittances play an important role in human capital development in sub-Saharan Africa, particularly when it comes to helping families to pay for their children’s education, access health care and alleviate poverty. However, many countries on the continent lack the financial systems to efficiently facilitate the inflows of remittances and allow them to be used to their greatest potential such as investment in education. The education of children is particularly essential if Saharan Africa is to achieve sustainable development goal number four which aims to ensure inclusive and quality education for all by 2030 . This paper examines the impact of remittances on human capital development from 1996–2016 in sub-Saharan Africa and further explores the role financial development in this established nexus. The empirical results revealed that remittances positively influence human capital investment, but when interacted with financial development and regressed on human capital investment, we found remittances impact to be more pronounced and statistically influence human capital. This study recommends that policymakers develop proactive policies that facilitate the inflows of remittances. Our policy suggestions are based on the fact that remittance recipients in SSA countries do not have adequate funds to invest in human capital because of weak financial systems. Financial market reform is therefore paramount for attracting greater remittances into SSA countries which, in turn, could be harnessed to ease credit constraints and allow for greater investment into human capital.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2078460
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2078460
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# input file: OAEF_A_2133356_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Uche Ugwuanyi
Author-X-Name-First: Uche
Author-X-Name-Last: Ugwuanyi
Author-Name: Robinson Ugwuoke
Author-X-Name-First: Robinson
Author-X-Name-Last: Ugwuoke
Author-Name: Edith Onyeanu
Author-X-Name-First: Edith
Author-X-Name-Last: Onyeanu
Author-Name: Eze Festus Eze
Author-X-Name-First: Eze
Author-X-Name-Last: Festus Eze
Author-Name: Abner Isahaku Prince
Author-X-Name-First: Abner
Author-X-Name-Last: Isahaku Prince
Author-Name: Jude Anago
Author-X-Name-First: Jude
Author-X-Name-Last: Anago
Author-Name: Godwin Imo Ibe
Author-X-Name-First: Godwin Imo
Author-X-Name-Last: Ibe
Title: Financial inclusion - economic growth nexus: traditional finance versus digital finance in Sub-Saharan Africa
Abstract:
This study examined the impact of financial inclusion on economic growth disaggregated into traditional finance and digital finance with its sub-dimension for 29 Sub-Saharan African countries, 2012–2020. The study employed the panel feasible generalised least squares and panel system generalised method of moment procedures, and the panel vector autoregression Granger causality test. The results revealed that for the full sample; (1) Both the traditional and digital financial inclusion have positive and significant impact on economic growth, (2) The impact of the traditional financial inclusion in magnitude is more than that of the digital financial inclusion which also is replicated in the access sub-dimensions, (3) Unlike the access sub-dimensions the relative impact of the usage sub-dimension shows no large difference between the traditional and the digital finance. For the sub samples divided into low-income and middle-income countries; (4) The impact of traditional and digital financial inclusion is different across income levels. Both traditional and digital finance are positive and significant in middle income countries while only digital finance is significant in low income countries, (5) Economic growth Granger caused more of traditional finance than the traditional finance Granger caused economic growth, (6) The access sub-dimension to financial services Granger caused more of economic growth than the usage sub-dimension, (7) Digital financial inclusion is neutral in middle-income countries but not in low-income countries. The study recommends that even as digital finance is the new concept in the context of a developing economy, the traditional banking structures should not be neglected.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2133356
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2133356
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# input file: OAEF_A_2023262_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Hicham Sadok
Author-X-Name-First: Hicham
Author-X-Name-Last: Sadok
Author-Name: Fadi Sakka
Author-X-Name-First: Fadi
Author-X-Name-Last: Sakka
Author-Name: Mohammed El Hadi El Maknouzi
Author-X-Name-First: Mohammed El Hadi
Author-X-Name-Last: El Maknouzi
Title: Artificial intelligence and bank credit analysis: A review
Abstract:
This article teases out the ramifications of artificial intelligence (AI) use in the credit analysis process by banks and other financing institutions. The unique features of AI models, coupled with the expansion of computing power, make new sources of information (big data) available for creditworthiness assessments. Combined, the use of AI and big data can capture weak signals, whether in the form of interactions or non-linearities between explanatory variables that appear to yield prediction improvements over conventional measures of creditworthiness. At the macroeconomic level, this translates into positive estimates for economic growth. On a micro scale, instead, the use of AI in credit analysis improves financial inclusion and access to credit for traditionally underserved borrowers. However, AI-based credit analysis processes raise enduring concerns due to potential biases and ethical, legal, and regulatory problems. These limits call for the establishment of a new generation of financial regulation introducing the certification of AI algorithms and of data used by banks.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2023262
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2023262
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# input file: OAEF_A_2146298_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Tefera Getachew Dagnachew
Author-X-Name-First: Tefera Getachew
Author-X-Name-Last: Dagnachew
Author-Name: Temeselew Woldetsadik Mawugatie
Author-X-Name-First: Temeselew Woldetsadik
Author-X-Name-Last: Mawugatie
Title: The analysis of financial inclusion and its determinants in the rural area of south Wollo zone, Amhara Region, Ethiopia
Abstract:
The main goal of this study is to examine financial inclusion and related factors in rural South Wollo Zone areas. The binary logit model, primary and secondary data, and multi-stage sampling techniques were all applied in the study. Only 20.72 percent of those questioned in the rural South Wollo zone were given access to formal financial institutions, leaving 79.28 percent of those who were excluded. According to the report, access to traditional financial institutions is influenced favorably by factors such as affordability, financial literacy, age, and secondary education in rural areas, as well as the availability of Islamic banking services. Both the inability of rural inhabitants to access formal financial institutions and their lack of trust in traditional financial institutions represent significant obstacles. The study also looks into the expensive replacement of formal financial institutions in rural areas by traditional financial groups. Based on our research, we recommend that the government and other relevant organizations seek to improve the country’s degree of financial inclusion in rural areas by offering formal financial services at a reasonable cost and by boosting the financial capacity of rural low-income groups.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2146298
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2146298
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# input file: OAEF_A_2014654_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: B. Nyagadza
Author-X-Name-First: B.
Author-X-Name-Last: Nyagadza
Author-Name: R. Pashapa
Author-X-Name-First: R.
Author-X-Name-Last: Pashapa
Author-Name: A. Chare
Author-X-Name-First: A.
Author-X-Name-Last: Chare
Author-Name: G. Mazuruse
Author-X-Name-First: G.
Author-X-Name-Last: Mazuruse
Author-Name: P. K. Hove
Author-X-Name-First: P. K.
Author-X-Name-Last: Hove
Title: Digital technologies, Fourth Industrial Revolution (4IR) & Global Value Chains (GVCs) nexus with emerging economies’ future industrial innovation dynamics
Abstract:
The advent of the Fourth Industrial Revolution (4IR) has the potential to transform emerging economies to another developmental echelon by increasing productivity and improving future fluidity of innovation across various industries. Predictively, 4IR in emerging economies will come with newest technologies that are disruptive. This technological innovation will cause changes not only in industries and business but also in societies in general. The current article is based on the Preferred Reporting Items for Systematic Literature Review and Meta-Analysis (PRISMA) of secondary data sources, mainly peer reviewed reputable journal articles. The purpose is to draw conclusions and to identify the research gaps. Results depicted that the key challenge is for the emerging economies to establish ways of engaging themselves into Global Value Chains (GVCs) that are dynamic in nature. Future researchers are encouraged to consider alternative methodologies to examine 4IR and GVCs nexus with emerging economies’ within a longitudinal research design. Systematic literature review in the current article is based on a structural analysis methodology to frame the categories of the major analysis in combination with scientific rigour to a broad and complex problem. The current scientific research study contributes to theory, practice and future research directions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2014654
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2014654
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# input file: OAEF_A_2115673_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Kofi Kamasa
Author-X-Name-First: Kofi
Author-X-Name-Last: Kamasa
Author-Name: Eunice Efua Kpodo
Author-X-Name-First: Eunice Efua
Author-X-Name-Last: Kpodo
Author-Name: Isaac Bonuedi
Author-X-Name-First: Isaac
Author-X-Name-Last: Bonuedi
Author-Name: Priscilla Forson
Author-X-Name-First: Priscilla
Author-X-Name-Last: Forson
Title: Does inflation uncertainty hurt domestic investment? Empirical evidence from Ghana
Abstract:
This paper empirically investigates the effect of inflation uncertainty on domestic investment in Ghana. In addition, it investigates the differential impacts of permanent and transitory inflation uncertainty on investment in Ghana. Inflation uncertainty was measured using the conditional variance generated from the generalized autoregressive conditional heteroscedasticity (CGARCH (1, 1)) model. Employing the autoregressive distributed lag (ARDL) estimator on data covering 1970 to 2020, the results provide strong evidence that inflation uncertainty, associated with high volatility in commodity prices, hampers domestic investment in Ghana. After disaggregating total inflation uncertainty into two components, this paper finds that permanent inflation uncertainty has a stronger adverse effect on domestic investment than does transitory inflation uncertainty. Additionally, the results reveal that domestic interest rate, foreign interest rate, government expenditure, and trade openness are also important factors that significantly affect investment in Ghana. Given the economic implications of these results, this paper offers actionable policy recommendations to improve investor confidence and spur domestic investment in Ghana.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2115673
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2115673
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# input file: OAEF_A_2014639_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Eshetu Molla
Author-X-Name-First: Eshetu
Author-X-Name-Last: Molla
Author-Name: Ehite Hailekirstos
Author-X-Name-First: Ehite
Author-X-Name-Last: Hailekirstos
Author-Name: Markew Mengstie
Author-X-Name-First: Markew
Author-X-Name-Last: Mengstie
Author-Name: Tadesse Zenebe
Author-X-Name-First: Tadesse
Author-X-Name-Last: Zenebe
Title: Determinants of wheat value chain in case of North Shewa Zone of Amhara region, Ethiopia
Abstract:
The main objective of the study is to identify the determinants of wheat value chain in case of North Shewa Zone of Amhara region, Ethiopia. The researchers used multistage purposive random sampling technique to select representative households in the study area. The ordinary least square output revealed that production of wheat, price of wheat and secondary and tertiary education of the household positively and significantly affect supply of wheat to the market. On the other hand, distance from the market and distance from the main road have negative and significant effect on supply of wheat. Moreover, the multinomial logit regression result showed that household family size and market information have positive and significant effect while distance from the market and ownership of livestock have negative and significant effect on smallholder farmers’ market participation. The binary logit model also indicates that land holding, access to market information, total livestock and primary education affected positively and significantly. Therefore, policies aiming at increasing farmer’s awareness of producing value added wheat produce to enhance value creations are recommended to strengthen chain development.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2014639
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2014639
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2014639
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# input file: OAEF_A_2090663_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Aklok Getnet
Author-X-Name-First: Aklok
Author-X-Name-Last: Getnet
Author-Name: Ermias Tesfaye
Author-X-Name-First: Ermias
Author-X-Name-Last: Tesfaye
Author-Name: Yasin Ahmed
Author-X-Name-First: Yasin
Author-X-Name-Last: Ahmed
Author-Name: Mohammed Ahmed
Author-X-Name-First: Mohammed
Author-X-Name-Last: Ahmed
Title: Economic valuation and its determinates of improved irrigation water use; evidence based on South Gondar Zone, Ethiopia
Abstract:
The main aim of the research was to analyze economic evaluation and determinants of willingness to pay decisions for efficient irrigation water use improvement. Use for this purpose total of 300 HHs was selected using the Multi-stage sampling technique. The collected data was analyzed using econometrics model. In the econometric part, a seemingly unrelated bivariate probit model was applied to estimate households’ mean willingness to pay and its determinant’s for efficient irrigation water use. Leads by a double bounded dichotomous choice method. From seemingly unrelated bivariate probit model regression results, the mean and aggregate willingness to pay off the households 950.7 ETB (€25.7) per month per household per hectare was 1087159.09 ETB (€29382.7) per month and (12*1087159.09 = 13045909.08 ETB per year) respectively. The Mean and aggregate willingness to pay from the open-ended questions to be 926.059 ETB (€25.03) per month per household per hectare was 1072990.52 ETB (€28,999.74) per month respectively also, The bivariate probit model result revealed that bid values, sex of the household head, irrigation farm size, extension service significantly affected households’ WTP in both initial and followed up bid values So, policymakers should be households have a high willingness to pay for improved irrigation water use systems and the government should implement irrigation water management practices to supply reliable irrigation water to the farmers and should set up proper irrigation water pricing at an amount close to the mean WTP that households were willing and able to pay.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2090663
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2090663
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# input file: OAEF_A_2095769_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Kumba Digdowiseiso
Author-X-Name-First: Kumba
Author-X-Name-Last: Digdowiseiso
Title: Are fiscal decentralization and institutional quality poverty abating? Empirical evidence from developing countries
Abstract:
Fiscal federalism theorists have long been intrigued by the relationship between fiscal decentralization and poverty. Few people, however, consider cross-country research of similar linkages in developing countries. This research will provide new empirical evidence on the relationship between fiscal decentralization and poverty. It focuses on how the function of institutional quality can explain the relationship between fiscal decentralization and poverty in 53 developing countries from 1990 to 2014. The findings showed that a process-based approach as well as an outcome-based institutional-quality approach could explain the relationship between fiscal decentralization and poverty. In the case of democracy, revenue decentralization was found to be negatively and significantly related to poverty. In the case of, both revenue and expenditure decentralization were negatively and significantly associated with poverty.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2095769
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2095769
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# input file: OAEF_A_2129366_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mosab I. Tabash
Author-X-Name-First: Mosab I.
Author-X-Name-Last: Tabash
Author-Name: Zaheeruddin Babar
Author-X-Name-First: Zaheeruddin
Author-X-Name-Last: Babar
Author-Name: Umaid A Sheikh
Author-X-Name-First: Umaid A
Author-X-Name-Last: Sheikh
Author-Name: Ather Azim Khan
Author-X-Name-First: Ather Azim
Author-X-Name-Last: Khan
Author-Name: Suhaib Anagreh
Author-X-Name-First: Suhaib
Author-X-Name-Last: Anagreh
Title: The linkage between oil price, stock market indices, and exchange rate before, during, and after COVID-19: Empirical insights of Pakistan
Abstract:
This study analyzes the trilateral relationship between macroeconomic variables of oil prices, stock market index, and exchange rate to demonstrate their behavior and inter-relationship in the economic setup of Pakistan. The investigated period includes daily time series data ranging from 4 January 2016 to 30 April 2021. The study consists of three sub-periods: the pre-COVID-19 period ranging from 4 January 2016 to 31 December 2019, COVID-19 period ranging from 1 January 2020 to 30 April 2021, and overall period ranging from 4 January 2016 to 30 April 2021 by using a Vector Autoregressive (VAR) model. The results illustrate that oil prices changes, and stock index have an insignificant direct relationship both in pre-COVID-19 and overall sub-periods of study while a positive and statistically significant relationship during the COVID-19 period. This research also suggests that stock index has a direct and statistically significant but negative impact on the exchange rate in all sub-periods of study. This research also gives practical implications for forex investors and traders to analyze the inflating and deflating stock market patterns for future investment opportunities. However, most of the previous studies emphasized on the direct influence of exchange rate on the stock market and no effort is made on vice versa association. Furthermore, this research presents a practical relevance for the stock market investors that health uncertainty regime affected the insignificant association between oil price and stock market indices and this relation turns out to be significant during the crisis regime.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2129366
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2129366
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# input file: OAEF_A_2157120_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Khadijah Iddrisu
Author-X-Name-First: Khadijah
Author-X-Name-Last: Iddrisu
Author-Name: Joshua Yindenaba Abor
Author-X-Name-First: Joshua Yindenaba
Author-X-Name-Last: Abor
Author-Name: Kannyiri T. Banyen
Author-X-Name-First: Kannyiri T.
Author-X-Name-Last: Banyen
Title: Fintech, foreign bank presence and inclusive finance in Africa: Using a quantile regression approach
Abstract:
Africa is one of the continents with the least inclusive finance. However, with increasing use of mobile phones for financial services or financial technology (Fintech), there are improved opportunities to ‘bank the unbanked”. Also, there is a significant increase in both the presence of foreign banks and Fintech usage. Hence, we examine the moderating role of foreign bank presence on the Fintech-inclusive finance nexus over the period, 2000–2018. The results show that foreign bank presence does not directly affect inclusive finance, but increases the link between Fintech and inclusive finance. We recommend that African countries need to provide the conducive environment improving the use of Fintech.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2157120
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2157120
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# input file: OAEF_A_2082026_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Moses Nyangu
Author-X-Name-First: Moses
Author-X-Name-Last: Nyangu
Author-Name: Nyankomo Marwa
Author-X-Name-First: Nyankomo
Author-X-Name-Last: Marwa
Author-Name: Ashenafi Fanta
Author-X-Name-First: Ashenafi
Author-X-Name-Last: Fanta
Author-Name: Elinami J. Minja
Author-X-Name-First: Elinami J.
Author-X-Name-Last: Minja
Title: Bank concentration, competition and financial stability nexus in the East African Community: is there a trade-off?
Abstract:
This paper examines bank concentration, competition, and financial stability nexus across five emerging countries (Kenya, Tanzania, Uganda, Rwanda and Burundi) within the East African Community (EAC). The methodological approach applied provides a critical and original contribution to the existing literature by testing the various theories explaining the relationships between bank concentration, competition, and stability. A two-step system Generalised Methods of Moments (GMM) is employed on a sample of 149 banks with 1,805 annual observations over the period 2001–2018. The findings reveal that high concentration and low competition lead to more financial stability and less probability of bank default risk. In addition, a non-linear relationship between competition and stability is not observed, revealing that greater competition undermines bank stability and makes banks more vulnerable to default risk. The findings thus lend to support the concentration-stability hypothesis that greater market power leads to more bank stability even after controlling for bank-specific, industry, and macroeconomic variables. The findings provide a significant policy contribution on the trade-off between bank concentration and competition, and the evaluation of financial stability.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2082026
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2082026
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# input file: OAEF_A_2054525_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Thomas Habanabakize
Author-X-Name-First: Thomas
Author-X-Name-Last: Habanabakize
Author-Name: Zandri Dickason
Author-X-Name-First: Zandri
Author-X-Name-Last: Dickason
Title: Political risk and macroeconomic effect of housing prices in South Africa
Abstract:
The housing market is one of the key drivers of economic growth and social welfare in South Africa. However, the performance of the market depends on housing prices which are also subjected to changes in various socio-economic and political factors. The main purpose of this study is to determine the effects of inflation (consumer price index), interest rate, rental price and political risk on housing prices. To achieve this objective, the study applies Vector Autoregressive (VAR) model, the Johansen test for cointegration, Vector Error Correction Model (VECM) and Granger causality test on monthly data starting from January 2002 to December 2019. Findings of the study suggest that inflation, interest rate, rental and political risk influence the housing prices in both the long run and short run. Changes in political risk and rental price cause a long-run decline in housing prices while high-interest rates and inflation cause an increase in housing prices. Based on findings, researchers propose stability in the inflation rate, interest rate and political situation as a solution that can assist to improve the housing market and create price stability. Additionally, interest rate reduction can generate growth in housing demand resulting in the country’s economic improvement.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2054525
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2054525
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# input file: OAEF_A_2125659_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Endalkachew Kabtamu Mekonen
Author-X-Name-First: Endalkachew Kabtamu
Author-X-Name-Last: Mekonen
Title: The effect of residential house rent on Urban households poverty status in Ethiopia: evidence from Wolkite town
Abstract:
The study investigated the effect of residential house rent on urban household poverty status in Ethiopia with evidence from Wolkite town. By using structured questionnaires, primary data was collected from 248 household heads living in rental housing. In addition, a key-informant interview was conducted with the town municipality offices for triangulation purposes. The collected data were analysed by using descriptive and inferential statistic. The inferential statistic was estimated by using logistic regression model. The statistical package used to estimate the model was STATA version 14. The empirical result shows that rising residential house rent increases the poverty status of urban households. The poverty status of households is also negatively associated with access to housing allowance. Policy makers should note that the source and scope of poverty is varied. Poverty reduction policy should account the rental price of housing and integrate it with the broader national policies. Thus, the issue of residential house rent and housing should be part and parcel of the poverty reduction strategy of the government. Housing policies should also be integrated with other objectives of the government. A timely revised housing allowance and housing opportunities should be accessible to the low-income households.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2125659
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2125659
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# input file: OAEF_A_2072451_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jens Peter Kristensen
Author-X-Name-First: Jens Peter
Author-X-Name-Last: Kristensen
Title: The Gini coefficient and discontinuity
Abstract:
This article reveals a discontinuity in the mapping from a Lorenz curve to the associated cumulative distribution function. The problem is of a mathematical nature—based on an analysis of the transformation between the distribution function of a bound random variable and its Lorenz curve. It will be proven that the transformation from a normalized income distribution to its Lorenz curve is a continuous bijection with respect to the $${L^q}$$Lq ([0,1])-metric—for every q ≥ 1. The inverse transformation, however, is not continuous for any q ≥ 1. This implies a more careful attitude when interpreting the value of a Gini coefficient. A further problem is that if you have estimated a Lorenz curve from empirical data,then you cannot trust that the associated distribution is a good estimate of the true income distribution.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2072451
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2072451
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# input file: OAEF_A_2031683_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Salem Adel Ziadat
Author-X-Name-First: Salem Adel
Author-X-Name-Last: Ziadat
Author-Name: Ritab AlKhouri
Author-X-Name-First: Ritab
Author-X-Name-Last: AlKhouri
Title: Revisiting volatility spillovers in the Gulf Cooperation Council
Abstract:
This research offers a comprehensive review of the volatility spillover patterns in the Gulf Cooperation Council (GCC) stock market indexes covering daily data from 2/1/2004 to 5/11/2020. During this period, stock markets experienced fluctuations due to unexpected shocks, such as the international financial crisis, oil price shocks and, lately, the pandemic of COVID-19. The findings reveal a substantial increase in the connectedness of returns and volatilities in the GCC bloc during high stress periods with the COVID-19 era marking a historical high. That said, the results do not support significant changes in the directional patterns of volatility during the pandemic.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2031683
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2031683
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# input file: OAEF_A_2141423_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Taufik Abd Hakim
Author-X-Name-First: Taufik
Author-X-Name-Last: Abd Hakim
Author-Name: Abdul Aziz Karia
Author-X-Name-First: Abdul Aziz
Author-X-Name-Last: Karia
Author-Name: Jasmine David
Author-X-Name-First: Jasmine
Author-X-Name-Last: David
Author-Name: Rainah Ginsad
Author-X-Name-First: Rainah
Author-X-Name-Last: Ginsad
Author-Name: Norziana Lokman
Author-X-Name-First: Norziana
Author-X-Name-Last: Lokman
Author-Name: Salwa Zolkafli
Author-X-Name-First: Salwa
Author-X-Name-Last: Zolkafli
Title: Impact of direct and indirect taxes on economic development: A comparison between developed and developing countries
Abstract:
Taxes have extraordinary roles in any country’s economic development and policymaking. This study extends prior studies by investigating the impact of direct and indirect taxes on the economic development of 47 developed and 90 developing countries. All data about the variables involved in the study are accessed from the World Bank, covering from 2000 to 2020. Three equation models are developed to examine the impacts of tax structures on economic growth, which are gross domestic product per capita (GDPPC), foreign direct investment (FDI), and unemployment (UE). The study employed fixed effects (FE) and random effects (RE) of Generalized Least Square regression in testing the relationship between taxes structure (direct and indirect) and economic development (GDPPC, FDI, and UE). In addition, the cross-sectional dependence (CD) test is used to identify the presence of spatial dependence for FE and RE estimators. Overall, direct and indirect taxes have a significant negative relationship with economic development based on the GDPPC of developing countries. These results indicated that the tax structure in developing countries does not enhance the countries’ economic growth. By contrast, for developed countries, a significant positive relationship exists between direct taxes and economic development. Economics and Development; Economics; Public Finance
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2141423
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2141423
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# input file: OAEF_A_2072555_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Getachew Wollie Asmare
Author-X-Name-First: Getachew
Author-X-Name-Last: Wollie Asmare
Title: Decomposition analysis of economic growth in Afar region, Ethiopia
Abstract:
This paper is aimed to decompose, the economic growth of the Afar national regional state of Ethiopia in to labor productivity, employment rate and working age population and to verify whether the positive economic growth registered earlier on the region was a job creation growth or not. To do so, annual time series data ranging from 2010 to 2018 were used and per capita value added as a measure of economic growth was decomposed by using Shapley decomposition analysis technique. The result reveals that changes in output per worker accounted the highest proportion (74.33%) followed by changes in working age population (32.85%) and employment rate (−7.17%) for the total change in per capita value added during the entire period of time. The negative growth changes registered in employment rate implied that the economic growth registered on the Afar national regional state was a jobless growth. The economic growth patterns of Afar region does not favor the agriculture sector where the poor are found. The within-sector takes the lion share contributing (72.67%) to aggregate change in output per worker growth followed by structural change (13.21%) and interaction of within sectors and structural change (14.11%). Finally, these findings navigated us to suggest for policymakers, to amend their sector-wise economic policies and strategies focused to enhance employment generation and labor productivity of the Afar region.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2072555
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2072555
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# input file: OAEF_A_2095768_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ikhsan Ikhsan
Author-X-Name-First: Ikhsan
Author-X-Name-Last: Ikhsan
Author-Name: Khairul Amri
Author-X-Name-First: Khairul
Author-X-Name-Last: Amri
Title: Does electrification affect rural poverty and households’ non-food spending? Empirical evidence from western Indonesia
Abstract:
The study aims to determine the effect of electrification on rural poverty and households’ non-food spending (NFS). Using a cross-province dataset of western Indonesia from 2007 through 2017, an econometric model was used to analyze the causal relationship between the variables. The econometric model is a panel cointegration test, panel VECM, and Granger causality tests. The study pointed out three main findings. Firstly, there is a long-run equilibrium relationship between rural poverty and households’ NFS and electrification. In the long run, the electrification program has a negative and significant on households’ NFS. Secondly, in the short run, electrification significantly reduces poverty and increases households’ NFS. Thirdly, the Granger causality test pointed out that there is one-way causality from electrification to rural poverty and households’ NFS. The rural poverty reduction and the raising households’ NFS are positive impacts of the electrification program. Therefore, the local governments in western Indonesia should be electrification programs as one of the strategic options for rural poverty reduction in the region.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2095768
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2095768
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# input file: OAEF_A_2093429_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Cyprian Amutabi
Author-X-Name-First: Cyprian
Author-X-Name-Last: Amutabi
Title: COVID-19 and price stability in Eastern Africa: How effective were the governments’ policy response measures?
Abstract:
This study used monthly panel data for the period March 2020-April 2021 in analyzing the differences in the impact of the COVID-19 pandemic on price stability in the East Africa Community (EAC) region. We also sought to establish the effectiveness of the governments’ policy response measures in maintaining price stability. Estimates from the Pooled Mean Group (PMG) model revealed evidence of a long-run relationship between COVID-19 and the Consumer Price Index (CPI) in the EAC region. Secondly, COVID-19 significantly increased the CPI across the panel in the long run. In the short run, the impact was significant and positive for Kenya but negative for Rwanda and South Sudan. The question of whether government policy response measures were indeed effective in maintaining price stability posits a dilemma that is rather reminiscent of a paradoxical policy solution. On one hand, governments are concerned with the welfare of their citizens which was worsened by the inception of the pandemic, and thus roll out relief measures to help inject liquidity into businesses and households. Conversely, governments are also wary that their actions might actually increase the money supply and thus trigger inflation. Governments, therefore, need to step up their vaccination drive as this is critical in spearheading the economies’ re-opening and, thus, recovery in the long run. This is contrary to the long-term application of the relief measures. Further, governments within the region need to develop well-managed food reserves that can provide a cushion in the event of price fluctuations emanating from the effects of such economic shocks.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2093429
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2093429
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# input file: OAEF_A_2095766_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Girma Mulugeta Emeru
Author-X-Name-First: Girma Mulugeta
Author-X-Name-Last: Emeru
Title: The perception and determinants of agricultural technology adaptation of teff producers to climate change in North Shewa zone, Amhara Regional State, Ethiopia
Abstract:
The ongoing climate change is vital to exert context-specific responses to allay its adverse effects. The purpose of this study is to examine the perception and determinants of agricultural technology adaptation of teff producers to climate change in North Shewa zone, Ethiopia. Data were collected from 378 farming households through a multistage and simple proportional sampling procedure. Both descriptive and econometric analyses were used in this study. A Heckman probit model and a multinomial logit (MNL) model are used to examine the determinants of perception and adaptation to climate change, respectively. The results of the Heckman probit model revealed that gender, farm experience, access to extension services and information access were found to have a significant influence on the probability of farmers to perceive and/or adapt to climate change. The multinomial logit models showed that education, gender of the household head being male, marital status, farming experience, income, access to information, livestock ownership, tenure status, and access to extension are the main factors that increase adaptive capacity. However, distance to the nearest market and family size negatively and significantly affect the decision to adopt various agricultural technologies. This study recommends that, Future development initiatives should focus on enhencing perception and scaling up climate change adaption technology, which calls for a public-private collaboration and a shared vision of all potential stakeholders.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2095766
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2095766
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# input file: OAEF_A_2135723_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Liu Jianjiang
Author-X-Name-First: Liu
Author-X-Name-Last: Jianjiang
Author-Name: Zhang Zhiyue
Author-X-Name-First: Zhang
Author-X-Name-Last: Zhiyue
Author-Name: Fidelis Ayangbah
Author-X-Name-First: Fidelis
Author-X-Name-Last: Ayangbah
Title: The impact of industrial internet on high quality development of the manufacturing industry
Abstract:
Comprehensive Development Index of industrial Internet from 2009 to 2018 of 31 provinces in China was obtained by using the entropy method for the article. This paper analyzes the impact of industrial Internet on high-quality development of China’s manufacturing industry by building a fixed effect model, and also studies the intermediary role of intelligence and greening on this basis. The results indicate that, Industrial Internet has significantly promoted the high-quality development of China’s manufacturing industry, of which intelligence and green play an intermediary role between the Industrial Internet and the high-quality development of the manufacturing industry, and the impact of industrial Internet on the development of manufacturing industry in the Eastern region is significantly higher than that in the Central and Western regions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2135723
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2135723
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# input file: OAEF_A_2105975_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Fentaw Leykun Fisseha
Author-X-Name-First: Fentaw
Author-X-Name-Last: Leykun Fisseha
Title: Effect of capital flight on domestic investment: Evidence from Africa
Abstract:
Capital flight is a major issue in developing economies; the problem is more severe in Africa, where domestic investment has been affected. Much attention has been given to the effect of legal and foreign capital flows in the international capital movement, disregarding illicit capital outflows (capital flight) from developing countries including Africa. This study examines the effects of capital flight and financial liberalization on domestic investment using the dynamic system generalized method of moments (GMM) for 30 African nations between 2000 and 2019. The econometric analysis revealed that capital flight is one of the conditions that severely constrains domestic investment financing in Africa. However, the impact of financial liberalization on domestic investment is shown to be insignificant. The empirical evidence is used to draw some policy implications aimed at reducing capital flight and enhancing domestic investment.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2105975
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2105975
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# input file: OAEF_A_2117117_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Bayelign Abebe Zelalem
Author-X-Name-First: Bayelign
Author-X-Name-Last: Abebe Zelalem
Author-Name: Ayalew Ali Abebe
Author-X-Name-First: Ayalew
Author-X-Name-Last: Ali Abebe
Author-Name: Sitotaw Wodajo Bezabih
Author-X-Name-First: Sitotaw
Author-X-Name-Last: Wodajo Bezabih
Title: Corporate governance and financial performance in the emerging economy: The case of Ethiopian insurance companies
Abstract:
The function of the board in financial institutions differs from that of non-financial institutions because the board of directors’ discretionary power would be limited, particularly in regulated financial systems where financial institutions must operate under legislative and prescriptive procedures, policies, rules, and regulations. As a result, the goal of this research was to look into the effect of corporate governance on the financial performance of Ethiopian insurance companies that are heavily regulated. The study used an explanatory research design with econometric panel data from nine insurance companies from 2012 to 2020. Random effect estimation technique was used to find out the most significant variable. Return on asset and equity were used to measure the financial performance and board size, management soundness, board remuneration, financial disclosure, debt and dividend policy as explanatory variables. The result revealed that board size, management soundness, board remuneration, and financial disclosure have a positive and significant effect on insurance company financial performance, whereas debt and dividend payout have a negative and significant impact on insurance company financial performance. Thus, the study concludes that all corporate governance measures have a significant impact on insurance companies' financial performance in Ethiopia as measured both by return on asset and equity. The study contributes to managers and stakeholders to improve the financial performance. Therefore, directors and other stakeholders should put in place proper governance frameworks to improve financial performance and regulators and policymakers develop policies and regulations to guarantee that businesses adopt proper governance structures in order to improve performance.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2117117
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2117117
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# input file: OAEF_A_2114161_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mohammed Armah
Author-X-Name-First: Mohammed
Author-X-Name-Last: Armah
Author-Name: Godfred Amewu
Author-X-Name-First: Godfred
Author-X-Name-Last: Amewu
Author-Name: Ahmed Bossman
Author-X-Name-First: Ahmed
Author-X-Name-Last: Bossman
Title: Time-frequency analysis of financial stress and global commodities prices: Insights from wavelet-based approaches
Abstract:
We examine the time-frequency lead–lag relationships and the degree of integration between the US financial stress index and global commodity prices (i.e., oil, gold, silver, and cocoa) with data covering over 47 decades (January 1975 to December 2021). For this purpose, we resort to the bi- and multiple wavelet econometric approaches. Findings from the bivariate wavelet analysis evidence the significant influence of the US financial stress in driving the price-generating process in commodities markets. Our findings support the hedging abilities of commodities across the time-frequency space. Findings from the multiple correlations explicate that the interrelation between the commodities and financial stress is attributable to their interdependence in the long term during financial market meltdowns. The dynamic and nonhomogeneous lead/lag relations underscored by our findings highlight the importance of cross-commodity investments. As such, by acknowledging the response of different commodities to financial stress, asset allocation should factor in commodities that offer opposing responses to a financial stress to hedge downside risks associated with portfolios. Our findings are of interest to regulators, risk managers, investors, and commodities producers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2114161
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2114161
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# input file: OAEF_A_2117116_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Fidelis Ayangbah
Author-X-Name-First: Fidelis
Author-X-Name-Last: Ayangbah
Author-Name: Bismark Addai
Author-X-Name-First: Bismark
Author-X-Name-Last: Addai
Author-Name: Adjei Gyamfi Gyimah
Author-X-Name-First: Adjei Gyamfi
Author-X-Name-Last: Gyimah
Title: The effect of political risk on China’s foreign direct investment
Abstract:
This study examines the impact of political risk on Chinese outward foreign direct investment (OFDI) and what motivates their preferred location. The study also analyzes the OFDI of other countries to enhance the comparison of China and other countries’ OFDI sensitivity to political risk. The study used annual panel data on 134 countries from 2003 to 2017. The results indicate that China’s OFDI tends to favor countries and regions with higher expropriation risk, and China’s OFDI exhibits strong resource-seeking motives and weak market-seeking motives. On the other hand, OFDI in countries around the world tends to favor countries and regions with lower expropriation risk and conflict risk, and OFDI in those countries exhibits market-seeking motives. The study results also show that China’s political risk preference and investment motives depend on the level of economic development and the presence of natural resources in the host country.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2117116
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2117116
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# input file: OAEF_A_2114176_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Akm Mohsin
Author-X-Name-First: Akm
Author-X-Name-Last: Mohsin
Author-Name: MD Rashidul Islam Sheikh
Author-X-Name-First: MD Rashidul Islam
Author-X-Name-Last: Sheikh
Author-Name: Hasanuzzaman Tushar
Author-X-Name-First: Hasanuzzaman
Author-X-Name-Last: Tushar
Author-Name: Mohammed Masum Iqbal
Author-X-Name-First: Mohammed Masum
Author-X-Name-Last: Iqbal
Author-Name: Syed Far Abid Hossain
Author-X-Name-First: Syed
Author-X-Name-Last: Far Abid Hossain
Author-Name: Md. Kamruzzaman
Author-X-Name-First: Md.
Author-X-Name-Last: Kamruzzaman
Title: Does FinTech credit scale stimulate financial institutions to increase the proportion of agricultural loans?
Abstract:
FinTech has raised the risk-taking level of financial institutions. This paper aims to explore FinTech Credit (FTC) scale of non-financial institutions and the risk-taking level of financial institutions into Opiela’s model, constructs objective functions and constraints for representative financial institutions by conducting theoretical analysis and research hypothesis. It also explores the relationship between FTCscale and the proportion of agriculture-related loans. Based on the balanced panel data of 31 provinces and municipalities in China from 2009 to 2017, the individual fixed effects model is used to test the research hypothesis. Then, based on the balanced panel data of 31 provinces and municipalities in China from 2009 to 2017, the research hypothesis was tested using an individual fixed-effects model to explore the relationship between FTCscale and the proportion of agriculture-related loans. The results show that the FTCscale can increase the share of agriculture-related loans in financial institutions. Still, the percentage of agriculture-related loans and e-commerce factors increase at a marginal decreasing rate. Furthermore, the study shows that marketization and real estate development also indirectly affect the proportion of agricultural loans through the mediating part of the FTCscale. Finally, policy recommendations are proposed to develop FTC and the implementation of rural revitalization strategy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2114176
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2114176
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# input file: OAEF_A_2085294_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jehona Shkodra
Author-X-Name-First: Jehona
Author-X-Name-Last: Shkodra
Author-Name: Verlinda Bajrami
Author-X-Name-First: Verlinda
Author-X-Name-Last: Bajrami
Title: Impact of COVID-19 on the finance sources of women in the agricultural sector: the case of Kosovo
Abstract:
The aim of this study is to analyse the level and determinants of women farmers’ access to financial resources in agriculture in Kosovo. The study describes the socio-economic characteristics of women farmers and identifies the socio-economic factors that influence access to financial resources. Primary data were collected from one hundred forty-six (146) women farmers who had access to a source of finance using multistage random sampling. Data were analysed using descriptive statistics, Likert scores, and probit regression estimates. 61.94% of the women had a farm size between 0.2 and 1.0 hectares and had an average farming experience of 8.33 years. The majority, 40.48% of the respondents, had formal education. They had a relatively high number of sources of finance through “family savings” and did not have access to finance through “borrowing from family members”. The probit regression estimation showed that education level, gross annual income, and net worth each exerted a significant positive influence on the probability. This implies that the relevant institutions in the country should develop policies and programmes for women farmers with low levels of education, income, and net worth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2085294
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2085294
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# input file: OAEF_A_2114160_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Amola Bhatt
Author-X-Name-First: Amola
Author-X-Name-Last: Bhatt
Author-Name: Mayank Joshipura
Author-X-Name-First: Mayank
Author-X-Name-Last: Joshipura
Author-Name: Nehal Joshipura
Author-X-Name-First: Nehal
Author-X-Name-Last: Joshipura
Title: Decoding the trinity of Fintech, digitalization and financial services: An integrated bibliometric analysis and thematic literature review approach
Abstract:
Technology has reshaped how financial services are designed, delivered, and consumed over the past decade. The increased mobile and internet penetration and availability of cheap data combined with the advent of Fintech, digitalization, blockchain technology, machine learning, and artificial intelligence have fast-tracked the digital transformation of economies worldwide. Covid19-induced lockdowns accelerated the digitalization of financial services. This study identifies the main areas and current dynamics of Fintech, digitalization, and financial services and suggests future research directions. Using a bibliometric analysis followed by a thematic literature review, the study examines a sample of 583 journal articles from the Scopus database from 1984 to 2021. Based on the bibliometric analysis, we identified four dominant themes. These themes are further explored through a thematic literature review to gain further insights. We conclude by suggesting potential directions for future research in the field.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2114160
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2114160
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# input file: OAEF_A_2147646_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yuqi Gu
Author-X-Name-First: Yuqi
Author-X-Name-Last: Gu
Title: CEOs’ uncommon names and corporate innovation
Abstract:
I study the relationship between a Chief Executive Officer (CEO)’s uncommon name and corporate innovation. Consistent with the view that individuals with uncommon names prefer being distinctive, I document a significant positive relationship between CEO name uncommonness and corporate innovation quantity but not quality. To mitigate endogeneity concerns, I use the death of the CEO as a plausible exogenous shock and find results are robust in the difference-in-differences setting. I further show that the impact on innovation output is concentrated in the areas that are well-known to the company, of low economic value, and have a low scientific impact. Overall, the findings presented in this paper suggests that the heightened innovation activities by uncommonly named CEO exacerbate the investment distortions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2147646
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2147646
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# input file: OAEF_A_2151703_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Berihu Assefa Gebrehiwot
Author-X-Name-First: Berihu Assefa
Author-X-Name-Last: Gebrehiwot
Title: Job quality in the micro and small enterprise sector in Ethiopia: Evidence from firm-level data
Abstract:
Micro and small enterprises are ubiquitous in developing countries and play a central role in employment. While there is solid empirical evidence that micro and small enterprises are important drivers of job creation, there is limited evidence on the quality aspects of employment in this sector, particularly in developing countries. Much of the previous research has focused primarily on quantitative job creation. Some studies have investigated job quality using labor force survey data at the employee-level. However, these studies hardly examined the role of entrepreneurial and firm characteristics on job quality. Firms and entrepreneurs in the micro and small business sector are natural targets of policy initiatives to improve job quality. Cognizant of this, this research aims to examine the determinants of job quality in the micro and small business sector in Ethiopia. Using a large firm-level primary dataset collected in the 10 largest cities in Ethiopia, the paper examines the relationship between entrepreneurial characteristics and indicators of job quality. Our regression results show the existence of a positive and significant correlation between job quality, as measured by average wages and job security and safety indicators, and entrepreneurial education and experience, as well as firm size and the presence of a professionally recruited manager. Our findings offer some important implications for policymakers to improve job quality by identifying the entrepreneurial and firm characteristics that drive or constrain quality job creation in the formal micro and small business economy in urban contexts.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2151703
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2151703
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# input file: OAEF_A_2132636_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Tiago Cardao-Pito
Author-X-Name-First: Tiago
Author-X-Name-Last: Cardao-Pito
Title: Hypothesis that Tobin’s q captures organizations’ debt levels instead of their growth opportunities and intangible assets
Abstract:
The informational content of prices hypothesis in Modigliani and Miller (and Fisher before them) advocates that organizations’ market prices could somehow estimate their growth prospects and intangible assets. For this estimation, discounted cash flow models are frequently employed. However, these models require information about monetary flows and discount rates in the long future, which are most difficult to confirm in the moment of the analysis. Thus, Tobin’s q or similar procedures as the market-to-book value of the firm have been claimed (and presupposed) as evidence that markets could identify growth prospects and intangible assets. Indeed, Tobin’s q tends to be higher for new and/or intangible intensive firms. Nevertheless, we know that for q > 1, less debt tends to imply a higher q, whereas the inverse holds for the less frequent q < 1. To explain this phenomenon, we propose a “mechanical effect hypothesis” describing an automatic relationship between q and capital structures at the variable computation. Accordingly, as intangible-intensive and/or new firms are likely to have q > 1 and less debt, a mechanical effect increases their q-values without requiring growth perspectives, or intangibles. Hence, this new hypothesis disputes Fisher-Modigliani-Miller’s utilization of discounted cash flow models to explain markets and prices.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2132636
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2132636
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# input file: OAEF_A_2044587_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Khalil Nimer
Author-X-Name-First: Khalil
Author-X-Name-Last: Nimer
Author-Name: Ali Uyar
Author-X-Name-First: Ali
Author-X-Name-Last: Uyar
Author-Name: Cemil Kuzey
Author-X-Name-First: Cemil
Author-X-Name-Last: Kuzey
Author-Name: Friedrich Schneider
Author-X-Name-First: Friedrich
Author-X-Name-Last: Schneider
Title: E-government, education quality, internet access in schools, and tax evasion
Abstract:
The study examines whether e-government services reduce the prevalence of tax evasion. Importantly, the study also investigates whether education quality as captured by three proxies and internet connection in schools strengthens the negative relationship between e-government services and tax evasion. The period covered by the study is confined to the years from 2006 to 2017 due to the data availability and Time Fixed-Effects Panel Data Analysis was adopted as empirical methodology. The results confirmed the significance of e-government services in reducing tax evasion and the moderating role of education quality in this relationship. More specifically, while overall, education quality and the quality of business management schools were shown to reinforce the significant negative link between e-government and tax evasion, the quality of math education did not. Finally, internet connection in schools was also found to reinforce the negative association between e-government and tax evasion. For public administrations, e-government initiatives and services are strengthening the capacity to leverage online services in the public domain to enhance tax compliance. Education system designers can consider these results in shaping curricula, integrating taxation issues in curricula, and enabling more equitable and reliable internet access in schools.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2044587
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2044587
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# input file: OAEF_A_2080316_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Sania Ashraf
Author-X-Name-First: Sania
Author-X-Name-Last: Ashraf
Author-Name: Jithin P
Author-X-Name-First: Jithin
Author-X-Name-Last: P
Author-Name: Zaghum Umar
Author-X-Name-First: Zaghum
Author-X-Name-Last: Umar
Title: The asymmetric relationship between foreign direct investment, oil prices and carbon emissions: evidence from Gulf Cooperative Council economies
Abstract:
We investigate the asymmetric nonlinear link between foreign direct investment, oil prices, and CO2 emissions for the Gulf Cooperation Council nations, using foreign direct investment and oil price data. As foreign direct investment is positively associated with carbon emissions in the long run and oil prices have positive, significant effects on CO2 emissions, our findings support the pollution-haven hypothesis. Furthermore, these variables have an asymmetric nonlinear relationship, which corresponds to the theoretical expectations of the pollution-haven hypothesis. We also find that negative changes in foreign direct investment have positive, significant impacts on carbon emissions in the short run, implying that foreign enterprises utilize green technologies in their manufacturing processes in the short run. In the long run, however, negative changes in oil prices are positively associated with carbon emissions. These findings should help Gulf Cooperation Council economies focus on policies that encourage foreign direct investment in green rather than dirty industries in order to ensure environmental sustainability.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2080316
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2080316
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2080316
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# input file: OAEF_A_2035043_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Shewit Kiros
Author-X-Name-First: Shewit
Author-X-Name-Last: Kiros
Author-Name: Getamesay Bekele Meshesha
Author-X-Name-First: Getamesay Bekele
Author-X-Name-Last: Meshesha
Title: Factors affecting farmers' access to formal financial credit in Basona Worana District, North Showa Zone, Amhara Regional State, Ethiopia
Abstract:
This study examines the factors affecting farmers’ access to formal credit in Basona Worana District, North Showa Zone, Amhara Regional State, Ethiopia. The study used cross-sectional data while conducting a survey. It was conducted from November 2019 to June 2020 G.C. A multistage random sampling technique was used, and 299 smallholders’ farmers were selected and fully took part in the survey. Quantitative data were collected using a structured questionnaire to identify the main factors of formal financial credit access. Of the total 299 participants, only 72 (24.1%) took formal financial credit from lending institutions. The data were analyzed by descriptive statistics and logistic regression analysis. The regression result reveals that age, sex of household head, family size, extension contacts, off-farm income, interest rate, lending procedure, group lending and Rapid Repayment Period are the main determinant factors that affect formal financial credit access at the household level, and these variables are found to be statistically significant at 1 % and 5 % levels of precision. On the other hand, the other remaining variables like education status, attitude towards credit risk, experience on credit use, farm land size, livestock ownership and distance from lending institutions are found to be statistically insignificant. Thus, policy makers should work to improve credit service supply and amount of credit and assist smallholders to invest the credit on their farming. Lending institutions should revise their group lending system, interest rate, lending procedure and rigid repayment periods.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2035043
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2035043
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# input file: OAEF_A_2129372_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Goh Lim Thye
Author-X-Name-First: Goh Lim
Author-X-Name-Last: Thye
Author-Name: Siong Hook Law
Author-X-Name-First: Siong Hook
Author-X-Name-Last: Law
Author-Name: Irwan Trinugroho
Author-X-Name-First: Irwan
Author-X-Name-Last: Trinugroho
Title: Human capital development and income inequality in Indonesia: Evidence from a nonlinear autoregressive distributed lag (NARDL) analysis
Abstract:
Indonesia ranks sixth globally in terms of wealth distribution inequality. Changes in human capital development may affect labor force efficiency and productivity as well as wages and income inequality levels. This study applies a nonlinear autoregressive distributed lag (NARDL) model to data from 1970 to 2019 to investigate the asymmetric impact of human capital development on income inequality in Indonesia. Our results provide significant evidence of the long-run asymmetric effects of human capital development on income inequality. More specifically, income inequality responded more significantly to increase in human capital development than to reduction. Hence, policymakers should establish inclusive lifelong learning systems that concentrate on skill enhancement, such as re-training and re-skilling, and technical and vocational training (TVET) systems to enhance a country’s human capital development.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2129372
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2129372
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# input file: OAEF_A_2098607_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Panagiotis G. Artikis
Author-X-Name-First: Panagiotis G.
Author-X-Name-Last: Artikis
Author-Name: Christos G. Kampouris
Author-X-Name-First: Christos G.
Author-X-Name-Last: Kampouris
Title: Is intrinsic value priced in the cross section of stock returns?
Abstract:
This paper provides insights about the information content and predictive ability of the intrinsic value of the firm in an asset pricing context. The intrinsic value of a firm is of great importance for both the management and the investors of the company. We seek to assess whether the value-to-price (V/P) ratio, estimated with the residual income model (RIM), can explain the cross section of stocks returns. The study enhances the literature in the area of asset pricing by developing a new intrinsic value risk factor, which is a zero-investment portfolio that is neutral to the size, book-to-market equity ratio and the momentum effect. Furthermore, we incorporate in the RIM, for the first time, a time-series model that does not rely on analysts’ forecasts for the estimation of the key parameters of the model. A unique dataset from Greece, Italy, Spain and Portugal is utilized, from 31/12/2000 to 30/6/2019, that has a number of idiosyncrasies that are not observable in other developed markets, contributing by this way to the necessary accumulation of non-US research. The results show that the new intrinsic value risk factor absorbs the information content of the HML factor and explains better the cross section of returns, mainly for small size and high book to market value companies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2098607
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2098607
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# input file: OAEF_A_1996020_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Esmael Abdu
Author-X-Name-First: Esmael
Author-X-Name-Last: Abdu
Title: Financial distress situation of financial sectors in Ethiopia: A review paper
Abstract:
The development of financial sectors is considered as one of vital determinants of the growth of Ethiopian economy, and for secure equitable distribution of the benefits to the society. However, financial distress has an effect on the sectors. This review was conducted to assess financial distress situation of financial sectors in Ethiopia. The objective is specifically to identify the determinants of financial distress, opportunities of financial sectors, and challenges and constraints of financial distress in Ethiopia. Ethiopia is a developing country with majority of unbanked population. Liquidity, profitability, leverage, firm size, capital adequacy, management efficiency, earning ability, inflation and interest rate are major determinant of financial distress in Ethiopia. Moreover, Ethiopian financial sectors have an opportunity of trade openness, rapid economic growth, unexploited resource, population growth and encouragement of privatization.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.1996020
File-URL: http://hdl.handle.net/10.1080/23322039.2021.1996020
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:1996020
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# input file: OAEF_A_2111806_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Arthur Benedict
Author-X-Name-First: Arthur
Author-X-Name-Last: Benedict
Author-Name: Sithembile Mafika
Author-X-Name-First: Sithembile
Author-X-Name-Last: Mafika
Author-Name: Kyei Baffour Tutu
Author-X-Name-First: Kyei Baffour
Author-X-Name-Last: Tutu
Author-Name: Afenya Millicent Selase
Author-X-Name-First: Afenya Millicent
Author-X-Name-Last: Selase
Title: The effects of political risk on foreign exchange demand: Evidence from Zimbabwe
Abstract:
The political climate of any country has become one of the pillars of decision-making for investment and any other financial business. Zimbabwe is one of the countries that have experienced political instability for the longest time. Many studies have looked at the impact of political risk on the stock market and other macroeconomics variables without considering the impact of political risk on the demand for foreign exchange in a country. Using secondary data from the World Bank - World Development Indicator (WDI), International Country Risk Guide (ICRG), and Reserve Bank of Zimbabwe (RBZ), this study examined the effects of political risk on the foreign currency demand in Zimbabwe. The regression results showed a negative and significant association between political risk and foreign exchange reserve both in the short run and long-run period, implying an increase in foreign currency demand as political risk increases. The study also applied an alternate indicator for foreign exchange demand to test whether the main findings are robust to different dependent variable measures. The results from the robustness test are consistent with the main findings of the study. The study makes recommendations for policymaking by the Zimbabwean government and other regulators.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2111806
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111806
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# input file: OAEF_A_2148362_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Francesca Bell
Author-X-Name-First: Francesca
Author-X-Name-Last: Bell
Author-Name: Gary van Vuuren
Author-X-Name-First: Gary
Author-X-Name-Last: van Vuuren
Title: The impact of climate risk on corporate credit risk
Abstract:
Firms must estimate expected credit losses (EL) to comply with accounting standards and unexpected credit losses (UL) to determine regulatory credit risk capital. Both rely on estimates of obligor probabilities of default (PD). Investors also pay close attention to credit ratings—derived from inter alia default rates. Changes in climate will increase firm default rates. Studies investigating the impact of climate change on PDs are limited because this is a novel field and data are still relatively scarce. Africa will be most severely impacted by climate change: default rates will deteriorate leading to increased PDs, LGDs, provision requirements (through increased expected losses) and regulatory credit risk capital (through increased unexpected losses). Corporate equity prices are simulated using Geometric Brownian motion (GBM) and shocks brought about by climate events of differing frequency and severity are applied to these simulated prices. Post shock prices and return volatilities are differentially affected depending on the nature of the applied shock. These constitute inputs into a well-known model of corporate default form which resultant PDs may be extracted. A possible calibration approach is developed for climate event-based impacts on corporate default rates. A scaling factor matrix (an amount by which the unaffected default rate increases after a specified climate event type occurs) can help market participants forecast default rate changes. Climate related impacts have been quantified, calibrated, and used to assess credit quality degradation.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2148362
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2148362
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# input file: OAEF_A_2080898_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Nasir Khan
Author-X-Name-First: Nasir
Author-X-Name-Last: Khan
Author-Name: Ogunleye Oluwasegun Abraham
Author-X-Name-First: Ogunleye Oluwasegun
Author-X-Name-Last: Abraham
Author-Name: Adegboye Alex
Author-X-Name-First: Adegboye
Author-X-Name-Last: Alex
Author-Name: Damilola Felix Eluyela
Author-X-Name-First: Damilola Felix
Author-X-Name-Last: Eluyela
Author-Name: Iyoha Francis Odianonsen
Author-X-Name-First: Iyoha Francis
Author-X-Name-Last: Odianonsen
Title: Corporate governance, tax avoidance, and corporate social responsibility: Evidence of emerging market of Nigeria and frontier market of Pakistan
Abstract:
The main purpose of this study is to shed light on the relationship between corporate governance, tax avoidance, and corporate social responsibility disclosure in emerging and frontier markets Nigeria and Pakistan, respectively. The current study employs a unique set of datasets about 91 companies from the Nigeria Stock Market and 121 companies from the Pakistan Stock Market for the period of ten years from 2011 to 2020. We used a fixed effect regression model to analyze the panel data. From the analysis, we find that corporate social responsibility is positively and significantly associated with tax avoidance in the case of Nigeria. Meanwhile, CSR has a positive but insignificant effect on tax avoidance in the case of Pakistan. However, board nationality shows a positive and insignificant impact on CSR, whereas board independence, board ownership, board diversity, and board size are negatively and insignificantly associated with CSR in Nigerian firms. In the case of Pakistani firms, both board ownership and board independence are positively and insignificantly associated with CSR, though board nationality has a negative but significant relationship with CSR, and board diversity and board size are negatively and insignificantly related to CSR. The paper’s findings have vital implications for policymakers, academics, and capital market users in the frontier and emerging economies. It has better significance for the government and companies to pay attention to CSR.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2080898
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2080898
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# input file: OAEF_A_2129367_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yaping Liu
Author-X-Name-First: Yaping
Author-X-Name-Last: Liu
Title: Will and power: Investment diversification and systemic deviation from irrational risk
Abstract:
Examining China’s stock market, mean variance is used to measure returns and risk and build an irrational risk-asset pricing model. The power of heterogeneous beliefs and risk-valuation deviation are found to affect capital asset pricing, presenting excessive fluctuations that neoclassical finance theory cannot easily explain. A diversified portfolio can disperse or aggregate irrational risk. Trading frequency and quantity reflect differences in investors’ rationality and reveal irrational risk effects. On that basis, regulatory tools and derivative products can be designed to build a rational risk anchor, prevent the systematic bias of irrational risk, and improve capital allocation.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2129367
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2129367
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# input file: OAEF_A_2079586_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Zewdie Habte Shikur
Author-X-Name-First: Zewdie Habte
Author-X-Name-Last: Shikur
Title: Wheat policy, wheat yield and production in Ethiopia
Abstract:
One of Ethiopia’s main challenges is increasing wheat production and productivity by designing and implementing an appropriate wheat policy. The country has a wheat supply and demand gap, forcing the country to spend a substantial amount of foreign currency for wheat imports, which are primarily derived from coffee and oilseed exports. The increasing imbalance between supply and demand for wheat presents serious policy issues. The purpose of this study was to evaluate the effects of wheat policy, and wheat processing industrial policy on wheat yield and production using Vector Error Correction (VEC) and Tobit models. The comparative use of both Tobit and vector error correction models enables useful critiques of the applicability of both models. The models’ results indicated that wheat policy had significant and positive effects on wheat yield and production. Importantly, the sign of the estimated coefficients is consistent across the models (i.e., Tobit and VEC models). More specifically, the estimated coefficients for technical change, market coordination, and integrated wheat policy interventions were positive, thereby confirming that the implementation of wheat policy interventions would significantly increase wheat production and productivity. Wheat yield and production were elastic due to policy interventions in the long run (i.e., elasticities values of wheat yield and output are greater than 1.00 unit). The results imply that wheat policy is important to increase wheat production and productivity by increasing the level of adoption of wheat technologies that shift from inelasticities to elasticities of wheat yield and production due to changes in the demand and price incentive in the long-run. The current supply-demand gap in wheat was 44%. In the long run, if the government implements the suggested wheat policy initiatives, this disparity might be decreased from 44 to 7%.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2079586
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2079586
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# input file: OAEF_A_2058156_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ferry Syarifuddin
Author-X-Name-First: Ferry
Author-X-Name-Last: Syarifuddin
Title: The dynamics of foreign direct investment and exchange rates: An interconnection approach in ASEAN
Abstract:
This paper examines the direct and spillover effects of exchange rate on foreign direct investment (FDI) inflows in a panel of ASEAN countries from 2001 to 2018. We utilize the spatial econometric approach to accommodate the nature of spatial dependence among ASEAN countries. Our results suggest that the effect of the exchange rate depends on the source-region of FDI, implying the existence of spatial heterogeneity in ASEAN’s FDI. We also show that FDI inflows in ASEAN are not only influenced by the exchange rate of the country itself but also by those of the neighboring countries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2058156
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2058156
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# input file: OAEF_A_2069905_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Siyakudumisa Takentsi
Author-X-Name-First: Siyakudumisa
Author-X-Name-Last: Takentsi
Author-Name: Kin Sibanda
Author-X-Name-First: Kin
Author-X-Name-Last: Sibanda
Author-Name: Yiseyon-Sunday Hosu
Author-X-Name-First: Yiseyon-Sunday
Author-X-Name-Last: Hosu
Title: Energy prices and economic performance in South Africa: an ARDL bounds testing approach
Abstract:
This paper empirically investigates the causal relationship between energy prices and economic performance in South Africa by employing the auto-regressive distributed lag (ARDL) bounds test technique for the period 1994 to 2019. The empirical evidence that was reviewed used a different methodology and covered different periods, particularly in the South African context. While previous studies investigated energy prices by examining oil or electricity prices separately, this study combined these prices in the regression model. The ARDL model is capable of detecting hidden cointegration relationships and works even in series that are integrated of different orders. The study established a long-run relationship between the variables. The findings revealed that electricity prices have a significant negative impact on economic growth in the long and short run, while crude oil prices show a significant positive linkage with economic growth in the long and short run. The Granger causality analysis did not establish a causal relationship between energy prices and economic growth in South Africa. However, it pointed to unidirectional causality from both labour productivity and gross fixed capital formation to economic growth. It is thus recommended that the government should take steps to mitigate the effects of high electricity prices on economic growth in South Africa.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2069905
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2069905
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# input file: OAEF_A_2023263_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Van Cuong Dang
Author-X-Name-First: Van Cuong
Author-X-Name-Last: Dang
Author-Name: Quang Khai Nguyen
Author-X-Name-First: Quang Khai
Author-X-Name-Last: Nguyen
Title: Audit committee characteristics and tax avoidance: Evidence from an emerging economy
Abstract:
This study aims to examine the impact of the characteristics of the audit committee on tax avoidance in Vietnam. The article uses data of non-financial firms listed on the Ho Chi Minh City and Ha Noi Stock Exchange over the period 2010–2019. By using the FEM and SGMM estimation for panel data, the empirical results show how the characteristics of the audit committee affect tax avoidance differently. Specifically, we find that the size of the audit committee has a positive correlation to tax avoidance, while the proportion of female members, financial and accounting experts of the audit committee can constrain tax avoidance behaviors. Our finding provides some important implications for listed firms to enhance the role of the audit committee in constraining tax avoidance behavior.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2023263
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2023263
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# input file: OAEF_A_2038417_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Nguyen Minh Ha
Author-X-Name-First: Nguyen
Author-X-Name-Last: Minh Ha
Author-Name: Bao Ngoc Do
Author-X-Name-First: Bao Ngoc
Author-X-Name-Last: Do
Author-Name: Trung Thanh Ngo
Author-X-Name-First: Trung Thanh
Author-X-Name-Last: Ngo
Title: The impact of family ownership on firm performance: A study on Vietnam
Abstract:
The purpose of this study is to examine the effect of family ownership and other factors on firm performance in Vietnam and to determine the optimal level of family ownership required to maximize firm performance. The study employs the quantitative method of panel-corrected standard errors (PCSE) regression to analyze data on 31 nonfinancial enterprises listed on the Ho Chi Minh City Stock Exchange (HOSE) in Vietnam between 2011 and 2019. The firm performance is analyzed from both a market perspective (via Tobin’s Q) and an accounting perspective (via return on assets [ROA]). The U-shaped curve illustrating this effect show that the relationship between family ownership and the performance of Vietnamese enterprises is negative. Tobin’s Q decreases as the family ownership ratio increases. Firm performance reaches its lowest point when family ownership exceeds 42.53%; then, as family ownership increases, Tobin’s Q increases as well. Similarly, as family ownership increases, ROA decreases, and firm performance reaches its lowest point at 65.89%; then, as family ownership increases, firm performance improves.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2038417
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2038417
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# input file: OAEF_A_2009664_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Gutema Bati Fedi
Author-X-Name-First: Gutema
Author-X-Name-Last: Bati Fedi
Author-Name: Fekadu Dereje Asefa
Author-X-Name-First: Fekadu
Author-X-Name-Last: Dereje Asefa
Author-Name: Abebe Tafa Waktole
Author-X-Name-First: Abebe
Author-X-Name-Last: Tafa Waktole
Title: Farm households’ perception about sugarcane outgrowers’ scheme: Empirical evidence around Wonji/Shoa Sugar Factory
Abstract:
The study assessed the perception of contract farm households about sugarcane outgrowers’ scheme around the Wonji/Shoa sugar factory. The study utilized primary data collected from randomly selected samples of 200 members of sugarcane-producing farmers’ cooperatives through a structured survey questionnaire. Purposively selected ten KIIs and six FGDs were also conducted with contract farmers and stakeholders. The five-point Likert scale measurement was created and applied to measure the perception of respondents about the scheme on considered 26 attributes and analyzed through descriptive statistics. Results revealed that the overall perception of the respondent contract farm households about the scheme was unfavorable with a weighted mean/index score of ‘2.32ʹ with a mixed perception index score on considered 26 attributes. The study discussed the policy implications of the findings. The main areas of concern are the payment system, the relationship of contract farmers with representatives (from the union, factory, and cooperatives), the income of contract farm households, the provision of services package (like free training, extension services, technical advice), the transparent and comprehensive contract terms and conditions, the provision of basic inputs and production services as per agreement (like adequate land preparation, infield irrigation), the effective and efficient legal framework system, additional support by third parties (on pre and post-harvest, production input provision, basic skill training, and etc.), and both parties should develop trust by having confidence on each other and not by acting opportunistically.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2009664
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2009664
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# input file: OAEF_A_2145749_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Duc Hieu Pham
Author-X-Name-First: Duc Hieu
Author-X-Name-Last: Pham
Title: Determinants of going-concern audit opinions: evidence from Vietnam stock exchange-listed companies
Abstract:
In this study, we aim to examine the effect of company and auditor characteristics on the issuance of going-concern opinions. The study population encompasses all financially distressed manufacturing companies listed on the Vietnam Stock Exchange during 2010–2019. The results indicate that the financial condition, incurring loss, audit report delay, and frequency of the board of director meetings significantly influence the issuance of auditors’ going-concern opinions. Company size, auditor size, and other financial ratios such as return on asset, leverage, and liquidity have no significant impact on the going-concern audit opinions. This study contributes to the limited research on going-concern audit opinions in the context of Vietnam. The results also provide a basis for recommendations to both auditors and audit clients on the determinants of going-concern audit opinions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2145749
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2145749
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# input file: OAEF_A_2079178_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Stefani Milovanska-Farrington
Author-X-Name-First: Stefani
Author-X-Name-Last: Milovanska-Farrington
Title: Do parents expect too much or is it all about grades? The discrepancy between parents’ aspirations and child’s academic performance, and parental satisfaction with the school
Abstract:
Schooling is related to health and future labor market outcomes. The school parents choose for their children often depends on feedback received from other parents. Therefore, it is important to understand whether parental satisfaction with the school depends only on objective measures of the quality of the school. We examine the association between children’s academic performance, parents’ aspirations, the mismatch between the two, and parents’ satisfaction with different aspects of children’s schooling. The findings suggest that excellent academic performance of the child is associated with higher parental satisfaction, regardless of parents’ aspirations. High expectations accompanied by low performance are negatively related to parental satisfaction with all aspects of children’s schooling. The results have implications related to school rankings and the significance of parental school reviews.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2079178
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2079178
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# input file: OAEF_A_2127489_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Van Hai Hoang
Author-X-Name-First: Van Hai
Author-X-Name-Last: Hoang
Title: Firm-specific news and idiosyncratic volatility anomalies: Evidence from the Chinese stock market
Abstract:
In this paper, we examine the relationship between idiosyncratic volatility and future returns around the firm-specific news announcements in the Chinese stock market following. The results show that the pricing of non-news idiosyncratic volatility is more strongly negative compared to news idiosyncratic volatility. Such findings imply that limited arbitrage cannot fully explain the negative pricing of idiosyncratic volatility in the Chinese stock market. These results are robust after controlling for several well-known variables, such as market beta, firm size, book-to-market, momentum, liquidity, and maximum return. However, after adjusting by additional macroeconomic variables, the Chinese four-factor model and the salience trading volume factor, the average returns on zero-investment IVOL and non-news IVOL portfolios turn out to be insignificant, indicating that they may be one driver of the IVOL puzzle in the Chinese stock market.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2127489
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2127489
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# input file: OAEF_A_2114168_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Shemelis Kebede Hundie
Author-X-Name-First: Shemelis Kebede
Author-X-Name-Last: Hundie
Author-Name: Bane Biratu
Author-X-Name-First: Bane
Author-X-Name-Last: Biratu
Title: Response of Ethiopian coffee price to the world coffee price: Evidence from dynamic ARDL simulations and nonlinear ARDL cointegration
Abstract:
World coffee prices may have crucial implications on domestic prices of coffee. However, empirical evidence on the effect of world coffee prices on the price of coffee traded at the Ethiopian Commodity Exchange (ECX) is very scant. The main objective of this study is to analyze the response of the price of coffee traded at ECX to change in world coffee price. Monthly time series data ranging from July 2009 to June 2020 were used to address the objectives of this study. The result of the Kapetanios and Shin unit root test shows that majority of the series are stationary at first difference while some variables are stationary at level. The ARDL bounds test was applied to examine whether co-movement exists between the world coffee price and the price of coffee traded at ECX and the result reveals that the two prices are cointegrated. The nonlinear ARDL was applied to test the presence of asymmetric price transmission from the world coffee price to the ECX coffee price. The result reveals that there is an asymmetric price transmission both in the short-run and long-run. ECX coffee prices respond more to a positive shock in world coffee prices than a negative shock in the same variable. Results from the dynamic ARDL simulations reveal that a counterfactual shock in world coffee price has a long-lasting short-and long-term effect on ECX coffee price. The TY and frequency-domain Granger causality test results indicate that all variables except the exchange rate the world coffee price Granger cause ECX coffee price. The frequency-domain Granger causality test results show that world coffee price, economic growth, and money supply granger cause ECX coffee price in the long-run while trade openness and volume of coffee exported granger cause ECX coffee price in the short term. Policymakers should focus on improving competitiveness and transaction cost prevailing in the coffee market in Ethiopia.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2114168
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2114168
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# input file: OAEF_A_2104780_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jules Ngango
Author-X-Name-First: Jules
Author-X-Name-Last: Ngango
Author-Name: Fabrice Nkurunziza
Author-X-Name-First: Fabrice
Author-X-Name-Last: Nkurunziza
Author-Name: Joseph Ndagijimana
Author-X-Name-First: Joseph
Author-X-Name-Last: Ndagijimana
Title: Assessing rural farmers’ willingness to pay for crop insurance scheme: Evidence from Rwanda
Abstract:
Agriculture plays a significant role in Rwanda’s economic growth but is still highly rain-fed with risks and losses caused by adverse natural and climate shocks. Agricultural insurance schemes are widely recognized as potential risk management strategies. This study aims to examine the determinants of farmers’ willingness to insure maize farms and the premium farmers are willing to pay for crop insurance. The data used in this study were obtained from a household survey conducted in Eastern Rwanda and a sample of 325 households was drawn. A double-hurdle model is used for empirical analysis and the findings show that education, land tenure, farm size, group membership, and insurance awareness have a positive effect on maize farmers’ decision to adopt crop insurance. Regarding the determinants of willingness to pay, education, land tenure, farm size, credit access, and income positively influenced the insurance premium maize farmers were willing to pay whereas household size negatively influenced the premium farmers were willing to pay for crop insurance. The study recommends policy frameworks that strengthen the education in rural communities about the usefulness of crop insurance to enhance farmers’ participation in crop insurance and increase the premium farmers will be willing to pay for crop insurance. Besides, the study highlights the importance of building the capacity of farmers’ groups or cooperatives to promote the uptake of crop insurance as well as the premium to be paid. The study also recommends the improvement of farmers’ access to credit facilities to allow farmers to get the financial capability.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2104780
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2104780
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# input file: OAEF_A_2116788_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Julio Vicente Cateia
Author-X-Name-First: Julio
Author-X-Name-Last: Vicente Cateia
Author-Name: Luc Savard
Author-X-Name-First: Luc
Author-X-Name-Last: Savard
Author-Name: Edivo de Oliveira Almeida
Author-X-Name-First: Edivo
Author-X-Name-Last: de Oliveira Almeida
Title: Impact of covid-19 on labor force participation in Brazil
Abstract:
This study aims to analyze the impact of Covid-19 on the female’s labor force participation (LFP) probability in Brazil in 2020. We found through the probit model that females are about 7 percentage points less likely to participate in the labor force than males. Covid-19 and layoffs decrease by about 7 and 30 percentage points the women’s LFP probability, respectively. An additional year of schooling increases female’s LFP probability by 14 percentage points. These results are statistically significant at 1%. However, Covid-19-gender interaction term coefficient is not significant. We suggest a rich agenda for women’s jobs opportunities in developing countries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2116788
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2116788
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# input file: OAEF_A_2127219_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Melsew Nibret Mazengiya
Author-X-Name-First: Melsew Nibret
Author-X-Name-Last: Mazengiya
Author-Name: Girmachew Seraw
Author-X-Name-First: Girmachew
Author-X-Name-Last: Seraw
Author-Name: Birhanu Melesse
Author-X-Name-First: Birhanu
Author-X-Name-Last: Melesse
Author-Name: Tesfaye Belete
Author-X-Name-First: Tesfaye
Author-X-Name-Last: Belete
Title: “Determinants of rural household saving participation: A case study of Libokemkem District, North-west Ethiopia”
Abstract:
Saving is an important factor in households’ welfare in developing countries. However, most studies have focused on urban areas and at the macroeconomic level. Consequently, such studies mask the reality of rural households, which constitute a large proportion in Ethiopia. Hence, this study aims at analyzing the factors that influence the probability of saving participation at the household level in the Libokemkem District. We employed a systematic random sampling technique to select a total of 157 household heads in three kebeles in Libokemkem District, Ethiopia. We used structured questionnaires to collect data from the sampled households. We then analyzed the data using a logistic regression model. The results of the study show that family size, farm land, education status, credit access and frequency of extension contact are the determinant factors for saving participation among rural households. We recommend that the Ethiopian Ministry of Economic and Finance should strengthen the existing credit services and create awareness campaigns for the communities to enhance rural saving participation.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2127219
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2127219
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# input file: OAEF_A_2116789_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Baher Ahmed Elgahry
Author-X-Name-First: Baher Ahmed
Author-X-Name-Last: Elgahry
Title: Floating versus fixed: How exchange rate regimes affect business cycles comovement between advanced and emerging economies
Abstract:
This article investigates the effects of the different exchange rate regimes on business cycles comovement between advanced and emerging countries. We use the Granger Causality test (VAR model) on panel data to examine the causal relationships. Our findings show the existence of a bidirectional causal relationship between output comovement and the exchange rate regimes. We check the robustness of our results by applying Dumitrescu-Hurlin (2012) panel causality test that confirms our findings. Furthermore, the impulse response functions illustrate that business cycles comovement between advanced and emerging economies responds positively and significantly to the exchange rate regimes of these two groups of countries in the short term. However, the positive effect begins to wane before being negative from the third quarter and the fifth quarter for emerging economies and developed economies, respectively.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2116789
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2116789
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# input file: OAEF_A_2117118_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Kelvin Yong Ming Lee
Author-X-Name-First: Kelvin Yong
Author-X-Name-Last: Ming Lee
Author-Name: Pick-Soon Ling
Author-X-Name-First: Pick-Soon
Author-X-Name-Last: Ling
Author-Name: Chiang-Ching Tan
Author-X-Name-First: Chiang-Ching
Author-X-Name-Last: Tan
Title: Does environmental issue matter? Effect of air pollution on the stock market performance
Abstract:
Air pollution is one of the most serious environmental issues. In Malaysia, the emission of air pollutants has increased in recent years. This study aimed to examine the impact of air pollution on sectoral indices in Malaysian stock market. The dependent variables used in this study were the daily return of 13 sectoral indices, while the independent variables were as follows: (i) the lagged daily return of sectoral indices; (ii) the lagged standard deviation of sectoral indices; and (iii) the Air Quality Index (AQI). The sample period of this study covered from 5 July 2019 to 8 April 2022. The findings showed that the lagged daily return only significantly affected the daily return of few sectors. Meanwhile, the lagged standard deviation significantly affected the daily return of all the sectoral indices, but not under all the market conditions. The lagged AQI and AQI also significantly affected the daily return of eight sectors, which included finance, property, construction, healthcare, technology, energy, utilities, and consumer sectors. Hence, investors need to observe the changes in the air pollution level and market conditions when making investment decision. These findings could help investors in identifying the environmental factors that need to be considered before investing in the stocks of particular sectors.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2117118
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2117118
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# input file: OAEF_A_2058735_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Isaac Ofoeda
Author-X-Name-First: Isaac
Author-X-Name-Last: Ofoeda
Author-Name: Elikplimi Komla Agbloyor
Author-X-Name-First: Elikplimi Komla
Author-X-Name-Last: Agbloyor
Author-Name: Joshua Yindenaba Abor
Author-X-Name-First: Joshua Yindenaba
Author-X-Name-Last: Abor
Title: How do anti-money laundering systems affect FDI flows across the globe?
Abstract:
This paper is a systematic attempt to establish the effect of anti-money laundering (AML) systems on FDI flows across the globe. Complex and related hypotheses are tested using data from 2012 to 2018 across 165 economies across different continents, income levels, and regulatory environments. First, the paper examines the effect of AML systems on FDI flows. Second, the paper examines the nonlinearities of the AML systems-FDI nexus. Third, the paper examines if host country peculiarities such as an offshore financial centre (OFCs) or originating from Africa alter this relationship. The paper employs the two-step system GMM and the dynamic panel threshold regression techniques to test the hypotheses of the study. Generally, the paper provides evidence that AML systems positively promote FDI inflows. However, the paper finds that AML structures dampen FDIs inflows for OFCs. Further, the paper finds that the influence of AML systems on FDIs is threshold-specific. Specifically, AML systems positively impact FDIs below the threshold for our full, developing, and African country samples. At the same time, the study finds a negative impact of AML structures on FDIs above the threshold value for our full sample and developing countries. However, for Africa, the study provides evidence of a positive impact of AML systems on FDIs across the different AML structures. Again, the study finds that AML systems negatively impact FDI across all AML structures for offshore financial centres. The findings of the study provide insights into the importance of AML systems in influencing MNEs’ FDI decisions to a country.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2058735
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2058735
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# input file: OAEF_A_2125657_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mamadou Asngar Thierry
Author-X-Name-First: Mamadou Asngar
Author-X-Name-Last: Thierry
Author-Name: Ongo Nkoa Bruno Emmanuel
Author-X-Name-First: Ongo Nkoa
Author-X-Name-Last: Bruno Emmanuel
Author-Name: Nchofua Protus Biondeh
Author-X-Name-First: Nchofua
Author-X-Name-Last: Protus Biondeh
Title: Environmental sustainability in Sub-Saharan Africa: Does information and communication technology (ICT) matter?
Abstract:
This study investigates the effect of information and communication technology (ICT) on environmental sustainability in 38 Sub-Saharan African (SSA) countries over a period 2000–2016. ICT is measured by internet penetration and mobile phone penetration whereas environmental sustainability is measured by CO2 emissions. The empirical evidence is based on the extended stochastic impact by regression on population, affluence and technology model. As estimation techniques, pooled ordinary least squares (OLS), fixed effect (FE), random effect (RE), panel correlated standard error (PCSE) and feasible generalised least squares (FGLS) are employed. The finding broadly shows that investment in ICT infrastructure enhances environmental sustainability. In addition, the effect of ICT is uniform across different income levels in SSA. As a policy implication, universal ICT access that encourages low pricing and broad coverage of equipment should be considered.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2125657
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2125657
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# input file: OAEF_A_2073656_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Tony Anyangwe
Author-X-Name-First: Tony
Author-X-Name-Last: Anyangwe
Author-Name: Annabel Vanroose
Author-X-Name-First: Annabel
Author-X-Name-Last: Vanroose
Author-Name: Ashenafi Fanta
Author-X-Name-First: Ashenafi
Author-X-Name-Last: Fanta
Title: Determinants of financial inclusion: does culture matter?
Abstract:
This study aims to assess the role of culture as a determinant of financial inclusion, defined with respect to formal account ownership, saving and credit in/from formal financial institutions. A sample of 85 countries, comprising 50 developing and 35 developed countries from the World Bank’s Global Findex database is used to perform probit estimations. Hofstede’s cultural dimensions, namely power distance, individualism/collectivism, masculinity/femininity, uncertainty avoidance, short/long-term orientation, and indulgence/restraint are used as culture measures. Our findings indicate that living in high power distance, more masculine, and high uncertainty avoidance cultures reduces the likelihood for financial inclusion. Meanwhile, living in more individualistic, long-term oriented, and more indulgent cultures increases the likelihood for financial inclusion. These findings are relevant for the design of policies to foster financial inclusion across the developing world, especially as financial inclusion affects poverty levels and reduction strategies, and economic development as a whole. We provide evidence which dismisses the global “one size fits all” strategy applied to development-related initiatives like the global provision of funds towards financial inclusion, and argue for a more customised approach given country-level differences conditioned by different cultural frameworks.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2073656
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2073656
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# input file: OAEF_A_2082025_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jean René Cupidon
Author-X-Name-First: Jean René
Author-X-Name-Last: Cupidon
Author-Name: Judex Hyppolite
Author-X-Name-First: Judex
Author-X-Name-Last: Hyppolite
Title: An exchange rate model where the fundamentals follow a jump-diffusion process
Abstract:
This paper presents some models of exchange rate with jumps, namely jump diffusion exchange rate models. Jump diffusion models are quite common in computational and theoretical finance. It is known that exchange rates sometimes exhibit jumps during some time periods. Therefore, it is important to take into account the presence of these jumps in exchange rate modeling in general. However, even the simplest jump diffusion model introduces some analytical difficulty in terms of finding a solution to the model. The models we analyze in this paper make use of Approximation Theory in order to come up with closed form solutions to the underlying variables. This approach leads to the branch of differential equations called functional differential equations and more specifically the so-called delay differential equations. Our approach leads to a second order delay differential equation. Though, in principle, these types of functional differential equations can be solved analytically in some cases, the task, in general, is quite enormous. We circumvent this technical difficulty by deriving an approximate solution using a power series expansion of the second order. Therefore, we derive a complete solution to the models and also investigate the model’s predictions of the exchange rate. We introduce two jump diffusion models. The first model examines the case where there are jumps with a constant magnitude. The second model considers the case of jumps of different sizes. These are relatively simpler cases to be analyzed. We will present some computational aspects in terms of the difficulty often encountered in estimating these types of models. The difficulty increases for the type of exchange rate models being considered in this paper. Taking advantage of the specification of the models we have estimated the parameters using a two-step M-estimation strategy that combines full information maximum likelihood estimation in the first step and the simulated method of moments in the second step.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2082025
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2082025
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# input file: OAEF_A_2087290_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Duc Nguyen Nguyen
Author-X-Name-First: Duc Nguyen
Author-X-Name-Last: Nguyen
Author-Name: Thuy T. Dang
Author-X-Name-First: Thuy T.
Author-X-Name-Last: Dang
Title: The relationship between central bank independence and systemic fragility: global evidence
Abstract:
This study investigates the relationship between central bank independence and financial stability in a global sample covering 56 countries from 1980 to 2012. We find strong and robust evidence that central bank independence and its four dimensions (personnel independence, financial independence, policy independence, and central bank objectives) are negatively associated with bank systemic risk. In addition, the results indicate that the reductive effect of central bank independence on systemic risk is more pronounced during actual episodes of banking crises. Moreover, our results suggest that the democratic environment plays a vital role in moderating the central bank independence − systemic risk nexus.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2087290
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2087290
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# input file: OAEF_A_2111799_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Richard Chamboko
Author-X-Name-First: Richard
Author-X-Name-Last: Chamboko
Author-Name: Sevias Guvuriro
Author-X-Name-First: Sevias
Author-X-Name-Last: Guvuriro
Title: On the predictors of loan utilization and delinquency among microfinance borrowers in Zimbabwe: A Poisson regression approach
Abstract:
Microfinance institutions (MFIs) are a prominent financial inclusion initiative in many developing countries. In Zimbabwe, however, less is known about microfinance borrowers, determinants of loan utilisation and borrowers’ repayment behaviour. Demonstrating that MFIs serve those who are economically marginalised and traditionally excluded from the formal financial system is useful in a country where most of the economic activities are in the informal sector. This study investigated the factors associated with the utilisation of microfinance loans and delinquency among microfinance borrowers using the Poisson, logit and the zero-truncated Poisson regression models on 6165 unique borrowers in Zimbabwe. The study findings revealed that microfinance loans were significantly more likely to be accessed by low-income individuals, who took small loans with relatively high instalments. Women were less likely to access microfinance loans, and reliable borrowers were more likely to access repeat loans. The level of income, number of previous loans and loan terms explained the delinquency among borrowers. Largely, the findings suggest that microfinance in Zimbabwe serves the needs of the low-income group. However, policies that seek to improve access to credit for women and youth remain a priority.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2111799
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111799
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# input file: OAEF_A_2056361_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Haidar Alqadhib
Author-X-Name-First: Haidar
Author-X-Name-Last: Alqadhib
Author-Name: Nada Kulendran
Author-X-Name-First: Nada
Author-X-Name-Last: Kulendran
Author-Name: Lalith Seelanatha
Author-X-Name-First: Lalith
Author-X-Name-Last: Seelanatha
Title: Impact of COVID-19 on mutual fund performance in Saudi Arabia
Abstract:
This study aims to measure the performance of actively-managed Saudi Arabia mutual funds during the COVID-19 outbreak and examines the potential impact of COVID-19 growth on the measured performance. The authors apply the Fama and French five-factor model to measure the risk-adjusted performance of a selected sample of 79 mutual funds. Mutual funds in Saudi Arabia outperformed the market with a significant positive alpha of 0.15%. The panel data regression technique identified the impact of growth in new confirmed cases and fatalities with fund-specific variables on mutual fund performance. The findings suggest that new confirmed cases had a significant and negative impact on mutual fund unadjusted returns and risk-adjusted returns. The significant positive impact of growth in COVID-19 fatalities on fund performance may have been interpreted as positive news by the market participants as the actual mortality rate was lower than previous forecast. Moreover, the study found that even individually, most mutual fund managers were not able to minimise the impact of the COVID-19 outbreak on mutual fund returns compared to the market portfolio. This study examines the potential impact of growth in COVID-19 cases as a new factor affecting mutual fund performance which helps investors to understand the behaviour of mutual fund performance during the COVID-19 crisis. It also provides evidence on how mutual fund performance reacted to the COVID-19 outbreak when compared to the overall market performance reaction. Moreover, this is the first study that applied the Fama and French five-factor model to estimate the mutual funds’ risk-adjusted performance.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2056361
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2056361
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# input file: OAEF_A_2160036_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Kwasi Poku
Author-X-Name-First: Kwasi
Author-X-Name-Last: Poku
Author-Name: Emmanuel Opoku
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Opoku
Author-Name: Priscilla Agyeiwaa Ennin
Author-X-Name-First: Priscilla
Author-X-Name-Last: Agyeiwaa Ennin
Title: The influence of government expenditure on economic growth in Ghana: An Ardl approach
Abstract:
The relationship between public sector expenditure and economic growth for several decades past is still relevant today and continues to be a topic of debate among policy-makers and researchers. We examine the impact of government expenditure on economic growth in Ghana using data from 1970 to 2016, employing ARDL econometric estimation technique. The empirical findings indicate that, government expenditure has a positive relationship with economic growth in the short-run. The results further show that, Gross Capital Formation and Foreign Direct Investment show a significant positive relationship with economic growth in both the short-run and long-run. However, population growth reveals a significant negative relationship with economic growth (GDP Growth). We recommend government to increase public expenditure on profitable projects since it promotes economic growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2160036
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2160036
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# input file: OAEF_A_2019360_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: M. Fahad Malik
Author-X-Name-First: M. Fahad
Author-X-Name-Last: Malik
Author-Name: Masood Sarwar Awan
Author-X-Name-First: Masood Sarwar
Author-X-Name-Last: Awan
Author-Name: Waseem Shahid Malik
Author-X-Name-First: Waseem Shahid
Author-X-Name-Last: Malik
Title: Determination of inflationary behavior: A comparative analysis
Abstract:
Standard theory of consumer behavior stands on the maxim of utility maximization. Optimizing behavior of consumer is achieved by maximization of utility subject to budget constraint. An increase in inflation that is not accompanied by proportionate increase in income can leave a consumer worse off. Therefore, it is imperative for consumers to have right assessment about inflation which in turn requires appropriate modelling of inflationary behavior. This study assesses efficacies of different versions of new Keynesian Phillips curve for capturing dynamics of CPI inflation. Estimation of different formulations of this curve is achieved by employing generalized method of moments. This choice of estimation technique is made to handle potential problem of endogeneity. Countries with different resource and market structures are included to evaluate and compare fitness of different formulations for different economies. Economies of Pakistan and Turkey represent developing economies, economy of South-Korea is incorporated for emerging market economy and economies of Canada, UK and US are included for developed economies. The results of this study reveal that internal as well as external factors are crucial for explaining inflationary behavior of developing economies. Whereas, dynamics of domestic inflation for advanced economies are mostly explained by internal factors.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2019360
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2019360
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# input file: OAEF_A_2127486_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Andini Nurwulandari
Author-X-Name-First: Andini
Author-X-Name-Last: Nurwulandari
Author-Name: Hasanudin Hasanudin
Author-X-Name-First: Hasanudin
Author-X-Name-Last: Hasanudin
Author-Name: Bambang Subiyanto
Author-X-Name-First: Bambang
Author-X-Name-Last: Subiyanto
Author-Name: Yulia Catur Pratiwi
Author-X-Name-First: Yulia Catur
Author-X-Name-Last: Pratiwi
Title: Risk Based bank rating and financial performance of Indonesian commercial banks with GCG as intervening variable
Abstract:
This study aims to analyze the effect of the financial health of Indonesian commercial banks on financial performance with good corporate governance as an intervening variable. This study utilizes the risk-based bank rating (RBBR) method with secondary data by examining annual reports of 41 commercial banks taken as samples for the period from 2014 to 2019. The ratios used in this study are Non-Performing Loans (NPL), Loan Deposit Ratio (LDR), Net Interest Margin (NIM), and Operating Efficiency Ratio (OER), Capital Adequacy Ratio (CAR), Return on Assets (ROA) and Good Corporate Governance (GCG). The results showed that NIM had a direct positive and significant effect on ROA, while OER had a negative and significant effect on ROA, as hypothesized. Direct testing of GCG shows a negative and significant effect of NPL and OER, as well as a positive and significant effect of NIM. Furthermore, indirect testing with intervening variables shows that GCG is able to mediate the relationship between NPL and OER on the financial performance of conventional banks in Indonesia. In addition, GCG is also empirically proven to strengthen the positive and significant effect of NIM on ROA. This finding underscores the importance of good corporate governance in improving the financial health of commercial banks in Indonesia. In addition, the results theoretically would imply for the relevance of investigations regarding governance mechanisms and moral ethics as the domains of strategic issues of corporate governance.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2127486
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2127486
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# input file: OAEF_A_2107766_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Hendrik Widjaja
Author-X-Name-First: Hendrik
Author-X-Name-Last: Widjaja
Author-Name: Moch. Doddy Ariefianto
Author-X-Name-First: Moch. Doddy
Author-X-Name-Last: Ariefianto
Title: The dynamic of bank stock price and its fundamentals: Evidence from Indonesia
Abstract:
This study examines the relationship between bank stock price and its selected fundamentals, namely, profitability, credit risk, and liquidity risk. Using the dynamic common correlated effect (DCCE) technique, we discover a mechanism error-correction between the stock price and the selected fundamentals. We estimate that the equilibrating process of stock price takes between 2.62 and 3.22 months. This study also provides significant support for hypotheses of the positive role of profitability (proxied by ROE and NIM) to bank stock price. Credit and liquidity risk measures do not significantly affect stock price.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2107766
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2107766
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# input file: OAEF_A_2156090_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Markew Mengiste Neway
Author-X-Name-First: Markew Mengiste
Author-X-Name-Last: Neway
Author-Name: Solomon Estifanos Massresha
Author-X-Name-First: Solomon Estifanos
Author-X-Name-Last: Massresha
Title: The determinants of household poverty: the case of berehet woreda, amhara regional state, Ethiopia
Abstract:
Nowadays, poverty is one of the most important issues that needs due attention in many developing countries like Ethiopia. Nonetheless, poverty in Ethiopia remains widespread in both rural and urban areas. Therefore, this study aimed to examine the determinants and status of poverty in Berehet Woreda. The study was conducted using a cross-sectional survey. To conduct the study, a sample of 384 households was selected using a stratified simple random sampling technique. Foster Greer Thorbecke’s Poverty Index was used to examine the extent and severity of poverty in the Woreda. Accordingly, about 36% of households in Woreda live below the poverty line, with an average poverty gap of 12% and poverty severity of about 7%. The binary logit model showed that household education status, dependency ratio, residential area, and access to credit were statistically significant in determining household poverty status. Since the poverty situation in Woreda was worse than the national average, the regional government should prioritize this Woreda and develop a special type of projects especially in rural areas that can lift the majority of the poor out of poverty.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2156090
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2156090
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# input file: OAEF_A_2071386_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Safari Mulume Bonnke
Author-X-Name-First: Safari
Author-X-Name-Last: Mulume Bonnke
Author-Name: Paul Martin Dontsop Nguezet
Author-X-Name-First: Paul Martin
Author-X-Name-Last: Dontsop Nguezet
Author-Name: Alexis Nyamugira Biringanine
Author-X-Name-First: Alexis
Author-X-Name-Last: Nyamugira Biringanine
Author-Name: Mulumeoderhwa Shalukoma Jean-Jacques
Author-X-Name-First: Mulumeoderhwa Shalukoma
Author-X-Name-Last: Jean-Jacques
Author-Name: Victor Manyong
Author-X-Name-First: Victor
Author-X-Name-Last: Manyong
Author-Name: Zoumana Bamba
Author-X-Name-First: Zoumana
Author-X-Name-Last: Bamba
Title: Farmers’ credit access in the Democratic Republic of Congo: Empirical evidence from youth tomato farmers in Ruzizi plain in South Kivu
Abstract:
This article assesses the opinions of youth tomato growers on the accessibility of agricultural credit and factors that influence the accessibility in the Democratic Republic of the Congo (DRC). Data originated from a household survey for the 2019/2020 farming season. We interviewed 218 youth tomato growers from 6 horticulture production zones in the South-Kivu, eastern DRC. The result reveals a low rate of 20.6% on accessing agricultural credit among tomato growers. The topmost nature of agricultural credit received was cash-based, mostly from informal sources of finance (92.7%). The findings reveal that the lack of information on agricultural credit, the fear of credit default, and the absence of Microfinance Institutions in the study areas were the highest-ranking factors hindering tomato growers from accessing agricultural credit services. Our probit model shows that total household income, gender, and tomato growers’ membership in a cooperative were essential factors that explain the probability of accessing agricultural credit. We recommend formalising the agricultural credit system by improving agri-finance extension service delivery to associations of tomato growers among the young to access and use agricultural microcredit services effectively to enhance agricultural production, which is a proxy for rural employment creation and poverty reduction.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2071386
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2071386
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# input file: OAEF_A_2101239_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Saturnin Bertrand Nguenda Anya
Author-X-Name-First: Saturnin Bertrand
Author-X-Name-Last: Nguenda Anya
Author-Name: Fabrice Nzepang
Author-X-Name-First: Fabrice
Author-X-Name-Last: Nzepang
Title: The effects of alternating heads of state on structural transformation in sub-Saharan Africa
Abstract:
The objective of this paper is to investigate the effect of alternating heads of state on structural transformation in sub-Saharan Africa (SSA). Indeed, the alternation of a head of state is an institutional tool likely to promote the reallocation of labor, innovation and human capital and thus improve structural change and intra-industry productivity, which are the two components of structural transformation. The primary data collected on the alternation of heads of state, the Africa sector database (ASD) and the World Development Indicators (WDI) allow us to illustrate our remarks using the two steps least squares (2SLS) method on a panel of 17 SSA countries. The results obtained show that the number of alternations of heads of state positively and significantly affects intra-industry productivity and structural change in SSA.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2101239
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2101239
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# input file: OAEF_A_2107149_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Bongumusa Prince Makhoba
Author-X-Name-First: Bongumusa Prince
Author-X-Name-Last: Makhoba
Author-Name: Irrshad Kaseeram
Author-X-Name-First: Irrshad
Author-X-Name-Last: Kaseeram
Title: Fiscal policy, sovereign debt and economic growth in SADC economies: A panel vector autoregression analysis
Abstract:
This study estimates a Panel Vector Autoregressive (PVAR) approach to analyse the impact of fiscal policy and public debt on economic growth in Southern African Developing Communities (SADC). The study further estimated the fixed effects (FE) and random effects (RE) to verify the robustness of empirical findings. The results provide rigorous empirical evidence of a positive response of GDP growth due to shocks in government expenditure, employment, and public debt while gross capital formation exerts a negative effect on economic growth. The study proposes that fiscal authorities ought to focus on the adoption of prudent fiscal policies as a credible stabilization tool at the disposal of policymakers to safeguard stable and yet productive public finances consistent with sustainable economic prosperity. These may include addressing infrastructural development, soaring fiscal deficit, creation of jobs, and creating a conducive environment for both labour and capital-intensive projects to flourish in the SADC economies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2107149
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2107149
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# input file: OAEF_A_2041259_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Eliyas Assefa
Author-X-Name-First: Eliyas
Author-X-Name-Last: Assefa
Author-Name: Zemen Ayalew
Author-X-Name-First: Zemen
Author-X-Name-Last: Ayalew
Author-Name: Hawlet Mohammed
Author-X-Name-First: Hawlet
Author-X-Name-Last: Mohammed
Title: Impact of small-scale irrigation schemes on farmers livelihood, the case of Mekdela Woreda, North-East Ethiopia
Abstract:
Small scale irrigation has multi-dimensional effects on the livelihood development of the rural people in Ethiopia. Thus, the main objective of this study was to examine the impact of small-scale irrigation on farmers’ livelihood. A stratified random sampling technique was applied to select 96 users and 162 non-user sample respondents. The collected data were analyzed using descriptive statistics and an econometric model. Binary logit and Endogenous switching regressions model were employed to identify the determinant of small-scale irrigation participation and its impact on farmers’ livelihood respectively. The Binary logit model result indicates that age and age square of the household, own cultivated land, off-farm job participation, extension contact, distance from homestead to a nearly local market, distance from home to the scheme, and having irrigation user neighbor are significant factors affect farmers’ decision to practice irrigation. To capture the impact of irrigation on farmers’ livelihood, the total income of the household was used in the endogenous switching regression model. The model result shows that the positive and significant impact of irrigation schemes had increased users’ total income by 7829 ETB (8.5%), as compared to non-users. This shows how significant the role of a small-scale irrigation scheme in improving the livelihood condition of farmers in the study area. The finding of this study shows that improving access to market and water for irrigation, provision of extension, and other complementary services would increase the participation of irrigation and improve livelihood.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2041259
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2041259
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# input file: OAEF_A_2111798_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Giang Thi Huong Vuong
Author-X-Name-First: Giang Thi Huong
Author-X-Name-Last: Vuong
Author-Name: Manh Huu Nguyen
Author-X-Name-First: Manh Huu
Author-X-Name-Last: Nguyen
Author-Name: Wing Keung Wong
Author-X-Name-First: Wing
Author-X-Name-Last: Keung Wong
Title: CBOE volatility index (VIX) and corporate market leverage
Abstract:
Our paper investigates the nexus between the CBOE Volatility Index (VIX) and the market leverage of firms listed on the US stock market. Analyzing the yearly database of non-financial US firms from 2000 to 2019, we find that an increase in the VIX index has a positive impact on the leverage of the corporate market. We also find robust evidence that the US-listed firms tend to use more market leverage in the future year when the VIX index ascends. Furthermore, we find a more prominent positive effect of the change in the VIX index on the long-term market leverage than the short-term market leverage. Different approaches for the panel models firmly support our findings. In addition, our research suggests that the implied volatility index is a good proxy to measure investors’ fear of securities investment and provides a good foundation for making the capital structure decisions for the firms listed on the US stock market.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2111798
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111798
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# input file: OAEF_A_2001141_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ahmed Rashed
Author-X-Name-First: Ahmed
Author-X-Name-Last: Rashed
Author-Name: Chen-Chen Yong
Author-X-Name-First: Chen-Chen
Author-X-Name-Last: Yong
Author-Name: Siew-Voon Soon
Author-X-Name-First: Siew-Voon
Author-X-Name-Last: Soon
Title: The nexus among foreign direct investment in renewable electricity industry, renewable electricity production, and economic growth in Africa
Abstract:
Africa is still struggling to mitigate its electricity insecurity issues. This situation renders foreign direct investment in the renewable electricity industry (FDIREI) and renewable electricity production (REP) to become simultaneously important to Africa. Using a novel dataset of FDIREI, this paper examines the existence and nature of cointegration and causality nexuses among FDIREI, REP, and economic growth (GDP) in 32 African countries over 2003–2019. For methodological robustness purposes; GDP is added. By applying the panel vector autoregression model based-Granger causality test and a static panel data model, which are followed by robustness tests, more informative results are reported. Importantly, we find evidence of the growth hypothesis between REP and GDP, as a unidirectional Granger causality is seen from REP to GDP. Further, the neutrality hypothesis is confirmed among the remaining variables. This left us with the importance of REP in revitalizing African countries’ economic growth. All facets of REP thus should be enhanced.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2001141
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2001141
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# input file: OAEF_A_2148361_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Benedict Arthur
Author-X-Name-First: Benedict
Author-X-Name-Last: Arthur
Author-Name: Bismark Addai
Author-X-Name-First: Bismark
Author-X-Name-Last: Addai
Title: The dynamic interactions of economic growth, foreign direct investment, and exchange rates in Ghana
Abstract:
This study examines the dynamic interactions among foreign direct investment (FDI), economic growth (GDPG), and real exchange rate (RER) in Ghana using time series data over the period 1996 to 2018, and two econometric models: a trivariate VAR and the ARDL bound test. The results reveal that no long-run relationship exists among the variables. However, a positive causal shock flows from both FDI and RER to GDPG. Also, the response of FDI to the shock in RER is positive. Therefore, it is recommended that the government implements policies that will ensure optimal balance in this nexus since a close and inter-reliant link exists among the variables.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2148361
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2148361
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# input file: OAEF_A_2103923_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Adella A. Ng’Atigwa
Author-X-Name-First: Adella A.
Author-X-Name-Last: Ng’Atigwa
Author-Name: Aloyce Hepelwa
Author-X-Name-First: Aloyce
Author-X-Name-Last: Hepelwa
Author-Name: Victor Manyong
Author-X-Name-First: Victor
Author-X-Name-Last: Manyong
Author-Name: Shiferaw Feleke
Author-X-Name-First: Shiferaw
Author-X-Name-Last: Feleke
Title: Analysis of technical efficiency among youth involved in crop production in Njombe Region, Tanzania
Abstract:
This study aimed to estimate the Technical Efficiency (TE) of youth crop farmers in Njombe Region of Tanzania, and analyze the determinants of technical inefficiency for crops produced. Data were collected from 572 youths in 16 villages of Njombe Region by using a random sampling technique. The Stochastic Production Function (SPF) model analysed technical efficiency among the youth crop farmers. Results show that youth crop farmers in the study region exhibited decreasing returns to scale, as confirmed by the Returns to Scale of 0.275. The mean TE of crops produced was 19.32%, implying that youth farmers still have room to improve their farming efficiency by 80.68% using the same land resources. Most youth farmers had technical efficiency scores from 18.5% to 20.5%. In addition, the estimated SPF model and inefficiency parameters showed that age, land ownership, and extension contact are factors which reduced technical inefficiency in the study region. Thus, more emphasis might focus on enhancing the accessibility of youth farmers to extension services, land ownership, and efficient use of farm inputs might improve the TE of youth crop farmers in Tanzania and the world as a whole.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2103923
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2103923
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# input file: OAEF_A_2071385_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Workineh Ayenew Mossie
Author-X-Name-First: Workineh Ayenew
Author-X-Name-Last: Mossie
Title: Understanding financial inclusion in Ethiopia
Abstract:
The main objective of this paper is to examine the drivers, barriers of financial inclusion, and saving and credit behaviour in Ethiopia. We used the World Bank 2017 Findex database to carry out logit estimations. We found that being educated, richer, a man, and older associated with greater level of financial inclusion with a strong influence of income and education. We found that the existing gender gaps in the financial inclusion is mainly due to women exclusion from the non-financial sector. While younger and poor adults do not access formal accounts due to involuntary exclusion (distance to the nearest financial access point, affordability, and lack of documentation), older and richer individuals are constrained by voluntary barriers (lack of money, family member has account). Women are less likely to save for farm or business and old age security purposes, while educated individuals in the wealthiest 20% quintile save for old age security purposes. The rich and the poor seek formal credit primarily for farm/business and asset purchase. Our work confirms that the determinants, barriers, saving, and credit behaviour are different across individual characteristics. We strongly recommend that policies that aim to foster financial inclusion should target the vulnerable (the poor, young, less educated, and women) population groups. Authorities and policymakers should strive to improve women participation in the formal real sector of the economy, financial institutions should adopt technologies such as mobile banking and mobile money to ensure the accessibility of financial services.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2071385
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2071385
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# input file: OAEF_A_2079176_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ahmad Irsan A. Moeis
Author-X-Name-First: Ahmad Irsan A.
Author-X-Name-Last: Moeis
Author-Name: Nachrowi Djalal Nachrowi
Author-X-Name-First: Nachrowi
Author-X-Name-Last: Djalal Nachrowi
Author-Name: Aris Ananta
Author-X-Name-First: Aris
Author-X-Name-Last: Ananta
Author-Name: Vid Adrison
Author-X-Name-First: Vid
Author-X-Name-Last: Adrison
Title: A trade-off between old-age financial adequacy and state budget sustainability: Searching a government optimum solution to the pension system in Indonesia
Abstract:
A generous PAYG defined benefit pension system can guarantee retirees to have comfortable life, but the state budget may not be sustainable when the population is ageing. On the other hand, a defined contribution pension system guarantees state budget sustainability, but making retirees’ standard of living depends fully on their labour market performance (before retiring). The choice is even more difficult in developing countries with low budgets such as Indonesia. The defined contribution system is even more uncertain in promising old-age financial adequacy as people’s income and investment rates are low. This paper uses a simple OLG model to find an optimal solution from the government perspective—how much state budget should be allocated for the PAYG defined benefit system. It concludes that with a small state budget allocation, as part of a PAYG defined contribution system, to supplement a defined contribution system, the government of Indonesia can guarantee that retirees will not live under poverty while maintaining the state budget sustainability. It recommends that Indonesia combine a defined contribution system, to make a sustainable state budget, and a small budget allocation for a defined benefit system, to ensure that there is no old age poverty.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2079176
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2079176
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# input file: OAEF_A_2132632_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yeshi Jima
Author-X-Name-First: Yeshi
Author-X-Name-Last: Jima
Author-Name: Dawit Diriba
Author-X-Name-First: Dawit
Author-X-Name-Last: Diriba
Author-Name: Feyera Senbeta
Author-X-Name-First: Feyera
Author-X-Name-Last: Senbeta
Author-Name: Belay Simane
Author-X-Name-First: Belay
Author-X-Name-Last: Simane
Title: The impacts of hydropower dam construction on the adjacent rural households’ food insecurity in Northwestern Ethiopia
Abstract:
This study examines the impact of two hydropower dam reservoirs, Amerti and Neshe, on the adjacent rural household food insecurity in the Abay Chome district, northwestern Ethiopia. A cross-sectional method was employed to collect data from 485 households (268 affected and 217 non-affected households) following a probability proportional to the size sampling procedure. Households’ food insecurity access scale (HFIAS) and households’ dietary diversity score (HDDS) were used to examine households’ food insecurity status in the study area. The Endogenous Switching Regression model was employed to identify the impact of the dam construction on household food insecurity. The results revealed that the average HDDS and HFIAS in the study area were 5.1 and 10.29, respectively. The study also demonstrated that the affected household’s average HDDS and HFIAS were 4.48 and 10.98, respectively. The study results further revealed that the construction of dams has significantly increased the HFIAS of displaced households by 14.6% while reducing HDDS by 24%. This study found a negative relationship between dam construction and food security, although dam construction is supposed to increase food security by increasing access to water. Thus, we recommend that hydropower reservoirs be effectively designed to reduce the impacts on adjacent communities.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2132632
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2132632
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# input file: OAEF_A_2147648_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Leena Ajit Kaushal
Author-X-Name-First: Leena Ajit
Author-X-Name-Last: Kaushal
Title: Institutional and economic determinants of Indian OFDI
Abstract:
The study explores the primary determinants of Indian OFDI in 26 developed and 81 developing countries by integrating a nuanced perspective of institutional distance with conventional location factors (2008–2018). Our findings indicate that asset augmentation and market-seeking motives are the primary OFDI drivers in developed and developing regions, respectively. Overall, the institutional environment demonstrates a positive association between Indian OFDI and the robust governance quality of the host country (excluding RS investments in developing region). However, only robust regulatory quality (RQ) & control of corruption (CC) are the primary IQ determinants significantly attracting OFDI in developed nations. Surprisingly, none of the WGI significantly drives OFDI in developing countries. However, the interaction effect reveals that only market-seeking investors from India are drawn to highly regulated (RQ), rule-based (RL) developing nations. The estimated FDI factors differ significantly depending on the destination, but RQ largely remains the crucial determinant across regions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2147648
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2147648
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# input file: OAEF_A_2101221_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Zhaobin Sun
Author-X-Name-First: Zhaobin
Author-X-Name-Last: Sun
Author-Name: Xiwei Liu
Author-X-Name-First: Xiwei
Author-X-Name-Last: Liu
Author-Name: Ling Li
Author-X-Name-First: Ling
Author-X-Name-Last: Li
Author-Name: Xiaoliang Yang
Author-X-Name-First: Xiaoliang
Author-X-Name-Last: Yang
Title: Military-Civil fusion and optimisation of urban industrial structure—an evidence from China
Abstract:
China’s military-civil fusion (MCF) policy has attracted global attention. Since 2010, China has constructed over 30 MCF national demonstration bases (MCFNDBs) to optimise local industrial structure and promote local economic development. However, the evaluation of the actual economic effects of these MCFNDBs has not reached a consensus. We use panel data for 285 cities from 2006–2017 to investigate the economic effect of MCFNDBs by difference-in-difference estimation. We find that constructing MCFNDBs are significantly beneficial to upgrading the urban industrial structure in less developed regions and provincial capital cities; however, it plays an insignificant role in the industrial structure rationalisation.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2101221
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2101221
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# input file: OAEF_A_2098606_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Tewodros Girma
Author-X-Name-First: Tewodros
Author-X-Name-Last: Girma
Author-Name: Solomon Tilahun
Author-X-Name-First: Solomon
Author-X-Name-Last: Tilahun
Title: Predictability of foreign aid and economic growth in Ethiopia
Abstract:
Foreign aid is one source of physical capital accumulation in Ethiopia. It is also a main media of government revenue in meeting increasing trends of government expenditure. To investigate the impact of foreign aid flow on economic growth, various empirical studies were conducted, but they came up with mixed result. This leads to raise question of why impact of aid on economic growth in Ethiopia continues to be paradoxical in its findings. To assess the effectiveness of foreign aid in Ethiopia; this study sets predictability of foreign aid and economic growth in Ethiopia as a general objective. Specifically, the study sought to examine the contribution of foreign aid and the macroeconomic policy environment to economic growth in the country. In order to meet the aforementioned objective, the study employed an autoregressive distributed lag (ARDL) approach over the period 1985–2019. The empirical finding shows that foreign aid has a positive role in economic growth in the long run but its short run effect is found to be insignificant. Again, this finding also reveals that both in the short run and long run the predictability of foreign aid has a positive effect both on economic growth. Macroeconomic policy index also has a positive effect in the long run, but its short run effect become negative. Based on the listed empirical finding, the study came up with policy recommendation; the government should allocate the external assistance on the successful development projects rather than simply on consumption. Furthermore, for the persistent and predictable flow of foreign aid overtime, joint mechanism of transparency has to be developed between Ethiopian government and donor communities.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2098606
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2098606
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# input file: OAEF_A_2143772_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Abdul Sattar
Author-X-Name-First: Abdul
Author-X-Name-Last: Sattar
Author-Name: Abida Hassan
Author-X-Name-First: Abida
Author-X-Name-Last: Hassan
Author-Name: Muhammad Noshab Hussain
Author-X-Name-First: Muhammad Noshab
Author-X-Name-Last: Hussain
Author-Name: Uzma Sakhi
Author-X-Name-First: Uzma
Author-X-Name-Last: Sakhi
Author-Name: Ali Raza Elahi
Author-X-Name-First: Ali Raza
Author-X-Name-Last: Elahi
Title: Impact of foreign direct investment on socio-economic development in belt and road countries
Abstract:
This study is an attempt to empirically investigate the impact of foreign direct investment (FDI) on socio-economic development in the “Belt & Road” initiative (BRI) countries. It employed panel data for the period 2005 to 2018. This study used three socio-economic development indicators, life expectancy, GNI per capita, and human capital development, as outcome variables. This study found a long-run association between FDI and socio-economic development. The baseline regression results indicate that FDI does not contribute to socio-economic development in BRI countries and these findings are robust with Fully Modified Ordinary Least Square (FMOLS). However, when taking into account the region-wise analysis it is found that FDI has a positive and significant impact on poverty reduction in South Asia (SA) and Central and Western Asia (CWA) region and a negative impact in Central and East Europe (CEU) and Middle East North Africa (MENA) and it has no effect on poverty reduction in Sub-Sahara Africa (SSA) and East Asia Pacific (EAP) region. FDI has a positive effect on improved health facilities in SA and CWA region and it has a statistically insignificant or negative impact in the rest of the region. Finally, there is a positive and significant impact of FDI on human capital development in CEU and EAP region and negative association in MENA, however, it has no role in SA, CWA and SSA region. This finding postulates an idea that foreign direct investment is not a black and white mechanism. It is recommended that governments of BRI countries must prioritize public health facilities, social safety programs, poverty reduction initiatives, and human capital development strategies when looking for foreign direct investment in the country.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2143772
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2143772
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# input file: OAEF_A_2062912_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Andrew Phiri
Author-X-Name-First: Andrew
Author-X-Name-Last: Phiri
Author-Name: Chuma Mbaleki
Author-X-Name-First: Chuma
Author-X-Name-Last: Mbaleki
Author-Name: Christian Nsiah
Author-X-Name-First: Christian
Author-X-Name-Last: Nsiah
Title: Fiscal expenditures, revenues and labour productivity in South Africa
Abstract:
The COVID-19 pandemic emerged at a time when the South African economy was already battling to recover from the aftermath of the global financial crisis of 2007–09 which led the country to experience a decade-old slowdown in labour productivity. Our study investigates the role which government plays in influencing labour productivity by estimating a log-linearized growth model augmented with a fiscal sector using the autoregressive distributive lag model applied to annual data of 1990–2020. We further disaggregate the composition of government size into seven expenditure items and six revenue items, and find i) education, health, recreation and public safety to be expenditure items most beneficial to short-run and long-run labour productivity ii) income taxes and VAT to be revenue items most beneficial to long-run productivity and yet most taxes have adverse short-run effects. The policy implications of the study are discussed.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2062912
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2062912
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# input file: OAEF_A_2123888_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Belesity Bekalu Ayenew
Author-X-Name-First: Belesity Bekalu
Author-X-Name-Last: Ayenew
Title: The impact of foreign financial inflows on the economic growth of sub-Saharan African countries: An empirical approach
Abstract:
The impact of foreign financial inflows on the economic growth of recipient countries is a controversial issue in many empirical studies. The majority of the previous studies use one variable as an indicator of foreign financial inflows; they fail to incorporate many variables. The study fills this gap by using remittance inflows, foreign direct investment, official development assistance, and external debt as an indicator of foreign financial inflows. This study investigates the impact of foreign financial inflows on the economic growth of 31 sub-Saharan African countries over the period 2009 to 2019. The study employed a two-step system GMM due to its practical advantage on the dynamic panel data set. The finding shows that only foreign direct investment has a significant and positive contribution to economic growth. Official development assistance and external debt affect economic growth negatively, and they are statistically significant. Remittance inflow affects economic growth negatively, but it is statistically insignificant. The study suggests that policymakers should work on the way that remittance inflow promotes investment and reduce dependency on official development assistance. In addition, external borrowing should be used for productive purposes.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2123888
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2123888
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# input file: OAEF_A_2122177_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Jagjeevan Kanoujiya
Author-X-Name-First: Jagjeevan
Author-X-Name-Last: Kanoujiya
Author-Name: Shailesh Rastogi
Author-X-Name-First: Shailesh
Author-X-Name-Last: Rastogi
Author-Name: Venkata Mrudula Bhimavarapu
Author-X-Name-First: Venkata Mrudula
Author-X-Name-Last: Bhimavarapu
Title: Competition and distress in banks in India: An application of panel data
Abstract:
Financial distress (FD) is a crucial issue that needs to be resolved in time; otherwise, it may adversely influence society’s areas. Therefore, identifying the factors responsible for FD and how these factors affect FD is an exciting area of research. Given this, this paper proposes investigating the effect of competition on the bank’s FD in India. This paper uses the data of 34 banks operating in India for the observation period (2016–2019). Three variants of Altman’s Z-score are used for the assessment of FD. Lerner’s index of the banks is developed for the competition measurement. A panel data analysis is further performed for regression analysis. The current study has an interesting outcome. The findings reveal that high market power or low competition lowers financial distress and adds more financial stability in banks in India. This paper provides fresh evidence on the connection between market power and FD of banks in India. Moreover, no other study has been observed to use all the three variants of Altman’s z-score to provide robustness and reliability in results. Therefore, the study has a significant contribution and a novelty in its approach.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2122177
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2122177
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# input file: OAEF_A_2122188_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Hung Quang Bui
Author-X-Name-First: Hung Quang
Author-X-Name-Last: Bui
Author-Name: Thao Tran
Author-X-Name-First: Thao
Author-X-Name-Last: Tran
Author-Name: Toan Tan Pham
Author-X-Name-First: Toan Tan
Author-X-Name-Last: Pham
Author-Name: Hung Le-Phuc Nguyen
Author-X-Name-First: Hung Le-Phuc
Author-X-Name-Last: Nguyen
Author-Name: Duc Hong Vo
Author-X-Name-First: Duc Hong
Author-X-Name-Last: Vo
Title: Market volatility and spillover across 24 sectors in Vietnam
Abstract:
While market volatility and volatility connectedness across different financial markets have been examined, the spillover effects across sectors have been under-examined. As such, this study aims to examine market volatility and the volatility patterns for 24 Vietnamese sectors. Our study uses the ARMA-GARCH estimation technique over the 2012–2021 period. The spillover effects between these sectors are then investigated using the vector autoregression (VAR) technique. Three key findings are as follows. First, the market volatility of Development Investment, Education, and Securities is most affected by the market volatility from the previous periods, whereas Construction is least affected. Second, the Vietnamese stock market exhibits a substantial inter-sector connectedness above 60 per cent from 2012 to 2021. However, the sectoral spillover effects increase to around 90 per cent during the Covid-19 pandemic. We found that Aquaculture, Building Materials, Food, and Plastic are the four primary risk transmitters at the sectoral level. Third, market volatility for Energy, Plastic, and Steel is unaffected by the pandemic. Meanwhile, Securities, Fertilizer, and Transportation exhibited a significant increase in market volatility during Covid-19. Based on these empirical results, policy implications have emerged for the Vietnamese government to support affected industries to recover and develop.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2122188
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2122188
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# input file: OAEF_A_2031433_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yonas Nigussie Isayas
Author-X-Name-First: Yonas Nigussie
Author-X-Name-Last: Isayas
Title: Determinants of banks’ profitability: Empirical evidence from banks in Ethiopia
Abstract:
In today’s economy, banks play significant and irreplaceable roles in the growth of financial services, which ultimately leads to the overall success of the economy of a country. The very objective of this study was to investigate the key firm-specific and macroeconomic determinants of profitability of commercial banks in Ethiopia. The empirical analysis is carried out using the generalized method of moments (GMM) estimation of dynamic panel data from 14 banks covering 12 years of operation from 2008 to 2019. A quantitative approach and explanatory design were employed to realize the stated objectives. To achieve the study objective, secondary data were collected from annual audited financial statements of sampled banks for the stated period. The model results of the study revealed that firm size, liquidity ratio, asset tangibility, capital adequacy, leverage and real GDP growth rate have a positive and statistically significant effect on the profitability of banks, while firm age and the inflation rate have a negative but statistically insignificant effect on the profitability of banks in Ethiopia. Future studies are suggested to be conducted in this research area by incorporating variables that are other than variables used in this study and unlike this study, all other financial institutions need to be included.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2031433
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2031433
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# input file: OAEF_A_2069638_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Onong Junus
Author-X-Name-First: Onong
Author-X-Name-Last: Junus
Author-Name: Mohammad Nasih
Author-X-Name-First: Mohammad
Author-X-Name-Last: Nasih
Author-Name: Muslich Anshori
Author-X-Name-First: Muslich
Author-X-Name-Last: Anshori
Author-Name: Iman Harymawan
Author-X-Name-First: Iman
Author-X-Name-Last: Harymawan
Title: Politically connected independent board and firm performance
Abstract:
This research examines the relationship between politically connected independent commissioners and independent directors on firm performance. The sample are all listed companies on the Indonesia Stock Exchange (IDX) from 2010–2017. In this study, we employ the ordinary least squares (OLS) regression model and Heckman’s 2SLS test to handle the problem of endogeneity. We document that politically connected independent commissioners did not affect the firm performance. On the contrary, politically connected independent commissioners had a negative relationship to firm performance; this was due to the appointment of independent commissioners and independent directors not based on expertise and knowledge in the financial and managerial company field, based solely on previous work experience. Moreover, our result is robust to the Heckman 2SLS test. Therefore, the result is expected to give insight for public firms and policy regulators, to avoid misunderstandings in decision-making at company owners and management levels.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2069638
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2069638
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# input file: OAEF_A_2127221_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Phuong Anh Nguyen
Author-X-Name-First: Phuong Anh
Author-X-Name-Last: Nguyen
Author-Name: Thi Thanh Thuy Nguyen
Author-X-Name-First: Thi Thanh Thuy
Author-X-Name-Last: Nguyen
Title: The effect of mergers and acquisitions on the efficiency of Vietnam banking system during the restructuring period
Abstract:
Since 2011, the Vietnamese banking system has performed many M&A deals. Some small banks which had weak competitiveness and experienced operating activities risk were on the verge of bankruptcy, and had been acquired by potential financial institutions. Although M&A transactions are known for numerous advantages which are brought back for banking industry, most banks still have not actively participated. Therefore, gaining more information about how M&A activities changed our banking system is essential for providing suitable implications and developments for the future. This report first aims to investigate the efficiency level of 30 Vietnamese commercial banks during 2011–2019 period under intermediation and operating approach using Bootstrap Data Envelopment Analysis. Next, applying Robust Truncated Regression, this paper shows that M&As negatively affect banking efficiency. Meanwhile, a set of explanatory variables following CAMELS standards can contribute to increase the efficiency level.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2127221
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2127221
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# input file: OAEF_A_2125660_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Addisu Bezabeh
Author-X-Name-First: Addisu
Author-X-Name-Last: Bezabeh
Author-Name: Fekadu Beyene
Author-X-Name-First: Fekadu
Author-X-Name-Last: Beyene
Author-Name: Jema Haji
Author-X-Name-First: Jema
Author-X-Name-Last: Haji
Author-Name: Tesfaye Lemma
Author-X-Name-First: Tesfaye
Author-X-Name-Last: Lemma
Title: Evaluating the commercialization of smallholder malt barley farmers via vertical coordination in Arsi highlands, Oromia region, Ethiopia
Abstract:
Smallholder farmers search for their product buyers in local spot market transactions. In spot market transactions, farmers will not be assured of ready markets for their production, or face volatile market prices. Similarly malt barley farmers used to face challenges of accessing input, farm technology, credit, and information that undermine their livelihoods. Vertically coordinated malt barley supply chain is evolving fast in Ethiopia. The purpose of this study was to analyze nexus between vertical coordination and level of malt barley commercialization in the study area. This study has been conducted in four districts of Arsi highlands known for their malt barley production potentials and presence of active supply chain coordination. A three-stage sampling procedure was employed to collect data using interview schedule from 384 (190 contract and 194 non-contract) randomly selected malt barley farmers. Descriptive statistics and Tobit regression model used to analyze farmer and farm-related factors vis-à-vis vertical coordination and level and determinants of commercialization farm households. Accordingly, the study identified that 11.05% of the respondents had <30% level of commercialization, when 55% were in between 30% and 65% and the rest, 34.21% of sampled malt barley farm households had more than 65% level of malt barley commercialization. Tobit regression revealed that farm size, yield, price, quantity of fertilizer applied, contract agreements, mobile phone ownership and access to credit were determinants of level of malt barley commercialization. Thus, endeavors of malt barley commercialization have to focus on improving access to technology, credit, extension, and organizing farmers in contract farming among others.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2125660
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2125660
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# input file: OAEF_A_2125656_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Koffi Sodokin
Author-X-Name-First: Koffi
Author-X-Name-Last: Sodokin
Author-Name: Mawuli K. Couchoro
Author-X-Name-First: Mawuli K.
Author-X-Name-Last: Couchoro
Author-Name: Kokou Wotodjo Tozo
Author-X-Name-First: Kokou Wotodjo
Author-X-Name-Last: Tozo
Title: Macroeconomic channels of transmission of post-pandemic recovery strategies for African economies
Abstract:
The Sar-Cov-2 pandemic that began in 2019 has significantly affected the global economy and, in particular, those of African countries. This paper analyzes possible intervention channels by African states to put their economies back on a sustainable growth path once the health crisis is under control. The paper proposes workable macroeconomic channels for these countries’ recovery from post-pandemic periods by using historical data to conduct empirical analyses. The paper employs World Bank data and ILOSTAT for 54 African countries within the period 1990–2018. We use a post-Keynesian framework and the difference and system generalized method-of-moments to show that wages drive African economic dynamics in the short run. This is particularly true for Sub-Saharan African countries. In addition, foreign output, proxied by European Union output, has a positive and significant impact on Sub-Saharan African economies in the short and long run. The results highlight strategic policy measures for recovering African economies, including improving wages and deepening international economic relations, particularly with the Eurozone countries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2125656
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2125656
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# input file: OAEF_A_2140905_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Isaiah Sikayena
Author-X-Name-First: Isaiah
Author-X-Name-Last: Sikayena
Author-Name: Isaac Bentum-Ennin
Author-X-Name-First: Isaac
Author-X-Name-Last: Bentum-Ennin
Author-Name: Francis K. Andoh
Author-X-Name-First: Francis K.
Author-X-Name-Last: Andoh
Author-Name: Richard Asravor
Author-X-Name-First: Richard
Author-X-Name-Last: Asravor
Title: Efficiency of public spending on human capital in Africa
Abstract:
Government spending on human capital continues to increase over the years. However, knowledge of the efficiency of such spending is limited. Using data from World Bank’s World Development Indicator and World Governance Indicator from 2006 to 2017 and Data Envelopment Analysis and DEA Bootstrapping models, the study examined the relative technical efficiencies of public spending on human capital and their correlates in Africa. The study found public spending on health and education in Africa to be inefficient. Efficiency was much higher in health spending than in educational spending. Factors such as institutional quality, economic growth, government expenditure, foreign direct investment, and trade openness were found to influence the efficiency of public spending on human capital. Government should put in place measures to stimulate trade, ensure institutional quality and growth of urbanization to help improve efficiency in public spending.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2140905
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2140905
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# input file: OAEF_A_2101223_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mesele Belay Zegeye
Author-X-Name-First: Mesele Belay
Author-X-Name-Last: Zegeye
Author-Name: Abebaw Hailu Fikrie
Author-X-Name-First: Abebaw Hailu
Author-X-Name-Last: Fikrie
Author-Name: Anteneh Bizualem Asefa
Author-X-Name-First: Anteneh Bizualem
Author-X-Name-Last: Asefa
Title: Impact of agricultural technology adoption on wheat productivity: Evidence from North Shewa Zone, Amhara Region, Ethiopia
Abstract:
Wheat is one of the most important cereal crops cultivated in wide range of agro-ecologies in Ethiopia. But, its productivity has remained low. Hence, this study intends to examine the impact of agricultural technology adoption on wheat productivity in north Shewa zone of the Amhara region, Ethiopia. The analysis is based on household level data covering 693 households collected in 2020. Multinomial logit model (MNL) and multinomial endogenous switching regression (MESR) models are used for analysis. The results reveal that agricultural technology adoptions are affected by the education level of the household head, off-farm employment, tropical livestock, access to credit, household saving, extension visit, and distance from the market. In addition, the study shows that the adoption of fertilizer and/or improved seed increases wheat productivity significantly. Furthermore, the adoption of a combined fertilizer and improved seed provides higher productivity than the adoption of single technologies. Therefore, this study recommends that government and other stakeholders should have to work in collaboration with rural farmers to increase rural technology generation; dissemination and adoption interventions to improve wheat productivity in the study area.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2101223
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2101223
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# input file: OAEF_A_2109281_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Angela Akpemada Kwashie
Author-X-Name-First: Angela Akpemada
Author-X-Name-Last: Kwashie
Author-Name: Samuel Tawiah Baidoo
Author-X-Name-First: Samuel Tawiah
Author-X-Name-Last: Baidoo
Author-Name: Enock Kojo Ayesu
Author-X-Name-First: Enock Kojo
Author-X-Name-Last: Ayesu
Title: Investigating the impact of credit risk on financial performance of commercial banks in Ghana
Abstract:
The financial performance of banks across the globe is of utmost importance to its shareholders, managers, investors, regulators, and the general public. This study therefore investigates the impact of credit risk with focus on non-performing loans on the financial performance of commercial banks in Ghana. Return on asset and economic value-added are used as measures of financial performance. Internal bank factors such as the age and size of the bank are also considered. Macroeconomic factors such as gross domestic product, inflation, and monetary policy rate are included in the analysis. Panel data spanning the period 2013 to 2018 on 15 commercial banks in Ghana is used for the analysis. The results from the random effect estimation technique show that non-performing loans have a negative impact on both measures of financial performance. Also, monetary policy rate has a negative impact on both measures of financial performance, albeit insignificant for economic value-added measure. It is further revealed that the size of bank, age of bank, and gross domestic product have a significant positive effect on both measures of financial performance although significant for return on asset. Based on the negative relationship between non-performing loans and financial performance, it is suggested that commercial banks should adopt stringent credit risk management policies, which should also be updated regularly to guide actions and processes to granting of loans and monitoring credit risk. Furthermore, it is suggested that the value of depreciable assets pledged as collaterals to the banks should be reviewed frequently (probably annually) to reflect a decline in their value. The novelty of the present study pertains to the use of economic value-added as a financial performance measure, which previous studies have virtually ignored in the analysis of credit risk and financial performance nexus.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2109281
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2109281
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# input file: OAEF_A_2019361_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Bohumil Stádník
Author-X-Name-First: Bohumil
Author-X-Name-Last: Stádník
Title: Convexity arbitrage – the idea which does not work
Abstract:
Algorithmic trading, so popular nowadays, uses many strategies that are algorithmizable and promise profitability. This research answers the question whether it is possible to successfully use a convexity arbitrage strategy in a bond portfolio in financial practice. It should provide a positive expected excess return and a small or zero potential loss. Convexity arbitrage has been described in academic literature before, but an assessment of its practical success is lacking. Arbitrage portfolio, which consists of two portfolios of bonds, is constructed theoretically and practically. These two portfolios have the same Macaulay Duration and price, but a different convexity at a certain yield to maturity point (YTM point). As the first portfolio is long, while shorting the second (with higher convexity), the result would therefore be a market-directional bet on parallel YTM shifts of the same size. Methodology: a mathematical definition of this arbitrage; the construction of the arbitrage portfolio; back-testing on USD and EUR zero-coupon yield curve. To construct the arbitrage portfolio could be unrealistic on markets with low liquidity. Moreover, the assumption of parallel YTM shifts of the same size is not fulfilled enough to ensure that the arbitrage is profitable. This research helps practitioners considering the implementation of this strategy in algorithmic trading to make an adequate assessment. Its findings show that the practical and profitable utilization of convexity arbitrage is unrealizable.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2019361
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2019361
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# input file: OAEF_A_2008090_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Leena Ajit Kaushal
Author-X-Name-First: Leena Ajit
Author-X-Name-Last: Kaushal
Title: Impact of regional trade agreements on export efficiency – A case study of India
Abstract:
The study analyses the role of RTAs in determining the export efficiency of India using a stochastic frontier version of the gravity model. We estimate the impact of select RTAs (bilateral, SAFTA, APTA, ASEAN, and MERCOSUR trade bloc) and the partner nation’s regulatory quality on India’s export efficiency throughout 2008–2018. The findings suggest that India has been substantially able to exploit exports efficiency to its trading partners under FTAs (ASEAN&SAFTA) and bilateral agreements compared to PTAs (MERCOSER&APTA); however, India’s exports are yet quite far from the potential frontier. Excluding APTA, all other agreements are statistically significant, implying that joining trade agreements augments India’s export efficiency. The study finds that the regulatory quality of importing nations bears a significant positive impact on India’s export efficiency. This highlights the importance of good institutions and better regulatory quality in realizing the potential level of exports with partner nations.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2008090
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2008090
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# input file: OAEF_A_2127482_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Basri Savitha
Author-X-Name-First: Basri
Author-X-Name-Last: Savitha
Author-Name: Iqbal Thonse Hawaldar
Author-X-Name-First: Iqbal Thonse
Author-X-Name-Last: Hawaldar
Title: What motivates individuals to use FinTech budgeting applications? Evidence from India during the covid-19 pandemic
Abstract:
The purpose of the present study was to explicate the factors determining customers’ intention to use budgeting apps since the outbreak of COVID-19 pandemic. A cross-sectional survey in South India was conducted to collect data from 285 FinTech users. The data were analyzed using partial least square regression to estimate path coefficients and the PROCESS macro technique to identify moderation effects. Firstly, app engagement and self-efficacy were found to have a positive effect on the intention to use budgeting apps. Secondly, individuals who use FinTech services less frequently and those who use it to pay for a variety of expenses were found to have a greater effect on usage intentions of customer engagement, perceived trust, and perceived ease of use. Therefore, customization, real-time suggestions, providing tools for data visualization, smart data insights, and artificial intelligence-based recommendations and advice would assist customers in prudence money management.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2127482
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2127482
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# input file: OAEF_A_2111787_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Osama A. Mah’d
Author-X-Name-First: Osama A.
Author-X-Name-Last: Mah’d
Author-Name: Ghassan H. Mardini
Author-X-Name-First: Ghassan H.
Author-X-Name-Last: Mardini
Title: Matters may matter: The disclosure of key audit matters in the Middle East
Abstract:
The main objective of this research is to investigate the extent of the disclosure of key audit matters (KAMs) and the factors that affect the level of KAMs’ disclosure in the audit reports of the Middle East (ME) region. A disclosure index approach is employed to consider eight KAMs generated from the International Standard on Auditing (ISA) 701 and a fixed effect regression run on a sample of 281 firms from four countries (Oman, the UAE, Bahrain, and Jordan) for four years (2017–2020), comprising 1124 observations. The findings show that the overall KAMs’ disclosure is approximately 56% across all countries. The study takes into consideration the positive and significant correlation between the leverage, audit committee characteristics, financial industry, audit firm, client size, profitability, liquidity, and KAMs’ disclosure in most sampled countries. This research contributes to our understanding of the level of KAMs’ disclosure and the factors specific to the ME region, which enhances policymakers’ and decision-makers’ knowledge of KAMs’ disclosure in audit reports.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2111787
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111787
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# input file: OAEF_A_2013587_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Atrsaw Anteneh Mihretie
Author-X-Name-First: Atrsaw Anteneh
Author-X-Name-Last: Mihretie
Author-Name: Azanaw Abebe
Author-X-Name-First: Azanaw
Author-X-Name-Last: Abebe
Author-Name: Girmachew Siraw Misganaw
Author-X-Name-First: Girmachew Siraw
Author-X-Name-Last: Misganaw
Author-Name: Raoul Fani Djomo Choumbou
Author-X-Name-First: Raoul Fani
Author-X-Name-Last: Djomo Choumbou
Title: Adoption of Tef (Eragrostis Tef) Production Technology Packages in Northwest Ethiopia
Abstract:
Adoption of Tef production technology has paramount importance to increase Tef productivity, foster food security, and secure the well-being of smallholder farmers. Hence, this study aims to identify the determinants of adoption of Tef technology packages in Yilmana Densa district, and subsequently assess the factors influencing the intensity of adoption of the technology. In this study, 224 sample households were selected using systematic random sampling techniques. The data were obtained mainly from sampled Tef grower households via structured interviews, and it was supported by key informant interviews. Descriptive statistics such as Chi-square, t-test, and one-way ANOVA were employed. First-hurdle of double hurdle model result revealed that adoption decision of Tef technology packages was determined via the frequency of extension contact, agricultural training, farmers’ perception, and farmers’ cooperative membership, positively. The second-hurdle result also shown that the adoption intensity of Tef technology packages was influenced by the frequency of extension contact, agricultural training, demonstration participation, and seed multiplication membership, positively, whereas the distance to input market and land fragmentation influenced negatively. Therefore, efforts to be expected from the Ministry of Agriculture, extension agents, and other stockholders to enhance the adoption level of farmers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2013587
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2013587
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# input file: OAEF_A_2087647_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Maria Widyastuti
Author-X-Name-First: Maria
Author-X-Name-Last: Widyastuti
Author-Name: Y. Budi Hermanto
Author-X-Name-First: Y. Budi
Author-X-Name-Last: Hermanto
Title: The effect of financial literacy and social media on micro capital through financial technology in the creative industry sector in East Java
Abstract:
This study aimed to examine the effect of financial Literacy and social Media on micro capital through financial technology. This type of research is explanatory/associative, accompanied by hypothesis testing. The unit of analysis of this research is the Creative Industry Sector in East Java, with a population of 376 creative industries. The number of samples is 65 SMEs using the stratified random sampling method. The results of this study prove that financial literacy has a positive and significant effect on financial technology, social media has a significant effect on financial technology, financial literacy has a positive and significant effect on micro capital, social media has a significant effect on micro capital, and financial technology has a significant effect on micro capital.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2087647
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2087647
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# input file: OAEF_A_2023955_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Agnes Akpene Akakpo
Author-X-Name-First: Agnes
Author-X-Name-Last: Akpene Akakpo
Author-Name: Mohammed Amidu
Author-X-Name-First: Mohammed
Author-X-Name-Last: Amidu
Author-Name: William Coffie
Author-X-Name-First: William
Author-X-Name-Last: Coffie
Author-Name: Joshua Yindenaba Abor
Author-X-Name-First: Joshua Yindenaba
Author-X-Name-Last: Abor
Title: Financial literacy, financial inclusion and participation of individual on the Ghana stock market
Abstract:
This paper examines the impact of financial literacy and financial inclusion on stock market participation in Ghana. It employs a sample of 1,966 respondents across the 10 regions of Ghana for the year 2018. We employ biprobit models to estimate the influence of financial literacy on financial inclusion, while robust probit models are used to independently analyse the effect of financial literacy and financial inclusion on stock market participation as well as their joint effect. We find the following results: first, financial literacy positively influences financial inclusion. Second, the study does not support previous findings that financial literacy is not a determinant of stock market participation in Ghana. Third, financial inclusion through using an account to save significantly affects stock market participation. Finally, the interaction of financial literacy and financial inclusion on stock market participation provides evidence of no significant effect.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2023955
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2023955
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# input file: OAEF_A_2127238_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ayman Hassan Bazhair
Author-X-Name-First: Ayman
Author-X-Name-Last: Hassan Bazhair
Title: Audit committee attributes and financial performance of Saudi non-financial listed firms
Abstract:
This article investigates the impact of the audit committee attributes in determining the financial performance of Saudi non-financial firms. The research sampled the data of 100 companies spanning from 2010 to 2019 obtained from the firms’ financial statements. The data generated were analysed using different panel data techniques (pooled OLS, fixed and random effects). This study emphasises that audit committee size and meetings negatively influence firms’ performance. However, audit committee independence and financial expertise indicate a strong and positive relationship with financial performance. Therefore, this study provides valuable insights into how audit committee attributes affect profitability. Furthermore, this research may guide companies’ top management on restructuring the audit committee to improve corporate governance practices. Also, the results suggest that Saudi regulatory agencies should ensure that listed firms set up audit committees with more independent directors and financial experts. This requirement may help the firms mitigate information disparity between management and shareholders, thus, reducing agency conflicts and boosting firm performance. Consequently, this paper sheds light on the Saudi corporate environment, so investors may find this research helpful in making their investment decisions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2127238
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2127238
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# input file: OAEF_A_2122187_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Prateek Jain
Author-X-Name-First: Prateek
Author-X-Name-Last: Jain
Title: Regulatory actions against corporate irregularities in India: analyzing the stock market impact
Abstract:
In this article, I use a unique dataset consisting of listed Indian firms that have been indicted for economic malpractice/default or have been non-compliant with laws/ regulations/ guidelines to estimate the stock price impact of regulatory actions against corporate irregularities. The sample consists of regulatory charges imposed by two major Indian regulators, (i) the Ministry of Corporate Affairs (MCA) and (ii) the Securities and Exchange Board of India (SEBI). I find that regulatory actions are an effective deterrence against corporate misconduct and have a significantly negative impact on a firm’s stock price. The level of negative effect on the stock price of a firm is directly related to the severity of regulatory charges against it, i.e., cases of fraud or cheating, or payment default attract a much more negative reaction as compared to cases such as failure to disclose information, other non-compliance, etc. Finally, the results indicate that younger and less profitable firms have a higher (more negative) stock price reaction to regulatory action announcements.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2122187
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2122187
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# input file: OAEF_A_2114178_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Guizhou Wang
Author-X-Name-First: Guizhou
Author-X-Name-Last: Wang
Author-Name: Kjell Hausken
Author-X-Name-First: Kjell
Author-X-Name-Last: Hausken
Title: A game between central banks and households involving central bank digital currencies, other digital currencies and negative interest rates
Abstract:
Central Bank Digital Currencies (CBDCs) enable negative interest rates. A game is analyzed between a central bank (accounting for the government’s interest) and a representative household choosing to consume, hold CBDC, or hold non-CBDC. The central bank chooses negative interest rate when it realizes that the household is willing to pay the central bank for holding CBDC. The household pays the negative interest rate because of its Cobb Douglas preferences whereby it values holding CBDC while simultaneously holding the competitive non-CBDC with a given interest rate, consuming with various output elasticities, and accounting for transaction efficiencies and costs. More explicitly, intuition and how the players benefit are provided for the following results: The central bank chooses more negative interest rate when the household’s output elasticity for consumption increases, the household’s output elasticity for holding CBDC decreases, the CBDC and non-CBDC transaction efficiencies increase, the household’s transaction efficiency for consumption decreases, the household’s scaling of the transaction cost increases, the scaling parameter for the central bank’s profit per household decreases, the household’s monetary energy decreases, and the non-CBDC interest rate decreases. The results are determined analytically and illustrated numerically where each of nine parameter values is varied relative to a benchmark.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2114178
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2114178
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# input file: OAEF_A_2140907_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Abdallah A.S. Fayad
Author-X-Name-First: Abdallah A.S.
Author-X-Name-Last: Fayad
Author-Name: Arifatul Husna Binti Mohd Ariff
Author-X-Name-First: Arifatul Husna
Author-X-Name-Last: Binti Mohd Ariff
Author-Name: Sue Chern Ooi
Author-X-Name-First: Sue Chern
Author-X-Name-Last: Ooi
Title: Dose board characteristics influence integrated reporting quality? Empirical evidence from an emerging market
Abstract:
Although scholars and practitioners are recently showing a growing interest in integrated reporting, investigating the variables affecting the integrated reporting quality in Malaysia has not been examined and is still unexplored. This paper aims to fill this gap, by exploring the influence of board of directors’ characteristics on integrated reporting quality in Malaysia. The board’s characteristics considered are size, independence, expertise, gender diversity, and activity, as hypothesized by the agency theory. A total of 64 companies were analyzed from 2017 to 2020, for a total number of 173 integrated reports. The findings highlight that IRQ is positively related to the board size, gender diversity and activity of the board. This study’s finding adds to the current literature in numerous ways, and it contributes to the intensive scientific debate on integrated reporting. Furthermore, it is the first study that investigates such a relationship in Malaysia.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2140907
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2140907
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# input file: OAEF_A_2139887_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Thanh Phuc Nguyen
Author-X-Name-First: Thanh Phuc
Author-X-Name-Last: Nguyen
Author-Name: Thi Thu Hong Dinh
Author-X-Name-First: Thi Thu Hong
Author-X-Name-Last: Dinh
Author-Name: Ngoc Tho Tran
Author-X-Name-First: Ngoc Tho
Author-X-Name-Last: Tran
Author-Name: Trang Duong Thi Thuy
Author-X-Name-First: Trang
Author-X-Name-Last: Duong Thi Thuy
Title: U-shaped impacts of institutional quality and ICT penetration on economic growth: Evidence from selected emerging countries
Abstract:
This research aims to consider determinants of economic growth, such as financial development, institutional quality, and information and communication technology (ICT) penetration, which have been explored separately in previous studies and have produced mixed findings in different regions. Using the two-step system generalized method of moments (GMM) estimator for a dynamic panel dataset of 35 selected emerging countries, several research findings could be drawn as the following. First, both ICT penetration and institutional quality have significantly positive effects on economic growth. On the contrary, economic development could be hampered by financial development. Second, there are the U-shape and inverted U-shape relations for the cases of institutional quality and ICT penetration on economic growth, respectively. Third, the interaction effect of ICT penetration and financial development could enhance economic growth while the negative impact of financial development on economic development is amplified by the high level of institutional quality. These findings are robust to the global financial crisis control and the use of an alternative ICT proxy when setting up the approach of principal component analysis. Given these findings from emerging countries, some policy challenges that policy-makers should address by simultaneously considering each growth driver, such as financial development, ICT evolution, and institutional quality and interactions between them, as well as the non-monotonic effect of ICT penetration and institutional quality to facilitate economic growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2139887
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2139887
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# input file: OAEF_A_2049477_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Sokratis Mitsas
Author-X-Name-First: Sokratis
Author-X-Name-Last: Mitsas
Author-Name: Petros Golitsis
Author-X-Name-First: Petros
Author-X-Name-Last: Golitsis
Author-Name: Khurshid Khudoykulov
Author-X-Name-First: Khurshid
Author-X-Name-Last: Khudoykulov
Title: Investigating the impact of geopolitical risks on the commodity futures
Abstract:
This paper examines the effect of real-time global geopolitical risks (GPRs), acts (GPAs), and threats (GPTs) indices on monthly returns and volatility of several American commodity futures. By modeling volatility via an Exponential Generalized Autoregressive Conditional Heteroskedasticity (EGARCH), we provide evidence that GPRs and GPTs do not only impact but trigger adverse effects on the returns of crude oil, gold, platinum, and silver, while GPAs negatively affect the returns of crude oil, heating oil, platinum, and sugar futures. Furthermore, GPTs have a weak positive effect on corn futures volatility. Overall, our findings provide portfolio diversification benefits by showing how the impact of global GPRs, GPAs and GPTs on portfolio returns could be mitigated.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2049477
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2049477
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# input file: OAEF_A_2017599_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Simion Matsvai
Author-X-Name-First: Simion
Author-X-Name-Last: Matsvai
Author-Name: Abbissynia Mushunje
Author-X-Name-First: Abbissynia
Author-X-Name-Last: Mushunje
Author-Name: Simbarashe Tatsvarei
Author-X-Name-First: Simbarashe
Author-X-Name-Last: Tatsvarei
Title: Technical efficiency impact of microfinance on small scale resettled sugar cane farmers in Zimbabwe
Abstract:
The main objective of the study was to investigate the impact of microfinance on smallholder resettled sugarcane farmers’ productivity and technical efficiency. The study evaluated the impact of microfinance on technical efficiency of resettled sugarcane smallholders as well as the determinants of their technical efficiency. The study used Transcendental Logarithmic (Translog) Stochastic Frontier Analysis. Data from a household level survey of 2018 was collected using questionnaires in a multi-stage sampling technique. The hypothesis tests confirmed the adequacy of Translog SFA frontier over Cobb–Douglas together with the appropriateness of SFA over OLS. The results revealed that both microfinance and intensity of participation significantly improve technical efficiency. Extension services, secondary education, tertiary education, experience, and farming assets were among statistically significant determinants of observed variation in technical efficiency. Estimated technical efficiency scores from the truncated normal distribution model with heteroscedasticity and exogenous determinants were on average 64.4% and 33.6% for treatment and control groups, respectively. Bank participants were more efficient (65.4%) than MFIs participants (63.3%). The results confirmed that microfinance promote efficient utilization of agricultural inputs. Policy suggestions include expansion and sufficient disbursement of microfinance.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2017599
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2017599
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# input file: OAEF_A_2008588_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Idris Idris
Author-X-Name-First: Idris
Author-X-Name-Last: Idris
Author-Name: Mohammad Enamul Hoque
Author-X-Name-First: Mohammad Enamul
Author-X-Name-Last: Hoque
Author-Name: Perengki Susanto
Author-X-Name-First: Perengki
Author-X-Name-Last: Susanto
Title: Willingness to pay for the preservation of urban green space in Indonesia
Abstract:
Padang has just begun to build an urban green space to increase the quality of the urban environment and provide recreational opportunities to residents. In such cases, a well-informed professional management plan needs to be formulated to preserve a better environment. Therefore, this study seeks to determine the visitors’ willingness to pay for the preservation of urban green space. This study was carried out at the Urban green space of Imam Bonjol Park Padang using a survey approach, and the respondents were chosen using the purposive technique. The logistic regression shows that the willingness to pay for the urban green space is affected by the visitors’ perception of Imam Bonjol Park, the knowledge of functions, and marital status. The empirical results show that income, family dependents, and park-related factors are insignificant in influencing willingness to pay for the urban green space. Using the Contingency Valuation Method, this study discovered that most visitors are willing to pay some amount for environmental preservation, and the estimated amount is IDR. 4,877. The empirical results have a few practical implications. As a result, this study suggests launching awareness-raising programs.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2008588
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2008588
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# input file: OAEF_A_2066763_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ly Thi Hai Tran
Author-X-Name-First: Ly Thi Hai
Author-X-Name-Last: Tran
Author-Name: Thao Thi Phuong Hoang
Author-X-Name-First: Thao Thi Phuong
Author-X-Name-Last: Hoang
Title: Signaling or insider opportunism: an investigation of repurchase activity in Vietnam
Abstract:
This paper examines whether share repurchase announcements are signals of undervaluation or insiders’ opportunistic activities by investigating insider trading patterns surrounding buyback announcements in Vietnam. Consistent with the insider opportunism hypothesis, we show that insiders are net buyers before the announcements but they sell intensively after the event. We also find that repurchase announcements with subsequent net insider selling are not followed by an improvement in firms’ operating performance but associated with underperformance in long-term stock returns. Overall, our findings suggest that a proportion of repurchase announcements in Vietnam are subject to insider opportunism; therefore, short-swing rules should be regulated to limit insider opportunistically trading around repurchase announcements.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2066763
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2066763
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# input file: OAEF_A_2071384_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Abigail G. Adeyonu
Author-X-Name-First: Abigail G.
Author-X-Name-Last: Adeyonu
Author-Name: Olubunmi L. Balogun
Author-X-Name-First: Olubunmi L.
Author-X-Name-Last: Balogun
Author-Name: Ifeoluwapo O. Amao
Author-X-Name-First: Ifeoluwapo O.
Author-X-Name-Last: Amao
Author-Name: Timothy O. Agboola
Author-X-Name-First: Timothy O.
Author-X-Name-Last: Agboola
Title: Does farmers’ entrepreneurial competencies explain their household poverty status? Evidence from rural areas of Kwara State, Nigeria
Abstract:
Ending poverty in all its forms and in all places by 2030 is number one of the 17 Sustainable Development Goals (SDGs). However, in less than a decade to the time set for actualizing this goal, poverty is still pervasive in Nigeria and more endemic among farmers in rural areas. Entrepreneurship is seen as a veritable tool to alleviate poverty and stimulate economic growth in some developing countries including Nigeria. Howbeit, little is known about the relationship between farmers’ entrepreneurial competencies and poverty. Thus, this study examined the effects of farmers’ entrepreneurial competencies on household poverty status in rural areas of Kwara State, Nigeria. A three-stage sampling procedure was employed in selecting 272 farm households, with at least a member who was engaged in at least one other means of livelihood (enterprise). Data were collected between February and March 2019 and analysed with descriptive statistics, factor analysis, Foster, Greer, and Thorbecke (FGT) weighted poverty indices and probit regression at p = 0.05. At a daily poverty line of $1.90 (₦684.00) per capita, 55.15% of the households were poor. The findings indicate that poverty among farm households varied with their level of entrepreneurial competencies. Perseverance competence significantly increased household poverty, while social competence reduced it. The findings suggest poverty reduction strategies that come directly from farmers’ own initiative and their resilience which is rural focused regardless of other challenges that may exist.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2071384
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2071384
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# input file: OAEF_A_2043589_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mohammad Naim Azimi
Author-X-Name-First: Mohammad Naim
Author-X-Name-Last: Azimi
Title: Revisiting the governance-growth nexus: Evidence from the world’s largest economies
Abstract:
This study delves into the symmetric effects of governance on economic growth for the world’s ten largest economies, employing a model augmented with well-known growth, governance, and control predictors to inform model specification. Using panel and time-series techniques, both collectively and individually, the initial results reveal that governance predictors and growth postulate a long-run symmetric nexus. Applying the autoregressive distributed lags (ARDL) model, the results show that although governance predictors positively impact the economic growth of the panel both in the short and long runs, growth is weakly sensitive to governance predictors. The results of the ARDL estimates for cross-country show that Canada’s growth is highly sensitive to governance predictors, followed by France, showing moderate sensitivity. Moreover, the findings support the notion that the US, China, Germany, India, the UK, Brazil, and Italy exhibit weak sensitivity to governance predictors. Besides, the error-correction results demonstrate a high speed of adjustment of the short-run symmetries of the panel to its long-run equilibrium. Since economic growth swiftly responds to the rise and fall of governance predictors, specific policy adjustments are required to maintain sustainable and long-run growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2043589
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2043589
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# input file: OAEF_A_2095764_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Peterson Owusu Junior
Author-X-Name-First: Peterson
Author-X-Name-Last: Owusu Junior
Author-Name: Nagaratnam Jeyasreedharan
Author-X-Name-First: Nagaratnam
Author-X-Name-Last: Jeyasreedharan
Author-Name: Imhotep Paul Alagidede
Author-X-Name-First: Imhotep Paul
Author-X-Name-Last: Alagidede
Title: On the goodness-of-fits of the generalized lambda distribution on high-frequency stock index returns
Abstract:
In this paper, we investigate the goodness-of-fit of the flexible four-parameter generalized Lambda Distribution (GLD) for high-frequency 5-min returns sampled from the DJI30 Index. Applying Moment Matching (MM) and Maximum Likelihood Estimation (MLE) techniques, we highlight the significance of the higher-order parameters of the GLD distribution to depict the asymmetric and fat-tailed behaviour observed in high-frequency returns data. We also show and explain why the MLE consistently outperforms the MM; especially in the presence of “outliers”. Finally, we use lambda-space scatterplots to introduce, clarify and discuss additional stylized facts of high-frequency index returns not found in the extant high-frequency literature.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2095764
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2095764
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# input file: OAEF_A_2012986_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Fisseha Zegeye Birhanu
Author-X-Name-First: Fisseha Zegeye
Author-X-Name-Last: Birhanu
Author-Name: Abrham Seyoum Tsehay
Author-X-Name-First: Abrham Seyoum
Author-X-Name-Last: Tsehay
Author-Name: Dawit Alemu Bimerew
Author-X-Name-First: Dawit
Author-X-Name-Last: Alemu Bimerew
Title: Cereal production practices and technical efficiency among farm households in major “teff” growing mixed farming areas of Ethiopia: A stochastic meta-frontier approach
Abstract:
This study examined the effects of research-based recommended cereal production practices on the technical efficiency of farm households based on household-level data generated from questionnaire surveys, focus group discussions, and key informant interviews. The technical efficiency scores were estimated using the stochastic meta-frontier approach because it allows addressing the expected differences in production technologies. Tobit regression framework was applied to identify factors related to farm inefficiency. Results showed mean technical efficiency of 58%, implying that the farm households can improve cereal output by about 36% with the current level of input mix and technologies. The t-test results revealed farm households who adopted high-yielding varieties with research-based recommended production practices were technically more efficient than their counterparts. Our econometric model results also indicated that the use of high-yielding varieties and research-based recommended seed rate affects the technical efficiency of farm households positively and significantly. In addition, we find gender, age, mobile telephone ownership, cooperative membership, access to input market, and crop damage as significant factors affecting the efficiency of farm households. Our findings highlight the importance of addressing technology adoption gaps and gender-based disparities, expanding access to information and modern inputs, strengthening social capital, and adopting climate change adaptation practices to improve the efficiency of farm households.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2012986
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2012986
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# input file: OAEF_A_2021479_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Nawaf Almaskati
Author-X-Name-First: Nawaf
Author-X-Name-Last: Almaskati
Title: The determinants of bank profitability and risk: A random forest approach
Abstract:
This study is the first to analyse the relative importance of a number of the most cited determinants of bank risk and profitability using random forest’s relative value importance measure. The results show that a bank’s profitability is largely determined by bank-specific factors, while a bank’s risk is predominantly impacted by country-level factors. The results also suggest that proxies for market power and size play significant roles in impacting both the bank’s profitability and its risk profile. The analysis also confirms the presence of a major role for a country’s financial development status and regulatory quality in impacting the bank’s riskiness. Lastly, the analysis confirms the presence of a small number of dominant determinants of a bank’s profitability in contrast to the absence of clear dominant determinants of a bank’s riskiness.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2021479
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2021479
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# input file: OAEF_A_2156678_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Joseph Nyamapheni
Author-X-Name-First: Joseph
Author-X-Name-Last: Nyamapheni
Author-Name: Zurika Robinson
Author-X-Name-First: Zurika
Author-X-Name-Last: Robinson
Title: How can different currency regimes affect the willingness to pay tax? Tax morale evidence from Zimbabwe
Abstract:
The article investigates tax morale during different economic milieus, going hand in hand with the introduction of different currency regimes. It was guided by econometric research and data were collected using questionnaires from the 2010–2014 and 2017–2020 World Values Survey (WVS). For Zimbabwe, Wave 6 and Wave 7 had a sample size of 1500 and 1200 respectively. The article’s dependent variable, tax morale and independent variables included marital status, age, income level, employment and religion among others, and analysed them using the Ordered Logit Model. The article concludes with an understanding of how tax morale and its determinants is crucial for governments in their bid to boost voluntary compliance. Also, different economic milieus for a particular country affect the level of tax morale significantly. Tax morale was established to be high when Zimbabwe was experiencing economic growth due to the introduction of multi-currency, herein called the dollarization period, and the opposite was true for the post-dollarization era. Corruption, which is a menace under study, has proven to be an important factor that influences tax morale. Results of all the models show that demographic factors have little effect on tax morale. The article introduced an important variable of hunger in its analysis of determinants of tax morale. The article showed that there is a negative relationship between hunger and tax morale for Zimbabwe in both economic situations. Based on the findings, policy makers should consider the eradication of corruption and hunger in order to boost tax morale, which in turn improves tax compliance. Also, policy makers should include improvement in the perception of democracy in the mix of enhancement strategies of tax compliance.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2156678
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2156678
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# input file: OAEF_A_2157541_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yaser Mohd Hamshari
Author-X-Name-First: Yaser Mohd
Author-X-Name-Last: Hamshari
Author-Name: Mohammad Ahmad Alqam
Author-X-Name-First: Mohammad Ahmad
Author-X-Name-Last: Alqam
Author-Name: Haitham Yousef Ali
Author-X-Name-First: Haitham Yousef
Author-X-Name-Last: Ali
Title: The impact of the corona epidemic on working capital management for jordanian companies listed on the amman stock exchange
Abstract:
The purpose of this study is to examine how the COVID-19 epidemic has affected the working capital management practices of Amman Stock Exchange (ASE) companies. From 2012 to 2021, 101 firms were studied in the financial sector. The data was also examined using a Multiple Regression Model in the study. The results revealed that Covid-19 Pandemic has significant and negative effect on working capital management. According to the results, companies tended to take a relatively conservative approach to managing their working capital. More importantly, the data demonstrated that the COVID-19 pandemic crisis drove changes in working capital management practices. Companies with a high FL, QR, and CCC have attempted to increase their client base by prolonging the average age of their accounts receivable and decreasing the turnover rate of their liabilities, respectively. Companies with a greater CCC, as well as those whose principal current assets are accounts receivable, outperformed the other working capital management strategies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2157541
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2157541
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# input file: OAEF_A_2127484_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Changjun Zheng
Author-X-Name-First: Changjun
Author-X-Name-Last: Zheng
Author-Name: Md Nazmul Islam
Author-X-Name-First: Md Nazmul
Author-X-Name-Last: Islam
Author-Name: Najmul Hasan
Author-X-Name-First: Najmul
Author-X-Name-Last: Hasan
Author-Name: Md. Abdul Halim
Author-X-Name-First: Md. Abdul
Author-X-Name-Last: Halim
Title: Does intellectual capital efficiency matter for banks’ performance and risk-taking behavior?
Abstract:
The aim of this study is to investigate whether a bank’s intellectual capital (IC) efficiency impacts its performance and risk-taking behavior in an emerging economic country. The study used panel data (unbalanced) of 30 commercial banks in Bangladesh during 2002–2019. Data were analyzed through the use of the generalized method of moments (GMM) by Eviews-10. The pragmatic results demonstrate that IC efficiency (HCE), RCE and SCE have significant positive (negative) impacts both on the bank’s performance and risk-taking behavior, this finding is similar to resource-based theory. Moreover, adequate capital and liquidity position improves bank performance, but leverage, size, and non-performing loans to total loan have a significant negative impact on bank performance. In addition, the macro-economic variable growth (i.e., gross domestic product) rate of inflation and financial crisis year negatively impacts both bank performance and risk-taking behavior. The panel dataset in this research is restricted to the Bangladeshi banking sector, which restricts the study’s generalizability. Bank performance in Bangladesh is unaffected by leverage, loan size, and the proportion of non-performing loans to total loans. Regulatory authorities, managers and policymakers should step up their surveillance of banks and other financial institutions when the GDP inflation rate and financial crisis year have a negative impact on both bank performance and risk-taking behavior.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2127484
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2127484
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# input file: OAEF_A_2131230_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Giridhari Mohanta
Author-X-Name-First: Giridhari
Author-X-Name-Last: Mohanta
Author-Name: Ashutosh Dash
Author-X-Name-First: Ashutosh
Author-X-Name-Last: Dash
Title: Do financial consultants exert a moderating effect on savings behavior?A study on the Indian rural population
Abstract:
Access to basic financial services, though, enables destitute and vulnerable individuals in society to promote prosperity, a significant section of rural population is still unbanked in India. Unveiling various small saving schemes, the Indian Government has accelerated the financial inclusion, but the availability of numerous alternative schemes has created a surplus of market information, causing difficulty in building economic judgment for the rural people having no financial socialization through formal and informal education and training. While dismissive investors rely on their own decisions, the convincing behaviour of financial consultants may play a crucial role in shaping the saving habits of the preoccupied population. To analyse the moderation effect of financial consultants on the relationship between small savings schemes, financial literacy and behaviour, and savings habit of rural people, the empirical study employs a two-phase structural equation modelling on the data gathered from 343 adult respondents from 12 Indian districts with a considerable rural population. In order to validate the hypothesized measurement model, a confirmatory factor analysis is carried out and in the next phase, the structural model is used to verify the association between exogenous and endogenous variables. The study exhibits a significant positive impact of predictors and moderation variables on the savings habit. The study recommends integrating consultants into the financial engineering process to advance inclusivity and encourage saving behaviour of rural individuals for personal and economic prosperity.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2131230
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2131230
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# input file: OAEF_A_2024722_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Dagninet Asrat
Author-X-Name-First: Dagninet
Author-X-Name-Last: Asrat
Author-Name: Adugnaw Anteneh
Author-X-Name-First: Adugnaw
Author-X-Name-Last: Anteneh
Author-Name: Mohammed Adem
Author-X-Name-First: Mohammed
Author-X-Name-Last: Adem
Author-Name: Zewdu Berhanie
Author-X-Name-First: Zewdu
Author-X-Name-Last: Berhanie
Title: Impact of Awash irrigation on the welfare of smallholder farmers in Eastern Ethiopia
Abstract:
Ethiopia’s agriculture is dominated by small-scale rain-fed production in combinations of natural and manmade factors have resulted in serious poverty. Irrigation farming is increasing been used as a strategy in Ethiopia. However, lack of consensus on the role of the irrigation sector on the welfare of smallholder farmers and pitfalls in impact study methodologies resulted in mixed findings. This study evaluated the impact of Awash irrigation on the welfare of rural smallholder farmers. Two-stage stratified sampling technique employed to select sample households. Cross-sectional household level data from a survey of 315; 165 irrigation users and 151 non-users smallholder farmers in Asiyta district, Ethiopia used for the analysis. This study employed endogenous switching regression model to control for endogeneity problems associated with adoption decision. Accordingly, the correlation coefficient result proved that the existence of self-selection and endogeneity. Results indicated, irrigation users’ per capita consumption expenditure and income were 16 percent and 35 percent, respectively, higher compared to non-irrigation-users significantly. Endogenous switching regression model further identified amount of own land cultivated, education status, number of extension contact, livestock holding, nearest market distance, access to non-farm job and nearest canal distance significantly determine irrigation participation. The study concluded that Awash irrigation is one of the viable solutions to improve the welfare of smallholder farmers in the study area. Therefore, governmental and non-governmental organization should promote, improve and expand Awash irrigation in all areas of the Woreda in particular and irrigation agriculture in general.
Figure 1.Conceptual framework for determinants of irrigation participation.Source: Modified from Mengistie and Kidane (2016)
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2024722
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2024722
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# input file: OAEF_A_2079177_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Komlan Ametowoyo Adeve
Author-X-Name-First: Komlan Ametowoyo
Author-X-Name-Last: Adeve
Author-Name: Essosinam Franck Karabou
Author-X-Name-First: Essosinam Franck
Author-X-Name-Last: Karabou
Title: Public debt and development sustainability issues in the West African Economic and Monetary Union (WAEMU)
Abstract:
This article analyses the impact of public debt on sustainability as measured by the genuine savings indicator covering the period from 2004 to 2018. The methodology adopted is based on dynamic panel generalized methods of moments (GMM). The results after estimation show a negative and significant contribution of public debt to the WAEMU countries’ development sustainability. However, we note that an improvement in institutional governance, an increase in health expenditures and climate change expenditures contribute significantly to putting these countries on a sustainable development trajectory.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2079177
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2079177
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# input file: OAEF_A_2085266_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Sarit Biswas
Author-X-Name-First: Sarit
Author-X-Name-Last: Biswas
Author-Name: Mousumi Bhattacharya
Author-X-Name-First: Mousumi
Author-X-Name-Last: Bhattacharya
Author-Name: Pradip H Sadarangani
Author-X-Name-First: Pradip H
Author-X-Name-Last: Sadarangani
Author-Name: Justin Yiqiang Jin
Author-X-Name-First: Justin Yiqiang
Author-X-Name-Last: Jin
Title: Corporate governance and earnings management in banks: An empirical evidence from India
Abstract:
This paper aims to examine the role of corporate governance (CG) on earnings management (EM) in Indian commercial banks. In addition, the study examines the role of board gender diversity within the CG framework using data from 22 publicly traded commercial banks in India from 2010 to 2019. The study uses Principal Component Analysis (PCA) to develop a comprehensive CG measure. Using a Panel Corrected Standard Error (PCSE) approach, the study finds that CG has a significant negative impact on EM in Indian commercial banks. The findings further revealed a positive association between gender diversity of boards and EM, indicating that the lack of gender diversity on a bank’s board outweighs the benefits of gender-diverse boards. Our study shows that CG mechanisms are more effective when combined together than individual governance mechanisms. The study also provides new insight into the role of board gender diversity as a CG mechanism on EM in banks in the context of a developing country. The study provides practical implications for investors, managers, regulators and policymakers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2085266
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2085266
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# input file: OAEF_A_2156092_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Monika Chopra
Author-X-Name-First: Monika
Author-X-Name-Last: Chopra
Author-Name: Chhavi Mehta
Author-X-Name-First: Chhavi
Author-X-Name-Last: Mehta
Title: Is bitcoin a diversifier, hedge or safe haven for traditional and alternate asset classes?
Abstract:
Given the skyrocketing returns earned by bitcoin, it has received widespread attention as an investment asset. The shocks experienced by stock and bond markets over time and especially during the COVID-19 pandemic has led to an evaluation of bitcoin as a wealth protection asset, a role that gold has played until now. The current paper tests the hedging and safe haven properties of bitcoin in a broad portfolio of both developed and emerging markets stocks, bonds and real estate over a period of 10 years and during COVID-19 pandemic. Using a DCC-GARCH method, the study finds weak hedge and safe haven benefits of bitcoin. The results of the study establish that there is still a long way to go before bitcoin displays a strong safe haven behavior. However, there is a need for portfolio managers to become more cognizant about bitcoin given its potential to protect their portfolios.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2156092
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2156092
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# input file: OAEF_A_2085260_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Nguyen Vinh Khuong
Author-X-Name-First: Nguyen Vinh
Author-X-Name-Last: Khuong
Author-Name: Le Huu Tuan Anh
Author-X-Name-First: Le Huu Tuan
Author-X-Name-Last: Anh
Author-Name: Nguyen Thi Hong Van
Author-X-Name-First: Nguyen Thi Hong
Author-X-Name-Last: Van
Title: Firm life cycle and earnings management: The moderating role of state ownership
Abstract:
The study examined the relationship between firm life cycle (FLC) and earnings management (EM) in the Vietnamese context with the moderating role of state ownership (SOE). We used the sample of 622 Vietnamese listed companies over the period 2010–2019. To eliminate autocorrelation and heteroscedasticity violations, we utilized FE Robust on all models. The data show that accrual earnings management (AEM) behavior varies between FLC phases. The results revealed a U-shaped pattern, with discretionary accruals (DAs) being more remarkable in the introduction and decline stages and lower in the remaining stages. The findings on the connection between FLC and real earnings management (REM) varied depending on the REM technique used. The results support the involvement of SOE as a moderator in both the FLC—REM and the FLC—EM relationship. This study significantly contributed to the existing literature about FLC and EM behavior.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2085260
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2085260
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# input file: OAEF_A_2085264_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: R. Younes
Author-X-Name-First: R.
Author-X-Name-Last: Younes
Title: Investigation on the credit risk transfer effects on the banking stability and performance
Abstract:
Considered among of the main causes of the 2007 financial crisis, the credit risk transfer activities deserve nowadays particular attention. This study discusses the continuous effectiveness of the credit risk transfer activities by investigating their effects on the bank risk, liquidity and profitability before the crisis event and contributes to the recent scarce literature identifying this effect in the post-crisis period. Using models treating this impact on two samples of US commercial banks over the period from 2001 to 2017, the obtained results suggest an overall amplification of the risk incurred by banks notably before the crisis, a decrease of liquid assets hold on balance sheet and, generally an increase of the profitability. The employment of credit derivatives does not exhibit a conclusive result of its impact on the banking stability and performance. Nevertheless, the effect of residential mortgage loans securitization on bank risk appeared to be negative after the crisis, indicating that the securitization of this type of credit can reduce the bank risk in the detriment of a lower profit, in the new regulatory context required by Basel III.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2085264
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2085264
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2085264
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# input file: OAEF_A_2046322_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Charles Shaaba Saba
Author-X-Name-First: Charles Shaaba
Author-X-Name-Last: Saba
Author-Name: Nicholas Ngepah
Author-X-Name-First: Nicholas
Author-X-Name-Last: Ngepah
Author-Name: Abieyuwa Ohonba
Author-X-Name-First: Abieyuwa
Author-X-Name-Last: Ohonba
Title: Employment impact of national, provincial and local government capital in South Africa: An aggregate and sectoral perspective
Abstract:
This study examines the impact of general/national, provincial and local government capital on employment in South Africa. The study spans from 1993 to 2017 for a panel of 269 South African municipalities. The study employs the Granger causality test and the System Generalised Method of Moments (SGMM) estimation techniques. Findings show bidirectional causality between the variables of interest in the eight economic sectors. The results from the SGMM show that general/national government capital contributes more to total employment and the categories of employment (that is, different skills levels) in the economic sectors compared to provincial and local government capital. This suggests provincial and local government capital has not adequately contributed to citizens’ different skills development and employment levels. Therefore, this article recommends synergised and well invested national, provincial and local government capital at all levels of skills development to equip citizens, create jobs, and grow the South African economy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2046322
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2046322
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# input file: OAEF_A_2136237_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Goksu Aslan
Author-X-Name-First: Goksu
Author-X-Name-Last: Aslan
Title: Enhancing youth and women’s financial inclusion in South Asia
Abstract:
The youthful population of South Asia, holding the majority in the subregion, will also have a great share in the future alongside the risk of being not in education, employment, or training with a persisting gender gap. This makes it important to adopt a gender-responsive policy framework for youth empowerment. This paper, after constructing a multidimensional financial inclusion index, based on a multilevel estimation framework considering the hierarchical structure of the dataset, shows evidence on how to increase financial inclusion among the South Asian youth. It furthermore provides policy recommendations considering the gendered effects. The paper finds that education level, formal employment, having a national ID, and government expenditure on education and health are important drivers of financial inclusion. The paper furthermore finds that education level becomes especially more important for those at the bottom income quintile and that government expenditure into education and health would boost the youth financial inclusion in South Asia, especially for the female youth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2136237
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2136237
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# input file: OAEF_A_2058734_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Bernard Sarpong
Author-X-Name-First: Bernard
Author-X-Name-Last: Sarpong
Author-Name: Edward Nketiah-Amponsah
Author-X-Name-First: Edward
Author-X-Name-Last: Nketiah-Amponsah
Title: Financial inclusion and inclusive growth in sub-Saharan Africa
Abstract:
This paper empirically examines the quantitative relationship between financial inclusion and inclusive growth in sub-Saharan Africa using a panel of 46 countries for the period 2004–2018. The evidence suggests that usage of financial services, among other covariates, has a quantifiable and discernible impact on inclusive growth compared with availability and knowledge of financial services. Precisely, a unit increase in the usage of financial products and services improves inclusive growth by 0.03 units in sub-Saharan Africa. The paper contributes to literature by initially constructing a broader index of inclusive growth and subsequently estimating the separate quantitative effects of three categories of financial inclusion indicators on inclusive growth by employing the Arellano–Bover/Blundell–Bond system Generalized Method of Moment estimator. The findings underscore the need for policymakers to develop innovative, sustainable and inclusive financial systems capable of distributing growth benefits equitably. This can be achieved through moderate lending rates and transaction charges, improved access to retail and corporate loans, mortgages, overdrafts, credit cards, letters of credits and user-friendly financial technologies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2058734
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2058734
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# input file: OAEF_A_2122191_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Sangho Kim
Author-X-Name-First: Sangho
Author-X-Name-Last: Kim
Title: Temporal changes in factor adjustment of the Japanese manufacturing industry
Abstract:
This study investigated temporal changes in factor adjustment of the Japanese manufacturing industry by applying a dynamic factor model, in which labor and capital were quasi-fixed to a panel of industries from 1972 to 2012. Estimations show that the adjustment speeds, with which factors approach their optimum levels, have increased over the period. Particularly, factor adjustment rates have significantly increased since 2000. The estimations suggest that Japanese manufacturers have become more flexible in hiring workers and faster in making investments, which reduces adjustment cost significantly. This dynamic gain is ignored from static analysis, underestimating the benefit of labor market reform. The study suggests that policymakers should consider dynamic factor adjustment in assessing policy impacts accurately when implementing an industrial policy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2122191
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2122191
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# input file: OAEF_A_2035044_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Thanh Phuc Nguyen
Author-X-Name-First: Thanh Phuc
Author-X-Name-Last: Nguyen
Author-Name: Thi Thu Hong Dinh
Author-X-Name-First: Thi Thu Hong
Author-X-Name-Last: Dinh
Title: The role of bank capital on the bank lending channel of monetary policy transmission: An application of marginal analysis approach
Abstract:
While there is a large body of research on the bank lending channel of monetary policy transmission and the distributional dependence of this transmission on bank characteristics, the asymmetric effect of bank capital on monetary policy—bank loan supply nexus has been ignored. To fill this void, the new post-estimation approach of marginal analysis based on the two-step system-GMM methodology is conducted for the dynamic panel data of Vietnamese commercial banks covering the period of 2007–2020. The results confirm the inertia related to loan growth and the presence of a monetary policy bank lending mechanism, which is robust across a series of monetary policy instruments and the approach of variable exclusion from the baseline model. In addition to previous empirical evidence on less sensitivity of well-capitalized banks to tightened monetary policy, this study shows the specific range value of bank capital that monetary policy stance has no impact on bank loan supply in a time of monetary restrictions. Furthermore, better capitalized banks could take more advantage of the expansionary monetary policy by lending more. The relevant policy recommendations for policy-makers are also provided to the best practice of monetary policy implementations considering these asymmetric effects.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2035044
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2035044
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# input file: OAEF_A_2087646_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mohammad Imdadul Haque
Author-X-Name-First: Mohammad Imdadul
Author-X-Name-Last: Haque
Author-Name: Bashir Umar Faruk
Author-X-Name-First: Bashir Umar
Author-X-Name-Last: Faruk
Author-Name: Mohammad Rumzi Tausif
Author-X-Name-First: Mohammad Rumzi
Author-X-Name-Last: Tausif
Title: Growth-finance nexus in oil abundant GCC countries of MENA region
Abstract:
Economic growth and financial development are intrinsically related. Literature provides evidence that economic growth leads to financial development and financial development also leads to economic growth. The study analyzes this association between economic growth and financial development considering institutions for countries with substantial oil rents. The study uses the Pedroni test for cointegration, Granger causality, Ordinary Least Squares (Panel, Fully Modified, and Dynamic) methods to study the relationship on a panel data of six countries from 2000 to 2019. The study proceeds with the hypothesis that economic growth leads to financial development in countries having oil rents. The study finds that economic growth has a significant positive impact on the financial sector development of the GCC countries and not vice versa. The study also reports that poor institutional quality constraints the contribution of oil rents to financial development. The results imply that in countries accruing oil rent, the quality of institutions needs to be improved for furthering the cause of financial development. Although the study advances the empiricism on the link between economic growth and financial development, incorporating institutions and oil rents is the study’s novelty.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2087646
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2087646
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# input file: OAEF_A_2028974_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ho Hoang Gia Bao
Author-X-Name-First: Ho Hoang Gia
Author-X-Name-Last: Bao
Author-Name: Thi Hai Ly Tran
Author-X-Name-First: Thi Hai Ly
Author-X-Name-Last: Tran
Author-Name: Hoang Phong Le
Author-X-Name-First: Hoang Phong
Author-X-Name-Last: Le
Title: The roles of vehicle currency and real effective exchange rate in China’s trade with the whole EU
Abstract:
Devaluation of domestic currency is traditionally believed to foster a country’s trade balance. Innumerable papers have attempted to scrutinize the exchange rate-trade balance nexus in many countries across the globe, yet their conclusions diverge as they utilize different data, time frames, and methods. Most of them share the same weakness: disregarding the role of vehicle currency. Even though the literature about China is relatively large, no study has scrutinized the asymmetric impacts of vehicle currency and real effective exchange rate on China’s total trade balance with the entire EU. This research gap is especially notable in the circumstances that the EU has surpassed the USA to become China’s largest trading partner, and USD is the vehicle currency heavily employed in China-EU trade. This article aims to fill the aforesaid gap by applying the nonlinear ARDL method to investigate how USD as a vehicle currency, alongside real effective exchange rate, asymmetrically influences China’s trade balance with the whole EU. The empirical results indicate both long-run and short-run asymmetries in all models, and China’s trade balance reacts differently to the two kinds of exchange rates. The findings are robust in the EU-28 and EU-27 cases, and some useful implications are provided for policy-makers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2028974
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2028974
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# input file: OAEF_A_2045720_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Khanh Hoang
Author-X-Name-First: Khanh
Author-X-Name-Last: Hoang
Author-Name: Son Tran
Author-X-Name-First: Son
Author-X-Name-Last: Tran
Author-Name: Liem Nguyen
Author-X-Name-First: Liem
Author-X-Name-Last: Nguyen
Author-Name: Mohammed M Elgammal
Author-X-Name-First: Mohammed M
Author-X-Name-Last: Elgammal
Title: Credit information sharing, nonperforming loans and economic growth: A cross-country analysis
Abstract:
Employing 3-Stage Least Squares (SLS) regression on the aggregate dataset of 120 countries from 2004 to 2017, this study is the first to investigate whether credit information sharing exerts impact on nonperforming loans of banking system and economic growth rate. First, our findings provide evidence of a negative association between bad debt levels and credit information sharing, suggesting that information sharing tends to enhance the financial sustainability of the banking sector. Furthermore, our study provides evidence in line with an indirect channel via which information sharing is conducive to economic growth: information sharing decreases the nonperforming loans, which hampers economic growth. This result remains unchanged due to the introduction of additional explanatory variables, as well as the use of an alternative dependent variable. Finally, policy implications are discussed based on the findings of the research.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2045720
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2045720
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# input file: OAEF_A_2062092_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Chala Amante Abate
Author-X-Name-First: Chala Amante
Author-X-Name-Last: Abate
Title: The relationship between aid and economic growth of developing countries: Does institutional quality and economic freedom matter?
Abstract:
Foreign aid is an important means of finance for governments of developing countries. The current study investigates whether too much inflow of aid to developing countries is beneficial or harmful to their economy and whether institutional quality and economic freedom matters in aid–growth relationship. To this base, a panel data covering the period 2002–2019 was collected from 44 developing countries of the world. System generalized method of moment was employed to examine the nature of relationship between foreign aid and economic growth, and dynamic panel threshold regression is utilized to uncover the mediating role of institutional quality and economic freedom. The result thus obtained reveals that the relationship between foreign aid and economic growth takes inverted U shape indicating the existence of optimal level of aid equal to 9.7% of GNI. The result from dynamic panel threshold regression shows that the effect of aid on economic growth is negative when arithmetic mean of institutional quality index is less than or equal to −0.614 and the overall index of economic freedom is less than or equal to 60.521. Above the indicated thresholds, the effect of aid on economic growth is positive which means institutional quality and economic freedom matters in aid–growth relationship. Drawing on the results obtained, the study suggest that developing countries should not receive huge amount of aid from donors, reform their institutions for the better, and improve economic freedom if they want to reap the benefit of aid.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2062092
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2062092
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2062092
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# input file: OAEF_A_2022858_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Theophilus Tweneboah Kodua
Author-X-Name-First: Theophilus
Author-X-Name-Last: Tweneboah Kodua
Author-Name: Edward Ebo Onumah
Author-X-Name-First: Edward
Author-X-Name-Last: Ebo Onumah
Author-Name: Akwasi Mensah-Bonsu
Author-X-Name-First: Akwasi
Author-X-Name-Last: Mensah-Bonsu
Title: Technical efficiency of improved and local variety seed maize farms in Ghana: A meta-frontier analysis
Abstract:
The meta-frontier model technique is employed to compare the technical efficiency levels of improved and local maize seed variety farms in Ghana using a cross-sectional data from 214 farmers. The study shows that inefficiencies in maize production relate to exogenous variables considered even though some of the variables are not statistically significant. All input variables considered contribute positively to maize output in both improved and local seed varieties as well as in the pooled data. Maize farms generally exhibit increasing returns to scale (IRS) in the study area. The mean technical efficiency relative to the meta-frontier is estimated to be 72%, 44% and 50% for the improved, local maize seed variety farms and the pooled data respectively. Based on the estimated TGR of 90% and 72% for the improved and local seed variety maize farms, respectively, the study concludes that maize farmers who cultivated improved maize seed varieties are more technically efficient compared to their counterparts who do otherwise. It is recommended that stakeholder efforts should focus on labour source, education, extension contacts, ready market availability and credit that contribute positively to farmers’ efficiency to further increase maize output in Ghana. Furthermore, farmers should be encouraged and educated more on the benefits of newly developed varieties of maize so that they will be convinced enough to adopt in order to increase their output in the near future.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2022858
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2022858
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# input file: OAEF_A_2122190_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Raavinuthala Satya Krishna Sharma
Author-X-Name-First: Raavinuthala
Author-X-Name-Last: Satya Krishna Sharma
Author-Name: Kumar Bijoy
Author-X-Name-First: Kumar
Author-X-Name-Last: Bijoy
Author-Name: Arunaditya Sahay
Author-X-Name-First: Arunaditya
Author-X-Name-Last: Sahay
Title: Issues in liquidity management in banking system: An empirical evidence from Indian commercial banks
Abstract:
Maintaining the optimal level of liquidity in the banking system has always been a challenge for banks globally. Liquidity deficit Indian Banks turned to liquidity surplus due to the demonetization of higher denomination currencies in November 2016. The liquidity deficit has the potential to trigger systemic risk whereas a surplus can weaken monetary transmission leading to the creation of asset bubbles. This study explores the impact of various interventions of policymakers to maintain the optimal liquidity by simultaneously insulating the banks’ profitability and overall economic growth from the policy’s negative impact using Auto-Regressive Distributed Lag (ARDL) regression. The study records and analyses the impacts of “Fiscal Deficit”, “Lending and Deposit Rates”, and “Credit Growth Rate” on Liquidity Deficit, GDP growth and Banks’ Profitability levels. It is found that Fiscal deficit is negatively related to Liquidity deficit and GDP growth but increases Banks’ profit whereas Lending rates have an insignificant impact on Liquidity Deficit. Increasing Deposit rates have a positive impact on Liquidity deficit, negative on Banks’ Profit, and immediate positive relationships with GDP growth which changes to negative at the third lag. Similarly, the Credit growth rate has a positive relationship with the Liquidity deficit, augments GDP growth, and reduces Banks’ profit. It is also observed that the profit of Indian Scheduled Commercial banks has reduced after the demonetization. This study, apart from contributing to academic literature, will help the monetary authorities and the financial institutions in their policy decisions for managing the liquidity issues in the market.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2122190
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2122190
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2122190
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# input file: OAEF_A_2106628_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Shafaat Muhammad Habib
Author-X-Name-First: Shafaat Muhammad
Author-X-Name-Last: Habib
Author-Name: Haroon Hussain
Author-X-Name-First: Haroon
Author-X-Name-Last: Hussain
Author-Name: Mamdouh Abdulaziz Saleh Al-Faryan
Author-X-Name-First: Mamdouh Abdulaziz Saleh
Author-X-Name-Last: Al-Faryan
Author-Name: Rana Yassir Hussain
Author-X-Name-First: Rana Yassir
Author-X-Name-Last: Hussain
Title: Impact of firm characteristics and ownership structure on firm efficiency: evidence from non-financial firms of Pakistan
Abstract:
This study aims to examine the impact of firm characteristics and ownership structure on the firm efficiency of listed non-financial firms in Pakistan from 2012 to 2017. Firm characteristics include market capitalization, cash holdings, book-to-market ratio and negative book-to-market ratio and ownership structure includes insider ownership, institutional ownership and concentration ownership while controlling for firm size, profitability, leverage and age. Data related to firm efficiency, cash holdings, book-to-market ratio and negative book-to-market ratio was collected from Financial Statement Analysis published by SBP whereas data related to market capitalization and ownership structure (insider ownership, institutional ownership and concentration ownership) was collected from business recorder and published annual reports respectively. At first stage the firm efficiency is reported by using DEA CRS approach and results show that the year 2014 was the best year because 24% firms were efficient and 2015 was the worst because only 18% firms were efficient. The results also show that textile, sugar, food, manufacturing, chemical & pharmaceuticals, cement, motor vehicle, information communication & transportation are the poor performing sectors of Pakistan. This inefficiency might be due to the inefficient use of resources as agency theory advocates. Then at second stage, the correlation and variance inflation factor did not show any multicollinearity. Tobit model is used to find the regression results. The regression results show that market capitalization, cash holdings and concentration ownership positively and significantly influence the firm efficiency. Negative book-to-market ratio, insider ownership and institutional ownership negatively and significantly influence the firm efficiency whereas the book-to-market ratio is insignificant with the firm efficiency. It might be due to the self-interest by the insider and institutional ownership. This study is also helpful for the investors. They can choose the efficient firm for investment and to avoid the inefficient firms to stay away from the losses.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2106628
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2106628
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# input file: OAEF_A_2031434_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mohammed Abu Alfoul
Author-X-Name-First: Mohammed
Author-X-Name-Last: Abu Alfoul
Author-Name: Zakia Ahmad Mishal
Author-X-Name-First: Zakia Ahmad
Author-X-Name-Last: Mishal
Author-Name: Friedrich Schneider
Author-X-Name-First: Friedrich
Author-X-Name-Last: Schneider
Author-Name: Khaled Magableh
Author-X-Name-First: Khaled
Author-X-Name-Last: Magableh
Author-Name: Abeer Rafi Alabdulraheem
Author-X-Name-First: Abeer Rafi
Author-X-Name-Last: Alabdulraheem
Title: The hidden economy in Jordan: A MIMIC approach
Abstract:
This paper uses the Multiple Indicators Multiple Causes (MIMIC) approach to determine the annual size and growth of the hidden economy in Jordan for the period 1980–2018. We find that the key causal variables of the hidden economy in Jordan are: female labor force participation, the inflation rate, the unemployment rate, total tax revenue, and the budget deficit. The growth of these causal variables increases Jordan’s hidden economy. According to our findings, the estimated average of the hidden economy from 1980 to 2018 is 17.6% of the official GDP. Thus, it comprises a large portion of the official GDP. Furthermore, our results suggest an increase in the size of Jordan’s hidden economy from 11.8% in 1980 to 22.4% in 2018. The overall results can assist policymakers in Jordan to combat and reduce the size of the hidden economy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2031434
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2031434
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# input file: OAEF_A_2013588_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Nassim Dehouche
Author-X-Name-First: Nassim
Author-X-Name-Last: Dehouche
Title: Revisiting the volatility of bitcoin with approximate entropy
Abstract:
Two distinct and non-redundant understandings of volatility, as deviation from consistency, exist for a time-series: (1) exhibiting high standard deviation and, closer to the dictionary definition of the term, (2) appearing highly irregular and unpredictable. We find that Bitcoin is a prime example of an asset for which the two concepts of volatility diverge. We show that, historically, Bitcoin combines high Standard Deviation and low Approximate Entropy, relative to Gold and S&P 500. Moreover, subsample analysis for different time-scales (daily, weekly, monthly) shows that lower sampling frequencies drastically reduce the Kurtosis of the distribution of log-returns of Bitcoin. The opposite effect is observed for Gold and S&P 500. These properties suggest that, contrary to the volatility of the two traditional assets, Bitcoin’s high volatility is essentially an intra-day phenomenon that is strongly attenuated for a weekly or monthly time-preference.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2013588
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2013588
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2013588
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# input file: OAEF_A_2101995_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Zachary Ezra Cohen
Author-X-Name-First: Zachary Ezra
Author-X-Name-Last: Cohen
Author-Name: Aylit Tina Romm
Author-X-Name-First: Aylit Tina
Author-X-Name-Last: Romm
Title: The nature of inconsistencies in two measures of risk preferences in a sample of young African South Africans
Abstract:
In this paper, we attempt to unpack the nature of revealed inconsistencies in two measures of risk preferences for a sample of young African South Africans. The first measure is a self-reported propensity to take risk in general, and the second is a risk preference elicited through a hypothetical financial gamble. We find that the majority of individuals are inconsistent in their responses that provide these two measures of risk preferences with the majority of contradictions coming from individuals reporting themselves as risk seeking, when their revealed risk preferences from the hypothetical gamble show them to be risk averse. Our results suggest that such inconsistencies are more prevalent amongst males, and amongst females with greater mathematical ability.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2101995
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2101995
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Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2101995
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# input file: OAEF_A_2127485_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Tu DQ Le
Author-X-Name-First: Tu DQ
Author-X-Name-Last: Le
Author-Name: Trang NT Ho
Author-X-Name-First: Trang NT
Author-X-Name-Last: Ho
Author-Name: Dat T Nguyen
Author-X-Name-First: Dat T
Author-X-Name-Last: Nguyen
Author-Name: Thanh Ngo
Author-X-Name-First: Thanh
Author-X-Name-Last: Ngo
Title: Intellectual capital – bank efficiency nexus: evidence from an emerging market
Abstract:
This paper investigates the effect of intellectual capital (IC) and its components on the efficiency of Vietnamese commercial banks from 2007 to 2019 using the two-step Data Envelopment Analysis approach. Banks’ efficiency scores are firstly estimated, while the relationship between IC and bank efficiency is examined in the second stage. The results indicate a positive relationship between IC and banks’ pure technical efficiency, allocative efficiency, and total cost efficiency. When observing the effect of IC decompositions, the findings show that only human capital enhances all types of bank efficiency. Furthermore, bank size and liquidity risk are significant drivers of Vietnamese bank efficiency. Therefore, our findings suggest that bank managers should focus on intellectual capital, particularly human capital, to strengthen bank efficiency further.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2127485
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2127485
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# input file: OAEF_A_2140906_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Achsanul Qosasi
Author-X-Name-First: Achsanul
Author-X-Name-Last: Qosasi
Author-Name: Hendra Susanto
Author-X-Name-First: Hendra
Author-X-Name-Last: Susanto
Author-Name: Rusmin Rusmin
Author-X-Name-First: Rusmin
Author-X-Name-Last: Rusmin
Author-Name: Emita W. Astami
Author-X-Name-First: Emita W.
Author-X-Name-Last: Astami
Author-Name: Alistair Brown
Author-X-Name-First: Alistair
Author-X-Name-Last: Brown
Title: An alignment effect of concentrated and family ownership on carbon emission performance: The case of Indonesia
Abstract:
This study considers the effect of ownership characteristics on carbon emission disclosures using balanced panel data and a matched-pair design of 124 annual reports of non-financial firms listed on the Indonesia Stock Exchange (IDX) during 2017–2019. The main result from multivariate analysis reveals that firms with concentrated and family ownership tend to disclose more carbon emission information. This finding suggests that the stewardship qualities of concentrated and family-controlled entities align with carbon emission accountability and strategies to reduce emissions. Our additional analyses show that firms with family board members generate more carbon emission information. Finally, the analysis of nonlinear relationships confirms both monitoring and expropriation effects of family ownership on carbon emission performance. Therefore, the results of this study suggest that considerable work is needed for all non-financial listing firms to specify emission reduction targets and target years, quantify emission reductions and associated costs or savings, and factor costs of future emissions into capital expenditure planning. This study makes a valuable contribution to the family business and carbon emissions, a contribution of considerable interest to a broad interdisciplinary audience, including family business owners, managers, governments, and academics.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2140906
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2140906
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# input file: OAEF_A_2109279_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Nguyen Thanh Hung
Author-X-Name-First: Nguyen Thanh
Author-X-Name-Last: Hung
Author-Name: Su Dinh Thanh
Author-X-Name-First: Su Dinh
Author-X-Name-Last: Thanh
Title: Fiscal decentralization, economic growth, and human development: Empirical evidence
Abstract:
The objective of this paper is to examine the simultaneous relationship between fiscal decentralization, economic growth, and human development using the panel data of 18 countries over the 2011–2017 period. 3SLS-GMM (Three Stage Least Squares—Generalized Method of Moments Estimator) and GMM-HAC (Generalized Method of Moments—Heteroskedastic and Autocorrelation Consistent estimator) are employed to obtain unbiased coefficients in the system of equation. The results indicate that the significant relationship does exist between fiscal decentralization, economic growth, and human development from different directions. Specifically, economic growth and human development are positively and negatively affected by fiscal decentralization, respectively. These results hold true with alternative estimation methods and sub-indexes of decentralization. Interestingly, economic growth is fostered by human development index, as justified by the statistical evidence of the studied sample, but these results are found to be consistent as well when it comes to expenditure-based decentralization. However, in the opposite direction, the impact of human development on economic growth is ambiguous and only remains significant in the case of expenditure decentralization purposefully utilized as an explanatory variable. Thirdly, economic growth does not give rise to the efficiency of fiscal decentralization, yet could reduce human development instead. The results provide several plausible implications to policy makers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2109279
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2109279
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# input file: OAEF_A_2059911_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Agus Widarjono
Author-X-Name-First: Agus
Author-X-Name-Last: Widarjono
Author-Name: Diana Wijayanti
Author-X-Name-First: Diana
Author-X-Name-Last: Wijayanti
Author-Name: Suharto Suharto
Author-X-Name-First: Suharto
Author-X-Name-Last: Suharto
Title: Funding liquidity risk and asset risk of Indonesian Islamic rural banks
Abstract:
This study explores the influence of funding liquidity risk and several control variables on Islamic rural banks’ asset risk in Indonesia. Our study analyzes Islamic rural banks comprising 142 Islamic banks with quarterly data from 2013: Q1 to 2018: Q4. Panel regression is then employed. We divide Islamic banks related to their size and location for further analysis. Our results confirm the funding liquidity risk increase Islamic banks’ asset risk. Small Islamic banks encounter less asset risk than large Islamic banks, but large banks face a lower probability of bad financing than small Islamic banks. The influence of funding liquidity risk on asset risk is higher for Islamic banks in developed areas than in less developed areas. More interestingly, the results using an interaction term between funding liquidity risk and financial contracts show that Islamic banks providing profit-loss sharing contracts (PLS) and non-PLS face lower asset risk than those Islamic banks providing only non-PLS contracts. Results also highlight the importance of market power, size, financing, and efficiency in lowering asset risk. Our findings have two implications. First, policymakers can implement investment account product to reduce mismatch between liquidity risk and asset risk. Second, Islamic banks should provide both PLS and non-PLS contracts by optimizing both contracts to reduce Islamic banks’ risk assets.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2059911
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2059911
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# input file: OAEF_A_2152938_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Pham Thi Bich Ngoc
Author-X-Name-First: Pham
Author-X-Name-Last: Thi Bich Ngoc
Author-Name: Pham Dinh Long
Author-X-Name-First: Pham
Author-X-Name-Last: Dinh Long
Author-Name: Huynh Quoc Vu
Author-X-Name-First: Huynh
Author-X-Name-Last: Quoc Vu
Title: The impact of absorbing productivity spillover on export ability: evidence from an emerging market
Abstract:
This paper examines spillover effects of foreign direct investment (FDI) through horizontal, backward, and forward linkages, and how these spillovers are driven by the exporting ability for Vietnamese manufacturing enterprises. Those participating in export activity can increase the spillover absorption from FDI through the horizontal and backward linkages although local firms are less likely to take advantage of productivity spillovers during this period. In addition, these exporting firms confront the productivity protection of the FDI firms in the same industries. In contrast, the higher their exportability is, the better their learning from the foreign firms in the same downstream sectors becomes. The findings of this paper provide valuable evidence and implications for policymakers in managing and enhancing export ability for firms in the emerging market.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2152938
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2152938
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# input file: OAEF_A_2131115_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Abubakar Musah
Author-X-Name-First: Abubakar
Author-X-Name-Last: Musah
Author-Name: Godfred Aawaar
Author-X-Name-First: Godfred
Author-X-Name-Last: Aawaar
Title: Financial development and educational quality in Sub-Saharan Africa
Abstract:
This paper examines the effect of financial development on educational quality in Sub-Saharan Africa. This paper also analyses the interaction effect of public education financing and measures of financial development on quality of education in Sub-Saharan Africa. The study adopts the two—step system generalised method of moment (Two-Step System GMM) model in estimating the effect of financial development on educational quality and the interaction effect of financial development and public education financing on educational quality. We use data for the period 1990 to 2019 for 42 Sub-Saharan African countries obtained largely from the World Development Indicators of the World Bank and the International Monetary Fund (IMF) financial development index database. The results show that overall financial development, financial access, financial depth, and financial efficiency improve quality at the primary, secondary, and tertiary levels of education. We also find that public education financing improves quality at all levels of education. The results also show that public education financing positively moderates the nexus between measures of financial development and educational quality in Sub-Saharan Africa.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2131115
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2131115
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# input file: OAEF_A_2067021_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Maria Faiq Javed
Author-X-Name-First: Maria Faiq
Author-X-Name-Last: Javed
Author-Name: Atif Khan Jadoon
Author-X-Name-First: Atif Khan
Author-X-Name-Last: Jadoon
Author-Name: Ayesha Malik
Author-X-Name-First: Ayesha
Author-X-Name-Last: Malik
Author-Name: Ambreen Sarwar
Author-X-Name-First: Ambreen
Author-X-Name-Last: Sarwar
Author-Name: Munazza Ahmed
Author-X-Name-First: Munazza
Author-X-Name-Last: Ahmed
Author-Name: Saima Liaqat
Author-X-Name-First: Saima
Author-X-Name-Last: Liaqat
Title: Gender wage disparity and economic prosperity in Pakistan
Abstract:
The present study is designed to examine the relationship between wage inequalities and economic prosperity in the case of Pakistan. Using provincial-level data for the years 2000 to 2020, the study estimated a multivariate regression model by employing Auto Regressive Distributive Lag (ARDL) pooled mean group (PMG) technique. The results reveal that wage inequality, government development spending, labor force participation, and human development significantly affect economic prosperity. It is concluded that gender disparity in the labor market is the main hurdle in the economic wellbeing of the masses in the country. Reducing the differences in wages will enhance overall economic prosperity. The government and private sector should take collaborative measures to reduce wage disparities between the male and female workforce. The study also suggests that government should increase development expenditure, especially on health, education, and social infrastructure, to increase economic prosperity.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2067021
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2067021
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# input file: OAEF_A_2087644_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Yasin Ahmed
Author-X-Name-First: Yasin
Author-X-Name-Last: Ahmed
Author-Name: Seid Ebrahim
Author-X-Name-First: Seid
Author-X-Name-Last: Ebrahim
Author-Name: Mohammed Ahmed
Author-X-Name-First: Mohammed
Author-X-Name-Last: Ahmed
Title: Determinants of solar technology adoption in rural households: The case of Belesa districts, Amhara region of Ethiopia
Abstract:
The adoption of modern energy such as solar energy has been recognized as, an important way to reduce carbon emissions and enrich the energy supply of rural households in Ethiopia. This study investigated the factors that determine the solar technology adoption in rural households in case of West Belesa and East Belesa districts of Ethiopia. Data were collected from 500 farm households which were selected using a multi-stage sampling technique procedure through a structured survey questionnaire with online KOBO application through the Computer-Assisted-Personal-Interview (CAPI) system. The data was collected through focus group discussions and key informant interviews. Binary logit models were utilize to analyze the data. The finding of the study revealed that seven independent variables were significant in explaining the factors affecting farmers’ adoption of solar technology. These variables were education status, family size, participation in natural resource management activity, extension services, knowledge about solar technology, credit utilization, and perception of climatic change were the positive determinants of adoption. Based on the finding, the study recommends that the government should raise farmers’ awareness through increase access of education and improved especially credit services to rural household’s to increase the adoption of solar energy technology.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2087644
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2087644
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# input file: OAEF_A_2090664_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Adedoyin Isola Lawal
Author-X-Name-First: Adedoyin Isola
Author-X-Name-Last: Lawal
Author-Name: Eziekel Oseni
Author-X-Name-First: Eziekel
Author-X-Name-Last: Oseni
Author-Name: Bukola Bose Lawal-Adedoyin
Author-X-Name-First: Bukola Bose
Author-X-Name-Last: Lawal-Adedoyin
Author-Name: Joseph IseOlorunkanmi
Author-X-Name-First: Joseph
Author-X-Name-Last: IseOlorunkanmi
Author-Name: Abiola J. Asaleye
Author-X-Name-First: Abiola J.
Author-X-Name-Last: Asaleye
Author-Name: Henry Inegbedion
Author-X-Name-First: Henry
Author-X-Name-Last: Inegbedion
Author-Name: M. Santanu
Author-X-Name-First: M.
Author-X-Name-Last: Santanu
Author-Name: Abigail DickTonye
Author-X-Name-First: Abigail
Author-X-Name-Last: DickTonye
Author-Name: Opeyemi Olagunju
Author-X-Name-First: Opeyemi
Author-X-Name-Last: Olagunju
Author-Name: Elizabeth Ogunwole
Author-X-Name-First: Elizabeth
Author-X-Name-Last: Ogunwole
Title: Impact of macroeconomic variables on the Nigerian manufacturing sector
Abstract:
The essence of this study is to examine the impact of macroeconomic variables and some salient socio-economic and political variables on the manufacturing sub-sector of the Nigerian economy by using the autoregressive distributed lag to analyze data source from 1986 to 2019 within the context of two macroeconomic theories: The Solow growth and the endogenous growth theories. The study noted that both the Solow growth theory and endogenous growth model are valid in the short run for the studied economy, but the result is not the same in the long run, as only the endogenous growth model was valid in the long run. The study noted that to achieve sustainable economic growth powered by strong manufacturing sector, there must be an alignment between the macroeconomic variables employed and the socio-political factors. The findings of the study have some policy implications.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2090664
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2090664
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# input file: OAEF_A_2058189_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mesele Belay Zegeye
Author-X-Name-First: Mesele Belay
Author-X-Name-Last: Zegeye
Author-Name: Abebaw Hailu Fikire
Author-X-Name-First: Abebaw Hailu
Author-X-Name-Last: Fikire
Author-Name: Getamesay Bekele Meshesha
Author-X-Name-First: Getamesay Bekele
Author-X-Name-Last: Meshesha
Title: Determinants of multiple agricultural technology adoption: evidence from rural Amhara region, Ethiopia
Abstract:
The adoption of modern agricultural technologies remains to be a promising strategy to improve agricultural productivity, achieve food security and reduce poverty in Ethiopia. Despite the efforts to promote adoption in the country, the adoption rate has always been very low. So, it is essential to understand the determinants to the adoption of modern agricultural technologies. This study investigates the determinants of agricultural technology adoption decisions in the rural Amhara region of Ethiopia. The study is based on an Ethiopian socio-economic survey of 2015/16 and a sample of 656 farm households is considered. The paper uses a multinomial logit model to assess the factors affecting the adoption decision of agricultural technology. The result shows that farmers with more educational level, family size, off-farm participation, livestock, extension service, credit access, advisory service, and farmers closer to plot, all-weather road, zonal town, and farmers with lower remittance income are more likely to adopt new or improved agricultural technology. Accordingly, the study provides crucial policy implications regarding the technology adoption in the agricultural sector for all regions of Ethiopia.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2058189
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2058189
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# input file: OAEF_A_2111802_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Gagan Sharma
Author-X-Name-First: Gagan
Author-X-Name-Last: Sharma
Author-Name: Sanjay Sehgal
Author-X-Name-First: Sanjay
Author-X-Name-Last: Sehgal
Author-Name: Anil V. Mishra
Author-X-Name-First: Anil V.
Author-X-Name-Last: Mishra
Title: Does financial integration impact performance of equity anomalies?
Abstract:
We examine prominent market anomalies and evaluate the efficacy of alternative asset pricing models under different financial integration settings. A financial integration index is developed for classifying 25 sample markets into high-, medium- and low integration groups. Size is found to be the strongest anomaly in world markets, followed by value and liquidity. Value and profitability effects are larger for low-integrated markets. Highly integrated markets experience short-term momentum while many low-integrated markets exhibit mild reversals. Fama and French five-factor model outperforms capita l asset pricing model (CAPM) and Fama and French three-factor model in explaining returns. International factors augment the role of local factors for more integrated markets. Our study has implications for global investors to design anomaly based investment strategies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2111802
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2111802
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# input file: OAEF_A_2132642_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Thich Van Nguyen
Author-X-Name-First: Thich
Author-X-Name-Last: Van Nguyen
Author-Name: Hang T.T. Bui
Author-X-Name-First: Hang T.T.
Author-X-Name-Last: Bui
Author-Name: Chi H.D. Le
Author-X-Name-First: Chi H.D.
Author-X-Name-Last: Le
Title: The impacts of corporate social responsibility to corporate financial performance: A case study of Vietnamese commercial banks
Abstract:
This study aims to investigate the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP). A multi-method approach has been applied to measure CSR. Net interest margin (NIM), return on assets (ROA), and return on equity (ROE) are selected to represent the financial performance of the bank. Using a sample of Vietnamese commercial banks from 2012 to 2019 to perform regressions in the dynamic panel models with the two-step system generalized method of moments (GMM) estimator, the results show a positive effect of both corporate social responsibility expenditure (CSRE) and corporate social responsibility disclosure (CSRD) on the financial performance of the bank. The results also show the impact of the component CSRs on the bank’s financial performance, particularly finding a positive effect of Environmental responsibility and Employee responsibility. In contrast, the influence of Community responsibility is not evident.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2132642
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2132642
File-Format: text/html
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# input file: OAEF_A_2075520_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Kudakwashe Zvitarise Javangwe
Author-X-Name-First: Kudakwashe Zvitarise
Author-X-Name-Last: Javangwe
Author-Name: Oliver Takawira
Author-X-Name-First: Oliver
Author-X-Name-Last: Takawira
Title: Exchange rate movement and stock market performance: An application of the ARDL model
Abstract:
The study examines the relationship between the stock market and exchange rate in South Africa for the period from 1980 to 2020. Quarterly data was used employing the Autoregressive Distributed Lag (ARDL) model given the order of integration of the variables. The empirical results revealed that there is a long-term relationship between the variables of interest. The results also revealed that there is a negative relationship between the stock market and exchange rate movement. The results also show that there is a negative relationship between the stock market and the interest rate as well as inflation as measured by CPI. These results imply that innovations in the exchange rate do have an impact on what happens to the stock market. The impact of exchange rates on stock market can be positive in the short run and negative in the long run and so policymakers can use our findings to avoid making unnecessary monetary or fiscal policy decisions. Policy makers may be able to know when to intervene in influencing the markets using monetary or fiscal policies. Investors and portfolio managers can apply the findings of this study to hedge against exchange rate risk, efficiently diversify their portfolios and predict future stock market movements by observing the exchange rate market.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2075520
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2075520
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# input file: OAEF_A_2015084_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Sunitha Kumaran
Author-X-Name-First: Sunitha
Author-X-Name-Last: Kumaran
Title: Modelling the downside risk potential of mutual fund returns
Abstract:
Investors are becoming more sensitive about returns and losses, especially when the investments are exposed to downside risk potential in the financial markets. Despite the computational intensity of the downside risk measures, they are very widely applied to construct a portfolio and evaluate performance in terms of the investors’ loss aversion. Value-at-risk (VaR) has emerged as an industry standard to analyze the market downside risk potential. The approaches used to measure VaR vary from the standard approaches to more recently introduced highly sophisticated volatility models. In this paper, the standard approaches (student-t-distribution, log normal, historical simulation) and sophisticated volatility models (EWMA, GARCH (1,1)) both have been used to estimate the VaR of mutual funds in the Saudi Stock Exchange between June 2017 and June 2020. The VaR approaches have been subjected to conditional coverage backtest to identify the model that is the best at predicting VaR. The empirical coverage probability of the models reveals that EWMA was able to capture VaR better than the other models at a higher significance level followed by GARCH (1,1).
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2015084
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2015084
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# input file: OAEF_A_2060552_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Djihad Tria
Author-X-Name-First: Djihad
Author-X-Name-Last: Tria
Author-Name: Mukaramah Harun
Author-X-Name-First: Mukaramah
Author-X-Name-Last: Harun
Author-Name: Mahmudul Alam
Author-X-Name-First: Mahmudul
Author-X-Name-Last: Alam
Title: Microcredit as a strategy for employment creation: A systematic review of literature
Abstract:
National governments and their development partners have considered microcredit as a strategic tool for vulnerable populations. Easy access to finance increases the client’s ability to invest and allows clients to use resources to change their behaviour, increase their business opportunities and create employment. This paper aims to review studies that focused on microcredit and employment issues affecting beneficiaries, including gender-based employment creation and the informal sector. Through a systematic search of electronic databases and keywords to identify relevant studies, 40 core articles are identified for the period 1998–2021. The results indicate the significant impacts of microcredit on women’s employment creation and business revenue of microenterprises in the informal sector. Moreover, a few studies set out to integrate gender employment creation and the informal sector with reference to microcredit. A framework is proposed to address the relationship between employment structure and microcredit. Finally, this study recommends developing a financial social accounting matrix and run empirical analysis on macro modelling such as input-output or general equilibrium modelling. Doing so will help obtain better understanding of how microcredit participation is associated with employment creation in different sectors and different types of household groups.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2060552
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2060552
File-Format: text/html
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# input file: OAEF_A_2035493_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Richard Mumo
Author-X-Name-First: Richard
Author-X-Name-Last: Mumo
Author-Name: John Boscoh H. Njagaraha
Author-X-Name-First: John Boscoh H.
Author-X-Name-Last: Njagaraha
Author-Name: Mercy K. Kiremu
Author-X-Name-First: Mercy K.
Author-X-Name-Last: Kiremu
Author-Name: Richard Watt
Author-X-Name-First: Richard
Author-X-Name-Last: Watt
Title: On the use of intertemporal models to analyse how post-loss and post no-loss insurance demands differ
Abstract:
A general problem in insurance economics is to establish how insurance demand is affected by the size of the loss suffered in the previous period. This problem lays out the underlying objective of this study, which examines how insurance demand changes post-catastrophes, and how it can be theoretically modelled. We present a basic theoretic model to examine how post-accident insurance demand differs from post no-accident insurance demand. Our study first explores post-loss insurance demand from a two-period perspective and then examines how utility curvature parameters affect insurance demand across two periods. In our simulation results, it is observed that the optimal insurance demand with or without intertemporal consideration is the same in the absence of consumption smoothing mechanism. In addition, the experience of having an accident increases insurance purchases in the next period compared to when there was no accident in the previous period. In view of our findings, insurance stakeholders can develop strategies designed to improve post-loss outcomes for insurance consumers that include adequate coverage both after a loss and following a no-loss event by better understanding how insurance demand changes post-loss. We note that our proposition is limiting, but this limitation offers an interesting area of exploration. More studies are thus encouraged to model explicitly the utility derived from the wealth in the second period. In addition, further research is needed into the effects of consumption decisions and how to solve the bivariate optimisation problem that results.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2035493
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2035493
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# input file: OAEF_A_2022859_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Vu Minh Ngo
Author-X-Name-First: Vu Minh
Author-X-Name-Last: Ngo
Author-Name: Huan Huu Nguyen
Author-X-Name-First: Huan Huu
Author-X-Name-Last: Nguyen
Author-Name: Hien Thu Phan
Author-X-Name-First: Hien Thu
Author-X-Name-Last: Phan
Author-Name: Phương Thanh Thi Tran
Author-X-Name-First: Phương Thanh Thi
Author-X-Name-Last: Tran
Title: Lives and livelihoods trade-offs: Which COVID-19 strategies for which countries?
Abstract:
Are COVID-19 non-pharmaceutical interventions (NPIs) at the expense of economic outcomes? Furthermore, given the heterogeneities in macroeconomic conditions, should countries follow a unified COVID-19 strategy such as “No-COVID”? This study provides cross-country evidence that attempts to address these critical questions during the pandemic era. Given the substantial heterogeneity in unemployment rates of OECD countries, it is necessary to understand the effects of NPIs’ implementation, which could vary widely across conditional quantiles of unemployment rates. Using monthly data from OECD countries from February 2020 to June 2021 and quantile regression analysis for panel data (QRPD), we explore the impacts of NPIs on economic outcomes. The results indicate that NPIs effectively contained the pandemic and had substantial positive impacts on low quantiles of unemployment rates. However, at high quantiles of unemployment rates, the trade-off is viable and significant. In addition, countries’ vaccination policies and scales also predict their economic outlooks, especially when combined with non-pharmaceutical interventions. Based on these findings, this study suggests different COVID-19 strategies for different groups of countries according to their macroeconomic settings. The trade-off between lives and livelihoods is much more troublesome and prevalent in countries with unfavorable macroeconomic conditions and hinders them from pursuing strategies such as “No-COVID”.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2021.2022859
File-URL: http://hdl.handle.net/10.1080/23322039.2021.2022859
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# input file: OAEF_A_2129368_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Eleftherios Spyromitros
Author-X-Name-First: Eleftherios
Author-X-Name-Last: Spyromitros
Author-Name: Minas Panagiotidis
Author-X-Name-First: Minas
Author-X-Name-Last: Panagiotidis
Title: The impact of corruption on economic growth in developing countries and a comparative analysis of corruption measurement indicators
Abstract:
Although corruption has attracted researchers’ attention for more than 30 years, it remains one of the most significant political challenges all countries face. Even though corruption measures have improved, they lack reliability and clarity. Two aspects of corruption are examined in this paper: a) its measurement and b) its effects on the economic performance of 83 developing countries in the period 2012–2018 with AR (1) and FM-OLS data processing techniques. It provides an extensive reference for and critical assessment of different corruption index approaches, focusing on the already known and widespread indicators. Furthermore, it refers to the measures most suited for statistical analyses regarding perceptions and experiences. In addition, the study’s empirical results show that corruption hinders the economic growth of those developing countries. Different levels of corruption impact economic growth in different regions; specifically in Latin American countries, corruption impacts positively on economic growth or vice versa; in the other regions, it is negative. Finally, investment, human development, government growth, and institutional quality play essential roles in economic growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2129368
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2129368
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# input file: OAEF_A_2127218_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: John Gakuu Karanja
Author-X-Name-First: John Gakuu
Author-X-Name-Last: Karanja
Title: Domestic trade regulation and growth of wholesale and retail firms; evidence from Kenya
Abstract:
The aim of this paper was to assess the effect of Kenya’s domestic trade regulations on the growth of wholesale and retail firms in Kenya. To achieve the study objective, the existing domestic trade regulatory framework was reviewed, and policy gaps were identified. Further, a cross-sectional dataset from the World Bank enterprise survey 2018 was used for empirical analysis as it contains regulatory variables that influence the growth of wholesale and retail trade firms. The Tobit model was used for regression analysis. The study established that business registration regulations, licensing regulations, firm size, use of mobile money, business websites, membership in a trade association, and training of employees support firms’ ability to grow and therefore create jobs. The study recommended that there is a need to develop a framework that will coordinate both national and county governments in the implementation of business registration reforms provided under the Business Registration Act of 2015 and other reforms provided for ease of doing business in the country. Further, there is a need to reduce business licensing obstacles across the counties by simplifying business license application procedures, conditions, and requirements. Finally, there is a need to fast-track the implementation of the MSE Act 2012 and the MSE regulations 2019 on trade associations, as well as to assess their contribution to the wholesale and retail trade sectors’ self-regulation since their enactment and, if necessary, to revise them.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2127218
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2127218
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# input file: OAEF_A_2063525_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Emrah Beşe
Author-X-Name-First: Emrah
Author-X-Name-Last: Beşe
Author-Name: H. Swint Friday
Author-X-Name-First: H. Swint
Author-X-Name-Last: Friday
Title: THE RELATIONSHIP BETWEEN EXTERNAL DEBT AND EMISSIONS AND ECOLOGICAL FOOTPRINT THROUGH ECONOMIC GROWTH: TURKEY
Abstract:
The influence of external debt on the environment is a rising issue in the rapidly developing climate crisis. This study analyzes the relationship between carbon dioxide emissions per capita, gross domestic product per capita and ecological footprint per capita by applying an autoregressive distributed lag model for the Republic of Turkey. According to the results of this study there is an inverted U relationship between carbon dioxide emissions and external debt. There is no inverted U relationship between ecological footprint per capita and external debt while there is bidirectional causal relationship between external debt and economic growth. In addition, the results reveal that economic growth has a significant impact on ecological footprint per capita in the long run. There is causal relationship from external debt to emissions. This study recommends that further analysis be done for other countries that have high foreign debt to investigate the relationship between external debt and emissions. Similar analysis may be carried out for the external debt and ecological footprint per capita nexus for future studies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2063525
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2063525
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# input file: OAEF_A_2146631_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Randolph Nsor-Ambala
Author-X-Name-First: Randolph
Author-X-Name-Last: Nsor-Ambala
Author-Name: Ebenezer Bugri Anarfo
Author-X-Name-First: Ebenezer
Author-X-Name-Last: Bugri Anarfo
Title: A vector autoregression (VAR) analysis of corruption, economic growth, and foreign direct investment in Ghana
Abstract:
The paper investigated the dynamic and causal relationship among corruption, foreign direct investment, and economic growth simultaneously, a largely overlooked area in empirical studies, using a dataset from Ghana. It is among the few studies that explore the confluence of these variables and therefore contributes to understanding the contextual realities of the impact of FDI inflow, an often-prioritised policy choice, on widely used measures of social coherence and welfare. The study employed a vector autoregressive (VAR) estimation approach to empirically explore the relationships among corruption, foreign direct investment, and economic growth. The findings suggest that there is a reverse causality among corruption, foreign direct investment, and economic growth. This indicates that these variables are complementary rather than contradictory. These findings imply that central government and policymakers should not pursue any of these variables as a policy goal, but rather treat them as complements when modelling or formulating economic policies. This means that policies aimed at promoting foreign direct investment will not jeopardize or compromise the control of corruption and economic growth and vice versa.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2146631
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2146631
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# input file: OAEF_A_2051824_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Thi Ngan Nguyen
Author-X-Name-First: Thi Ngan
Author-X-Name-Last: Nguyen
Author-Name: Thi Kieu Hoa Phan
Author-X-Name-First: Thi Kieu Hoa
Author-X-Name-Last: Phan
Author-Name: Thanh Liem Nguyen
Author-X-Name-First: Thanh Liem
Author-X-Name-Last: Nguyen
Author-Name: David McMillan
Author-X-Name-First: David
Author-X-Name-Last: McMillan
Title: FINANCIAL CONTAGION DURING GLOBAL FINANCIAL CRISIS AND COVID–19 PANDEMIC: THE EVIDENCE FROM DCC–GARCH MODEL
Abstract:
This paper is the first study to examine the financial contagion from the U.S., Japanese and Chinese markets to Asian markets during the Global Financial Crisis (GFC) and Covid-19 Pandemic Crisis. We employ the DCC-EGARCH methodology and daily data of stock returns from 2005 to 2021 to estimate the time-varying correlations and the volatilities of stock markets. Our results show that the correlation between the U.S. and Japanese markets with emerging Asian ones is quite high, implying the interdependence between these markets. Furthermore, we find significant contagion effects from the U.S. equity market to markets in both advanced and emerging economies during the GFC. Nonetheless, during the Covid-19 pandemic, only 3 out of 10 Asian emerging markets had experienced the contagion from the U.S. Our findings also suggest that contagion effects are not strongly related to the level of global integration and Asian markets seem to be more affected by the contagion from Japan and China.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2051824
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2051824
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# input file: OAEF_A_2113496_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Sarwar Uddin Ahmed
Author-X-Name-First: Sarwar Uddin
Author-X-Name-Last: Ahmed
Author-Name: Samiul Parvez Ahmed
Author-X-Name-First: Samiul Parvez
Author-X-Name-Last: Ahmed
Author-Name: Mohammad Abdullah
Author-X-Name-First: Mohammad
Author-X-Name-Last: Abdullah
Author-Name: Uttam Karmaker
Author-X-Name-First: Uttam
Author-X-Name-Last: Karmaker
Title: Do socio-political factors affect investment performance?
Abstract:
Despite increasing research on the relationship between behavioral factors and investment performance, little is known about the perspective of emerging markets like Bangladesh. This paper investigates the mediating role of socio-political factors in explaining the relationship between behavioral factors and investment performance in the Dhaka Stock Exchange (DSE). Using structural equation modeling (SEM) on 1,123 completed responses, we find that social and political environment mediates investors’ behavior in translating into investment performance. The finding suggests behavioral factors and the socio-cultural context of Bangladesh can explain market anomalies seen for decades in the largest stock exchange in the country and demands further research in this direction. Additionally, results show herding effect has the strongest effect on investment performance through combined mediation effect of social and political factors. The study results have significant implications for both theoretical and practical analysts by contributing to the evolution of post-neoclassical finance theories from an emerging market viewpoint and suggesting the probable causes behind historical market instability in DSE, respectively.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2113496
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2113496
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# input file: OAEF_A_2157117_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Maun Jamaludin
Author-X-Name-First: Maun
Author-X-Name-Last: Jamaludin
Author-Name: Hari Busthomi
Author-X-Name-First: Hari
Author-X-Name-Last: Busthomi
Author-Name: Soma Gantika
Author-X-Name-First: Soma
Author-X-Name-Last: Gantika
Author-Name: Abdul Rosid
Author-X-Name-First: Abdul
Author-X-Name-Last: Rosid
Author-Name: Erry Sunarya
Author-X-Name-First: Erry
Author-X-Name-Last: Sunarya
Author-Name: Tuah Nur
Author-X-Name-First: Tuah
Author-X-Name-Last: Nur
Title: Market orientation and SCM strategy on SME organizational performances: the mediating effect of market performance
Abstract:
This study aims to examine the effects of market orientation and SCM strategy on SME financial performance and operational performance by using market performance as the mediating variable. A simple random sampling technique was employed. A total of 150 SME managers and owners participated in this study. By using Structural Equation Model (SEM) with AMOS 20 software, the results found the positive effects of market orientation on market performance and on financial performance. A positive effect was also obtained in examining the relationship between SCM strategy on market and operational performances. Market performance is also empirically proven to have a significant influence on operational performance. However, the results found no significant influence of market orientation on market and financial performances. The mediating testing showed that market performance strengthens the effect of SCM strategy on operational and financial performances. The results practically highlight the need for SMEs to rely on aspects of supply chain sustainability and be oriented to existing consumer demand patterns to encourage increased and sustainable business performance. Theoretically, the findings reveal SMEs’ emphasis on the strength of SCM strategy as a marketing focus and underscore the need to satisfy end customers and supply chain management members.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2157117
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2157117
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# input file: OAEF_A_2148363_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Iwan Putra
Author-X-Name-First: Iwan
Author-X-Name-Last: Putra
Author-Name: Urip Sulistiyo
Author-X-Name-First: Urip
Author-X-Name-Last: Sulistiyo
Author-Name: Enggar Diah
Author-X-Name-First: Enggar
Author-X-Name-Last: Diah
Author-Name: Sri Rahayu
Author-X-Name-First: Sri
Author-X-Name-Last: Rahayu
Author-Name: Syurya Hidayat
Author-X-Name-First: Syurya
Author-X-Name-Last: Hidayat
Title: THE INFLUENCE OF INTERNAL AUDIT, RISK MANAGEMENT, WHISTLEBLOWING SYSTEM AND BIG DATA ANALYTICS ON THE FINANCIAL CRIME BEHAVIOR PREVENTION
Abstract:
This study provides a critical review of the literature that examines and analyses how Fraud Prevention mediates the Effect of Internal Audit, Risk Management, Whistle Blowing System and Big Data Analytics on the Prevention of Financial Crime Behaviour. The problem discussed in this study is the limited strategic formulation in risk management, internal audit, whistleblowing system and big data analytics for early detection for fraud prevention and prevention of financial crime behavior in Indonesia, especially the problem of fraud that occurs in the Sumatra Regional Government, namely in Aceh, North Sumatra, Riau, Kepulauan Riau, South Sumatra, Bangka Belitung, Jambi, West Sumatra, Bengkulu and Lampung. Various kinds of scientific studies that have been carried out provide clues that the skills mismatch on the impact of fraud and financial crime behavior is still a fundamental polemic that will continue to hamper the productivity and competitiveness of various economic and industrial sectors in Regional Governments in Indonesia. To prepare for the emerging discourse, this research refers to 90 articles published in leading academic journals, discussing related topics from the early 1990s to 2021. Therefore, the formulation of the problem in this study: (1) How does Internal Audit influence prevention fraud, (2) How does Risk Management influence fraud prevention, (3) How does Whistleblowing system influence fraud prevention, (4) How big data analytics influence fraud prevention, (5) How fraud prevention mediates the influence of Internal Audit, Risk Management, whistleblowing system and big data analytics to prevent financial crime behavior.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 10
Year: 2022
Month: 12
X-DOI: 10.1080/23322039.2022.2148363
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2148363
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# input file: OAEF_A_2196851_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Daniel Ofori-Sasu
Author-X-Name-First: Daniel
Author-X-Name-Last: Ofori-Sasu
Author-Name: Elikplimi Komla Agbloyor
Author-X-Name-First: Elikplimi Komla
Author-X-Name-Last: Agbloyor
Author-Name: Emmanuel Sarpong-Kumankoma
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Sarpong-Kumankoma
Author-Name: Joshua Yindenaba Abor
Author-X-Name-First: Joshua Yindenaba
Author-X-Name-Last: Abor
Title: Central bank coordinated policies and bank market power: an insight from the African context
Abstract:
The paper examines the impact of central bank regulatory policies on market power in Africa. The study presents a representative sample of 52 African economies over the period 2006–2020. The study shows that the individual regulatory policies of the central bank (i.e. monetary and macro-prudential policies) enhance banks’ market power. Also, it reveals that central bank regulatory policies are better coordinated, as complements, in achieving greater market power of banks in countries with strong central bank independence (CBI) framework. However, the coordinated policies are substitutes in determining bank’s market power in countries with weak CBI framework. The policy implication is that the right policy mix of coordinated central bank regulatory policy framework is important in determining an optimal outcome of bank’s market power in both an inclusive central bank (monetary-prudential) policy targeting economies and an independent policy targeting economies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2196851
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2196851
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# input file: OAEF_A_2162687_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Nam Hai Pham
Author-X-Name-First: Nam Hai
Author-X-Name-Last: Pham
Title: CEO characteristics and bank performance: Case of Vietnamese commercial banks
Abstract:
The article was conducted to evaluate the impact of CEO characteristics on the performance of Vietnamese commercial banks. Variables representing the performance of commercial banks are return on total assets (ROA) and return on equity (ROE). Data was collected from 30 Vietnamese commercial banks from 2012–2020. By the regression methods of Pooled OLS, Fixed Effects Model (FE), Random Effects Model (RE), Feasible Generalized Least Squares (FGLS), the research results show that CEO duality and CEO age positively impact the performance of Vietnamese commercial banks. In contrast, the female CEO factor has a negative impact on ROE. In addition, the study did not find evidence of the impact of the CEO’s financial background and the CEO tenure on the performance of Vietnamese commercial banks.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2162687
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2162687
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# input file: OAEF_A_2172802_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: António Carvalho
Author-X-Name-First: António
Author-X-Name-Last: Carvalho
Author-Name: Filipe Sardo
Author-X-Name-First: Filipe
Author-X-Name-Last: Sardo
Author-Name: Luís Pacheco
Author-X-Name-First: Luís
Author-X-Name-Last: Pacheco
Title: The firms’ debt reversibility trend: An application to a large sample of industrial SMEs
Abstract:
The corporate debt reversibility analysis can be carried out not only from the owner/manager’s active intervention perspective but also from the perspective of a mechanical reversion, independent of owner/managers’ deliberations. Our study aims to discover how and which theoretical perspective underlying reversibility has the most significant impact on the capital structure of Portuguese industrial small and medium-sized enterprises (SMEs). The present paper proposes a new approach linking the measures commonly used to determine the target leverage level to the specific assumptions of theories addressing debt dynamics. Our results show that the perspective with the stronger impact on capital structure materialises in the dynamic trade-off theory assumptions. However, owners/managers also strongly consider the industry references to which firms belong. The perspective of mechanical debt reversion also contributes, at its level, to the firms’ debt permanent reversibility in the sense of possible long-term stationarity.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2172802
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2172802
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# input file: OAEF_A_2183654_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Muhammad Zahid
Author-X-Name-First: Muhammad
Author-X-Name-Last: Zahid
Author-Name: Syeda Um-Ul-Baneen Naqvi
Author-X-Name-First: Syeda Um-Ul-Baneen
Author-X-Name-Last: Naqvi
Author-Name: Amin Jan
Author-X-Name-First: Amin
Author-X-Name-Last: Jan
Author-Name: Haseeb Ur Rahman
Author-X-Name-First: Haseeb Ur
Author-X-Name-Last: Rahman
Author-Name: Said Wali
Author-X-Name-First: Said
Author-X-Name-Last: Wali
Title: The nexus of environmental, social, and governance practices with the financial performance of banks: A comparative analysis for the pre and COVID-19 periods
Abstract:
This study aims to examine the impact of ESG practices on the financial performance of the banking industry of Pakistan during the pre and COVID-19 periods. The data were collected from the annual reports of selected banks for the pre-COVID-19 period (2018) and the COVID-19 period (2020). Results of the t-test show that there is a significant difference in ESG disclosures between the pre and during-COVID-19 periods. The regression analysis shows that the formative ESG factor positively affected the financial performance of the banking industry during the pre-COVID-19 period. While the reflective factors (environmental and social) positively affected the financial performance of the banking industry in the pre-COVID-19 period. During the COVID-19 period, the formative factor of ESG was found to have a significant positive impact on the financial performance of the banking industry. Similarly, in this period, the reflective factors (social and governance) were also found to have a significant positive impact on the financial performance of the banking industry. Interestingly, environmental sustainability negatively impacted the financial performance during the COVID-19 period. It indicates that the banking industry ignored environmental sustainability practices during the COVID −19 period, negatively affecting their financial performance. It suggests that ignoring environmental sustainability practices will deteriorate financial performance following the COVID-19 period. These results have profound policy implications for practitioners and policymakers in the banking industry, which are discussed.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2183654
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2183654
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# input file: OAEF_A_2213014_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Randolph Nsor-Ambala
Author-X-Name-First: Randolph
Author-X-Name-Last: Nsor-Ambala
Author-Name: Emmanuel Asafo-Adjei
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Asafo-Adjei
Title: The government revenue – expenditure nexus in Ghana: A wavelet analysis
Abstract:
This study explores the nexus among government revenue, government expenditure, and gross domestic product (GDP) across time and/or frequency using a Ghana dataset. It applies the wavelet approaches to investigate the lead-lag nexus, degree of integration and interdependency among public expenditure, public revenue, and gross domestic product (GDP) in the Ghanaian context. The data source is the World Bank and consists of yearly data from 1983 to 2021 yielding 39 observations. While public expenditure and revenue are closely related, and mostly positive throughout both time and frequency, there is a nexus between public spending and revenue at specific intervals and on a regular basis that was bi-directional, bi-causal, and interdependent. Between 1993 and 2021, a bi-directional nexus could be seen; however, most of the arrows pointed to the right. This shows that the co-movements between public spending and revenue are positive and behave similarly as a result. Accordingly, it is anticipated that increased levels of public spending will be met by higher levels of public spending, and vice versa. This is the first application of a wavelet approach to the study of this phenomenon with a Ghana dataset.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2213014
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2213014
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# input file: OAEF_A_2196856_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Achille Barnabé Assouto
Author-X-Name-First: Achille Barnabé
Author-X-Name-Last: Assouto
Author-Name: Dewanou Jean-Luc Houngbeme
Author-X-Name-First: Dewanou Jean-Luc
Author-X-Name-Last: Houngbeme
Title: Access to credit and agricultural productivity: Evidence from maize producers in Benin
Abstract:
Access to agricultural credit is still a challenge in developing countries. The weakness of agricultural financing prevents producers from acquiring the modern technologies that are essential for the development of their activity. This paper aims to determine the impact of access to credit on agricultural productivity in Benin using alternative measures of productivity. To do this, we use the endogenous switching regression model to control for potential selection and unobserved heterogeneity issues associated with this impact analysis. The data used comes from the statistical databases of the National Agricultural Research Institute of Benin. The results show that the adoption of improved seeds, the geographic location, the area sown and member of peasant organization determine producers’ access to credit are factors that determine producers’ access to credit. Farmers’ access to credit generates an estimated gain of 40.07% and 31.97% respectively for production per hectare and production per FCFA invested. These results require a comprehensive and coherent public action.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2196856
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2196856
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# input file: OAEF_A_2163079_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Teshager Mazengia
Author-X-Name-First: Teshager
Author-X-Name-Last: Mazengia
Author-Name: Misikir Bezabih
Author-X-Name-First: Misikir
Author-X-Name-Last: Bezabih
Author-Name: Fasika Chekol
Author-X-Name-First: Fasika
Author-X-Name-Last: Chekol
Title: Financial development and export diversification in Ethiopia: ARDL approach
Abstract:
The main aim of this study was to examine the effect of financial development on Ethiopia’s export diversification by applying annual time series data from the period 1980 to 2019. An ARDL estimation technique was employed. In the short run financial development, external debt, and real gross domestic product have a positive significant effect on export diversification. The coefficient of the error correction model is −0.7168 or 71.68% and it is statistically significant that a deviation from long-run equilibrium is not persistent rather it adjusts towards equilibrium at a speed of 71.68% per year. In the long run financial development, trade liberalization, external debt, and real gross domestic product have a positive significant effect on export performance and the bound test confirms the presence of long-run co-integration between variables. It is recommended that government and the national bank of Ethiopia can adjust both saving and lending interest rate policies, providing sufficient loan to export industries that diversify and shifts towards the export of manufactured goods would be indispensable, keeping track of international exchange rate adjustment, liberalization of external trade is crucial and the government of Ethiopia should allocate the borrowed money into high return investment and import substitute goods.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2163079
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2163079
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# input file: OAEF_A_2164669_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Adel M. Qatawneh
Author-X-Name-First: Adel M.
Author-X-Name-Last: Qatawneh
Title: The role of organizational culture in supporting better accounting information systems outcomes
Abstract:
The current study aimed at exploring the role of organizational culture in supporting better AIS outcomes from perspective of financial and accounting managers within SMEs in Jordan during the fiscal year 2021–2022. Independent variables of study (organizational culture) included (Involvement, Adaptability, Mission, Consistency), while dependent variable was AIS outcomes within the organization. Quantitative approach was adopted and (318) questionnaire was distributed on financial and accounting managers from different SMEs in the Jordanian capital Amman, during the fiscal year 2021/2022. SPSS was employed so as to reach numerical results that can lead to explaining the phenomenon under study, and it was indicated that the main hypothesis was accepted “Organizational culture has a statistically positive influence on reaching better AIS outcomes within SMEs in Amman”. Among the sub-variables it was seen that involvement to be the most influential variable with an R = 0.772 followed directly by consistency scoring an R = .608, other variables were also seen to influential with lower degrees. Study Recommended carrying out a research that explores the influence of AIS outcomes and characteristics on organizational culture, in addition to the need from organizations to employ highly skilled and competent professionals and accountants to generate financial information and have appropriate academic qualifications. Further recommendations were presented later in the study
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2164669
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2164669
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# input file: OAEF_A_2172809_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Kathryn A.A.O Assefuah
Author-X-Name-First: Kathryn A.A.O
Author-X-Name-Last: Assefuah
Author-Name: Joshua Y. Abor
Author-X-Name-First: Joshua Y.
Author-X-Name-Last: Abor
Author-Name: Saint Kuttu
Author-X-Name-First: Saint
Author-X-Name-Last: Kuttu
Author-Name: Lordina Amoah
Author-X-Name-First: Lordina
Author-X-Name-Last: Amoah
Title: Pension funds and capital market development in Africa: The role of institutional quality
Abstract:
This study investigates the effect of pension funds (PF) and institutional quality (IQ) on capital market development in 48 African countries. Using a system GMM regression, the study found that the interaction between PF and IQ significantly negatively affects capital market development. The results of the study suggest that PF in Africa contributes positively to overall financial development, and pension fund managers (PFM) seem to be focusing more on other financial market assets than capital markets. It was concluded that IQ may act as a risk management tool. It is therefore recommended that policies on strong IQ should be put in place to enable fund managers to meet their obligations towards the principal (contributor) during retirement. The study recommends that policymakers should integrate the capital markets by ensuring the cross-listing of some of the national exchanges and cross-border investment and also encourage investments in alternative asset classes.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2172809
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2172809
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# input file: OAEF_A_2199552_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Grace Awotayo-Ayeni Oyinkansola
Author-X-Name-First: Grace Awotayo-Ayeni
Author-X-Name-Last: Oyinkansola
Author-Name: Cordelia Onyinyechi Omodero
Author-X-Name-First: Cordelia Onyinyechi
Author-X-Name-Last: Omodero
Title: Impact of statutory audit and corporate taxation on profitability of selected listed companies in Nigeria
Abstract:
The study evaluates the impact of statutory audit and corporation tax charges on the profitability of Nigerian listed firms using data from 2016 to 2021. This study is highly inspired by corporate governance detects, which mandate corporations’ stewardship, civic, and transparency duties to stakeholders. However, there is a need to analyze the compliance rate and its implications for corporate performance. The research data for this study are derived from the yearly financial reports of the sampled businesses. The descriptive statistics, correlation matrix, Hausman test, fixed and random effects techniques are also used in the study to determine the suitability of the data collected for the study and to determine the relationship between the study variables as well as the influence of the predictor variables on the reliant factors. According to the findings, corporate tax costs and statutory audit have a considerable impact on business profitability but while the corporate tax impact positively on profitability, an immaterial negative effect on net asset base is established. The total assets employed as the control variable in this study does not have tangible effect on both the profit after tax and net asset base. In terms of the relationship, all variables have a large and very strong positive interconnection with one another except the total assets applied as the moderating variable. It is also established that the data used in this inquiry is entirely normally distributed and appropriate for analysis. According to the findings, organizations should maintain a consistent statutory audit and regularly comply with tax obligations to establish a stronger corporate image that would promote excellent financial performance.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2199552
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2199552
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# input file: OAEF_A_2163873_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Susan Pendame
Author-X-Name-First: Susan
Author-X-Name-Last: Pendame
Author-Name: Joseph Oscar Akotey
Author-X-Name-First: Joseph Oscar
Author-X-Name-Last: Akotey
Title: The effect of a moveable collateral registry on MSME access to finance: Evidence from Malawi
Abstract:
This study explores to answer the question: does the introduction of a moveable collateral registry lead to significant increase in access to credit to micro, small and medium-sized enterprises? We examine this question through a unique dataset collected from the moveable collateral registry and commercial banks in Malawi. The findings indicate that the introduction of the registry in Malawi has led to marginal increase in MSME’s access to bank credit. Real property, however, remains the preferred collateral and ability to repay the loan is the most important consideration amongst banks in assessing whether to lend to micro, small and medium-sized enterprises. We recommend the registry to integrate into its programs financial literacy training for MSMEs, and credit guarantee schemes to mitigate the perceived high risk associated with small enterprises. This will equip the MSMEs to keep proper accounts and enhance their access to the registry and bank credit.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2163873
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2163873
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# input file: OAEF_A_2178121_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Waqas Shair
Author-X-Name-First: Waqas
Author-X-Name-Last: Shair
Author-Name: Mumtaz Anwar
Author-X-Name-First: Mumtaz
Author-X-Name-Last: Anwar
Title: Effect of internal and external remittances on expenditure inequality in Pakistan
Abstract:
The impact of remittances on household expenditure inequality is extensively documented in the development literature. Yet, it is relatively less focused on its effect at the household level. In the context of Pakistan, higher labour migration offers enough scope to examine the expenditure inequality across the remittance-receiving and non-receiving households. This study analyzes the effect of external and internal remittances on expenditure inequality of households in Pakistan. The study uses data from PSLM—HIES 2018–2019 survey. The quantile regression results suggest an unequal expenditure distribution across the household. The external remittance-receiving household is significantly higher in expenditure per capita across the distribution vis-à-vis internal migrant or without migrant households. The study concluded that the current level of endowment is higher in the external remittance-receiving household, which is a significant source of expenditure gap across the household categories. The aftermath of the mean decomposition model suggests that the relatively higher income of the external remittance-receiving household significantly contributes to the expenditure gap across the household categories. The findings from quantile decomposition suggest that external remittances cause more discrimination for the affluent household than the poor ones. The study’s implication suggests some policy measures to ease the access to international migration to improve the expenditure distribution.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2178121
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2178121
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Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2178121
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# input file: OAEF_A_2175463_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Cornelius Yao Azumah
Author-X-Name-First: Cornelius Yao
Author-X-Name-Last: Azumah
Author-Name: Anthony Owusu-Ansah
Author-X-Name-First: Anthony
Author-X-Name-Last: Owusu-Ansah
Author-Name: Godfred Amewu
Author-X-Name-First: Godfred
Author-X-Name-Last: Amewu
Author-Name: Williams Ohemeng
Author-X-Name-First: Williams
Author-X-Name-Last: Ohemeng
Title: The effect of banking sector reforms on interest rate spread: Evidence from Ghana
Abstract:
The wide interest rate spread has been a matter of concern for many developing economies. In Ghana, the perception is that the interest rate spread is too wide and that banks have linked it to various variables affecting them. This study examines the effect of banking sector reforms on bank interest rate spread in Ghana over the period 2008–2020, using an unbalanced panel-data dynamic-equation regression model. The findings reveal that bank size, profitability, gross domestic product, and inflation rate significantly influence Ghana’s bank interest rate spread. Results also suggest that these factors account for determining the interest rate spread in the universal banking industry in Ghana. The industry needs to mitigate the interest rate spread by improving the macroeconomic environment, address industry-specific issues, strengthen institutional systems, such as governance and supervision, and also continue to ensure stability in the political environment. The study provides valuable insights regarding the design and formulation of competitive policies and regulatory changes on interest rate regimes, to help promote the competitiveness of the universal banking industry in the country. Policymakers and regulators should emphasize enterprise risk management practices in Ghana’s universal banking industry to check credit risk and other risk forms.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2175463
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2175463
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# input file: OAEF_A_2191448_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Louis Bernard Tchekoumi
Author-X-Name-First: Louis Bernard
Author-X-Name-Last: Tchekoumi
Author-Name: Patrick Danel Nya
Author-X-Name-First: Patrick Danel
Author-X-Name-Last: Nya
Title: Remittances and economic growth: What lessons for the CEMAC zone?
Abstract:
To the question of what lessons can be drawn from the relationship between migrant remittances and economic growth, this article provides an answer based on econometric evidence, using data from a sample of six countries belonging to the CEMAC zone, over the period 1990–2018. Using the PSTR2 and GMM3 models, we obtain two main results. First, there is a non-linear relationship between migrant remittances and economic growth that translates into the existence of two regimes, thus, confirming the existence of a threshold effect. Second, under the first regime, remittances have a positive and significant impact on economic growth, while under the second regime this impact is negative. The results suggest that the non-linear relationship between remittances and economic growth depends mainly on trade openness, private investment and political stability.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2191448
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2191448
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Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2191448
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# input file: OAEF_A_2185344_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Richard Kwasi Bannor
Author-X-Name-First: Richard
Author-X-Name-Last: Kwasi Bannor
Author-Name: George Osei
Author-X-Name-First: George
Author-X-Name-Last: Osei
Author-Name: Samuel Kwabena Chaa Kyire
Author-X-Name-First: Samuel Kwabena Chaa
Author-X-Name-Last: Kyire
Title: Meeting European exporting certification standards as a sustainable marketing choice among mango farmers in Ghana
Abstract:
Amidst the prevalence of certification and pursuit of global markets, there is a dearth of studies on compliance with EU certification standards and market outlet preference among mango farmers in Ghana. Therefore, this study sought to determine factors influencing mango farmers to produce to meet European standards and certification, and the marketing outlet choice of mango farmers in the Bono and Bono East regions of Ghana. A multistage sampling technique was employed to select 300 mango farmers. Data gathered were analysed using multinomial and binary probit regressions. Empirical results show that gender, age, farming experience, and access to the ready market are significant predictors of a farmer’s choice of the local market. On the other hand, farming experience, ready market, the quantity of harvest, fruit quality, market assurance, and good agronomic practices (GAP) significantly predict farmers’ preference for retail. The level of education, farm size, GAP, annual farm income, ready market, training, and access to credit are essential determinants of a farmer’s decision to practise EU standards and certification. Given the findings, it is recommended that farmers who sell and are likely to sell to processors should be targeted for pieces of training on EU market export as they are more likely to be convinced and already involved in relevant practices for such exports
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2185344
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2185344
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# input file: OAEF_A_2210911_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Beyan Ahmed
Author-X-Name-First: Beyan
Author-X-Name-Last: Ahmed
Author-Name: Jema Haji
Author-X-Name-First: Jema
Author-X-Name-Last: Haji
Author-Name: Mengistu Ketema
Author-X-Name-First: Mengistu
Author-X-Name-Last: Ketema
Author-Name: Kedir Jemal
Author-X-Name-First: Kedir
Author-X-Name-Last: Jemal
Title: Impacts and adaptation extents of climate smart agricultural practices among smallholder farmers of Ethiopia: Implication to food and nutrition security
Abstract:
The integrated use of various levels of climate change adaptation practices is a means of increasing farm productivity to meet the food demand of the world’s growing population without harming the environment. Both primary and secondary data were used. In the 2020/21 production year, primary data was collected from 461 sample households of East Hararghe Zone, Oromia, Ethiopia, for the study. For data analysis, the study employed descriptive statistics and multinomial endogenous switching econometric model. Gender, education, extension, livestock holding, cooperatives, market information, soil fertility, farm land slopes, training on land management, climate change information, training, perception of land degradation, climate change perception, and weather road distance are estimated to have a significant influence on the probability of adopting different levels of climate smart practices. According to the impact evaluation results, adopting low levels of climate smart practices increases households’ food and nutrition security by 28% and 4.3%, respectively. Adopting medium-level climate-smart practices boosts food and nutrition security by 43% and 20%, respectively. Adopting high and higher levels of climate smart practices increases food and nutrition security by 56% and 19%, respectively, over very low adopter households. As a result, policymakers should place a premium on climate change adaptation agricultural practices in order to improve rural households’ livelihoods.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2210911
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2210911
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# input file: OAEF_A_2161771_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mekonnen Kumlachew Yitayaw
Author-X-Name-First: Mekonnen Kumlachew
Author-X-Name-Last: Yitayaw
Author-Name: Yohannes Kefale Mogess
Author-X-Name-First: Yohannes Kefale
Author-X-Name-Last: Mogess
Author-Name: Habtamu Legese Feyisa
Author-X-Name-First: Habtamu Legese
Author-X-Name-Last: Feyisa
Author-Name: Wondmagegn Biru Mamo
Author-X-Name-First: Wondmagegn Biru
Author-X-Name-Last: Mamo
Author-Name: Salah Mohammed Abdulahi
Author-X-Name-First: Salah Mohammed
Author-X-Name-Last: Abdulahi
Title: Determinants of bank stability in Ethiopia: A two-step system GMM estimation
Abstract:
Studies on the determinants of bank stability conclude that bank-specific and external factors affect bank financial stability. However, most of these studies are conducted in developed countries, where Banks, on average, are richer and have more liquidity. This study evaluates the effect of bank-specific and external factors on Bank Stability in a least developed country—Ethiopia using commercial banks data from 2014 to 2020. By using Two-Step System Generalized Method of Moments (GMM) estimation, we find that bank lending rate, tangibility, GDP growth rate, control of corruption, and rule of law effectiveness stabilize bank financial stability. The effect is more pronounced for Banks with high market share of mobilized capital. On the other hand, bank concentration and bank efficiency reduce bank financial stability by about 2.51 and 0.97 units, respectively. Furthermore, the effect of historical level of bank stability has a positive and significant effect on current level of bank financial stability. The implication of this result is vital for policy-makers, as it explicitly suggests that keeping bank stability today has a vital role in achieving higher bank stability in the future.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2161771
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2161771
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# input file: OAEF_A_2164556_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Nur Fadjrih Asyik
Author-X-Name-First: Nur Fadjrih
Author-X-Name-Last: Asyik
Author-Name: Muchlis
Author-X-Name-First:
Author-X-Name-Last: Muchlis
Author-Name: Triyonowati
Author-X-Name-First:
Author-X-Name-Last: Triyonowati
Author-Name: Rusdiyanto
Author-X-Name-First:
Author-X-Name-Last: Rusdiyanto
Author-Name: Ignatia Martha Hendrati
Author-X-Name-First: Ignatia Martha
Author-X-Name-Last: Hendrati
Author-Name: Dian Anita Nuswantara
Author-X-Name-First: Dian Anita
Author-X-Name-Last: Nuswantara
Author-Name: Suyanto
Author-X-Name-First:
Author-X-Name-Last: Suyanto
Title: The effect of male CEO masculinity face on earnings management: Evidence from Indonesia
Abstract:
This study aims to prove the consistency of Agency Theory, Behavioral Consistency Theory and Upper Echelon Theory as a solution to explain the influence of male CEO masculinity on earnings management. This study uses a quantitative approach with a population and research sample using companies on the Indonesia Stock Exchange in 2016–2021. The study collected images of faces identified as male CEOs from data from the Indonesia Stock Exchange website and company websites and using Google searches. The data analysis method in this study uses Ordinary Least Square Regression, Fixed Effects, Random Effects, Robust by using Stata Software which is one of the regression solving procedures that has a high level of flexibility in research that connects theories, concepts and data that can be carried out on research variable. These findings explain that the higher the masculinity of the male CEO’s face has an impact on increasing earnings management, and vice versa, the lower the masculinity of the male CEO’s face has an impact on the decrease in earnings management. The empirical findings have implications for management as a policy maker regarding the face of male masculinity which has an impact on earnings management policies, so that these empirical findings can be used by corporate and government management. The empirical findings provide evidence in the field of behavioral accounting by looking at the face of male masculinity as determinant of company earnings management.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2164556
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2164556
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# input file: OAEF_A_2191459_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Bui Thanh Khoa
Author-X-Name-First: Bui Thanh
Author-X-Name-Last: Khoa
Author-Name: Tran Trong Huynh
Author-X-Name-First: Tran Trong
Author-X-Name-Last: Huynh
Title: The value premium and uncertainty: An approach by support vector regression algorithm
Abstract:
Risk premium plays an important role in stock investing. Experiments have shown that value stocks typically have a higher average return than growth stocks; however, this effect persists indefinitely, even disappearing in some stages. Some studies suggested high volatility in the series of returns, broken structures, market volatility, or the impact of financial crises. This study aimed to build the uncertainty index and control it in the regression analysis model to solve the limitations above. The empirical analysis in Ho Chi Minh Stock Exchange (HOSE) showed that a value premium exists, and value stocks have a higher average return than growth stocks due to the higher overall risk. Furthermore, this study combined the Support Vector Regression (SVR) algorithm with the risk premium theoretical framework for the forecasting model; consequently, it is the most efficient model.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2191459
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2191459
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# input file: OAEF_A_2175471_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hoang Van Hai
Author-X-Name-First: Hoang Van
Author-X-Name-Last: Hai
Title: MAX, lottery-type stocks, and the cross-section of stock returns: Evidence from the Chinese stock market
Abstract:
This study empirically investigates a relationship between MAX and lottery-type stocks in the Chinese stock markets. We find that the lottery-type stocks, which are preferred for lottery demand of investors, are negatively priced in the Chinese market. Moreover, the MAX effect as a proxy for lottery stock is not strongly exhibited as the lottery behavior in the Chinese stock market. Our results show that the higher MAX stocks in the lowest price stocks are stronger than those in the highest price ones. This can explain why the MAX phenomenon of the Chinese market is different from that in the developed market regarding the candidate of the IVOL puzzle explanation.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2175471
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2175471
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# input file: OAEF_A_2210857_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tafirenyika Sunde
Author-X-Name-First: Tafirenyika
Author-X-Name-Last: Sunde
Title: The impact of foreign direct investment on Namibia’s economic growth: A time series investigation
Abstract:
The current study investigates the impact of foreign direct investment on the growth of Namibia’s economy from 1990 to 2020 using the ARDL cointegration method. The results reveal that FDI, the interactive variable of FDI and trade openness, and other macroeconomic variables such as domestic investment, government consumption expenditure, human capital, a proxy for economic stability, and return on investment are responsible for Namibia’s economic growth. The article confirms the FDI-led growth and the Bhagwati hypotheses for Namibia as shown by the FDI and the interactive variable of FDI and trade openness, respectively. To reap the full benefits of FDI on economic growth in Namibia, the government must focus on improving physical infrastructure and the quality of human resources. It should also facilitate the development of an entrepreneurship culture, create a stable macroeconomic environment, and improve conditions for productive investments to accelerate economic growth and development.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2210857
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2210857
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# input file: OAEF_A_2203590_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Joseph Chukwudi Odionye
Author-X-Name-First: Joseph Chukwudi
Author-X-Name-Last: Odionye
Author-Name: Ethelbert Ukachukwu Ojiaku
Author-X-Name-First: Ethelbert Ukachukwu
Author-X-Name-Last: Ojiaku
Author-Name: Chiwuike N. Uba
Author-X-Name-First: Chiwuike N.
Author-X-Name-Last: Uba
Title: Impact of interest rate differential, exchange rate changes and political stability on Foreign capital inflow in Nigeria: Discrete threshold regression model
Abstract:
Lack of investable capital has slowed down the development process in many developing nations, including Nigeria, and this has sparked empirical research on the factors affecting foreign capital flow. Therefore, the purpose of this study was to investigate the effects of interest rate differential, exchange rate changes, and political stability on the entrance of foreign capital into Nigeria between 1981 and 2021. To investigate the impact of the factors on foreign capital inflow in regimes with low and high interest rate differentials, the study used a discrete threshold regression model (DTRM). The study discovered an interest rate differential threshold value of 3.68 percent, indicating that an interest rate differential high and over the predefined threshold promotes a favorable and considerable inflow of foreign capital into the nation. Additionally, the country’s capital inflow is influenced by political stability and exchange rate fluctuations. The implication is that investors evaluate a country’s IRD in relation to other risk factors (political and macroeconomic) and will only invest if the IRD is higher than3.68 percent since it will balance out other opportunity costs at home and risk factors in the receiving country’s economy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2203590
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2203590
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# input file: OAEF_A_2207265_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Samuel Nduati Kariuki
Author-X-Name-First: Samuel
Author-X-Name-Last: Nduati Kariuki
Title: Corporate governance mechanisms and efficiency of insurance firms: evidence from an emerging market
Abstract:
The paper assessed linkage amongst governance mechanisms and efficiency of insurers in Kenya over 8 year period from 2013 to 2020. The study estimated the efficiency of insurers using DEA approach in light of previous literature during the first stage. During the second stage, the bias-corrected efficiency scores were regressed against corporate governance (CG) proxies and control variables using SW (2007) approach on a sample of 53 insurers. Using this two-stage, bootstrapping SW approach, the study documents that the Kenyan insurers are technically inefficient. Overall, the paper presents evidence showing that CG variables influence technical efficiency of insurers in Kenya. Precisely, board independence, gender diversity and audit quality positively and significantly impact Kenyan insurers’ technical efficiency. Further, the paper finds that size of the board negatively affect Kenyan insurers’ technical efficiency. However, the study established insignificant relationship between CEO duality, intensity of board activities and technical efficiency. The paper makes contribution to the bourgeoning reservoir of empirical works on the insurers’ CG-efficiency nexus from an emerging market perspective. Particularly, the article offers empirical insights on some of the least studied CG proxies such as gender diversity, quality of audit and intensity of board activities. The research outcomes also have practical implications for regulators, academia, insurers, government policy makers, practitioners, shareholders and consumers of insurance products by raising their awareness on the influence of CG proxies on the efficiency of the insurers. This is especially beneficial in countries that are pursuing CG and efficiency policy reforms.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2207265
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2207265
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# input file: OAEF_A_2184447_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Abdelkaf Elias
Author-X-Name-First: Abdelkaf
Author-X-Name-Last: Elias
Author-Name: Amsalu Dachito
Author-X-Name-First: Amsalu
Author-X-Name-Last: Dachito
Author-Name: Shabu Abdulbari
Author-X-Name-First: Shabu
Author-X-Name-Last: Abdulbari
Title: The effects of currency devaluation on Ethiopia’s major export commodities: The case of coffee and khat: Evidence from the vector error correction model and the Johansen co-integration test
Abstract:
Devaluation of the currency has been stipulated and utilized increasingly as a stabilization device in developing countries. The Ethiopian government employed a devaluation policy to improve the export performance of the country. However, various literature demonstrates that the devaluation of the Ethiopian Birr (ETB) has an ambiguous effect on the country’s export performance. Therefore, the prime objective of the study was to investigate the effect of domestic currency devaluation on Ethiopian major primary export commodities by employing time series data for the period 1987 to 2020. With the help of Johansen’s co-integration and vector error correction modelling, the impact of the devaluation of the real effective exchange rate on major export commodities was assessed in the long run as well as in the short run. The study found that the devaluation of the real effective exchange rate has a positive and significant relationship with the values of major export commodities in the long run. This implies that the decrease in the value of the domestic currency promotes exports in the long run. Other variables like foreign direct investment, with an expected positive sign, and real gross domestic product (with a negative sign), are also found to be statistically significant in explaining exports in the long run. The findings of this paper suggest that policy intervention in the form of devaluing the domestic currency could be effective in improving export performance given that the effect of inflation on output is controlled.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2184447
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2184447
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# input file: OAEF_A_2197367_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Thanh Cuong Dang
Author-X-Name-First: Thanh Cuong
Author-X-Name-Last: Dang
Author-Name: Thi Thao Banh
Author-X-Name-First: Thi Thao
Author-X-Name-Last: Banh
Author-Name: Thi Hang Trinh
Author-X-Name-First: Thi Hang
Author-X-Name-Last: Trinh
Author-Name: Thi Viet Hoang
Author-X-Name-First: Thi Viet
Author-X-Name-Last: Hoang
Author-Name: Thi Ngoc Han Doan
Author-X-Name-First: Thi Ngoc Han
Author-X-Name-Last: Doan
Title: Territorial Marketing Impacts on Foreign Direct Investment Attraction(Empirical Evidence in Nghe An Province, Vietnam)
Abstract:
FDI and territorial marketing are fields of interest and research by many scientists and managers. However, this is still a new field of science in Vietnam, both academically and practically. The awareness of building a local image to investors, especially foreign investors, is still limited. This has had a significant impact on attracting FDI into many provinces of Vietnam in general and Nghe An province in particular. Although Nghe An has issued and implemented many policies to attract FDI, FDI attraction results are not commensurate with the potential and position of the province. In this study, the author conducted a survey of foreign investors who made surveys to invest in or implemented FDI projects in Nghe An. Data is primary data which is collected from 160 foreign investors who invested or did investing survey, then processed by exploratory factor analysis (EFA) and multiple regression to determine the territorial marketing factors affecting the investment decisions of foreign direct investors in Nghe An. Research results have shown that 6 territorial marketing factors have a positive impact on the investment decision of foreign direct investors, this will be an important foundation to propose solutions for territorial marketing to attract FDI in Nghe An in the next coming time.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2197367
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2197367
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# input file: OAEF_A_2160126_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Saibal Ghosh
Author-X-Name-First: Saibal
Author-X-Name-Last: Ghosh
Title: Religion, caste and access to credit by SMEs: Is there a link?
Abstract:
Using unit-level data on the entire population of registered manufacturing SMEs in 2007 for India, we explore the impact of religiosity on their access to finance. The findings indicate that certain categories of religion, such as Hindus and Sikhs, are less likely to have access to institutional credit, after accounting for other relevant factors. The disaggregated analysis suggests that these results differ across key characteristics such as SME ownership and gender and caste. In addition, the results also show SMEs for the aforesaid religious categories are less likely to use institutional credit. Therefore, our findings underscore the role and relevance of religion in influencing SMEs access to credit for a large emerging economy whose religious demography differs significantly from Western democracies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2160126
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2160126
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# input file: OAEF_A_2178124_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: R. Dimas Bagas Herlambang
Author-X-Name-First: R. Dimas
Author-X-Name-Last: Bagas Herlambang
Author-Name: Rudi Purwono
Author-X-Name-First: Rudi
Author-X-Name-Last: Purwono
Author-Name: Rumayya
Author-X-Name-First:
Author-X-Name-Last: Rumayya
Title: Testing the consistency of asymmetric interest rate pass-through: The case of Indonesia
Abstract:
This paper investigates the consistency of asymmetric interest rate past-trough (IRPT) using a nonlinear autoregressive distributed lag framework. Superior to the previous studies, this study exploits the historical profile of Indonesia to enrich the analysis. Asian Financial Crisis (AFC) which crashed the country in 1998 and several monetary policy changes implemented by the government offer different perspectives to grasp IRPT. The results of this study indicate that there is a consistent upward rigidity in the long-run pass-through in Indonesia. Particularly during the AFC, it is well proven that the asymmetric behavior is fickle whether disappear or bounce back to the downward rigidity. This finding demonstrates the importance of a rolling-window approach in understanding IRPT.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2178124
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2178124
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# input file: OAEF_A_2183657_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Quang Luu Thu
Author-X-Name-First: Quang
Author-X-Name-Last: Luu Thu
Title: Impact of earning management and business strategy on financial distress risk of Vietnamese companies
Abstract:
Many Vietnamese companies’ net incomes have increased significantly in recent years as a result of creative competitive strategies, but many of them are being forced to delist due to persistent losses and manipulative earnings. In this paper, we are the first to investigate the simultaneous impact of business strategy and earning management on the risk of financial distress. The sample for the study includes information from 601 companies that are listed on the Ho Chi Minh City Stock Exchange between 2010 and 2021. The finding indicates that there is a high risk of financial distress for companies that manipulate earnings by increasing discretionary accruals value. However, if firms manipulate earnings through real operations, the risk of financial distress is reduced. Firms will see a significant improvement in their financial performance if they adopt a key differentiation or low-cost leadership strategy that gives them a competitive advantage in the same industry. The firm size, leverage, firm loss, and liquidity ratio are also the main factors that influence financial distress risk. These results are robust by using alternative proxies of financial distress risk (O and ZM score) to control for potential endogeneity.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2183657
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2183657
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# input file: OAEF_A_2173123_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Lubna Khalaf
Author-X-Name-First: Lubna
Author-X-Name-Last: Khalaf
Author-Name: Rimel Kouki
Author-X-Name-First: Rimel
Author-X-Name-Last: Kouki
Author-Name: Esam-Aldin M. Algebaly
Author-X-Name-First: Esam-Aldin M.
Author-X-Name-Last: Algebaly
Title: The bidirectional relationship between MFIs’ financial and social performance: Sustainability and outreach perspective
Abstract:
This paper examines the bidirectional relationship between sustainability and outreach of microfinance institutions (MFIs) in the MENA region, using unbalanced panel data regression during the period from 1999 to 2018. The simultaneous equation model (SEM) is used based on the 2SLS regression considering endogeneity problem between sustainability and outreach. Two main systems are developed based on SEM; the first relates sustainability with breadth of outreach, while the second includes sustainability and depth of outreach. Results state that sustainability and outreach are complementary objectives, and the direction of their relationship is from outreach to sustainability. This finding is tested and supported using various robustness checks, namely: excluding firms with few data, using other methods to estimate 2SLS regression model, and examining the impact of sustainability on outreach based on their indices developed based on the TOPSIS method. The study concludes with some suggestions for future research in this field.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2173123
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2173123
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# input file: OAEF_A_2164565_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mustapha Immurana
Author-X-Name-First: Mustapha
Author-X-Name-Last: Immurana
Author-Name: Abdul-Aziz Iddrisu
Author-X-Name-First: Abdul-Aziz
Author-X-Name-Last: Iddrisu
Author-Name: Samuel Owusu
Author-X-Name-First: Samuel
Author-X-Name-Last: Owusu
Author-Name: Hadrat Mohammed Yusif
Author-X-Name-First: Hadrat Mohammed
Author-X-Name-Last: Yusif
Title: Foreign Direct Investment and child health outcomes in Africa
Abstract:
While several studies have examined the effect of Foreign Direct Investment (FDI) on economic development indicators, most of these studies focused on economic growth with very little attention paid to health outcomes. Moreover, among the studies that took account of health outcomes, none of them investigated the effect of FDI on child health outcomes across a sample of African countries. However, focusing on African countries is very important because sub-Saharan Africa (SSA) has the highest rate of child mortality in the world. This study, therefore, investigates the effect of FDI on child health outcomes in 39 African countries from 1980 to 2018. Neonatal and infant mortality rates are used to proxy child health outcomes. The baseline estimation technique employed is the Fixed Effects (FE) regression. However, to deal with potential endogeneity, we employ the system Generalised Method of Moments (GMM) regression as the robustness estimation technique. Our findings show that, FDI improves child health outcomes, especially through economic growth after controlling for endogeneity. Thus, in African governments’ quest to reduce child mortality, a major useful strategy could be attracting more FDI inflows.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2164565
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2164565
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# input file: OAEF_A_2164409_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Yerik Bukatov
Author-X-Name-First: Yerik
Author-X-Name-Last: Bukatov
Author-Name: Galiya Gimranova
Author-X-Name-First: Galiya
Author-X-Name-Last: Gimranova
Title: Government measures to address out-of-pocket health expense in Kazakhstan
Abstract:
Despite the fact that healthcare spending in Kazakhstan increased annually from 2011 to 2020, the country’s healthcare system is seriously underfunded. For this reason, household spending in Kazakhstan plays a significant role in overall health spending. According to WHO, if the share of private spending in total health care spending does not exceed 20%, the health care system can be considered sustainable. The risk of a decrease in the purchasing power of the population increases in cases where this indicator is exceeded, which in turn leads to negative consequences for the population itself. Therefore, the Government of Kazakhstan needs to take decisive measures to reduce the “out-of-pocket expense” of the population for health care, especially the cost of purchasing medicines. Effective government policy, timely reforms and mutually beneficial cooperation with pharmaceutical market actors can reduce the level of “out-of-pocket expenses” of the population for health care to generally accepted world indicators. Based on this, the study of different views on solving problems related to public and private spending in health care, price regulation and building an effective drug pricing system is an important condition for building an effective health care system.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2164409
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2164409
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# input file: OAEF_A_2163078_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sandra Alves
Author-X-Name-First: Sandra
Author-X-Name-Last: Alves
Title: The impact of managerial ownership on audit fees: Evidence from Portugal and Spain
Abstract:
This study examines the impact of managerial ownership on audit fees in a context of concentrated ownership and poor investor protection. Using samples of Portuguese and Spanish listed companies for the period 2010–2021, the results of this research suggest that there is a non-linear relationship between managerial ownership and audit fee which corresponds to a pattern of “alignment-entrenchment-alignment”. In Portugal and Spain, the convergence of interest effect dominates the entrenchment effect in the low and high ranges of managerial ownership, leading to the conclusion that a policy of providing management with amounts of equity within these ranges of managerial ownership should reduce agency costs and decrease audit fees. In contrast, in Spain, the entrenchment effect dominates the convergence of interest effect in the intermediate range of managerial ownership, which have the effect of increasing audit fees.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2163078
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2163078
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# input file: OAEF_A_2209951_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Kyle Rechard
Author-X-Name-First: Kyle
Author-X-Name-Last: Rechard
Author-Name: Narendra Raj Regmi
Author-X-Name-First: Narendra Raj
Author-X-Name-Last: Regmi
Title: Greenspan’s adherence to the Taylor rule: examining Federal Reserve chairmen policy regimes and deviations from the Taylor rule
Abstract:
This paper examines the relationship between Federal Reserve policy and the Taylor rule, a commonly used model for guiding monetary policy. The study analyzes the deviation of the actual Federal Funds Rate from the Taylor Rule model during distinct structural changes, using real-time macroeconomic data available to the Fed at the time of their interest rate decision. The research focuses on whether former Fed chair Alan Greenspan’s policies from 2003 to 2006, which have been linked to the housing bubble, were deviant from the Taylor Rule. The findings show that there isn’t sufficient statistical evidence to support this claim, and a machine learning text analysis of the Federal Open Market Committee transcripts confirms the presence of only one regime during this period. These results contribute to the existing literature on monetary policy and its impact on the economy, providing valuable insights into the relationship between Federal Reserve policy and the Taylor Rule.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2209951
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2209951
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# input file: OAEF_A_2216036_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Feryanto
Author-X-Name-First:
Author-X-Name-Last: Feryanto
Author-Name: Harianto
Author-X-Name-First:
Author-X-Name-Last: Harianto
Author-Name: Herawati
Author-X-Name-First:
Author-X-Name-Last: Herawati
Title: Retail trader pricing behavior in the traditional rice market: A micro view for curbing inflation
Abstract:
The price of rice at the retail level affects consumer welfare and influences inflation. The research objective was to study rice retail trader pricing behavior in traditional markets. This study employed an econometric model consisting of six equations of price spread between the retail market level and wholesale level of different rice qualities and grades. To overcome endogeneity problems due to the use of several equations that could cause potential bias, the simultaneous method with the 3SLS approach was deemed appropriate to use to obtain consistent and efficient coefficient estimates. The results show that, by examining the behavior of price spreads in the model, it can be deduced that rice retailers in the traditional market applied a price stabilization strategy. A lower price spread responded to an increase in price at the wholesale level. Rice retailers in traditional markets also implemented a price-averaging strategy. The results of this study have important policy implications for reducing food price volatility and its impact on inflation. That is, a price policy aimed at price stabilization at the retail level, as in this study, will be more effective if the price stabilization is focused on the wholesale level. However, if the pricing policy continues to be applied at the retail level, it must consider the relationships between different rice qualities and prices. This study also highlights the need for more intensive research on pricing behavior at the wholesale level.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2216036
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2216036
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# input file: OAEF_A_2192454_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mehdi Abid
Author-X-Name-First: Mehdi
Author-X-Name-Last: Abid
Author-Name: Mohammed Benmeriem
Author-X-Name-First: Mohammed
Author-X-Name-Last: Benmeriem
Author-Name: Zouheyr Gheraia
Author-X-Name-First: Zouheyr
Author-X-Name-Last: Gheraia
Author-Name: Habib Sekrafi
Author-X-Name-First: Habib
Author-X-Name-Last: Sekrafi
Author-Name: Hanane Abdelli
Author-X-Name-First: Hanane
Author-X-Name-Last: Abdelli
Author-Name: Abdelhadi Meddah
Author-X-Name-First: Abdelhadi
Author-X-Name-Last: Meddah
Title: Asymmetric effects of economy on unemployment in Algeria: Evidence from a nonlinear ARDL approach
Abstract:
This paper aims to establish the asymmetric effects in the short and long term of cyclical output on Algeria’s unemployment rate during the period 1970–2018. To achieve this objective, the “Okun” relation was applied, relying on a NARDL model methodology in the estimation. The main results of this study are summarized as follows. In the long run, we concluded that unemployment gap in Algeria responds in the same proportion to both recession and economic expansion (with a different signal), where the effect size reached 0,02. This shows a positive and significant effect of the unemployment gap for the last period on the current unemployment gap (where the impact size reached 0,37). In the short run, we concluded that the unemployment gap responds to recession only but does not respond to recovery. Finally, through the analysis of the dynamic multiplier effects, we concluded that the unemployment gap responds slowly to negative changes compared to positive changes in the output gap at the beginning of the period, but they converge in the long term (after 7–8 years). From a policy perspective, it follows that an increase in economic growth will not only have the desired result of reducing the overall unemployment rate, but will also have the distributional effect of reducing youth unemployment.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2192454
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2192454
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# input file: OAEF_A_2181603_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mohamed Rachidi
Author-X-Name-First: Mohamed
Author-X-Name-Last: Rachidi
Author-Name: Abdeslam El Moudden
Author-X-Name-First: Abdeslam
Author-X-Name-Last: El Moudden
Title: More on the profit shifting costs function. Analysis of the literature and other modelling approaches
Abstract:
In this paper, we study another approach to the profit shifting costs function of multinational profit shifting. First, we describe the modelling approaches of such costs functions and provide a synthesized analysis. More precisely, we investigate the involved resource costs that multinational firms incur through a tax-motivated reallocation of profit across tax jurisdictions. Second, we set up a simple theoretical model of a representative multinational firm within which we conceptualize our new cost function. We expand the literature by including a relationship between profit shifting costs and tax uncertainty. Furthermore, we describe the costs split, the property of our costs function and we express its parameters. Finally, we discuss our results in conjunction with the literature, emphasizing that profit shifting costs and tax uncertainty cause more concerns for developing countries than advanced economies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2181603
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2181603
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# input file: OAEF_A_2186031_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Haftu Girmay Giday
Author-X-Name-First: Haftu Girmay
Author-X-Name-Last: Giday
Title: Financial inclusion and its demand-side determinants: Evidence from Ethiopia
Abstract:
Financial inclusion is one of the development priorities of the Ethiopian Government. However, factors, which might affect it are not explored adequately with appropriate methods. To examine the relationship between financial inclusion and its demand-side determinants, we applied a simple probit model and two probit models with sample selection to the 2018/19 Ethiopia Socioeconomic Survey (ESS4). Our simple probit model estimation results show that male, older, non-Muslim, married, more educated, richest, mobile users or people who are aware of how to open a bank account are more likely to have a formal account than their counterparts. However, being from a rural area or from a larger household size reduces the likelihood of having an account. Results from the probit selection model show that rural residents, employed, richer people, or people who are out of labor force are more likely to use their account to save money than their counterparts. Furthermore, the third model shows that being non-Muslim, married, widowed, or poorer reduces the likelihood of account use than their counterparts. Thus, policies should target the most vulnerable groups of the society. Especially, rural households, women, the Muslim population, the poor, less educated people, and the young should be the focus of financial inclusion endeavors of the Government. Parallel to these policy measures, awareness of opening bank account and financial education programs should be promoted.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2186031
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2186031
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# input file: OAEF_A_2223423_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Juniours Marire
Author-X-Name-First: Juniours
Author-X-Name-Last: Marire
Title: Structure of R&D capital expenditure and national total factor productivity
Abstract:
This paper examines the relationship between the structure of R&D fixed capital spending, measured as the ratio of the private sector to public sector R&D capital expenditure, and national total factor productivity. It employs South African data for the period 1965 to 2019. This study employs the non-linear distributed lag modelling framework to cater for non-linearities in the relationship. The findings, first, suggest that the ratio of private sector to public sector R&D capital spending has a positive effect on total factor productivity. Second, the structure of R&D capital spending has large asymmetric effects on national total factor productivity, with negative changes dominating positive changes. Negative changes in the structure of R&D capital spending negatively influence total factor productivity, but positive changes have positive effects. Both in the short run and the long run, cumulative multipliers indicate that negative changes in the structure of R&D capital spending dominate positive changes by a very large margin. The findings imply that the private sector must become more dominant than the public sector in R&D capital spending in the national system of innovation.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2223423
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2223423
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# input file: OAEF_A_2220246_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Safia Abdo Ali Al-Begali
Author-X-Name-First: Safia Abdo Ali
Author-X-Name-Last: Al-Begali
Author-Name: Lian Kee Phua
Author-X-Name-First: Lian Kee
Author-X-Name-Last: Phua
Title: Earnings management in emerging markets: The COVID-19 and family ownership
Abstract:
This paper investigates the impact of COVID-19 and family ownership on earnings management (EM), both accruals (DA) and real (REM). This research also seeks to determine whether there is a substitutional or complementary relationship between DA and REM.The study’s sample includes firms listed on the Jordanian market after excluding the banking and insurance sectors from 2017 to 2021. It used feasible generalised least squares estimation (FGLS) regressions to achieve the study’s goals. The results reveal a negative and significant correlation between COVID-19 and discretionary accruals (DA), which indicates that COVID-19 restricts DA in Jordanian companies. However, the outcome shows a significant positive relationship between COVID-19 and REM, which indicates that COVID-19 encourages Jordanian companies to practice REM. According to the entrenchment theory, the majority shareholders in a family-owned business environment seek to expropriate the rights of the minority shareholders. Consistent with this theory, the result documents a significant positive correlation between family ownership and DA, indicating that high family ownership manages earnings through accruals. However, this study finds a significant negative relationship between family ownership and REM, indicating that a high concentration of family ownership restricts the practice of REM. This finding aligns with the alignment theory, which argues that the interests of minority and majority shareholders are compatible. These findings indicate a lack of accuracy and reliability in the financial reports in the Jordanian industrial and service enterprises due to the practicing DA by the family-owned companies as well as the outbreak of COVID-19 that led to a rise in the practice of REM. Finally, the findings document that Jordanian companies use REM and DA as complementary tools to maximise their impact on earnings. The findings of earlier research on EM who have used Jordanian-listed companies might not be beneficial in light of the current COVID-19 pandemic. Thus, the current study is one of the first empirical attempts to examine the impact of the COVID-19 pandemic and family ownership on the quality of financial reporting using both EM (DA and REM) in the context of the Jordanian market. The current study’s findings are an important contribution to the literature on how family ownership affects the quality of financial reporting (QFR) and how COVID-19 affects the practice of EM. Therefore, the findings of this study can provide all stakeholders with information regarding the QFR in family-controlled companies and explore the accounting implications of the pandemic in order to assist all interested parties, particularly those in developing markets, in making more informed decisions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2220246
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2220246
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# input file: OAEF_A_2181786_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Suliyat Omolade Jimoh
Author-X-Name-First: Suliyat Omolade
Author-X-Name-Last: Jimoh
Author-Name: Olayinka Isiaka Baruwa
Author-X-Name-First: Olayinka Isiaka
Author-X-Name-Last: Baruwa
Author-Name: Adetomiwa Kolapo
Author-X-Name-First: Adetomiwa
Author-X-Name-Last: Kolapo
Title: Analysis of profit efficiency of smallholder beef cattle farms in South-West Nigeria
Abstract:
The study was carried out to analyze the profit efficiency in beef production in South West, Nigeria. These were with a view to improving beef cattle production to meet its increasing demand and income generated from it for producers. Multistage sampling techniques were used to select respondents used for the study. Primary data were collected with the aid of a well-structured questionnaire. Budgetary analysis and stochastic production frontier were used to analyze the data collected. The result of the study shows that total revenue generated was ₦1,879,928.11 while the Gross margin and Net return to management were ₦835,443.63 and ₦726,295.65, respectively. In addition, the Profit efficiency average is 62.2% ± 22.52. Beef cattle production on the average was operated at two-thirds of the profit efficiency frontier.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2181786
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2181786
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# input file: OAEF_A_2203986_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Juniarti Juniarti
Author-X-Name-First: Juniarti
Author-X-Name-Last: Juniarti
Author-Name: Dea Devina Theja
Author-X-Name-First: Dea
Author-X-Name-Last: Devina Theja
Author-Name: Novita Tenoyo
Author-X-Name-First: Novita
Author-X-Name-Last: Tenoyo
Author-Name: Alan Darmasaputra
Author-X-Name-First: Alan
Author-X-Name-Last: Darmasaputra
Title: Does the market respond differently to the timing of the announcement of corporate actions?
Abstract:
This study aims to expand research evidence related to investor responses to the timing of corporate action announcements. In contrast to previous studies, this study distinguishes corporate action announcements during the development and realization stage. Furthermore, we will also distinguish the types of corporate actions, consisting of new products and systems and technology innovation. Investor’s reactions are measured using cumulative abnormal returns (CAR) with (−5,+5) and (−2,+2) event windows. The Sample is based on 257 corporate action announcements in the automobile manufacturing firms in East Asia from 2017 to 2021. This research found a significant difference in CAR between the development and realization of announcements. Furthermore, it indicates that investors in East Asia react more positively when companies announce the realization of a new product and system and technology innovation rather than when it is still under the planning or development process.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2203986
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2203986
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# input file: OAEF_A_2186034_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Vismaya Gangadharan
Author-X-Name-First: Vismaya
Author-X-Name-Last: Gangadharan
Author-Name: Lakshmi Padmakumari
Author-X-Name-First: Lakshmi
Author-X-Name-Last: Padmakumari
Title: Annual report readability and stock return synchronicity: Evidence from India
Abstract:
This study investigates the relationship between the comprehensibility of a firm’s annual report and its stock return synchronicity in the Indian market. The study employs the readability of annual reports as a measure for the cost of information processing. The findings suggest that firms with more readable annual reports tend to display higher stock return synchronicity. This relationship implies that more legible financial disclosures are associated with more efficient and transparent capital markets. Additionally, the research discovered that the relationship between readability and stock return synchronicity is particularly pronounced for companies with high institutional investment, high analyst coverage, and lower information asymmetry. The sample size of the study encompasses NSE 500 companies for the period 2015–2016 to 2019–2020.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2186034
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2186034
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# input file: OAEF_A_2208895_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Birara Endalew
Author-X-Name-First: Birara
Author-X-Name-Last: Endalew
Author-Name: Mezgebu Aynalem
Author-X-Name-First: Mezgebu
Author-X-Name-Last: Aynalem
Author-Name: Adugnaw Anteneh
Author-X-Name-First: Adugnaw
Author-X-Name-Last: Anteneh
Author-Name: Habtamu Mossie
Author-X-Name-First: Habtamu
Author-X-Name-Last: Mossie
Title: Sources of wheat production technical inefficiency among smallholder farmers in Northwestern Ethiopia: Beta regression approach
Abstract:
Wheat production is dominated by a subsistence smallholder production system. Additionally, more than 4.7 million smallholder farmers are engaged in wheat production. However, poverty is chronic and pervasive among smallholder farmers. Hence, targeting the efficiency of wheat production is the right strategy to improve the well-being of smallholder farmers. Therefore, we conducted this study to measure the level of wheat production efficiency and figure out the sources of wheat production inefficiency among smallholder farmers using stochastic frontier and beta regression models, respectively. Hence, 400 smallholder farmers were selected to gather firsthand information on wheat production and important variables. The stochastic frontier result shows that the number of oxen, amount of urea fertilizer, and seed had a positive and statistically significant effect on the level of wheat production, unlike wheat farm size. The mean technical efficiency result indicates that smallholder farmers operate 23% below the maximum capacity of wheat production. Additionally, smallholder farmers were producing 18.97 quintals per hectare less than the potential production capacity. Consequently, the beta regression model result shows that an increase in the dependency ratio, distance to the local wheat market, and distance to the extension office will increase the technical inefficiency of wheat production. On the contrary, educational status, farm experience, and access to wheat price information decrease the technical inefficiency of wheat production. Therefore, policymakers, stakeholders, and farmers should consider the main sources of technical inefficiency to minimize the sources of wheat production inefficiency.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2208895
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2208895
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# input file: OAEF_A_2166210_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Agumas Alamirew Mebratu
Author-X-Name-First: Agumas Alamirew
Author-X-Name-Last: Mebratu
Title: Mebratu-B-PLC theory implication on developing country’s oxygen of bank
Abstract:
The main aim of this study was to examine Mebratu-B-PLC Theory Implication on developing Country oxygen of Bank. The quantitative data covered from 2011–2021 for the sample of eleven non-public commercial banks was collected from the annual report of the National Bank of Ethiopia and World Bank data. The panel the least square regression analysis showed that, except capital adequacy all explanatory variables’ customer growth rate, branch expansion, profitability, life expectancy rate and deposit interest rate affect deposit growth of non-public commercial bank shave positive, whereas GDP growth rate has negative significant effect on deposit growth of non-public commercial banks. From the results, branch expansion rate and customer growth rate were the two most powerful variables that affected deposit growth rate. Those non-public commercial banks that were sampled should build their image to attract more customers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2166210
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2166210
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# input file: OAEF_A_2202965_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Susanti
Author-X-Name-First:
Author-X-Name-Last: Susanti
Author-Name: Rediyanto Putra
Author-X-Name-First: Rediyanto
Author-X-Name-Last: Putra
Author-Name: Moh. Danang Bahtiar
Author-X-Name-First: Moh. Danang
Author-X-Name-Last: Bahtiar
Title: Banking performance before and during the Covid-19 pandemic: Perspectives from Indonesia
Abstract:
This study aims to provide empirical evidence regarding the impact of the COVID-19 pandemic on banking performance in Indonesia. This study examines differences in Indonesian banking performance before and during the COVID-19 pandemic. Banking performance in this study was measured using the CAMEL measure. The analysis was carried out by conducting a different test using the SPSS application version 22.0. Based on the results of tests conducted on 205 observations on banking from 2018 to 2021, it was found that the CAR, ROA, ROE, BOPO, LDR, and Customer Deposit levels from banks in Indonesia had a significant difference between before and during the COVID-19 pandemic. However, there was no significant difference between the NPL banking level in Indonesia before and during the COVID-19 pandemic. This proves that the COVID-19 pandemic has harmed banking in Indonesia, so the government must pay attention to the current banking strength to survive and recover after the COVID-19 pandemic.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2202965
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2202965
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# input file: OAEF_A_2189589_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Lithin B M
Author-X-Name-First: Lithin
Author-X-Name-Last: B M
Author-Name: Suman Chakraborty
Author-X-Name-First: Suman
Author-X-Name-Last: Chakraborty
Author-Name: Vishwanathan Iyer
Author-X-Name-First: Vishwanathan
Author-X-Name-Last: Iyer
Author-Name: Nikhil M N
Author-X-Name-First: Nikhil
Author-X-Name-Last: M N
Author-Name: Sanket Ledwani
Author-X-Name-First: Sanket
Author-X-Name-Last: Ledwani
Title: Modelling asymmetric sovereign bond yield volatility with univariate GARCH models: Evidence from India
Abstract:
Does Indian sovereign yield volatility reflect economic fundamentals, or whether it is a self-generated force flowing through markets with little connection to such fundamentals? To answer the question, this research explores the volatility dynamics and measures the persistence of shocks to the sovereign bond yield volatility in India from 1 January 2016, to 18 May 2022, using a family of GARCH models. The empirical results indicate the high volatility persistence across the maturity spectrum in the sample period. However, upon decomposing the markets into bull and bear phases, our results support the existence of weak volatility persistence and rapid mean reversion in the bear market. This shows that the economic response policies implemented by the government during the pandemic, including fiscal measures, have a restraining effect on sovereign yield volatility. For a positive γ, the results suggest the possibility of a “leverage effect” that is markedly different from that frequently seen in stock markets. Results further indicate that the fluctuations in Indian sovereign yields cannot be dissociated from inflation and money market volatility. Our findings herein provide valuable information and implications for policymakers and financial investors worldwide.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2189589
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2189589
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# input file: OAEF_A_2164968_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Michael Karikari Appiah
Author-X-Name-First: Michael
Author-X-Name-Last: Karikari Appiah
Author-Name: Newman Amaning
Author-X-Name-First: Newman
Author-X-Name-Last: Amaning
Author-Name: Paul Kwaku Tettevi
Author-X-Name-First: Paul Kwaku
Author-X-Name-Last: Tettevi
Author-Name: Daniel Frimpong Owusu
Author-X-Name-First: Daniel
Author-X-Name-Last: Frimpong Owusu
Author-Name: Emmanuel Opoku Ware
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Opoku Ware
Title: Internal audit effectiveness as a boon to public procurement performance: a multi mediation model
Abstract:
As part of Governments of Ghana efforts to deal with misappropriation of public sector resources, the Internal Audit Agency Act, 2003 (Act 658) was established to ensure probity, accountability, and transparency in the management of public sector resources, yet there is a high Corruption Perception Index in Ghana as asserted by the Transparent International 2021 release. To address this concern, our paper is aimed to develop a new model to explain the extent to which internal audit effectiveness (IAE) could be used to build strong organizational resilience as a mechanism through which efficiency in public procurement could be achieved while reducing public sector corruption incidence. Data have been collected from a cross-section of public sector workers. The structural equation modeling approach has been used to analyze the survey data. Our results have shown that cultural, and strategic resilience dimensions of organizational resilience significantly mediate the relationship between IAE and procurement performance. These results have implications for re-enforcement of audit regulations to ensure transparency in managing public sector resources with a focus on reducing negative public sector corruption perception.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2164968
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2164968
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# input file: OAEF_A_2164555_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Adamu Braimah Abille
Author-X-Name-First: Adamu Braimah
Author-X-Name-Last: Abille
Author-Name: Sulemana Mumuni
Author-X-Name-First: Sulemana
Author-X-Name-Last: Mumuni
Title: Tax incentives, ease of doing business and inflows of FDI in Africa: Does governance matter?
Abstract:
Apart from the corporate tax rates, the ease of doing business (EDB) index accounts for the cross-country or regional differences in the inflows of foreign direct investment (FDI) as established in the literature. However, this study contends that institutional quality indicators are critical to complement the role of the EDB in attracting the desired FDI into Africa. For empirical evidence, the study performs governance indicators-related step-wise system-GMM estimations of the effect of corporate tax, un-interacted EDB, and the interplay between EDB and governance indicators on the net inflows of FDI using data from 2015 to 2019 for 50 African countries. The findings show that the corporate tax rate and the un-interactive EDB have significant negative effects on the inflows of FDI in Africa in the short- and long runs. In contrast, governance indicators such as control of corruption, political stability, regulatory quality, rule of law, and government effectiveness complement EDB to exert positive effects on the inflows of FDI in Africa, albeit the findings are not generally significant. Tus, to attract the desired FDI, the study inter-alia calls for strict institutional quality assurance in Africa.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2164555
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2164555
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# input file: OAEF_A_2164665_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Minhas Akbar
Author-X-Name-First: Minhas
Author-X-Name-Last: Akbar
Author-Name: Ahsan Akbar
Author-X-Name-First: Ahsan
Author-X-Name-Last: Akbar
Author-Name: Hafiz Sajid Yaqoob
Author-X-Name-First: Hafiz Sajid
Author-X-Name-Last: Yaqoob
Author-Name: Ammar Hussain
Author-X-Name-First: Ammar
Author-X-Name-Last: Hussain
Author-Name: Libuše Svobodová
Author-X-Name-First: Libuše
Author-X-Name-Last: Svobodová
Author-Name: Fakhra Yasmin
Author-X-Name-First: Fakhra
Author-X-Name-Last: Yasmin
Title: Islamic finance education: Current state and challenges for Pakistan
Abstract:
Islam stipulates its adherents to abide by religious principles in their economic transactions. The aim of this study is twofold. First, it accounts for the adherence of Shariah board members of Islamic banks with the Fit and Proper Criteria (FAPC) promulgated by State Bank of Pakistan (SBP). Second, it explores the current state of provision of Islamic finance education in the universities and madaris (i.e., Islamic seminaries) in Pakistan. This is the unique study in a sense because it draws attention of the stakeholders concerned (i.e., SBP, Higher Education Commission, Ittehad-e-Tanzimat Madaris-e-Deeniya & Ministry of Education) to revisit and make strategic milestones in congruent with the demand-supply gap of Islamic professional experts. Total sample consists of 21 banks, out of which the first five are full-fledged Islamic and remaining 16 are the commercial banks with Islamic banking branches. Descriptive research design has been employed to examine the supply of Shariah experts from madaris and universities in Pakistan. Our findings reveal the following: (1) Profiles of all the Shariah board members fully comply with the FAPC of SBP, and more than 50% of members represent multiple boards of Islamic banks. (2) With 26,000 madaris across Pakistan, 75% of the Shariah experts received their education from one Madrisa named Jamia-dar-ul-uloom, Karachi. Notably, province-wise stats highlight Punjab atop in terms of madaris (45% to 56%) in the country, though it produces less than 10% scholars for the Islamic banks’ Shariah boards. A similar situation persists in Khyber Pakhtunkhwa that has 1354 to 3136 madaris and only one Shariah scholar received education from this province. Karachi, the capital of Sindh province and hub of Islamic seminaries, solely contributed more than 85% SB members to the Islamic banks. (3) Among the top fifteen business schools of Pakistan, only four are offering a degree in Islamic finance. Moreover, these four schools have only eight full-time faculty members with a core degree in Islamic finance. This study suggests the practitioners to increase the supply of Shariah scholars and also strengthen the capabilities and skills of human capital regarding Islamic finance education through education, training, social awareness and capacity building.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2164665
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2164665
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# input file: OAEF_A_2191455_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jared Masini Ichwara
Author-X-Name-First: Jared Masini
Author-X-Name-Last: Ichwara
Author-Name: Tabitha W. Kiriti-Ng’ang’a
Author-X-Name-First: Tabitha W.
Author-X-Name-Last: Kiriti-Ng’ang’a
Author-Name: Anthony Wambugu
Author-X-Name-First: Anthony
Author-X-Name-Last: Wambugu
Title: Changes in gender differences in household poverty in Kenya
Abstract:
Gender poverty differences in households are likely to affect female-headed households more than male-headed households. This paper examined the evolution of the gender poverty rate gap and identified the factors that underlie differences in poverty rates between female-headed households and male-headed households using the most recent representative household surveys conducted by the Kenya National Bureau of Statistics in 2005/06 and 2015/16. An extended Blinder-Oaxaca decomposition analysis with nonlinear regression was performed. The findings indicate that poverty rates for female-headed households and male-headed households declined from 38.56 to 32.73% in 2005/06 to 30.23 and 26.04% in 2015/16, respectively. Although female-headed households (1.12) have a higher chance of falling into poverty than male-headed households (0.95), the decline in the poverty rate was higher for female-headed households (8.33%) than for male-headed households (6.69%). Therefore, the results do not support the feminization of poverty hypothesis in Kenya. Factors that have bridged the gender poverty gap include cash transfers that explain 11.02% of the gaps, literacy (53.97%), university education (10.39%), secondary education (40.84%), employment in public and private sectors (26.66%) and business employment (10.58%). Recommended policies include the implementation of the gender policy and affirmative action, enhancing literacy levels, and secondary and university enrolment.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2191455
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2191455
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# input file: OAEF_A_2202049_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Dominic Tasila Konja
Author-X-Name-First: Dominic
Author-X-Name-Last: Tasila Konja
Author-Name: Franklin N. Mabe
Author-X-Name-First: Franklin N.
Author-X-Name-Last: Mabe
Title: Market participation of smallholder groundnut farmers in Northern Ghana: Generalised double-hurdle model approach
Abstract:
Market participation is both a cause and a consequence of economic development. Markets offer households the opportunity to specialize according to comparative advantage and thereby enjoy welfare gains from trade. The current literature on product marketing in Ghana is inadequate for designing and implementing effective policies to overcome problems in the marketing system, especially leguminous crops. Based on this, the study analyses the determinants of groundnut farmers’ decision to participate and the level of market participation in Northern Ghana using cross-sectional data from 250 smallholder farmers. We employed the generalized double hurdle model to analyse the objectives of this study. On average, the study found that 62% of groundnut output harvested by farm households in Northern Ghana was sold on the market. The most significant determinants of market participation decision and intensity of participation in the groundnut market include extension service, distance to output market, farmer-based organization, off-farm income, output price, use of improved groundnut variety, and access to transport. We recommend that strategies and policies aiming at promoting smallholder commercialization should focus on providing rural infrastructure, market-oriented extension services, and forming farmer groups for collective marketing.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2202049
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2202049
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# input file: OAEF_A_2169996_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Fassil Eshetu
Author-X-Name-First: Fassil
Author-X-Name-Last: Eshetu
Author-Name: Jema Haji
Author-X-Name-First: Jema
Author-X-Name-Last: Haji
Author-Name: Mengistu Ketema
Author-X-Name-First: Mengistu
Author-X-Name-Last: Ketema
Author-Name: Abule Mehare
Author-X-Name-First: Abule
Author-X-Name-Last: Mehare
Title: Impact of rural out-migration on poverty of households in southern Ethiopia
Abstract:
This study examined the impact of rural out-migration on the poverty of migrant-sending households by applying the new economics labor migration theory as a theoretical framework, and the multinomial endogenous switching regression as an analytical model in southern Ethiopia. Data were gathered from 415 sample rural households using stratified random sampling in the year 2021. The cost of basic needs approach and the Foster, Greer, and Thorbecke (FGT) method were used to establish the poverty line and create the poverty indices, respectively. The average annual food and non-food poverty lines are Birr 8997.52 and 2249.38 per adult equivalent. The incidence, depth, and severity of general poverty are 39.76, 10.11, and 3.55%, respectively, while the incidence, depth, and severity of food poverty are 34.70, 9.47, and 3.58%, respectively. When compared to other households, households with international migrants have a lower incidence, depth, and severity of poverty. The regression result of the multinomial endogenous switching model showed that international migration increases consumption per adult equivalent of households by 29.8% and is significant at the 1% level. Participation in rural-urban and international migration increases kilocalories per adult equivalent per day by 7.4 and 36.4%, respectively, in migrant-sending rural households. The findings support the new economics labor migration theory’s remittance hypothesis. Promoting access to land, capital, farm and non-farm employment, irrigation, family planning, and basic public services would improve rural household welfare and reduce the current wave of rural out-migration in Southern Ethiopia.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2169996
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2169996
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# input file: OAEF_A_2169998_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mohd Adil
Author-X-Name-First: Mohd
Author-X-Name-Last: Adil
Author-Name: Yogita Singh
Author-X-Name-First: Yogita
Author-X-Name-Last: Singh
Author-Name: Mohammad Subhan
Author-X-Name-First: Mohammad
Author-X-Name-Last: Subhan
Author-Name: Mamdouh Abdulaziz Saleh Al-Faryan
Author-X-Name-First: Mamdouh Abdulaziz
Author-X-Name-Last: Saleh Al-Faryan
Author-Name: Mohd Shamim Ansari
Author-X-Name-First: Mohd Shamim
Author-X-Name-Last: Ansari
Title: Do trust in financial institution and financial literacy enhances intention to participate in stock market among Indian investors during COVID-19 pandemic?
Abstract:
This research aims to investigate the significance of trust in financial institution and financial literacy in the investment decision-making of individual investors during the COVID-19 pandemic and investigates the strength of the theory of planned behavior (TPB) in this framework. This study considered a structured questionnaire to collect data from 460 individual investors of different districts in four states of India. For testing the research hypotheses, SPSS and PLS-SEM were taken into consideration. The findings enlighten that elements of TPB, i.e. attitude (ATT) and subjective norms (SNs), are significantly associated with investment intentions (INT) while perceived behavioral control (PBC) displays an insignificant association with INT. Furthermore, along with the original components of the TPB model, Trust in financial institution (TFI) and Financial Literacy (FL) were also incorporated in the model, which shows a significant affect on investors’ intention to invest in the stock market. The results stated that TFI is the most significant factor that enhances investors’ intention to participate in stock market during COVID-19 pandemic. The study describes that during the phase of uncertainty like COVID-19 pandemic trust is the most important factor that enhances investors’ participation in the stock market. Authors suggest SEBI and other financial institutions should promote trust and trusting behavior in financial institutions as it is significant not only from the perspective of financial development but also to empower the individuals to gain from institutional services as well as to guard them, from possible negative effects (like financial frauds), which are more likely to be present outside of regulatory boundaries. This study is one of the initial attempts in the context of the Indian Stock Market to introduce TFI as a dual (both mediating and moderating) variable between the basic constructs of TPB. Further, the study also examines the importance of trust in financial institution and financial literacy in enhancing investors’ intention to participate in stock market during COVID-19 pandemic.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2169998
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2169998
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# input file: OAEF_A_2189560_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Glenda Maluleke
Author-X-Name-First: Glenda
Author-X-Name-Last: Maluleke
Author-Name: Nicholas M Odhiambo
Author-X-Name-First: Nicholas M
Author-X-Name-Last: Odhiambo
Author-Name: Sheilla Nyasha
Author-X-Name-First: Sheilla
Author-X-Name-Last: Nyasha
Title: Symmetric and asymmetric impact of public investment on private investment in South Africa: Evidence from the ARDL and non-linear ARDL approaches
Abstract:
This study examines the impact of public investment on private investment in South Africa using the autoregressive distributed-lag (ARDL) and nonlinear ARDL bounds testing approach for the period from 1980 to 2018. The ARDL results show that public investment crowds in private investment in the long and short run. The NARDL results indicate that the negative shock in public investment leads to a decrease in private investment in the long and short run. The results show that public investment has an asymmetric impact on private investment in South Africa. The study recommends that government increase investment in infrastructure such as energy, roads and railways, among others, in order to promote private investment.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2189560
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2189560
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# input file: OAEF_A_2181281_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jean-Luc Mubenga-Tshitaka
Author-X-Name-First: Jean-Luc
Author-X-Name-Last: Mubenga-Tshitaka
Author-Name: Johane Dikgang
Author-X-Name-First: Johane
Author-X-Name-Last: Dikgang
Author-Name: John W. Muteba Mwamba
Author-X-Name-First: John W.
Author-X-Name-Last: Muteba Mwamba
Author-Name: Dambala Gelo
Author-X-Name-First: Dambala
Author-X-Name-Last: Gelo
Title: Climate variability impacts on agricultural output in East Africa
Abstract:
This paper investigates whether the effects of weather variability in temperature and precipitation on agricultural output are short- or long-run. The contribution of this paper is twofold. First, the paper attempts to establish whether temperature or precipitation variability affects agricultural output in the short or the long run. Second, it examined whether the effects of temperature or precipitation variability on agricultural output are homogenous across East African countries. The results reveal that variability in temperature had a long-run impact on agricultural output, while variability in precipitation had a short-run effect. The findings also reveal that the long-run temperature variability effect was heterogeneous across East African countries, and to some extent, there is also evidence for the long-run effect of precipitation variability. These results are crucial in providing decision-makers and other interested parties a thorough evaluation of climate impacts and adaptation measures aimed at increasing agricultural production and food security.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2181281
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2181281
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# input file: OAEF_A_2190216_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Citra Amanda
Author-X-Name-First: Citra
Author-X-Name-Last: Amanda
Title: Spatial competition on rural bank efficiency: Evidence from Indonesia
Abstract:
This study empirically examines bank spatial competition within the rural banking setting of Indonesia. The specific focus is on bank cost efficiency. It presents a new competition measure based on two spatial variables: physical distances and Thiessen polygon market boundaries. This study uses panel data from a large sample of more than 1,000 rural banks using quarterly financial data of rural banks in Indonesia from Q1–2014 to Q4–2018. Parametric or stochastic frontier analysis of Model EN is used to handle the endogeneity in bank cost efficiency measurement. The results show that bank efficiency is higher for shorter distances between banks and larger boundaries. Overall, the results support the competition-efficiency hypothesis. It also helps the idea that banks have mark-up pricing (higher market power) and may choose to reduce their effort to maximize profit.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2190216
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2190216
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# input file: OAEF_A_2210363_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Nadia Sghaier
Author-X-Name-First: Nadia
Author-X-Name-Last: Sghaier
Author-Name: Mondher Kouki
Author-X-Name-First: Mondher
Author-X-Name-Last: Kouki
Author-Name: Samia Ben Messaoud
Author-X-Name-First: Samia Ben
Author-X-Name-Last: Messaoud
Title: Further evidence of contagion effect between the Chinese and the G20 stock markets during the COVID-19 pandemic: A time-varying copula approach
Abstract:
This paper examines the presence of a contagion effect between Chinese and G20 stock markets as well as its intensity over a recent period from 1st January 2013 to 7 April 2022. The empirical study is conducted using the time-varying copula approach. The obtained results show strong evidence of a contagion effect between China and all countries except United States America, Argentina and Turkey during the COVID-19 period. In particular, the Chinese stock market exhibits the highest level of dependence with the Asian and European stock markets in addition to the greatest variability in dependence. These findings are interesting and have important implications for several financial applications.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2210363
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2210363
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# input file: OAEF_A_2185346_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tariku Lorato
Author-X-Name-First: Tariku
Author-X-Name-Last: Lorato
Author-Name: Tasew Tadesse
Author-X-Name-First: Tasew
Author-X-Name-Last: Tadesse
Author-Name: Yodit Abebe Mamo
Author-X-Name-First: Yodit
Author-X-Name-Last: Abebe Mamo
Author-Name: Berhanu Getinet
Author-X-Name-First: Berhanu
Author-X-Name-Last: Getinet
Title: The urban informal sector as a means of livelihood improvement among youth: Evidence from Hawassa city, Ethiopia
Abstract:
The informal sector constitutes a vital part of developing countries’ economy. It serves as a major source of employment and livelihood for the urban poor. However, despite its multifaceted economic contributions in many developing countries, little is known about its contribution. Hence, this study examines the role of the urban informal sector in improving the livelihoods of the participants in Hawassa city, southern Ethiopia, using primary data. A random sample of 182 informal sector participants was selected from eight kebeles using multi-stage sampling techniques. Descriptive statistics and a logistic regression model were used to analyze the data. The descriptive analysis results showed that the majority of the participants (67%) perceived that participating in the informal sector has considerably improved their livelihood. The econometric analysis reveals that informal business operators who earn a higher monthly income, those who save their income, stayed longer in the business, have access to credit and own more working capital, and those who get training opportunities are observed to have better livelihood improvement compared to their comparative group. Given the sector’s role in creating employment opportunities for the burgeoning urban labor force and improving livelihood, informal businesses should not be treated as a hostile group with a marginal role in the economy. Thus, along with designing strategies for the formalization of informal enterprises, facilitating access to finance, training programs, improving the business environment, and provision of business development services prepare youth to navigate the informal sector in the study area, in particular, and Ethiopia, in general.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2185346
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2185346
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# input file: OAEF_A_2223940_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: B. G. Jean Jacques Iritié
Author-X-Name-First: B. G. Jean Jacques
Author-X-Name-Last: Iritié
Author-Name: Jean Baptiste Tiémélé
Author-X-Name-First: Jean Baptiste
Author-X-Name-Last: Tiémélé
Title: Foreign direct investment and economic growth in Côte d’Ivoire : An application of the bounds testing approach to cointegration
Abstract:
This paper analyzes the contribution of foreign direct investment (FDI) to economic growth in Côte d’Ivoire, for the period 1980–2019. We use the World Development Indicators (World Bank) database. The Autoregressive Distributed Lag (ARDL) cointegration approach results show that, in the short and long-run, FDI negatively impacts economic growth in Côte d’Ivoire. We conjecture that these results are due to the predominance of extractive FDI in Côte d’Ivoire. Indeed, the extractive sector is weakly linked to the national economy and is subject to practices of fraud and corruption. Our results also show the importance of education (human capital) in the country’s economic growth. All of these findings suggest the need for selective FDI attraction policies, the integration of the enclave extractive sector into the national economy and the strengthening of the education system for a more efficient human capital capable of absorbing and using new knowledge and high technologies transferred by FDI.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2223940
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2223940
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# input file: OAEF_A_2223419_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Lutengano Mwinuka
Author-X-Name-First: Lutengano
Author-X-Name-Last: Mwinuka
Author-Name: Veronica Claud Mwangoka
Author-X-Name-First: Veronica Claud
Author-X-Name-Last: Mwangoka
Title: Manufacturing sector’s growth in Tanzania: Empirical lessons from macroeconomic factors, 1970–2021
Abstract:
The study investigates the Tanzania manufacturing sector’s growth with a view to provide empirical lessons from macroeconomic factors with limited political regimes reflections. A vector error collection model was used to assess the influence of foreign direct investments (FDI), inflation (INF), export of product (EXP), power supply (PS), government expenditure (GoE), nominal lending interest rate (IRL), population growth rate (PGR) and exchange rate (EXR). The estimated value of the coefficient measuring the speed of adjustment toward long-run equilibrium is statistically significant and negative, implying that 41.6% of the short-run shocks can be corrected back to the long-run equilibrium immediately in the following year so has to prevent the model from explosion. Signs of INF, PS and IRL in the model estimation conform to expectations. Moreover, reducing production costs, increasing the trade openness, attracting FDI, offering appropriate government incentives and management of the foreign exchange rate have potentials of boosting the Tanzania’s economic growth. Thus, the government in collaboration with other stakeholders should work toward making the Tanzania manufacturing sector’s growth more competitive by creating conducive business environment that will lead to multiplier effects.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2223419
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2223419
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# input file: OAEF_A_2186043_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Luu Bich Thu
Author-X-Name-First: Luu Bich
Author-X-Name-Last: Thu
Author-Name: Nguyen Vinh Khuong
Author-X-Name-First: Nguyen Vinh
Author-X-Name-Last: Khuong
Title: How does the corporate life cycle influence Vietnamese firms corporate social responsibility?
Abstract:
This study investigates the association between the corporate life cycle and corporate social responsibility (CSR) disclosure in Vietnam. We hypothesize that the ability and motivation of firms to engage in various CSR activities at each stage of the corporate life cycle are different. Data are collected from 218 companies listed on the HOSE and HNX exchanges in Vietnam from 2014 to 2018 to measure the CSR according to the 2016 GRI General Standards, Parts GRI 200, GRI 300, and GRI 400. Using 2SLS estimation, the empirical findings of our study are consistent with our hypothesis. Our findings suggest that the introduction and growth stages are positively associated with CSR disclosure. Firms in the decline and shake-out phases no longer focus much on CSR disclosure, which shows that older firms do not invest in CSR activities as much as young firms. This study has two contributions. First, the research findings help to expand the literature in the Vietnamese context by applying business life cycle theory and aligning CSR with corporate life cycle stages. Second, the results of this study contribute to managerial implications in making CSR dimension decisions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2186043
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2186043
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# input file: OAEF_A_2189623_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ibtisam Al Abri
Author-X-Name-First: Ibtisam
Author-X-Name-Last: Al Abri
Author-Name: Behnaz Saboori
Author-X-Name-First: Behnaz
Author-X-Name-Last: Saboori
Author-Name: Razan Al Humaidi
Author-X-Name-First: Razan
Author-X-Name-Last: Al Humaidi
Title: The dynamics of the relationship between foreign exchange reserves and import demand function
Abstract:
This study empirically investigates the dynamics of the relationship between import demand and foreign exchange reserves for an oil-rich and high-income developing country, Oman. This study employs the Autoregressive Distributed Lag (ARDL) model to investigate the impact of real income, domestic prices, and foreign exchange reserves on aggregate and disaggregated import demand function. Results reveal that total imports are significantly affected by domestic prices only; whereas, demand for goods import is influenced by income. The level of foreign exchange reserves does not influence import demand function. These findings indicate that currency peg stabilization efforts, foreign asset leakages and varying sources of foreign currency could have weakened the link between foreign reserves and import levels. Considering domestic prices and income, competition and efficient production of local goods and services should be further encouraged, especially concerning ongoing issues like food security. Understanding import dynamics enhances robust import forecasts, international trade planning and policy formulation.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2189623
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2189623
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# input file: OAEF_A_2203987_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Le Ha Diem Chi
Author-X-Name-First: Le Ha Diem
Author-X-Name-Last: Chi
Author-Name: Bui Thi Thu Hang
Author-X-Name-First: Bui Thi Thu
Author-X-Name-Last: Hang
Title: Corporate social responsibility expenditure and financial performance: A comparison of Vietnamese listed and unlisted banks
Abstract:
There are legal requirements for a bank to be officially listed on the Vietnam stock exchange; hence by the end of 2020, Vietnam’s banking industry had 43% of banks officially listed on the stock exchange and 57% of banks not officially listed. Accordingly, the difference between these two groups of banks is clear. This study aims to find empirical evidence for a one-way relationship between corporate social responsibility expenditure (CSRE) and the financial performance of Vietnamese commercial banks. In addition, the study also looks for the influence of each component of CSRE, including Community, Government, and Employee Responsibility, on the financial performance of listed and unlisted banks. Using the Generalized Method of Moments (GMM) controlling for heteroscedasticity, serial correlation, and endogeneity effects, the research results of the study show that CSRE as a cost reduces the bank’s financial efficiency; however, social responsibility spending with the community is a positive factor that increases the bank’s financial efficiency through creating an image and good impression with society and customers. Especially significantly stronger for commercial banks that have been officially listed on the stock exchange. Research results show the need to strengthen CSR implementation in the banking industry.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2203987
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2203987
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# input file: OAEF_A_2216980_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sabyasachi Mohapatra
Author-X-Name-First: Sabyasachi
Author-X-Name-Last: Mohapatra
Author-Name: Arun Kumar Misra
Author-X-Name-First: Arun Kumar
Author-X-Name-Last: Misra
Author-Name: Molla Ramizur Rahman
Author-X-Name-First: Molla Ramizur
Author-X-Name-Last: Rahman
Title: Impact of banking sector competition on emerging market banks’ safety and soundness – A study on Indian Banks
Abstract:
The literature is unsettled on the simultaneous existence of Competition-Stability and Competition-Fragility phenomena in the banking system. Our study has extended the debate where we have incorporated accounting-based information along with 2-SLS system equation modeling to further explore linkages between competition, systemic risk, and stability prevailing in the Indian banking system. The study revealed that for Indian banks competition and systemic risk are inversely related. Systemic risk build-up occurs during the business growth cycle, and it spillovers onto the banking system during the economic down-cycle. The article finds that while a healthy competition would support the overall stability of banks, a fierce competition exerts competitive pressure on the banking system, and hence it negatively contributes to the bank’s stability. It has supported the financial fragility hypothesis and envisages that increased capital restricts competition, and aggressive loan creation increases fragility.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2216980
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2216980
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# input file: OAEF_A_2184062_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Agness Mzyece
Author-X-Name-First: Agness
Author-X-Name-Last: Mzyece
Author-Name: Aleksan Shanoyan
Author-X-Name-First: Aleksan
Author-X-Name-Last: Shanoyan
Author-Name: Vincent Amanor-Boadu
Author-X-Name-First: Vincent
Author-X-Name-Last: Amanor-Boadu
Author-Name: Yacob Abrehe Zereyesus
Author-X-Name-First: Yacob Abrehe
Author-X-Name-Last: Zereyesus
Author-Name: Kara Ross
Author-X-Name-First: Kara
Author-X-Name-Last: Ross
Author-Name: John N. Ng’ombe
Author-X-Name-First: John N.
Author-X-Name-Last: Ng’ombe
Title: How does who-you-sell-to affect your extent of market participation? evidence from smallholder maize farmers in Northern Ghana
Abstract:
This study examines the effect of marketing channel choice on the extent of market participation, with the goal of helping farm managers and policymakers to identify ways of enhancing market participation outcomes. The study uses data from 383 smallholder maize farmers who were part of the respondents to the Agriculture Production Survey conducted in 2014 and the Population-Based Survey conducted in 2012 in Northern Ghana. Econometric analysis was performed using the double hurdle model to account for data censoring in a more flexible way. Findings indicate that smallholder farmers in Ghana sell larger maize quantities when they sell to aggregators than when they sell directly to consumers. By changing from selling to consumers to selling to aggregators, farmers can increase the amount of maize sold by 128.46 kg conditional on participation and by 43.41 kg unconditional on participation. This is potentially due to the scale advantages and non-pecuniary cost savings that aggregators present. The results imply that facilitating access to aggregator-type middlemen may improve market participation in markets where market infrastructure and institutions are not developed enough to substantially lower pecuniary and non-pecuniary marketing costs of selling directly to consumers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2184062
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2184062
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# input file: OAEF_A_2160044_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Nga Phan Thi Hang
Author-X-Name-First: Nga
Author-X-Name-Last: Phan Thi Hang
Title: Policy recommendations for controlling credit risks in commercial banks after the Covid-19 pandemic in Vietnam
Abstract:
Credit activities are an essential commercial bank activity. Therefore, preventing and limiting credit risks is vital for their credit activities. The Covid-19 epidemic is still ongoing. In 2021, 30 banks listed bad debts of more than 113 trillion VND, a 26% increase relative to 2020. Vietnam has the dual goal of fighting the outbreak while continuing with socio-economic development. In this context, credit activities are still essential. Banks require the necessary and appropriate management solutions to adapt to the new situation to ensure safe and sustainable credit activities. This study analyzes some current problems and leading causes of the credit risk of commercial banks. The author has primary data from detailed questionnaires distributed directly to 300 credit risk managers based on a random process. This study examines the descriptive statistics, and compares, analyzes, and synthesizes the statistical reports of commercial banks. The study is novel in that it analyzes more than 60% of commercial banks affected by Covid-19 in terms of risks from subjectivity and risks due to objective causes. Therefore, the results suggest several policy recommendations for minimizing Vietnamese commercial banks’ credit risks after the Covid-19 pandemic.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2160044
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2160044
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# input file: OAEF_A_2210916_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Meera Aranha
Author-X-Name-First: Meera
Author-X-Name-Last: Aranha
Author-Name: Kartikeya Bolar
Author-X-Name-First: Kartikeya
Author-X-Name-Last: Bolar
Title: Efficacies of artificial neural networks ushering improvement in the prediction of extant credit risk models
Abstract:
The study’s objective is to check whether the predictive power of Machine Learning Techniques is better than Logistic Regression in predicting the bankruptcy of firms and that the same predictive power of ascertaining bankruptcy improves when a proxy for uncertainty is added to the model as a default driver. We considered the covid pandemic a black swan event that had caused ambiguity. A significant factor that has increased the probability of bankruptcy in recent times has been the large-scale supply chain disruptions and crippling lockdowns. Firms are trying to get back to pre-Covid utilization of plant capacity or pivot their business models differently to seize newer opportunities amidst the crisis. We considered the change in operating expenditure (primarily decrease) as our proxy for uncertainty as firms were forced to cut down majorly on their operations and thus incurred lesser variable costs. In an economy showing inflationary trends, the operating expenses will generally increase. But we found that the operational costs had shown a dip in the case of many of the firms during FY 20–21, and we attributed it to Covid disruptions. Results show that Machine Learning Techniques are better than Logistic Regression in predicting the bankruptcy of firms and that the same predictive power of ascertaining bankruptcy improves when a proxy for uncertainty is added to the model.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2210916
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2210916
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# input file: OAEF_A_2209955_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Nguyen Vinh Khuong
Author-X-Name-First: Nguyen Vinh
Author-X-Name-Last: Khuong
Author-Name: Huynh Thi Ngoc Ly
Author-X-Name-First: Huynh Thi Ngoc
Author-X-Name-Last: Ly
Author-Name: Le Huu Tuan Anh
Author-X-Name-First: Le Huu Tuan
Author-X-Name-Last: Anh
Title: Accrual-based, real activities earnings management and corporate social responsibility: A virtuous circle? emerging market evidence
Abstract:
The relationship between Earnings Management (EM) and Corporate Social Responsibilities (CSR) has raised a considerable number of attentions, especially, in financial and accounting field since they determine firms’ performance as well as market positioning. On the contrary, in an emerging country as Vietnam, the number of relevant studies are rare together with several limitations. Thus, this paper is the pioneer investigating the cause and effect among Accruals Earnings Management (AEM), Real Earnings Management (REM) as two proxies for EM, and CSR. Next, Granger’s causality replacing for traditional method is employed in order to interpret this nexus. The analysis relies on the sample size of 225 companies during the period 2014–2018 from Hanoi Stock Exchange (HNX) and Ho Chi Minh Stock Exchange (HOSE). We figured out executives prefer REM to AEM when implementing earnings manipulations. Consistent with the expectations and prior scholars, we found there is a negative correlation in the association of AEM and CSR while it is positive in the case of REM and CSR. Besides the consistent results with multivariate regression analysis (MRA) in terms of CSR-EM association, the fsQCA findings also explore more combinations regarding the relationship between CSR-EM. Additionally, all empirical results also provide evidence that there is cause-and-effect relationship in terms of AEM, REM and CSR which has never been researched and discussed over the past several years.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2209955
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2209955
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# input file: OAEF_A_2210362_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xiaoling Song
Author-X-Name-First: Xiaoling
Author-X-Name-Last: Song
Author-Name: Yage Jing
Author-X-Name-First: Yage
Author-X-Name-Last: Jing
Author-Name: Xuan Qin
Author-X-Name-First: Xuan
Author-X-Name-Last: Qin
Title: BP neural network-based early warning model for financial risk of internet financial companies
Abstract:
We built an early warning model for financial risk using a back propagation neural network. To this end, the financial data of 136 listed Internet financial companies in the People’s Republic of China were selected, spanning from 2010–2019, as the sample for the empirical test. We categorized the financial status of enterprises as either “healthy” or “early warning” by the K-means clustering algorithm. Furthermore, factor analysis was performed to obtain seven common factors for building the early warning model. Overall, we confirmed the model’s excellent comprehensive accuracy and prediction efficiency, with accuracy, precision, recall, and specificity rates of 99.51%, 99.71%, 99.71%, and 98.30%, respectively. Thus, the model obtained by training and simulation using the back propagation neural network algorithm can effectively screen enterprises with hidden financial conditions and will not misclassify enterprises with good financial conditions. Notably, the misjudgment and omission rates are considerably low. The model is highly capable of identifying the financial status of Internet financial companies and has good predictive power.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2210362
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2210362
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# input file: OAEF_A_2167361_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Victoria Nutassey
Author-X-Name-First: Victoria
Author-X-Name-Last: Nutassey
Author-Name: Samuel Agyei
Author-X-Name-First: Samuel
Author-X-Name-Last: Agyei
Author-Name: Siaw Frimpong
Author-X-Name-First: Siaw
Author-X-Name-Last: Frimpong
Author-Name: Kaku NoKoe
Author-X-Name-First: Kaku
Author-X-Name-Last: NoKoe
Title: Introducing electronic transaction levy in Ghana: A possible curse or a blessing? The public’s perception
Abstract:
This study seeks to determine Ghanaians’ perceptions of the new electronic transaction levy (E-levy) and the impact of their perception on their intention to use electronic transactions (ETs) that attract the levy, financial inclusion (FI) and financial well-being (FW). To achieve this, the study employs PLS-SEM with a sample size of 782. Generally, we found Ghanaians have limited knowledge on E-levy. Thus, Ghanaians should be re-educated about E-levy. We again document that the perception of Ghanaians towards E-levy is negative. Also, we found most Ghanaians intend to reduce their patronage of ETs that attract levy. Furthermore, Ghanaians’ perception of the E-levy reduces their intention to use ETs that are affected by the levy and, by extension, adversely affect FI and FW. Hence, based on the perception of Ghanaians, the E-levy introduced is a curse. We recommend that the government of Ghana review the E-levy policy to minimize its negative effects. We specifically suggest that government raise the GH¢100 per day transaction exemption threshold to increase the intention to use ETs and FI; moreover, government can exempt businesses that pay income tax from E-levy to reduce the tax burden on their income. Also, government should re-enlighten the public on the benefits of E-levy to the country, reassuring the public of accountability and honesty in implementing the E-levy policy to increase their intention to patronize ETs that attract levy. Again, we record a significant and positive total effect of FI on FW. Thus, additionally, government should introduce policies that ensure FI.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2167361
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2167361
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# input file: OAEF_A_2210364_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Faisal Alnori
Author-X-Name-First: Faisal
Author-X-Name-Last: Alnori
Title: Financial shock and the United States multinational and domestic corporations leverage
Abstract:
Puzzling findings from prior studies demonstrated that US multinational corporations (MNCs) capital structure include significantly lower leverage than their domestic counterparts. This study utilized the period of the 2008- Global Financial Crisis (GFC) to compare the leverage ratios between MNCs and Domestic Corporations (DCs) to provide a new approach to testing whether the lower expected bankruptcy cost of MNCS enables them to use more leverage than their domestic counterparts. The data used includes Compustat non-financial firms over the years 2002–2019 and the empirical method applied is the panel data fixed effects regression. Consistent with prior studies, the results show that MNCs capital structure includes lower leverage levels in comparison to their domestic counterparts before and post the GFC period. However, in the 2008 financial shock event, this study explores that MNCs have significantly higher market and book leverage than purely domestic firms. This higher leverage of MNCs is attributed to their lower expected bankruptcy arising from their international diversification of operations and their advantage in accessing external financial markets. Prior research justified MNCs’ lower leverage ratios to higher agency costs. Nevertheless, the current study confirms that the trade-off theory’s bankruptcy cost is still empirically relevant. The findings are robust after employing alternative robustness checks. At best, this is the first study that compares the capital structure of MNCs and DCs during times of financial shock and credit constraint.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2210364
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2210364
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# input file: OAEF_A_2210854_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Belainew Belete
Author-X-Name-First: Belainew
Author-X-Name-Last: Belete
Author-Name: Tadele Bayu
Author-X-Name-First: Tadele
Author-X-Name-Last: Bayu
Title: Does Social protection improve female-headed households’ food security in Ebinat district, Ethiopia
Abstract:
Though social protection in sub-Saharan Africa is intensive to alleviate food insecurity of the vulnerable group such as women, its impact on the food security status of female-headed rural households has not been well documented. Accordingly, the present study aims to evaluate the effect of the Productive Safety Net Program (PSNP) on the food security of female-headed farm households. The study employs the Propensity Score Matching (PSM) method to identify the comparable beneficiary and non-beneficiary sample households. The study finding indicates that PSNP improves the food security status of female-headed farm households. Moreover, the study suggested that the food security status of the beneficiary household is better than the non-beneficiary household even after controlling the potential heterogeneity. Based on the findings of the present study, we recommend that PSNPs should focus on building a sustainable income-generating livelihood system.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2210854
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2210854
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# input file: OAEF_A_2167369_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ghada Tayem
Author-X-Name-First: Ghada
Author-X-Name-Last: Tayem
Title: The threat of political extraction and corporate cash holdings: The case of the GCC countries
Abstract:
This study examines the motives of corporations in the Gulf Cooperation Council (GCC) countries to hold cash with a focus on institutional characteristics related to the threat of political extraction. Using firm-level financial data and macro-level and institutional data and applying the GMM estimation method, the study finds that corruption (a proxy of the threat of political extraction) is positively related to cash holdings which suggests that the risk of political extraction induces GCC firms to accumulate cash to make political payoffs and preserve their financial flexibility. In terms of firm-level characteristics, GCC firms follow a pecking order as they deplete more cash the larger their capital expenditures. In addition, GCC firms save cash for transaction and precautionary purposes as indicated by the negative relation between cash and cash substitutes. This is the first study to examine the threat of political extraction on cash holdings using the context of the GCC, a cash-rich region with unique institutional settings. The findings on the GCC countries contribute to the ongoing debate regarding the political extraction-cash holdings relationship by examining a context under which corruption is likely to exert a positive impact on the level of cash holdings.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2167369
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2167369
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# input file: OAEF_A_2174637_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Afaqa Hudaya
Author-X-Name-First: Afaqa
Author-X-Name-Last: Hudaya
Author-Name: Firmansyah Firmansyah
Author-X-Name-First: Firmansyah
Author-X-Name-Last: Firmansyah
Title: Financial stability in the Indonesian monetary policy analysis
Abstract:
Financial stability is one of the main factors for a country’s economic sustainability nowadays. Financial instability has adverse effects on the economy which can lead to the financial crisis. This research tries to answer how monetary policy related to Indonesian financial stability in the short and long term, how specific the relations between its parts such as money supply, interest rate, and exchange rate to indonesian financial stability, and which one of these parts that have ways more effective to influence Indonesian financial stability. This research data use time series quarterly as quantitative data in Indonesia. By employing econometric models of error correction on quarter data that consist of the stationary stochastic process, long-run model and cointegration approach and error correction model, this model can indicate how quickly the effect of the money supply, interest rate or exchange rate is fully accepted by the financial stability in the short term. The finding of this study showed that the increase in interest rate began to be able to improve indonesian financial stability responsively in four times the period, namely an increase of one percent in interest rate could increase 0.4161 percent of financial stability in Indonesia.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2174637
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2174637
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# input file: OAEF_A_2163075_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Trinh Hiep Thien
Author-X-Name-First: Trinh Hiep
Author-X-Name-Last: Thien
Author-Name: Nguyen Xuan Hung
Author-X-Name-First: Nguyen Xuan
Author-X-Name-Last: Hung
Title: Intangible investments and cost of equity capital: An empirical research on Vietnamese firms
Abstract:
Together with the development of knowledge-based economy, investment in intangibles has been dramatically increasing. Although intangibles are widely recognized as primary value drivers for more firms, as evidence of many studies related to the value relevance or the market valuation of intangible investments, little is known in the literature about the cost of equity capital for financing intangible investments, especially in Vietnamese literature extent. This paper’s aim is therefore to empirically investigate the association between a firm’s cost of equity capital and intangible investments detailed by research and development investment, business combination investment and organizational capital investment. We investigate the above relationship through the sample of 120 Vietnamese-listed firms from 2013–2017. Regression result confirmed that both higher level of research and development investment and larger amount of accounting goodwill raise the firm’s overall cost of equity capital since their characteristics of these investments are riskier and less liquid and has a higher level of information asymmetry. Our findings could suggest several implications for managers and shareholders in making their investment decisions. Once again, this study adds to the existing business valuation literature by providing additional evidence of the impact of research and development investment as well goodwill on accounting for equity capital valuation.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2163075
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2163075
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# input file: OAEF_A_2207939_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: K. Nirmal Ravi Kumar
Author-X-Name-First: K. Nirmal
Author-X-Name-Last: Ravi Kumar
Author-Name: S.N. Mishra
Author-X-Name-First: S.N.
Author-X-Name-Last: Mishra
Author-Name: Adinan Bahahudeen Shafiwu
Author-X-Name-First: Adinan
Author-X-Name-Last: Bahahudeen Shafiwu
Author-Name: Shailendra Gajanan
Author-X-Name-First: Shailendra
Author-X-Name-Last: Gajanan
Author-Name: Suresh Chandra Babu
Author-X-Name-First: Suresh
Author-X-Name-Last: Chandra Babu
Author-Name: A. Sandhya Neelima
Author-X-Name-First: A. Sandhya
Author-X-Name-Last: Neelima
Title: Production technology adoption and electronic market participation intensity of chilli (dry) farmers in India: Application of triple-hurdle model
Abstract:
Agricultural and food system transformation helps increase farm productivity and encourages farmers to participate in updated value chains, adopt newer technologies, thereby helping farmers transform their livelihoods in a sustainable manner. Relatedly, value chain innovations depend on multiple decisions farmers make at various stages of the value chain, adequate participation being a primary factor. In this paper, we integrate farmers’ adoption decision of a new variety of chilli crop (“Teja”) along with their electronic market participation decision and e-market participation intensity, based on data from the chilli farming sector in India, where agricultural markets have been modernized through digitization (Kalgudi e-Market). Thus, the employed Triple-Hurdle Model (THM) integrates adoption decision of “Teja” variety of chilli, e-Market Participation Decision and e-market participation intensity thereby, allowing us to make inferences relating to chilli farmers in Andhra Pradesh, India. Our results, showed that the drivers of “Teja” variety adoption, e-market participation, and e-participation intensity include education, reliable extension services, access to seeds of high yielding varieties, market information, and membership in farmer-producer organizations. Added to these, personnel training visits, prompt deliveries of inputs, and prompt payment of sales proceeds are also important in influencing participation and intensities. Results show that the three stochastic decisions of THM are strongly correlated implying that the adoption decision of “Teja” variety of chilli by the farmers influences the e-market participation decision and consequently, e-market participation intensity and these three decisions are sequential. On the contrary, the decisions viz., e-market participation decision and e-market participation intensity as input buyers and consequent adoption of “Teja” variety of chilli are simultaneous. So, the policy measures that promote production technology interventions (say, “Teja” variety of chilli) will definitely enhance better e-market access of chilli farmers. Accordingly, the breeding programs of the agricultural research stations should enhance the uptake of improved varieties in tune with modern marketing (e-market) technologies. Future farm policy and agricultural-research and innovations must recognize the potential that the digital marketing systems have to offer. Such considerations coupled with the provision of market infrastructure including assaying, grading, storage, and market information will promote digital transformation in agricultural value chains in developing countries like India.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2207939
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2207939
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# input file: OAEF_A_2162688_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Paulo Viegas de Carvalho
Author-X-Name-First: Paulo Viegas
Author-X-Name-Last: de Carvalho
Author-Name: Joaquim Ferrão
Author-X-Name-First: Joaquim
Author-X-Name-Last: Ferrão
Author-Name: Joaquim Santos Alves
Author-X-Name-First: Joaquim Santos
Author-X-Name-Last: Alves
Author-Name: Manuela Sarmento
Author-X-Name-First: Manuela
Author-X-Name-Last: Sarmento
Title: The informational value contained in the different types of auditor’s opinions: Evidence from Portugal
Abstract:
This paper examines the distinct types of modified auditor opinions and the non-compliance with the legal certification of accounts, to assess whether they provide different relevant informational content on the risk of impending bankruptcies. The study also addresses the signalling effects when firms do not comply with disclosure obligations. Controlling for the a priori risk classification, we find that distinct opinion types have dissimilar marginal influences, with a disclaimer of opinion denoting the highest level of risk, followed by the non-compliance with the legal certification of accounts and the issuance of an auditor’s adverse opinion. The odds of a firm becoming failed are significantly greater when emphases and reserves are issued by a Big 4 auditor. These findings are based on the evidence of 36,509 firms in Portugal, a country characterized by a proportionately high number of small-sized audited firms and by a lack of independent oversight of auditors, which makes it a relevant setting to analyse.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2162688
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2162688
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# input file: OAEF_A_2183660_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Issa Dawd
Author-X-Name-First: Issa
Author-X-Name-Last: Dawd
Author-Name: Noureddine Benlagha
Author-X-Name-First: Noureddine
Author-X-Name-Last: Benlagha
Title: Insurance and economic growth nexus: New Evidence from OECD countries
Abstract:
This study tackles the debate on the relationship between insurance development and economic growth by providing new evidence on the insurance sector. Most of the existing empirical studies focus primarily on the banking sector. This article applies linear dynamic panel-data approaches to examine the nexus between insurance (life insurance, non-life insurance, and the total insurance) and economic growth in 16 OECD countries from 2009 to 2020. We show that insurance development is associated with economic growth. The relationship between life and non-life insurance premiums and economic growth is non-linear. Based on the analysis of the data, an inverted U-shaped relationship is observed between insurance premiums and economic growth, thereby supporting the hypothesis reported in the literature on the non-linear relationship between financial development and economic growth. This implies that more finance may only be better up to a point, after which it tends to harm growth. Thus, our results confirm that the relationship between the insurance sector and economic growth appears to behave like the association between the financial industry and GDP. These findings offer several useful empirical implications for insurance companies and certain perspectives that would help policymakers, governments in OECD and other regions identify important aspects that can be considered while formulating financial regulations related to insurance activities.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2183660
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2183660
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# input file: OAEF_A_2213951_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Getasew Daru
Author-X-Name-First: Getasew
Author-X-Name-Last: Daru
Author-Name: Degsew Melak
Author-X-Name-First: Degsew
Author-X-Name-Last: Melak
Author-Name: Wondim Awoke
Author-X-Name-First: Wondim
Author-X-Name-Last: Awoke
Author-Name: Sinkie Alemu
Author-X-Name-First: Sinkie
Author-X-Name-Last: Alemu
Title: Farmers’ participation in small-scale irrigation in Amhara region, Ethiopia
Abstract:
Irrigation has a critical role in improving food security and alleviating poverty. Long-term studies on small-scale irrigation have identified several factors that influence the participation of farmers in irrigation. However, farmers in the study area are still hesitant to participate in small-scale irrigation as a source of income. As a result, the focus of this study was examining farmers’ engagement in small-scale irrigation. A stratified random sampling technique was used to select 184 respondents, and data was collected from those sample respondents. The double hurdle model was used to identify determinants and the extent of farmers’ participation in small-scale irrigation. The model’s first hurdle found that farmers’ desire to participate in small-scale irrigation was highly influenced by their age (1.3%), educational level, extension contact (20.8%), training access (19.7%), dependency ratio, farm distance from water, and land topography. According to the result of the second hurdle, the level of farmers’ participation in small-scale irrigation was highly affected by land size (11.6%), income, adult labor, educational level, age, and market distance. The study finds that strengthening income sources, land utilization, training access, extension contact, market access, and education level would increase farmer participation in small-scale irrigation. Therefore, stakeholders should strive to deliver these essential services to encourage farmers to participate in small-scale irrigation.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2213951
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2213951
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# input file: OAEF_A_2159735_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Nguyen Thi Hoa Hong
Author-X-Name-First: Nguyen Thi Hoa
Author-X-Name-Last: Hong
Author-Name: Tran Khanh Linh
Author-X-Name-First: Tran Khanh
Author-X-Name-Last: Linh
Title: Institutional investors, corporate governance and firm performance in an emerging market: evidence from Vietnam
Abstract:
This study examines the relationship between institutional investors, corporate governance, and firm performance in Vietnam. The findings on Vietnamese listed companies indicate that while institutional investors are less likely to hold shares of companies with larger board sizes, Chief Executive Officer (CEO) duality, and ultimate control by the state (except for state-owned institutions’ perspective), the effect of their ownership on firm performance depends on whether they are pressure-sensitive (grey) or pressure-insensitive (independent) institutions. In Vietnam, independent institutional investors monitor the company and their investment more effectively than grey institutional investors. They can significantly influence management decisions and improve shareholder value. In contrast, grey institutional ownership is either negatively or insignificantly related to firm performance due to conflicts of interest, as they have a potentially related business relationship with the invested companies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2159735
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2159735
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# input file: OAEF_A_2163874_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Getaye Gizaw
Author-X-Name-First: Getaye
Author-X-Name-Last: Gizaw
Author-Name: Habtamu Kefelegn
Author-X-Name-First: Habtamu
Author-X-Name-Last: Kefelegn
Author-Name: Bewuketu Minwuye
Author-X-Name-First: Bewuketu
Author-X-Name-Last: Minwuye
Author-Name: Gizachew Mengesha
Author-X-Name-First: Gizachew
Author-X-Name-Last: Mengesha
Author-Name: Daregot Berihun
Author-X-Name-First: Daregot
Author-X-Name-Last: Berihun
Title: Impact of business regulations on foreign direct investment inflows and economic growth in East African countries
Abstract:
Continuous improvement of the business environment is important for countries seeking to benefit from increased trade and investment through regional integration. Creating an enabling environment for businesses to thrive and expand has become a new concept in international development organizations, and a good business climate allows good ideas to take root, which leads to the creation of jobs and better lives for host countries. The main objective of this study was to investigate the impact of business regulations on FDI inflow and economic growth in East Africa region using data collected from the World Bank spanning from 2010–2019. The study finds that dealing with construction, enforcing contracts, getting credit, getting electricity, paying tax and protecting minority investors have a significant impact on FDI inflow in the region. While enforcing contracts, getting credit, protecting minority investors, resolving insolvency, starting a business and trade across borders have a significant impact on economic growth in the region. Moreover, each additional reform during 2010–2019 is associated, on average, with a 3.09% increase in FDI inflows and 2.24% increase in GDP in East African countries. The findings of this study will help policy makers in the region to establish a strong legal framework of business regulations to attract FDI inflow into their economies, to adjust their ease of doing business procedures to attract FDI to their economies and to promote regional economic growth. This will also assist investors in monitoring these key indicators to facilitate investment decisions in foreign countries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2163874
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2163874
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# input file: OAEF_A_2209959_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Eugene Msizi Buthelezi
Author-X-Name-First: Eugene Msizi
Author-X-Name-Last: Buthelezi
Title: Impact of government expenditure on economic growth in different states in South Africa
Abstract:
This paper investigates the impact of long-run government expenditure and economic growth in different states in South Africa. Economic growth has been below the policy target of 5% stipulated in the National Development Plan Vision 2030, while government expenditure growth has been volatile but increasing at a decreasing rate. The paper uses the Vector-error correction (VEC) and Markov-switching dynamic regression with the data from 1994 to 2021. The significance of the paper is that it assesses the short and long-run impacts of government expenditure on different states of economic growth in South Africa. It is found that more government expenditure in South Africa hasn’t resulted in the nation’s economy growing, which is at odds with the Keynesian viewpoint. In both lower economic states, government expenditure reduces economic growth by 0.009% and 0.30%. The economy is expected to stay for 1 year in state 1, while it is expected to stay for 13 years in state 2. Government expenditure shocks were found to be detrimental to economic growth. It is recommended that fiscal authorities increase government expenditure in the short run rather than in the long run and monitor government expenditure.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2209959
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2209959
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# input file: OAEF_A_2173871_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Collins Baffour Kyei
Author-X-Name-First: Collins Baffour
Author-X-Name-Last: Kyei
Author-Name: Emmanuel Asafo-Adjei
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Asafo-Adjei
Author-Name: Peterson Owusu Junior
Author-X-Name-First: Peterson
Author-X-Name-Last: Owusu Junior
Author-Name: Anokye Mohammed Adam
Author-X-Name-First: Anokye Mohammed
Author-X-Name-Last: Adam
Author-Name: Anthony Adu-Asare Idun
Author-X-Name-First: Anthony Adu-Asare
Author-X-Name-Last: Idun
Author-Name: Justice K.G Agyenim Boateng
Author-X-Name-First: Justice K.G Agyenim
Author-X-Name-Last: Boateng
Title: Nexus between commodities and banking sector financial soundness: The role of general macroeconomic setting in Ghana
Abstract:
The level of causation and interdependencies among three commodities (cocoa, gold, and Brent crude oil), five banking sector performance indicators (Capital Adequacy Ratio (CAR), Non-Performing Loans (NPL), Return on Equity (ROE), Return on Assets (ROA) and Core Liquid assets to total assets (CLATA)), and three general macroeconomic indicators (Inflation, Exchange rate and Global Economic Policy Uncertainty) are explored in this study. As a result, the wavelet techniques are employed to investigate time-frequency and frequency-dependent nexus in the Ghanaian context. In terms of time-frequency, a mix of negative and positive bi-causality among commodities, banking sector performance indicators, and macroeconomic indicators are found. Outcomes from the wavelet multipleprovide that these variables are highly integrated, with the exchange rate leading in the long-run. Hence, implying that exchange rate in Ghana has a high susceptibility to shocks before the other variables in the study. We advocate Government of Ghana and policy-makers should fine-tune policies that take into account the impact on other economic factors. Policies should be initiated to minimise fluctuations in the exchange rate. To limit the adverse impact of inflation and GEPU, it is required that effective and efficient country-level policies geared towards stability be initiated to resuscitate the economy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2173871
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2173871
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# input file: OAEF_A_2213016_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Afnan Ghanayem
Author-X-Name-First: Afnan
Author-X-Name-Last: Ghanayem
Author-Name: Gareth Downing
Author-X-Name-First: Gareth
Author-X-Name-Last: Downing
Author-Name: Murad Sawalha
Author-X-Name-First: Murad
Author-X-Name-Last: Sawalha
Title: The impact of political instability on inflation volatility: The case of the Middle East and North Africa region
Abstract:
This study examines the impact of political instability on inflation volatility in the Middle East and North Africa (MENA) region. First, it analyzes the multidimensionality of political instability by adopting a factor analysis technique and finds five dimensions of political instability. Next, it adopts GARCH, EGARCH, and TGARCH volatility specifications to model country-specific monthly inflation data. Finally, it examines the impact of the five dimensions of political instability on GARCH conditional inflation volatility by employing the dynamic Generalized Method of Moments (GMM) panels. This paper reports both positive and negative effects of political instability on inflation volatility in the MENA region. Specifically, we show that the instability of the political regime dimension significantly increases inflation volatility, while the dimension of government instability significantly reduces inflation volatility. Our results hold for a set of robustness checks, including the MIDAS weighted conditional inflation volatility measures.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2213016
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2213016
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# input file: OAEF_A_2186036_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Nguyen Vinh Khuong
Author-X-Name-First: Nguyen Vinh
Author-X-Name-Last: Khuong
Author-Name: Tran Trung Kien
Author-X-Name-First: Tran
Author-X-Name-Last: Trung Kien
Author-Name: Le Ong Tieu Bang
Author-X-Name-First: Le Ong Tieu
Author-X-Name-Last: Bang
Author-Name: Dinh Ho Tuyet Anh
Author-X-Name-First: Dinh Ho Tuyet
Author-X-Name-Last: Anh
Author-Name: Van Cong Danh
Author-X-Name-First: Van Cong
Author-X-Name-Last: Danh
Author-Name: Pham Xuan Hung
Author-X-Name-First: Pham Xuan
Author-X-Name-Last: Hung
Author-Name: Nguyen Ai Ngan
Author-X-Name-First: Nguyen Ai
Author-X-Name-Last: Ngan
Title: Related party transactions and firm value in an emerging market: Does corporate social responsibility matter?
Abstract:
This study investigates the effect of related party transactions (RPTs) on firm value (FV) with moderating role of corporate social responsibility (CSR) in the context of an emerging market. For a sample of 625 listed firms on the Vietnamese Stock Exchange from 2015 to 2019, we do quantitative analysis utilizing the appropriate method for panel data with modification to strengthen the study’s robustness. We design a regression model to test the result. According to the findings of the study, RPTs have an effect on corporate value. This is in keeping with the belief that CSR reporting, which represents a company’s ethical concerns, might act as a deterrent to opportunism by management. Our study makes recommendations to improve transaction transparency with corporate stakeholders, contributing to the growth of the Vietnamese stock exchange.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2186036
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2186036
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# input file: OAEF_A_2186035_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Samuel Kwaku Agyei
Author-X-Name-First: Samuel Kwaku
Author-X-Name-Last: Agyei
Author-Name: Ahmed Bossman
Author-X-Name-First: Ahmed
Author-X-Name-Last: Bossman
Title: Exploring the dynamic connectedness between commodities and African equities
Abstract:
Market participants, regulators, and practitioners might have disregarded the prospective integration of African markets and the integration of commodity markets with traditional markets. We examine the nonhomogeneous return spillovers and contagion between 12 commodity sectors and African equities under the time-varying parameter vector autoregressions connectedness method. With daily datasets from February 2010 to February 2022, the average connectedness analysis suggests a low spillover transmission between commodities and respective African equity markets. We reveal that the return connectedness between commodities and African equities is largely driven by idiosyncratic spillovers. The results from the dynamic connectedness analysis reveal significant spillovers between the studied markets. Our findings underscore financial market contagion during stressed trading periods, suggesting that global commodity and African equity markets are not entirely immune to global market shocks. Therefore, prompt management of commodity price volatility and the integration between economies could result in controlled impacts of financial market contagion. Portfolio managers should deploy effective risk management strategies that capitalise on the nonhomogeneous roles of some assets as diversifiers, hedges, and safe havens across time horizons. Additional implications of our findings are discussed.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2186035
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2186035
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# input file: OAEF_A_2202964_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Maeenuddin
Author-X-Name-First:
Author-X-Name-Last: Maeenuddin
Author-Name: Shaari Abd Hamid
Author-X-Name-First: Shaari Abd
Author-X-Name-Last: Hamid
Author-Name: Mochammad Fahlevi
Author-X-Name-First: Mochammad
Author-X-Name-Last: Fahlevi
Author-Name: Annuar MD Nassir
Author-X-Name-First: Annuar MD
Author-X-Name-Last: Nassir
Author-Name: Padzil Mohd Hashim
Author-X-Name-First: Padzil Mohd
Author-X-Name-Last: Hashim
Title: Predictors of microfinance sustainability: Empirical evidence from Bangladesh
Abstract:
Poverty reduction and sustainability are the two major issues in achieving sustainable development. Microfinance emerged as an essential catalyst for socioeconomic development and financial inclusion to reduce poverty. MFIs cannot meet their primary objective of poverty reduction if they are not sustainable financially. With the theoretical support of the Profit Incentive theory, this paper examines the financial sustainability of microfinance providers (MFPs) in Bangladesh. A financial sustainability index (FSI) is developed by using Principal Component Analysis (PCA). This study analyzes the data using two-step system GMM from 2006 to 2018 collected from the MIX market of the World Bank. The results show that loan size, number of borrowers, percentage of women borrowers, and inflation significantly impact FSI positively. Organizational structure, liquidity, leverage, cost per borrower and GDP have significant negative impacts on the financial sustainability of the microfinance sector of Bangladesh. Upon further analysis, the estimates demonstrated that national governance indicators have a negative impact on the relationship between organizational structure, average loan balance per borrower and FSI. Similarly, a stronger national governance reduces (erases) the negative effect of number of borrowers and cost per borrower on FS of MFPs of Bangladesh. This study incorporated all six dimensions of the national governance indicators and developed a new financial sustainability index for measuring the financial sustainability of microfinance providers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2202964
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2202964
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# input file: OAEF_A_2191449_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ramesh C. Paudel
Author-X-Name-First: Ramesh C.
Author-X-Name-Last: Paudel
Title: Capital expenditure and economic growth: A disaggregated analysis for Nepal
Abstract:
This paper, using the most recent dataset, examines the government expenditure’s effects on the economic growth of Nepal. In doing so, a particular focus is made on disaggregated government expenditures to identify the importance of sector-specific public expenditure. The methodology adopted in this paper considers the scenario of government budget constraints while allocating resources in specific sectors and attempts to find the elasticity of those expenditures in the country’s economic growth. The results from the estimation employing Auto-regressive distributed lag (ARDL) approach to cointegration for the data from 1981 to 2020 are threefold. First, both capital and current expenditures in aggregate forms are not the contributors to economic growth unlike our assumption that capital expenditure is more important than current expendtirue for economic grwoth. Second, spending more on education, either in the form of capital or current expenditure, would make a meaningful contribution to accelerating economic growth. Third, the public expenditure in the health sector should be very rational, focusing more on capital health expenditure rather than spending current health expenditure. Therefore, the primary policy recommendation from this study is that Nepal should invest more in education and health. Moreover, spending on education to expand the area with wider coverage and quality logistics and infrastructure are both important, while such expenditure in health is to be focused on solid health logistics and infrastructures.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2191449
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2191449
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# input file: OAEF_A_2210361_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Nam Thanh Vu
Author-X-Name-First: Nam Thanh
Author-X-Name-Last: Vu
Author-Name: Ngoc Hong Nguyen
Author-X-Name-First: Ngoc Hong
Author-X-Name-Last: Nguyen
Author-Name: Thao Tran
Author-X-Name-First: Thao
Author-X-Name-Last: Tran
Author-Name: Binh Thien Le
Author-X-Name-First: Binh Thien
Author-X-Name-Last: Le
Author-Name: Duc Hong Vo
Author-X-Name-First: Duc Hong
Author-X-Name-Last: Vo
Title: A LASSO-based model for financial distress of the Vietnamese listed firms: Does the covid-19 pandemic matter?
Abstract:
Financial distress is a vexing managerial challenge for businesses worldwide, especially during a turbulent period like the COVID-19 pandemic. Motivated by an increasing number of closed businesses in Vietnam during the recent COVID-19 pandemic, this study is conducted to provide a comprehensive analysis of financial distress for Vietnamese listed firms. Machine learning approaches are employed using the annual data of 492 listed firms from 2012 to 2021. Specifically, we aim to identify the appropriate distress predictors for the Vietnamese listed firms using LASSO, a technique known to be superior compared to other variable selection techniques. Empirical results reveal that there are four key financial distress predictors for the Vietnamese listed firms, namely the ratios of (i) working capital and total assets, (ii) retained earnings and total assets, (iii) earnings before interest and taxes and total assets and (iv) net income and total assets. We also conducted an industry-level analysis and found that the Energy sector experienced the highest number of financially distressed firms during Covid-19. In contrast, Communication Services, Health Care, and Utilities had the lowest number of distressed firms. Policy implications have emerged based on these important findings from our analysis.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2210361
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2210361
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# input file: OAEF_A_2197699_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Meghna Aggarwal
Author-X-Name-First: Meghna
Author-X-Name-Last: Aggarwal
Author-Name: Keyurkumar M Nayak
Author-X-Name-First: Keyurkumar M
Author-X-Name-Last: Nayak
Author-Name: Viral Bhatt
Author-X-Name-First: Viral
Author-X-Name-Last: Bhatt
Title: Examining the factors influencing fintech adoption behaviour of gen Y in India
Abstract:
The main impetus of the research is to inquire into the fintech adoption behaviour of India’s GenY population. The focus of this research paper is to enlarge the scope of the planned behaviour theory by including other exogenous variables, information quality (IQ), and readiness to pay for privileges. Responses from the 349 selected higher education students based on judgmental sampling were collected from various institutes of repute in India. The suggested framework was evaluated using the Smart PLS 4 software bootstrapping method. It was found that multiple hypotheses framed in the study exert notable impact besides the belief that there is a direct linkage between observed behavioural control (OBC) and actual intention (AI). The paper confirms the application of the theory of planned behaviour for the effective implementation of fintech in India. It was observed that information quality is one of the crucial elements which influences the fintech adoption behaviour. The research enriches past studies by expanding the blueprint of a theory of planned behaviour by identifying the information quality factor as the influencing intent and behaviour. The reliability and validity of the suggested framework were analyzed after keeping in mind the impact of a business environment’s constantly changing dynamic forces. The study identified the primary constructs affecting the fintech adoption behaviour with a particular focus on the GEN Y population of India. It will also help the financial technocrats to optimally utilize the immense underlying capabilities of the fintech users and strategically launch more user-friendly products and services.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2197699
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2197699
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# input file: OAEF_A_2173124_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Heitham Al-Hajieh
Author-X-Name-First: Heitham
Author-X-Name-Last: Al-Hajieh
Title: Predictive directional measurement volatility spillovers between the US and selected Asian Pacific countries
Abstract:
Since portfolio management relies on the association of portfolio diversification, analyzing the spillover between the United States (US) and Asian-Pacific financial markets has become more critical. If Asian stock markets have low or negative correlations with each other and/or the US market, global investors may benefit from diversification. This study examines the return and volatility spillover between the S&P 500 and 12 Asian stock markets using weekly data from January 2000 to February 2020. DECO-GARCH models are employed to measure volatility transmission between markets. A generalized VAR, variance decomposition, and spillover index is employed to investigate the directional spillover across the sample, allowing for a focus on the interdependence of the conditional returns, conditional volatility, and conditional correlations between the stock markets. Hedge ratios and portfolio weights use to examine the results’ implications for international portfolio diversification and risk management. The study calculates the effectiveness of hedging equities portfolios between markets, using the beta hedge approach to minimize the risk of this stock market index returns portfolio. The results demonstrate that Hong Kong and Singapore have a clear direction of a return to other stock markets, whereas China has a clear net recipient. The US market does not provide a superior hedging ratio for Asia-Pacific nations. For other stock markets, India, Hong Kong, and New Zealand have the best hedge ratios, portfolio weights, and hedging efficacy. Finally, this research raised the information linked between the stocks market index and can also apply to improve international portfolio by re-considering the cheapest hedging markets and improving the trading strategies in international markets.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2173124
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2173124
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# input file: OAEF_A_2204606_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Benedict Huruma Peter Mwakabungu
Author-X-Name-First: Benedict Huruma Peter
Author-X-Name-Last: Mwakabungu
Author-Name: Jignesh Kauangal
Author-X-Name-First: Jignesh
Author-X-Name-Last: Kauangal
Title: An empirical analysis of the relationship between FDI and economic growth in Tanzania
Abstract:
This study examines causal relationship between foreign direct investment (FDI) inflows and economic growth in Tanzania during 1990–2020. As financial development and trade were not incorporated in extant studies, we included them as intermediate variables because of their intermediation role in this study. FDI inflow is considered an important economic growth catalyst in developing economies. Neoclassical growth theories claim that it enhances economic growth by augmenting capital stock and technology. According to the neoclassical theories, FDI does not enhance the long-run growth rate but instead is related to the level of output. However, empirical evidence is rather mixed, with some supporting the neoclassical theoretical views on economic growth, while others opposing them. We employ the autoregressive distributed lag model and Granger causality tests to analyze the relationship. The results indicate that there exists a long-run relationship among the variables under considerations in Tanzania. Furthermore, the finding reveals positive and statistically significant unidirectional causality running from FDI inflow to economic growth in Tanzania in the long and short run. Hence, we conclude that Tanzania should emphasize FDI-led growth policies to enhance economic growth to realize the desired economic objectives.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2204606
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2204606
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# input file: OAEF_A_2189562_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Vu Thi Kim Hanh
Author-X-Name-First: Vu
Author-X-Name-Last: Thi Kim Hanh
Author-Name: Nguyen Hong Nga
Author-X-Name-First: Nguyen
Author-X-Name-Last: Hong Nga
Title: The effect of labor and capital on transportation logistics’ development: The case of Ho Chi Minh, Vietnam
Abstract:
The objective of this study was to measure eight variables, which included total labor, female labor, trained labor, high school labor, annual capital, asset and long-term capital, state capital, and abroad capital. A second objective was to assess which variables impact labor productivities, capital productivities, and gross domestic product (GDP) growth in four provinces in the southern key economic region in Vietnam. It also assessed how the GDP growth of transportation logistics in Ho Chi Minh (HCM), the GDP growth of HCM, and the GDP growth of Vietnam are impacted by the above eight variables and how they affect each other. The methodology used included the Cobb-Douglas formulation employed in a structural equation modeling (SEM) analysis and five steps of SEM’s goodness of fit testing. The software used is Stata 17.0. Some remarkable findings are: Firstly, trained labor had a total and direct positive impact on both goods labor productivity and passenger labor productivity. Secondly, state capital had no effect on goods labor productivity, passenger labor productivity, goods capital productivity, and passenger capital productivity. Thirdly, while trained labor positively affected the growth of Tay Ninh Province, state capital negatively affected the GDP growth of Tien Giang Province. Fourthly, trained labor indirectly negatively affected the GDP growth of transportation logistics in HCM. The implications are that, based on the magnitude of the coefficients, the direction of the effects, the number of variables that affect and are affected, and the magnitude of the effects, we believe that trained labor should be decreased while the GDP growth of transportation logistics should be increased in HCM. State capital had a direct and negative impact on GDP growth in Tien Giang Province; our recommendation is that state capital should be reduced in order to increase GDP growth in Tien Giang Province.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2189562
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2189562
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# input file: OAEF_A_2160128_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Oluchukwu F Anowor
Author-X-Name-First: Oluchukwu F
Author-X-Name-Last: Anowor
Author-Name: Hyacinth E Ichoku
Author-X-Name-First: Hyacinth E
Author-X-Name-Last: Ichoku
Author-Name: Vincent A Onodugo
Author-X-Name-First: Vincent A
Author-X-Name-Last: Onodugo
Author-Name: Chinedu Ochinanwata
Author-X-Name-First: Chinedu
Author-X-Name-Last: Ochinanwata
Author-Name: Peter Chika Uzomba
Author-X-Name-First: Peter Chika
Author-X-Name-Last: Uzomba
Title: Does investment in education and health impact youth employment outcomes? Evidence from Sub-Saharan Africa
Abstract:
Labour engagement, underutilization and unemployment has dominated discourse in development literature in developing economies. It tangentially dictates the direction of migration, gross domestic output and in some cases, youth restiveness. This study investigated the unique relationship between investment in human capital proxied by spending in education and health and its effects on youth employment outcomes in Sub-Saharan Africa (SSA). Annual data spanning 1995–2017 were obtained from 40 SSA countries comprising 920 macro panel observations. The bootstrap-based bias correction for the panel fixed effects estimation technique was employed to improve on the analytical corrections. Findings suggest that human capital investment comprising private and government health expenditures, primary, secondary and tertiary education expenditures were found to have varying significant impact on youth employment in SSA. The policy implication is that to reverse the perennial problem of youth unemployment in SSA would require serial consistent disproportionate investment more in education than in health.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2160128
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2160128
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Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2160128
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# input file: OAEF_A_2213876_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Andrew C. Meek
Author-X-Name-First: Andrew C.
Author-X-Name-Last: Meek
Author-Name: Seth A. Hoelscher
Author-X-Name-First: Seth A.
Author-X-Name-Last: Hoelscher
Title: Day-of-the-week effect: Petroleum and petroleum products
Abstract:
This study tests for calendar anomalies in returns for petroleum and petroleum products via the futures market, specifically, the day-of-the-week (DOW) effect. The energy future contracts in this study are the WTI (West Texas Intermediate), Brent, RBOB (Reformulated Blendstock for Oxygenate Blending) Gasoline, Heating Oil, and Natural Gas. Futures provide a more liquid insight into price movements relative to spot prices, where financial market participants can engage. We ensure the most appropriate price is used by focusing on the most liquid contracts by combining the front two months of the studied commodities nearing expiration. Our research shows that the DOW effect varies across the respective energy commodities; however, for investors engaged in trading these futures, our results may help time their trade decisions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2213876
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2213876
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Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2213876
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# input file: OAEF_A_2213015_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Masudul Hasan Adil
Author-X-Name-First: Masudul Hasan
Author-X-Name-Last: Adil
Author-Name: Neeraj R. Hatekar
Author-X-Name-First: Neeraj R.
Author-X-Name-Last: Hatekar
Title: How justified is abandoning money from monetary policy? Evidence from dynamically simulated ARDL
Abstract:
The stable money demand function is a crucial policy tool of the monetary policy of any central bank, which links the monetary sector of an economy to its real sector. Notably, after the global financial crisis of 2007–08, the role of money has come to be envisaged as an essential issue while formulating and conducting the monetary policy, especially at zero lower bound. It is crucial to know whether money demand is stable for inferring a sound monetary policy. To this end, the present study examines the short- and long-run money demand relationship and its stability in India from 2006:Q3 to 2019:Q4. The study has employed a dynamically simulated autoregressive distributed lag (ARDL) cointegration approach, which shows a well-specified and stable money demand in India after incorporating the inflation forecast variable as one of the essential determinants along with other covariates. Furthermore, the dynamically simulated impulse response also supports the economic relationship among variables. The current finding of stable money demand implies a policy implication in terms of focusing on monetary aggregate, in the ongoing flexible inflation targeting framework, as one of the essential information or indicator variables, which acts as a long-term assessment of short-term interest rate setting behaviour to achieve the macroeconomic goals.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2213015
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2213015
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Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2213015
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# input file: OAEF_A_2189559_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Esmael Abdu
Author-X-Name-First: Esmael
Author-X-Name-Last: Abdu
Author-Name: Mohammd Adem
Author-X-Name-First: Mohammd
Author-X-Name-Last: Adem
Title: Tax compliance behavior of taxpayers in Ethiopia: A review paper
Abstract:
This review paper attempted to assess the tax compliance behavior of taxpayers in Ethiopia. The objectives were specifically to identify determinants and challenges of tax compliance behavior of taxpayers in Ethiopia. Taxes are the most important sources of the government that make it possible to finance infrastructure, investment, and the provision of services for citizens. Tax compliance involves being aware and complying with tax laws and regulations set by the government and tax authorities. Tax non-compliance is an unwillingness in obeying tax laws and regulations. Tax non-compliance has been a challenge to the government and tax authorities in collecting as much tax as required for the nation. Failure to comply with tax prevents adequate revenue collection of the state. The major challenges of tax compliance in Ethiopia are the complexity of the tax system, inefficiency of tax authorities, lack of tax knowledge and awareness, negative perception of taxpayers, a negative act of tax assessors, absence of tax training, lack of transparency of tax system, arbitrary estimation of taxes, personal financial constraints, political instability and lack of timely tax audit.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2189559
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2189559
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Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2189559
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# input file: OAEF_A_2187128_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Omer Faruk Derindag
Author-X-Name-First: Omer Faruk
Author-X-Name-Last: Derindag
Author-Name: Bisharat Hussain Chang
Author-X-Name-First: Bisharat Hussain
Author-X-Name-Last: Chang
Author-Name: Raheel Gohar
Author-X-Name-First: Raheel
Author-X-Name-Last: Gohar
Author-Name: Wing-Keung Wong
Author-X-Name-First: Wing-Keung
Author-X-Name-Last: Wong
Author-Name: Niaz Ahmed Bhutto
Author-X-Name-First: Niaz Ahmed
Author-X-Name-Last: Bhutto
Title: Food prices response to global and national factors: Evidence beyond asymmetry
Abstract:
The current series of studies examine how local food prices are affected by domestic and international factors. This research advances the existing body of knowledge by examining this effect at different quantiles, frequencies, and times. We use research data from January 1999 to August 2022 using three local and six global variables as independent variables. Additionally, our study uses recent econometric methods, including Wavelet Coherence, Quantile-on-Quantile Regression (QQR), and Granger Causality in Quantiles (GCQ). Moreover, this research uses the Quantile Regression (QR) approach to determine how reliable the findings are. Based on the GCQ approach, the results demonstrate that the correlation persists at most of the quantiles. Moreover, the WC results demonstrate a substantial association between local prices of food and the independent factors across various frequencies and times. Additionally, QQR estimates demonstrate that the impact of exogenous variables on food prices vary among quantiles. These findings are also supported by the QR method. Last but not least, our study offers policy suggestions obtained based on the results of this study.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2187128
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2187128
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# input file: OAEF_A_2203435_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: George Okello Candiya Bongomin
Author-X-Name-First: George Okello Candiya
Author-X-Name-Last: Bongomin
Author-Name: Charles Akol Malinga
Author-X-Name-First: Charles
Author-X-Name-Last: Akol Malinga
Author-Name: Alain Amani Manzi
Author-X-Name-First: Alain
Author-X-Name-Last: Amani Manzi
Author-Name: Rebecca Balinda
Author-X-Name-First: Rebecca
Author-X-Name-Last: Balinda
Title: Agent liquidity: A catalyst for mobile money banking among the unbanked poor population in rural sub-Saharan Africa
Abstract:
A large body of research shows that mobile money through its agent networks can potentially increase financial inclusion, especially in the unbanked rural regions of the developing world. This study intends to establish whether agent liquidity has a significant moderating effect in the relationship between mobile money services and financial inclusion of the unbanked poor population in rural sub-Saharan Africa. The data were collected from mobile money users through a cross-sectional approach using a semi-structured quantitative questionnaire and Analysis of Moment Structures was used to test for the moderating effect of agent liquidity between mobile money services and financial inclusion. The results revealed a significant moderating effect of agent liquidity in the relationship between mobile money services and financial inclusion of the unbanked poor population in rural sub-Saharan Africa with data collected from rural Uganda. Agent liquidity enhances access to and usage of mobile money services by 27 percentage points to spur financial inclusion among the unbanked rural poor population. Similarly, agent liquidity has a direct significant effect on access to and usage of mobile money services among the unbanked rural poor population. Overall, the results showed that agent liquidity plays a significant and positive moderating role between mobile money services and financial inclusion. The findings from this study can help mobile money providers to increase cash float amounts to boost agent liquidity to meet instant cash-in and cash-out demands of customers. Besides, regulations on mobile money agents should be loosen to allow more village “dukas” (small village shops) to offer mobile money financial services to crowd-in more unbanked rural poor population.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2203435
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2203435
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# input file: OAEF_A_2172810_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Olufunmilayo Olayemi Jemiluyi
Author-X-Name-First: Olufunmilayo Olayemi
Author-X-Name-Last: Jemiluyi
Author-Name: Leward Jeke
Author-X-Name-First: Leward
Author-X-Name-Last: Jeke
Title: Tax revenue mobilization effort in Southern African Development Community (SADC) bloc: Does ICT matter?
Abstract:
In addition to performing their basic fiscal functions, governments in developing economies are constantly challenged by new and re-emerging socioeconomic issues such as insecurity, hunger, natural disaster, collapsing infrastructure and disease outbreaks. These piles of challenges have made the competition for limited resources fierce and hence the need to mobilize more funds. Bearing this in mind, this study explored the role of ICT in mobilizing tax revenue in a trade bloc made up of developing countries—Southern African Development Community (SADC). Using panel data of 12 member countries of the bloc between 2001 and 2020 within the Fully Modified OLS (FMOLS) framework, the estimated parameters of the employed measures of ICT (internet usage and mobile cellular) indicated that ICT has a statistically significant positive effect on tax revenue. The results are consistent for all categories of taxes examined including total tax revenue, taxes on goods and services, and taxes on income, profit and capital gains. Following the outcomes of this study, it is recommended that in addition to sound public finance policies, policies aimed at fostering digital automation of tax processes should be focal in revenue mobilization plans of member countries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2172810
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2172810
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# input file: OAEF_A_2225916_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tafirei Mashamba
Author-X-Name-First: Tafirei
Author-X-Name-Last: Mashamba
Author-Name: Shenaaz Gani
Author-X-Name-First: Shenaaz
Author-X-Name-Last: Gani
Title: Fintech, bank funding, and economic growth in Sub-Saharan Africa
Abstract:
The emergence of financial technology (Fintech) has greatly impacted the financial landscape in Sub-Saharan Africa (SSA) in recent years. The impact on bank funding and economic growth in the region cannot be ignored. This paper examines the extent to which Fintech has affected bank funding and economic growth in the region by utilizing data from 56 banks across 19 SSA economies between 2010 and 2020. The analysis was conducted using a covariance-based structural equation modeling method. The results show that Fintech disruptions have triggered an increase in equity funding for banks, while having negligible effects on deposit and long-term debt financing. The study also outlines that Fintech’s limited size within the financial system has ultimately restricted its effects on economic growth in SSA. Furthermore, the study did not find evidence of Fintech mediating the impact on economic growth via the bank funding channel, suggesting that SSA banking systems are capable of resisting Fintech disruptions for financial stability. Overall, these findings highlight the resilience of bank funding structures to Fintech disruptions, emphasizing the importance of prudent funding management and continued investment in Fintech for sustained economic growth in Sub-Saharan Africa. However, as Fintech continues to evolve and grow, policymakers should remain vigilant and monitor its impact on the financial system and economic growth in the region. By understanding the implications of Fintech on bank funding and economic growth in SSA, this paper contributes to the ongoing discussion on the potential benefits and challenges of technological innovations in the financial sector.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2225916
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2225916
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# input file: OAEF_A_2161774_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sulemana Mumuni
Author-X-Name-First: Sulemana
Author-X-Name-Last: Mumuni
Author-Name: Thomas Mwimba
Author-X-Name-First: Thomas
Author-X-Name-Last: Mwimba
Title: Modeling the impact of green energy consumption and natural resources rents on economic growth in Africa: An analysis of dynamic panel ARDL and the feasible generalized least squares estimators
Abstract:
The United Nations Sustainable Development Goals (SDGs) 7, 11, and 12 are all aimed at advancing green energy consumption in the fight against the three planetary crises facing the world today: climate change, biodiversity loss, and pollution. Besides, Africa has an abundance of natural resources, yet, the continent continues to witness slow growth and development compared to its counterparts. Therefore, this study, the first of its kind, simultaneously assesses the impact of green energy consumption and natural resources rents on economic growth by applying the dynamic panel ARDL and the Feasible Generalized Least Square (FGLS) estimators on data from 1990 to 2020 for 24 selected African countries. The results show that green energy consumption has a short-run growth-limiting and a long-run growth-enhancing effect in Africa. Also, CO2 emissions have both short- and long-run significant positive impacts on economic growth, while fossil fuel combustion negatively impacts growth both in the short and long run, albeit the effect is not significant in the long run. Similarly, regarding Africa’s natural resource rents’ impact on growth, the results show that total natural resource rents are growth-enhancing in the short run and growth-limiting in the long run. Additionally, both forest and mineral rents have a significant short-run negative impact on growth in Africa. However, in the long run, only the effect of mineral rent is growth-enhancing although generally not statistically significant. These findings provide relevant implications for policy shifts to enhance environmental sustainability, achieve sustainable economic growth, and ensure proper natural resources management in Africa.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2161774
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2161774
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# input file: OAEF_A_2174650_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Han Qing
Author-X-Name-First: Han
Author-X-Name-Last: Qing
Title: The role of public-private partnerships in selling, general, and administrative cost stickiness
Abstract:
Public-Private Partnerships (PPP) which promotes public welfare is greatly supported by the China government. The authority endorsements relax financial constraints and promote operation efficiency. Using a sample of 9,733 firm-years in the empirical study, it is found that companies participating in PPP projects are associated with greater selling, general, and administrative (SG&A) cost stickiness, and it is more prominent in companies with severe financial constraints. Meanwhile, SG&A cost stickiness is stronger in companies carrying PPP projects in provinces with great amount of PPP investments which alleviates hardship of the government by issuing debts. To verify the causal link between PPP and cost stickiness, it is found that PPP projects can reduce relative changes between productions and demands in companies, implying PPP improve the bargaining power against suppliers and the control of manufacturing cost. Typical PPP projects have great public interest that should be reinforced by high-quality construction and commitments on investments, thus the marginal stickiness brings out incremental social benefit. The overall actual performance of PPP projects in China is good.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2174650
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2174650
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# input file: OAEF_A_2220244_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Irwan Trinugroho
Author-X-Name-First: Irwan
Author-X-Name-Last: Trinugroho
Author-Name: Aldy Fariz Achsanta
Author-X-Name-First: Aldy Fariz
Author-X-Name-Last: Achsanta
Author-Name: Putra Pamungkas
Author-X-Name-First: Putra
Author-X-Name-Last: Pamungkas
Author-Name: Nugroho Saputro
Author-X-Name-First: Nugroho
Author-X-Name-Last: Saputro
Author-Name: Sari Yuniarti
Author-X-Name-First: Sari
Author-X-Name-Last: Yuniarti
Title: Democracy, economic growth, and income inequality: Evidence from province level data
Abstract:
Democracy is an essential aspect in national-level governance to safeguard human rights and provide equal distribution of wealth among citizens that are also expected to bolster more rapid economic growth. However, the extant literatures show mixed result in providing evidence of how democracy will impact economic growth. In this paper, we, therefore, empirically examine the impact of democracy on economic growth and income inequality at the regional level by studying provinces in Indonesia. A panel data estimation is employed with 335 province-year observations to test our empirical model covering 34 provinces. We find that overall democracy is a detrimental factor to regional economic growth as higher level of democracy needs substantial cost to finance. However, our study reveals that democracy help reduce inequality across provinces as it may open up the possibilities to get more education for marginalized people which then implies for higher income for those people. Several policy implications are discussed.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2220244
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2220244
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# input file: OAEF_A_2170000_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mohd Hammad Naeem
Author-X-Name-First: Mohd
Author-X-Name-Last: Hammad Naeem
Author-Name: Mohammad Subhan
Author-X-Name-First: Mohammad
Author-X-Name-Last: Subhan
Author-Name: Md Shabbir Alam
Author-X-Name-First: Md Shabbir
Author-X-Name-Last: Alam
Author-Name: Mamdouh Abdulaziz Saleh Al-Faryan
Author-X-Name-First: Mamdouh Abdulaziz Saleh
Author-X-Name-Last: Al-Faryan
Author-Name: Mohammad Yameen
Author-X-Name-First: Mohammad
Author-X-Name-Last: Yameen
Title: Examining the role of financial innovation on economic growth: Fresh empirical evidence from developing and developed countries
Abstract:
From an economic prospective, the relationship between financial innovation and economic growth has always been a critical aspect of the financial system. However, this relationship has not recieved extensive attention in academia. Therefore, this study examines the effect of financial innovation on economic growth in the context of developing and developed countries using 92 cross-sectional data over the period of 2002 to 2020, the fixed effect method of panel regression has been applied to examine the relationship between financial innovation and economic growth. This study has compared the results of developing and developed countries using different combinations of explanatory variables. The results of this study depict that various combinations of variables have varied impacts on dependent variable. This study has revealed the negative relationship between financial innovation and economic growth. However, domestic credit to private sector banks has the best proxy for financial innovation. This study suggests that regulators should focus on encouraging and discouraging financial innovation based on its impact on the economy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2170000
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2170000
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# input file: OAEF_A_2162689_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Peter Nderitu Githaiga
Author-X-Name-First: Peter Nderitu
Author-X-Name-Last: Githaiga
Author-Name: Andrew Wenani Kilong’i
Author-X-Name-First: Andrew Wenani
Author-X-Name-Last: Kilong’i
Title: Foreign capital flow, institutional quality and human capital development in sub-Saharan Africa
Abstract:
This study investigates the moderating effect of institutional quality on the relationship between foreign capital flow and human capital development in sub-Saharan Africa. The study uses a sample of 34 countries in sub-Saharan Africa and data for 2009 to 2019. Human capital development is measured using the Human Development Index (HDI). To control for endogeneity, the study uses the system generalized method of moments (GMM) estimator. The results demonstrate a positive relationship between remittances, foreign direct investment (FDI), institutional quality and human capital development. Official development assistance (ODA), on the other hand, has a negative and significant effect on human capital development. The findings further reveal that the effect of remittances and FDI on the human capital development is moderated by the institution’s quality. However, the effect of ODA on the development of human capital is not influenced by institutional quality. Findings from the study provide valuable insights to policymakers. This study highlights the importance of remittances and FDI in stimulating human capital development in sub-Saharan Africa. Additionally, the study reveals the harmful impact of official development on human capital development that necessitates policy interventions. Drawing on these findings, policymakers should undertake policy reforms to improve the quality of institutions and enhance the impact of foreign capital flows on human development. This study offers two contributions. First, the study fills a vacuum in the literature by focusing on the relationship between foreign capital flow, institutional quality, and the development of human capital in sub-Saharan Africa. Second, the SSA is one of the developing nations that has seen a significant brain drain because of widespread migration to industrialized nations. Therefore, it is necessary to investigate how much foreign capital flows through the development of human capital contribute to the socio-economic change of the region.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2162689
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2162689
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# input file: OAEF_A_2175458_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Arif Lukman Santoso
Author-X-Name-First: Arif Lukman
Author-X-Name-Last: Santoso
Author-Name: Fakarudin Kamarudin
Author-X-Name-First: Fakarudin
Author-X-Name-Last: Kamarudin
Author-Name: Bany Ariffin Amin Noordin
Author-X-Name-First: Bany Ariffin
Author-X-Name-Last: Amin Noordin
Author-Name: Lau Wei Theng
Author-X-Name-First: Lau
Author-X-Name-Last: Wei Theng
Title: Islamic ethics commitment and bank outcomes: Evidence in South East Asia
Abstract:
Ethical values in corporations and businesses are inseparable. Religious norms revise the system and economic law as a code of ethics and discipline applied to solve moral problems in business. This study analyzes the disclosure of Islamic Ethics commitment in the annual report of Islamic banking in South East Asia and the effect on Bank Outcomes. Bank Outcomes in this study are financial performance and business risk during 2012–2019. This study used 29 full-fledged Islamic banks in Southeast Asia. The results showed that Islamic Ethics Commitment (IEC) positively affects financial performance, measured by return on asset (ROA). However, if ROE measures financial performance, IEC does not correlate. The IEC also negatively correlates with business risk measured by banks’ liquidity and financing risk (Deposit to Asset ratio and Non-Performing Financing). The test is robust when financial performance is measured by banks’ Net Interest Margin (NIM), and the financing-to-deposit ratio (FDR) measures business risk.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2175458
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2175458
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# input file: OAEF_A_2167356_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Esat Durguti
Author-X-Name-First: Esat
Author-X-Name-Last: Durguti
Author-Name: Erëza Arifi
Author-X-Name-First: Erëza
Author-X-Name-Last: Arifi
Author-Name: Emine Gashi
Author-X-Name-First: Emine
Author-X-Name-Last: Gashi
Author-Name: Muhamet Spahiu
Author-X-Name-First: Muhamet
Author-X-Name-Last: Spahiu
Title: Anti-money laundering regulations’ effectiveness in ensuring banking sector stability: Evidence of Western Balkan
Abstract:
The paper aims to provide an in-depth understanding of the effectiveness of anti-money laundering (AML) regulations in measuring banking sector stability in Western Balkan countries, as well as to explore the possibility of enhancing banking sector policy and performance. The study employs a quantitative methodology created on secondary data from 2012 to 2021. The data analysis methodology incorporates static and dynamic approaches to examine the banking sector stability using OLS and 2SLS. The results of the study show that the tight $${\rm{AM}}{{\rm{L}}_{{\rm{i}},{\rm{t}}}}$$AMLi,t implementation of both approaches has a positive and statistically significant impact on the banking sector stability ($${\rm{BSS}}$$BSS). The value of the paper is unique in that it applies the most recent data in this field for Western Balkans countries, and it brings benefits for a better understanding of the effectiveness of $${\rm{AML}}$$AML regulations. The research will encourage fruitful discussion among policymakers, practitioners, researchers, and financial institution executives.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2167356
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2167356
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# input file: OAEF_A_2153412_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Oluwatoyin Esther Akinbowale
Author-X-Name-First: Oluwatoyin Esther
Author-X-Name-Last: Akinbowale
Author-Name: Heinz Eckart Klingelhöfer
Author-X-Name-First: Heinz Eckart
Author-X-Name-Last: Klingelhöfer
Author-Name: Mulatu Fekadu Zerihun
Author-X-Name-First: Mulatu Fekadu
Author-X-Name-Last: Zerihun
Title: Application of forensic accounting techniques in the South African banking industry for the purpose of fraud risk mitigation
Abstract:
The purpose of this study is to investigate the application of forensic accounting techniques in relation to fraud risk mitigation. This study employed an explanatory research design and a qualitative approach accompanied with a purposive sampling method. A primary data source was devised with a focus on the 17 licensed commercial banks registered in South Africa. By obtaining a true reflection of the situations in the banks, a conclusion was drawn following the outcome of the inferential statistical analysis. The research was conducted at the individual and organisational levels, with the bank consultants presenting their views. One hypothesis was formulated and non-parametric statistical analyses involving the use of Chi-square test, Fisher's Exact test and Spearman’s correlation were carried out. The results obtained substantiate that the loopholes created as a result of non-effective application of forensic techniques are partly responsible for some cyberfraud incidents in the banking industry. There is no sufficient evidence to ascertain whether the fraud risk assessment and management in the banking industry has a relationship with the effective application of forensic accounting techniques in terms of the identified causes of cyberfraud. However, the findings establish a positive correlation between fraud risk assessment and management as it relates to forensic accounting implementation. This study provides an insight into the significance of forensic accounting applications for fraud risk mitigation. There is still a death of information regarding the forensic accounting for fraud risk mitigation; hence, it is envisaged that this study will add to the existing literature in this regard.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2153412
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2153412
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# input file: OAEF_A_2210914_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jean Tony Ezako
Author-X-Name-First: Jean Tony
Author-X-Name-Last: Ezako
Title: “Analyze of inflation and economic growth relationship in Burundi”
Abstract:
The objective of this paper was to analyse the relationship between inflation and economic growth in Burundi and to determine whether there is an inflation threshold or not to allow monetary authority to adopt the optimal policies to deal with shocks. With annual data from 1990 to 2020, the ARDL approach is adopted to assess the short and long run relationship between inflation and economic growth. The results showed a negative and significant relationship in the short run between inflation and economic growth, and a positive and significant relationship between investment, household consumption, and exchange rate with economic growth in the long run. Moreover, with the conditional least square (CLS) method used to determine the threshold, an inflation threshold of 13% above which inflation is harmful to growth by 3.7% was found. In addition, two stage least square (2SLS) was used for robustness checking and yielded the same results. We recommend to policy makers to target an inflation ceiling of 13%, to coordinate the various policies, whether monetary, budgetary and fiscal, and to promote investment and improve the structure of production.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2210914
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2210914
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# input file: OAEF_A_2207928_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Alula Tafesse
Author-X-Name-First: Alula
Author-X-Name-Last: Tafesse
Author-Name: Samuel Dema
Author-X-Name-First: Samuel
Author-X-Name-Last: Dema
Author-Name: Abrham Belay
Author-X-Name-First: Abrham
Author-X-Name-Last: Belay
Title: Irrigated Onion Production Efficiency in Humbo District, Southern Ethiopia
Abstract:
The study sought to establish the level of technical, allocative, and economic efficiencies in irrigated onion production in southern Ethiopia, as well as to identify the sources of inefficiencies. The cross-sectional data were obtained from a total of 165 random onion farmers selected from the Humbo area. The parametric stochastic frontier model was used to estimate technical, allocative, and economic efficiency levels, whilst the two-limit Tobit model was utilized to identify determinants of inefficiencies. The data acquired suited the Cobb-Douglas (CD) production function, with land, labor, fertilizer, and chemicals as input factors that had a positive and significant influence on irrigated onion production. The sampled onion farmers’ technical, allocative, and economic efficiencies were determined to be 77, 88, and 68%, respectively. The model results indicated that the age of the farmers, years of education, and total farm financial gain were identified as important sources of irrigated onion production inefficiencies in the research area. The mean technical efficiency levels indicate that irrigated onion producer farmers in the research area may raise their output by 23% with present inputs and technology. Alternatively, farmers will reduce their average production price by 12% while maintaining the current level of output. It is based on this that there is room to improve the efficiency of irrigated onion production. Therefore, the government’s policies and actions should focus on timely and quality agricultural input supply for onion farmers and backing them through availing of formal and informal educational services.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2207928
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2207928
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# input file: OAEF_A_2186046_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hinsene Lemma Wegari
Author-X-Name-First: Hinsene Lemma
Author-X-Name-Last: Wegari
Author-Name: Sisay Tolla Whakeshum
Author-X-Name-First: Sisay Tolla
Author-X-Name-Last: Whakeshum
Author-Name: Negese Tamirat Mulatu
Author-X-Name-First: Negese Tamirat
Author-X-Name-Last: Mulatu
Title: Human capital and its impact on Ethiopian economic growth: ARDL approach to co-integration
Abstract:
Maintaining human capital at an optimal level is among the important mechanisms for ensuring steady economic growth. This study aims to examine the impact of human capital on Ethiopia’s economic growth. The study used the ARDL model applying annual data for the period 1980 to 2020. The ARDL-bound test was used to evaluate the presence of con-integration between human capital and independent variables. The study also applied the augmented Dickey-Fuller and Phillips-Perron unit root tests to check the stationarity of the variables. The test result presented that almost all variables become stationary after the first difference. Accordingly, the result from the bound test indicated the existence of a long-run relationship between the dependent variable and independent variables entered into the model. The estimated error correction model with a − 0.9528 coefficient also confirmed the existence of co-integration with a high speed of adjustment towards the long-run equilibrium. In the long-run real GDP, education expenditure, health expenditure, labor force, gross capital formation, total government expenditure, official development assistance, secondary school enrolment, consumer price index, drought, and policy change have astable long-run connection. The finding indicates an increasing ratio of health expenditure and secondary school enrollment should be designed, among others, to contain improved human capital in Ethiopia.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2186046
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2186046
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# input file: OAEF_A_2175465_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Minati Sahoo
Author-X-Name-First: Minati
Author-X-Name-Last: Sahoo
Author-Name: Kailash B.L. Srivastava
Author-X-Name-First: Kailash B.L.
Author-X-Name-Last: Srivastava
Author-Name: Neeraj Gupta
Author-X-Name-First: Neeraj
Author-X-Name-Last: Gupta
Author-Name: Sachin Kumar Mittal
Author-X-Name-First: Sachin Kumar
Author-X-Name-Last: Mittal
Author-Name: Priti Bakhshi
Author-X-Name-First: Priti
Author-X-Name-Last: Bakhshi
Author-Name: Tarun Agarwal
Author-X-Name-First: Tarun
Author-X-Name-Last: Agarwal
Title: Board meeting, promoter CEO and firm performance: Evidence from India
Abstract:
The study examined the relationship between board characteristics and firm performance and the moderating effects of firm size, the board size, and firm age between board characteristics and firm performance. This study considers the legal reforms implemented after the Indian Companies Act 2013. Data from 113 firms with 904 observations from 2012–13 to 2019–20 were analyzed using the fixed panel data estimation approach. A subsample analysis is employed, dividing the data by firm size, the board size, and firm age to test the robustness of the results. The results show that the board size, female director, Promoter CEOs, meeting frequencies, and attendance rate positively affect firm performance. At the same time, the impact of the independent directors and busy CEO has a negative impact on performance. Male CEOs are beneficial for firm performance. The study adds to the literature by identifying critical board characteristics in light of ongoing regulatory reform in emerging economies like India. It has implications for regulators and policymakers who are entrusted with the framing of corporate governance policies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2175465
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2175465
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# input file: OAEF_A_2189671_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hansen Tandra
Author-X-Name-First: Hansen
Author-X-Name-Last: Tandra
Author-Name: Arif Imam Suroso
Author-X-Name-First: Arif Imam
Author-X-Name-Last: Suroso
Title: The determinant, efficiency, and potential of Indonesian palm oil downstream export to the global market
Abstract:
This study aims to investigate the determinants, efficiency, and potential of Indonesian palm oil downstream exports to the global market during 2012–2020. The stochastic frontier gravity model (SFGM) has been used to estimate the determinants, efficiency, and potential of palm oil downstream exports. The determinants show that the gross domestic product (GDP) importer, Indonesia’s GDP per capita, the bilateral exchange rate, colonialization, and World Trade Organization (WTO) membership have a positive and significant impact on Indonesia’s palm oil downstream exports. Nevertheless, there are negative and significant effects from Indonesia’s GDP, geographical distance between Indonesia and trading partners, the importer’s GDP per capita, and landlocked countries. In addition, the results reveal that no destination countries have maximum efficiency. Moreover, Indonesia has 148 countries that can be classified as trade potential growth in the global market. Therefore, there is a vast potential for the export of Indonesian palm oil downstream in the global market.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2189671
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2189671
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# input file: OAEF_A_2210915_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Kindineh Sisay
Author-X-Name-First: Kindineh
Author-X-Name-Last: Sisay
Author-Name: Tessema Toru
Author-X-Name-First: Tessema
Author-X-Name-Last: Toru
Title: Households’ willingness to pay for the restoration of degraded forest: empirical evidence from Dengego model tree-based restoration project site, Haramaya District, Ethiopia
Abstract:
Forests are admitted as a home for many inestimable goods and services that have an economic value for people living around. However, now a day, due to unsustainable utilization, different destructive human activities and natural phenomena’s, most forest resources and their benefits become highly deteriorated from time to time. Hence, this study aimed in estimating households’ willingness to pay for the intervention of forest restoration is found to be a vital step for priority setting in its sustainable management. For doing so, data’s were collected from 226 randomly selected households of Haramaya district, Oromia National Regional State, Ethiopia. For analyzing the collected data, descriptive statistics, inferential statistics and econometric models such as, bivariate probit and seemingly unrelated bivariate probit models were used. The result from 221 valid responses showed that 196 (88.69%) households were willing to contribute for the restoration whereas the remaining 25 (11.31%) households were not. This asserts that the proposed intervention was highly accepted by the majority of the sampled households hence they are more willing to sustain it. Following the seemingly unrelated bivariate probit parameter estimate, the mean WTP was about 439 Ethiopian birr per year, per household. Accordingly, by using this mean willingness to pay value, the welfare gain from the intervention (forest restoration and its management) for the study district (Haramaya) was computed to be 23,269,634 Ethiopian birr per year. Moreover, as the bivariate probit model results indicate, the probability of willingness to pay was positively and significantly affected by variables such as, sex, frequency of extension contact, land certificate, livestock holding, and slope of the land whereas, age, off/non-farm income, initial bid value (bid1), size of own land and farm experience affected willingness to pay negatively and significantly. Hence, to improve the participation level of the households, policy makers should target on these variables.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2210915
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2210915
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# input file: OAEF_A_2210855_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Albert Ayi Ashiagbor
Author-X-Name-First: Albert Ayi
Author-X-Name-Last: Ashiagbor
Author-Name: Raymond Dziwornu
Author-X-Name-First: Raymond
Author-X-Name-Last: Dziwornu
Author-Name: Aku Vivian Gbade
Author-X-Name-First: Aku Vivian
Author-X-Name-Last: Gbade
Author-Name: kwasi Offei-Kwafo
Author-X-Name-First: kwasi
Author-X-Name-Last: Offei-Kwafo
Author-Name: Gagakuma Liticia
Author-X-Name-First: Gagakuma
Author-X-Name-Last: Liticia
Title: Measuring efficiency and productivity changes: A non-parametric analysis of Ghanaian life insurance industry
Abstract:
Efficiency and productivity measurement in the insurance industry has attracted great interest from academicians, practitioners, financial market analysts, insurance regulators, and researchers; however, the near absence of empirical work on the productivity changes of the life insurance industry in Ghana poses management challenges. The main objective of this paper is to measure the efficiency and productivity changes in the life insurance industry in Ghana. The Ghana National Insurance Commission’s annual report data was used in this study. We employ the non-parametric Malmquist productivity change indices and the bootstrap technique to measure the productivity changes of a sample of 19 out of 20 Ghanaian life insurance firms for the period 2015–2020. The empirical results show that the level of output-oriented technical inefficiency of the life insurance industry in Ghana is approximately 17% over the period 2015–2020. This result provides us with a general guide to identify the periods in which the industry is most and least technically efficient. Also, our findings show that the estimate of total productivity changes has retrogressed about 13% over the period in the Ghanaian life insurance industry. We further identified that the deterioration in the productivity is due to efficiency changes. The decomposition of the technological changes also reveals that the life insurance industry did not benefit from pure scale efficiency. This study contributes by encouraging the policy makers and managers of life insurance firm to use scarce resources efficiently and productively in order to stay in business.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2210855
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2210855
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# input file: OAEF_A_2170766_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Serebour Quaicoe
Author-X-Name-First: Serebour
Author-X-Name-Last: Quaicoe
Title: Elections, economic development and debt servicing in Africa
Abstract:
Despite the growing public debate on fiscal surprise during election periods in jurisdictions where the democratic dispensation is young, comprehensive empirical works to this effect in the case of Africa are hard to find. This study, therefore, sought to contribute to the debate on two counts. First, the study examines the effect of elections on debt servicing in Africa. Second, the study investigates the joint effect of economic development and elections on debt servicing in Africa. Using data drawn from the World Bank’s World Development Indicators over the period 1985–2015 for 43 African countries, the study provides evidence from the dynamic system GMM and the ordinry least squares estimators to show that— (1) election periods are associated with lower debt servicing in Africa, and (2) economic development is significant in enhancing debt servicing commitments even in election periods. Policy recommendations are provided in line with the growing levels of debt accumulation and unemployment in Africa.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2170766
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2170766
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# input file: OAEF_A_2197322_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sylvester N. Ayambila
Author-X-Name-First: Sylvester N.
Author-X-Name-Last: Ayambila
Author-Name: Umar Adam
Author-X-Name-First: Umar
Author-X-Name-Last: Adam
Author-Name: Benjamin Tetteh Anang
Author-X-Name-First: Benjamin
Author-X-Name-Last: Tetteh Anang
Title: The determinants of non-traditional agricultural exports’ growth in Ghana
Abstract:
The Nontraditional Agricultural Exports (NTAE) sub-sector is a key contributor to agricultural gross domestic product (GDP) in several developing countries. It has the potential to create jobs and contribute to enhancing food and nutrition security, hence an important pillar to the economies of several countries including Ghana. This study, therefore, examines the factors driving the growth of nontraditional agricultural exports in Ghana using an Autoregressive Distributive Lag (ARDL) model. The study was based on secondary data from the World Development Indicators (WDI) and Food and Agriculture Organization (FAO). The study identified real GDP to be a significant determinant of NTAE’s growth in both contemporaneous and lag forms. Other variables including inflation, gross capital formation and foreign direct investment influence NTAE’s growth through their lag values. Exchange rate, inflation and RGDP significantly determine the growth of NTAEs in the long-run. The study further identified a co-integrating relationship between NTAE and other explanatory variables. The Error Correction Model showed an adjustment speed of 0.41, indicating that 41% adjustment will occur within the first year and it will take 2.4 years for the system to return to equilibrium in the long-run. Based on the findings, the study recommends that Ghana Export Promotion Authority (GEPA) adopts promotional strategies including providing incentive packages to farmers, exhibitions and trade fairs to curtail the declining trend in the growth of the NTAE’s sector. The Ministry of Food and Agriculture (MoFA) should educate farmers on the use of acceptable agronomical practices in the production field. Lastly, Ghana Investment Promotion Center (GIPC) and MoFA should collaborate to identify strategic areas for domestic support and foreign direct investment in the NTAE’s sub-sector to ensure it grows and contributes towards socio-economic development in Ghana.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2197322
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2197322
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# input file: OAEF_A_2188713_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Christos Sigalas
Author-X-Name-First: Christos
Author-X-Name-Last: Sigalas
Title: Impact of COVID-19 lockdowns on retail stock trading patterns
Abstract:
The purpose of this paper is to explore the impact of the first wave of COVID-19 lockdowns on retail stock trading patterns, at a transnational level. Cross-sectional empirical research was utilized with five samples of public companies from the US, Europe, Asia, and blended equity capital markets globally. The impact of the first wave of COVID-19 lockdowns on stock trading patterns was investigated using median tests and the factors that influence retail stock trading were explored with regression analyses. Contrary to the conventional proposition that stock trading activity is reduced during times of crisis, the results of this study indicate that retail stock trading increased during the first wave of COVID-19 lockdowns. In addition, the findings raise awareness of the risks to novice retail investors associated with the increased stock trading due to herd behavior.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2188713
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2188713
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# input file: OAEF_A_2215086_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Emmanuel Abokyi
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Abokyi
Author-Name: Kofi Fred Asiedu
Author-X-Name-First: Kofi Fred
Author-X-Name-Last: Asiedu
Title: Measurement of the impact of buffer stock intervention on food security of smallholder farmers in Ghana by means of the nutrient-content household dietary diversity index
Abstract:
Buffer stock intervention is a hedging policy against income losses due to price fluctuations, primarily from farming activities, notably the production of cereals. This paper investigates the impact of buffer stock intervention on smallholder farmers’ food security in Ghana. To this end, the motivation was to estimate the nutrient-content household dietary diversity index (NHDDI) based on a cross-sectional data set. We apply Coarsened Exact Matching, Weighted Least Squares, and Weighted Ordered Probit analysis as econometric methods. We find that marital status, gender, education, and income positively impact food security, while the household size and the number of children under five years old have a negative impact. We also find that income and education, which have a positive direct impact on food security, have a mitigating effect on the negative impact of children under five years. The most important finding is that participation in the buffer stock operations improves the household food security of participating smallholder farmers. NAFCO in its present form has positive effects on food security for participants, positive but smaller price effects for non-participating smallholder farmers, and negative effects for consumers at large. The latter effect could be reduced by implementing a buffer stock policy consisting of buying during the glut and selling when supply is tight.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2215086
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2215086
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# input file: OAEF_A_2166211_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Frank Adu
Author-X-Name-First: Frank
Author-X-Name-Last: Adu
Author-Name: Imhotep Paul Alagidede
Author-X-Name-First: Imhotep Paul
Author-X-Name-Last: Alagidede
Author-Name: Dennis Boahene Osei
Author-X-Name-First: Dennis Boahene
Author-X-Name-Last: Osei
Author-Name: Michael Effah Asamoah
Author-X-Name-First: Michael Effah
Author-X-Name-Last: Asamoah
Title: Asymmetric effect of tax systems on poverty and inequality: Exploring the distributional impact of domestic resource mobilization systems in Ghana
Abstract:
Earlier studies have assumed the effect of tax systems on poverty and inequality to be symmetric by imposing linear specifications. In this study, we account for possible asymmetries by re-examining the effect of tax systems on poverty and inequality in Ghana. We rely on the Nonlinear Autoregressive Distributed Lag (NARDL) estimation techni que and time-series data from 1983 to 2016. The findings revealed that, while the nexus between tax systems and poverty is asymmetric, the reverse holds for the relationship between tax systems and inequality. Specifically, we establish that, while positive (negative) shocks in direct taxes raise (reduce) the level of poverty, the shocks in indirect and overall tax systems produce negative results. Moreover, the symmetric evidence is observed only for indirect taxes and inequality in the long-run, and the relationship is positive. We recommend for a poverty reduction strategy that is centered on tax reduction at all levels. Equally important is a policy that has a firm foundation in the indirect tax system to bridge the inequality in Ghana.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2166211
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# input file: OAEF_A_2182034_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hayleslasie Tsegay Aregawi
Author-X-Name-First: Hayleslasie Tsegay
Author-X-Name-Last: Aregawi
Author-Name: B.C.M Patnaik
Author-X-Name-First: B.C.M
Author-X-Name-Last: Patnaik
Title: Impact of Government Intervention on Manufacturing Enterprises Innovation level, in Ethiopia
Abstract:
Besides alert devastation situation of Small Manufacturing Enterprises (SMEs) in the country, what support receives from the government, banking, microFinance institutions, technology transfer and their role in the local economic development are the main issues that need to be addressed. Hence, the main objective of the study is to evaluate the impact of government intervention on the Small Manufacturing Enterprises Innovation level in Tigray, Ethiopia. For this purpose, we conducted a survey of 464 small manufacturing enterprise (textile and garment, metal and wood works, input for construction, chemical products, jewellery, and agro-processing sectors) owners. The study is, stressed the primary data, adopt a Cross-sectional survey study with a mixed research approach, and the types of research are explanatory. Multistage cluster sampling was applied to select each business owner. Descriptive statistics, chi-square test, propensity score matching and logistic regression were relayed for the analysis part with the help of Stata version 12. The average score innovation level of the enterprise is found at 2.89 which is assembled under the low innovators in the sample of the enterprise analyzed. Innovations activity has performed with the highest score level in the customer dimension. With regard to the PSM estimated, government intervention plays a significant role in utilizing innovation and technology transfer. Likewise, in a binary logistic regression, the study found that the intervention of the program has a positive effect on the innovation process dimension. Before and after matching, the findings of both models are similar in terms of the owner’s innovation of offering dimension, solution dimension, customer dimension, and value capture, which is positive and significant. Designing a new government policy intervention of Small Manufacturing Enterprises is among the resolutions to be applied by the government for purpose of productivity enhancement, self-employability, sustainability of the business and transforming to produce innovative products to replace imported goods.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2182034
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# input file: OAEF_A_2207266_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: John Fry
Author-X-Name-First: John
Author-X-Name-Last: Fry
Author-Name: Olamide Ibiloye
Author-X-Name-First: Olamide
Author-X-Name-Last: Ibiloye
Title: Towards a taxonomy for crypto assets
Abstract:
We explore the taxonomy of cryptocurrencies and integrate our analysis with traditional ways of understanding financial assets. We thus classify cryptocurrencies using the time series and distributional properties of returns. Cryptocurrencies appear inherently speculative in nature. The result is even more clear cut when time series measures of distance are used. Results tally with wider concerns raised regarding excessive volatility of stablecoins.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2207266
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2207266
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# input file: OAEF_A_2175459_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tamisai Chipunza
Author-X-Name-First: Tamisai
Author-X-Name-Last: Chipunza
Author-Name: Senia Nhamo
Author-X-Name-First: Senia
Author-X-Name-Last: Nhamo
Title: Fiscal capacity and public health expenditure in Zimbabwe
Abstract:
Public healthcare financing is important for achieving one of the 2030 Sustainable Development Goals (SDGs), the goal of healthy living and well-being (SDG3). Understanding the impact of fiscal capacity on public healthcare financing helps in assessing the government’s commitment towards attaining SDG3. The study sought to investigate the relationship between fiscal capacity and public health expenditure in Zimbabwe. An Autoregressive Distributed Lag (ARDL) model was estimated using annual time series data for the period 1980–2017. The results of the ARDL model were validated using the Fully Modified Ordinary Least Squares (FMOLS) and Canonical Cointegrating Regression (CCR) methods. The study found that fiscal capacity (measured as the ratio of tax revenue to GDP) impacted positively on public health expenditure. The results suggest that following an improvement in resources, the government prioritised the health sector. The study recommends that the government continues to prioritise health in the national budget to enhance the country’s achievement of SDG3.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2175459
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2175459
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# input file: OAEF_A_2186042_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mohammed T. Abusharbeh
Author-X-Name-First: Mohammed T.
Author-X-Name-Last: Abusharbeh
Title: Modeling the factors of portfolio at risk for microfinance institutions in Palestine
Abstract:
The main objective of this paper is to examine the determinants of portfolio at risk in Palestine by analyzing the impact of macroeconomic and micro-level factors on credit risk for microfinance institutions during the period of 2010–2020. This study includes five regulated MFIs using generalized method of moment estimator. The findings indicate that portfolio at risk is more sensitive to the institutional factors and economic cycle. The operating efficiency and number of loan officers have positive and significant effect on credit risk. However, growth in GDP and number of active borrowers have negative and significant effect on credit risk. But, no evidence supports the impact of inflation and interest rate on vulnerability of credit risk. The conclusion presented may be useful for MFI directors and regulators in timely repayments and credit risk control. Overall, our ample evidence suggests that MFIs directors should consider the influence of institutional factors on their investment and credits decisions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2186042
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2186042
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# input file: OAEF_A_2175470_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Fitri Yeni
Author-X-Name-First: Fitri
Author-X-Name-Last: Yeni
Author-Name: Sitti Rizki Mulyani
Author-X-Name-First: Sitti Rizki
Author-X-Name-Last: Mulyani
Author-Name: Susriyanti Susriyanti
Author-X-Name-First: Susriyanti
Author-X-Name-Last: Susriyanti
Title: Islamic financial literacy, spiritual intelligence, public perception and behaviour on public interest in Islamic banking services
Abstract:
This study aimed to determine the effect of Islamic financial literacy, spiritual intelligence, public perception, and behaviour on public interest in Islamic banking services. This research is classified as quantitative research. Islamic financial literacy, spiritual intelligence, and public perception are independent variables. Public behaviour as a mediating variable. The population in this study is the entire community in Padang city who are already customers of Islamic banks. The sample is determined by the Hair method, five times the number of indicators, where the number of indicators is 46 items. The number of respondents in this study was 230 people. Data analysis using structural equation model by using Smart-PLS. The results show Islamic financial literacy and public perception have no significant effect on public interest in Islamic banking services. However, spiritual intelligence has a positive and significant effect on public interest in Islamic banking services. Public behaviour fully mediates the relationship between public perception and public interest in Islamic banking services. Islamic banking is expected to be able to educate prospective customers through increasing spiritual intelligence. Public behaviour can be improved with the religiosity community, thereby increasing interest in saving in Islamic banks.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2175470
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2175470
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# input file: OAEF_A_2178123_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Anisa Dwi Utami
Author-X-Name-First: Anisa Dwi
Author-X-Name-Last: Utami
Author-Name: Harianto Harianto
Author-X-Name-First: Harianto
Author-X-Name-Last: Harianto
Author-Name: Bayu Krisnamurthi
Author-X-Name-First: Bayu
Author-X-Name-Last: Krisnamurthi
Title: Exploring the pattern of price interdependence in rice market in Indonesia in the presence of quality differential
Abstract:
Being the main food commodity, the dynamics of rice prices is one of the most important issues for Indonesian economy. The prices at the retail level and at the farm level are influenced not only by the demand and supply in each of these markets but also by price behavior at the wholesale market. This study aims to analyse the dynamics of the relationship and behaviour of the prices of various varieties and qualities of rice in the wholesale market. The dynamics of rice prices are investigated by employing multivariate vector error correction model (VECM) and using daily price series at wholesale level during the period of 1 October 2014 until 12 February 2018. The results show a strong price relationship between premium-quality rice and medium-quality rice and between medium-quality rice and low-quality rice. Changes in the price of premium-quality rice and changes in the price of low-quality rice will have a large influence on the price of medium quality rice, but not vice versa. Furthermore, regarding the price stabilization policy, the results suggested that the policies aimed at regulating medium-quality rice prices are estimated to have relatively weak effects on the prices of premium-quality rice and low-quality rice.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2178123
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2178123
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# input file: OAEF_A_2203436_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Fan Fei
Author-X-Name-First: Fan
Author-X-Name-Last: Fei
Author-Name: Jianing Zhang
Author-X-Name-First: Jianing
Author-X-Name-Last: Zhang
Title: Chinese stock market volatility and herding behavior asymmetry during the COVID-19 pandemic
Abstract:
The primary purpose of this paper is to explore the herding behavior in the Chinese stock market during COVID-19 and the asymmetry of that behavior using the daily returns of A- and B-shares from 2 January 2019, to 15 October 2021. The study uses the cross-sectional absolute deviation model to analyze stock market herding behavior by non-linear polynomial regression. We show that the herding behavior in the Chinese stock market is more prominent during the COVID-19 pandemic. Herding behavior has a negative effect on stock market volatility. Moreover, such a suppressing effect weakened during the COVID-19 pandemic. There is an asymmetry in herding behavior during the bull and bear markets, which is helpful in our investigation of the market’s volatility during the COVID-19 pandemic. The pronounced asymmetry in the herding behavior of the Chinese stock market during COVID-19 is assessed using the E-GARCH (p, q) model. The empirical results of the present study contribute to the literature about herding asymmetry by showing the herding behavior during the health crisis and bull and bear markets. It also helps reconcile the debate about the impact of herding on market stability and provides insightful guidance for investors wishing to invest in the Chinese stock market.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2203436
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2203436
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# input file: OAEF_A_2183640_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chiang-Ching Tan
Author-X-Name-First: Chiang-Ching
Author-X-Name-Last: Tan
Author-Name: Pick-Soon Ling
Author-X-Name-First: Pick-Soon
Author-X-Name-Last: Ling
Author-Name: Siew-Ling Sim
Author-X-Name-First: Siew-Ling
Author-X-Name-Last: Sim
Author-Name: Kelvin Lee Yong Ming
Author-X-Name-First: Kelvin Lee Yong
Author-X-Name-Last: Ming
Title: Hedge and safe-haven properties of Cryptocurrencies: evidence in east asia-5 market
Abstract:
This study examined the capabilities of six cryptocurrencies as a hedge and safe haven against the stock indices and foreign exchange rate in the East Asia-5 markets. According, MGARCH-DCC was adopted and implemented in data collection processes together with Rathner and Chiu regression method, which spanned from April 2013 to December 2019. The results revealed that these cryptocurrencies had dissimilar hedging and safe haven capabilities across various stock indices and exchange rates in the East Asia-5 markets. In particular, Bitcoin, Litecoin, and Ethereum offered strong hedge properties on most of the East Asia-5 equity indices. Moreover, Bitcoin and Litecoin only provided a safe haven for Japanese Yen currency, while Taiwanese equity indices and Chinese Yuan currency can be safely protected via an investment into Stellar.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2183640
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2183640
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# input file: OAEF_A_2190212_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Dao Ha
Author-X-Name-First: Dao
Author-X-Name-Last: Ha
Author-Name: Yen Nguyen
Author-X-Name-First: Yen
Author-X-Name-Last: Nguyen
Title: Institutional quality’s influence on financial inclusion’ impact on bank stability
Abstract:
Using the Generalized Method of Moments (GMM), this study examines the influence of institutional quality on the impact of financial inclusion on the stability of 157 banks in 8 ASEAN countries from 2010 to 2020. The results show that financial inclusion negatively hurts bank stability, and this effect will be improved if it is implemented in an environment of good institutional quality. This is verified again in terms of institutional quality aspects. Corruption control, political stability, government efficiency, and the rule of law have positive effects, while regulatory quality has negative effects. The results are consistent across all three measures of bank stability, Zscore, standardized Zscore, and non-performing loans (NPL). With the above results, the study recommends that national governments take steps to improve institutional quality to increase the stability of banks in promoting financial inclusion.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2190212
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2190212
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# input file: OAEF_A_2202048_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sehar Saleem
Author-X-Name-First: Sehar
Author-X-Name-Last: Saleem
Author-Name: Maria Aslam
Author-X-Name-First: Maria
Author-X-Name-Last: Aslam
Author-Name: Rehan Ahmad Khan Sherwani
Author-X-Name-First: Rehan Ahmad Khan
Author-X-Name-Last: Sherwani
Author-Name: Atif Khan Jadoon
Author-X-Name-First: Atif Khan
Author-X-Name-Last: Jadoon
Author-Name: Ambreen Sarwar
Author-X-Name-First: Ambreen
Author-X-Name-Last: Sarwar
Author-Name: Ijaz Butt
Author-X-Name-First: Ijaz
Author-X-Name-Last: Butt
Title: Determinants of rural household poverty in Pakistan with multilevel approach
Abstract:
Rural poverty is often discussed in combination with spatial inequality where rural poor face worse problems with diverse remedies in comparison to urban poor. The present study aims to find out area-level effects and possible determinants of rural poverty based on data from the Rural Household Panel Survey of Pakistan Round-1 (2012). The multilevel binary logistic model is used to integrate concurrent individual and district-level variables to explore area-level effects on poverty. A two-level multilevel model is used for the analysis of the poverty status of 4804 respondents nested in 19 districts. Individual-level variables included in the model are education, socioeconomic status, and spending behaviour. It is found that approximately 60% of individuals of the overall population were found poor, and district-level effect accounts for 7% variations in poverty. A particularly significant ratio of poor is found for people who attained deeni madrassa/religious education or no education at all. Poverty existence is significantly associated with spending behavior and socioeconomic status. The persons with relatively middle/high socioeconomic status and successful educational achievement but a lacking attitude toward spending money are considered poor.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2202048
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2202048
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# input file: OAEF_A_2171575_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Laith Akram Al-Qudah
Author-X-Name-First: Laith Akram
Author-X-Name-Last: Al-Qudah
Title: The role of social responsibility accounting in mitigating the economic impacts of the COVID-19 pandemic in Jordan
Abstract:
The purpose of this research was to determine whether or not social responsibility accounting plays a part in reducing the negative effects of the COVID-19 epidemic on Jordan’s economy. The study’s secondary objective was to investigate the COVID-19 pandemic that broke out in Jordan. It is vital to find adequate remedies, just as it is necessary in other nations, in order to avert the damage that this pandemic might cause to society, individuals, and the economy. The methodology of the study centered on utilizing both descriptive and inferential techniques to data collection and analysis. Participants in the survey were 861 branch managers working for Jordanian and international banks that were licensed to do business in the country. Each participant utilized the Purposive Sample Approach while completing one of the 500 questionnaires that were handed out. The research identified a number of conclusions, including the fact that there is a statistically significant role for social responsibility accounting (economic and social) in reducing the negative effects of the COVID-19 epidemic on Jordan’s economy. According to the findings of the study, economic and social responsibility accounting both play a part in reducing the impact of adverse economic conditions such as unemployment, budget deficits, and the risk of consumer credit. This study is one of the most important studies in terms of its scientific contribution at the level of Jordan as a Middle Eastern country, as well as for all countries around the world in the process of developing solutions and strategies to mitigate the economic and social consequences of the coronavirus pandemic, as well as the possibility of many future crises, whether as a result of wars or the emergence of new viruses. This study makes a contribution to the formation of research frameworks that researchers from all over the world can use to search for solutions to reduce the effects of the coronavirus pandemic on the global economy as well as the spread of poverty and unemployment as a direct result of the pandemic. This research, which is also a scientific supplement, is intended for companies in all nations throughout the world in order to assist in mitigating the consequences of the coronavirus pandemic.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2171575
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2171575
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# input file: OAEF_A_2194128_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Nazmoon Akhter
Author-X-Name-First: Nazmoon
Author-X-Name-Last: Akhter
Title: Determinants of commercial bank’s non-performing loans in Bangladesh: An empirical evidence
Abstract:
Non-performing loan (NPL) is a red flag, providing signal of jeopardize for a country’s economy. With respect to increase in NPLs, banking sector of Bangladesh has trapped in gridlock. This problem has become an alarming issue for bank’s sustainability. The present study investigates the determinants of commercial bank’s NPLs in Bangladesh. Due to data deficiency, the study collects data from 30 sampled commercial banks in Bangladesh over the period from 2011 to 2020, as during 2011, the total scheduled commercial banks in Bangladesh were 34. The study performs Random Effect Regression Model, Fixed Effect Regression Model, and one step GMM system to get the robust and significant result. The study reports that firm-specific factors like lag of NPLs, loan loss provision to total equity ratio, equity-to-total asset ratio, capital adequacy ratio, net loan to total deposit and borrowing ratio, return on equity, and macroeconomic factors such as inflation, and GDP ratio are the crucial determinants of NPLs in Bangladesh. The study concludes that commercial banks should operate its activities more efficiently and avoid reckless lending along with mandatory capital requirement in order to reduce NPLs and to ensure profit for their shareholders. The analysis of the study would provide insight guidelines regarding bank’s credit risk management procedures and systems to country’s regulatory body in order to design and adopt required prudential regulations in credit policy.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2194128
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2194128
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# input file: OAEF_A_2154002_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tina Herianty Masitah
Author-X-Name-First: Tina Herianty
Author-X-Name-Last: Masitah
Author-Name: Maman Setiawan
Author-X-Name-First: Maman
Author-X-Name-Last: Setiawan
Author-Name: Rina Indiastuti
Author-X-Name-First: Rina
Author-X-Name-Last: Indiastuti
Author-Name: Adhitya Wardhana
Author-X-Name-First: Adhitya
Author-X-Name-Last: Wardhana
Title: Determinants of the palm oil industry productivity in Indonesia
Abstract:
This paper investigates total factor productivity growth (TFPG) and its determinants in the Indonesian palm oil sector industries. TFPG is estimated using a growth accounting method. This paper applies the fixed effects model to investigate the determinants of the TFPG. The data is sourced from a manufacturing survey of the Indonesian Bureau of Central Statistics (Badan Pusat Statistika/BPS) for the period 2000–2017. This paper finds that the TFPG of the Indonesian palm oil industry is relatively low. Moreover, output growth, output per worker, export activity, and wages per worker have significant effects on the TFPG. The effect of output growth, which is dominated by the large use of inputs, raises concerns in the aspect of environmental sustainability due to uncontrolled land expansion.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2154002
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2154002
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# input file: OAEF_A_2196861_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Benjamin Tetteh Anang
Author-X-Name-First: Benjamin Tetteh
Author-X-Name-Last: Anang
Author-Name: Clever Kwasi Apedo
Author-X-Name-First: Clever Kwasi
Author-X-Name-Last: Apedo
Title: The influence of off-farm work on farm income among smallholder farm households in northern Ghana
Abstract:
Income diversification is an essential livelihood strategy among small-scale farmers in low-income countries. Through income diversification, farmers can potentially invest off-farm earnings into their farm business to enhance productivity and income from farming. Conversely, working off-farm can lead to a labour-loss effect which can reduce farm performance. This study therefore assesses the effect of off-farm work (OFW) on farm income using data from 486 smallholder farmers in northern Ghana. An endogenous treatment regression model was used to assess the effect of diversifying income sources on farm income. The results showed that involvement in OFW enhanced farm income per acre by GH¢ 386. Other factors that enhanced farm income included years of formal education and access to extension services and input subsidy. Farmer group membership and household size however reduced farm income. The farm sector can therefore take advantage of the positive linkage with the non-farm sector to improve farm income levels of farmers. In this light, government’s rural industrialization policy should seek to provide more job opportunities outside the farm sector to enable smallholder farmers to take advantage of such opportunities to improve income from on-farm activities.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2196861
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2196861
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# input file: OAEF_A_2196859_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Luitfred Kissoly
Author-X-Name-First: Luitfred
Author-X-Name-Last: Kissoly
Title: Households’ participation in agri-food based livelihoods: Insights from urban and peri-urban contexts of Tanzania
Abstract:
Agri-food systems are receiving increased attention globally and more so in the regions like sub-Saharan Africa, owing to a confluence of forces such as population growth, urbanization, migration, and climate change. These ongoing dynamics have considerable transformational implications on the present and future forms of agri-food systems and associated livelihoods. However, empirical evidence on the nature of agri-food-based livelihoods and associated patterns of engagement of households has not kept pace with these dynamics. Using household-level data from a sample of urban and peri-urban households, this study employs descriptive and econometric analyses to assess household participation in agri-food-based livelihood activities. Results illustrate that agri-food systems are a fundamental source of livelihood. A sizable proportion of households is engaged in agriculture (mainly cultivation of permanent and vegetable crops and livestock keeping) reflecting the continued importance of urban and peri-urban agriculture. Results also show that food vending is an important livelihood activity for most households residing in urban areas. Only a relatively small proportion of households participate in processing of agri-produce and transportation. Importantly, the results reveal that agri-food-based livelihood activities in urban and peri-urban settings are far more relied upon by households in lower-income brackets, underscoring the critical role that agri-food system plays enhancing livelihoods of the majority of the urban poor. These findings underline the need for policy and other interventions to prioritize efforts aiming at facilitating an “enabling environment” that fosters inclusive and sustainable agri-food-based livelihoods through, among others, enhancing governance of these activities.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2196859
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2196859
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# input file: OAEF_A_2192455_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tsegamariam Dula Sherka
Author-X-Name-First: Tsegamariam Dula
Author-X-Name-Last: Sherka
Title: Factors affecting women’s participation in soil & water conservation in abeshege district Southern Ethiopia
Abstract:
The primary industry in Ethiopia that makes a significant contribution to economic growth is still agriculture. Despite making a considerable contribution to livelihoods, the sector continues to encounter difficulties since soil degradation and resource depletion have decreased crop and livestock yields. To curb the effects of land degradation, the Ethiopian government has taken serious measures to expand soil and water conservation (SWC) practices across the country. Despite the efforts made, the participation of women in SWC activities has been low. The study was conducted to investigate women’s participation in SWC practices in the Abeshege district of southern Ethiopia. A random sampling procedure was used to select 164 participating and 70 non-participating households from a purposively selected sample of six rural kebeles. Data were collected from both primary and secondary sources using interview designs, focus group discussions, semi-structured interviews, and discussions with key informants. The study found that women participate in various SWC practices, including agroforestry, crop rotation, waterways, stone terracing, and contour plowing, among others. The study findings suggest that education, land size, economically active household members, size of household members, and extension contact were found to significantly affect the participation of women in SWC activities. Therefore, recognize and support women’s active involvement in SWC through tailored policies, programs, and initiatives that address the identified factors affecting their participation.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2192455
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2192455
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# input file: OAEF_A_2172803_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Imron Mawardi
Author-X-Name-First: Imron
Author-X-Name-Last: Mawardi
Author-Name: Muhammad Ubaidillah Al Mustofa
Author-X-Name-First: Muhammad Ubaidillah
Author-X-Name-Last: Al Mustofa
Author-Name: Tika Widiastuti
Author-X-Name-First: Tika
Author-X-Name-Last: Widiastuti
Author-Name: Wahyu Wibisono Wahid
Author-X-Name-First: Wahyu Wibisono
Author-X-Name-Last: Wahid
Title: Early warning systems in Indonesian Islamic banks: A comparison of Islamic commercial and rural banks
Abstract:
The study examines the stability of Indonesian Islamic Commercial Bank (ICB) and Islamic Rural Bank (IRB) by employing a Markov Switching Dynamic model of two regimes, stable (tranquil) and unstable (crisis). This study utilizes monthly data between December 2007 and April 2022. Findings show that both ICB and IRB have greater probabilities of remaining in the tranquil regime compared to the period of crisis. Even though ICB Z-scores have a wider range of volatility than IRB Z-scores, the ICB has been shown to recover from crises faster than the IRB. The differences in characteristics between ICB and IRB, as well as swings in the Z-score, do not provide resilience benefits. Thus, both ICB and IRB are equally vulnerable to the crisis. This study’s findings could be used to generate policy for the relevant stakeholders of Islamic banking industries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2172803
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2172803
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# input file: OAEF_A_2199550_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Satish Chandra Tiwari
Author-X-Name-First: Satish Chandra
Author-X-Name-Last: Tiwari
Author-Name: Munawar Sayyad
Author-X-Name-First: Munawar
Author-X-Name-Last: Sayyad
Author-Name: Md Sikandar Azam
Author-X-Name-First: Md Sikandar
Author-X-Name-Last: Azam
Author-Name: N S Sudesh
Author-X-Name-First: N S
Author-X-Name-Last: Sudesh
Title: Determinants of WCM of Indian listed firms: A GMM regression approach
Abstract:
This research paper purposes to discover the reasons that impact the working capital management (WCM) of Indian-listed manufacturing firms. The study uses a panel data set of 291 firms covering years from 2011 to 2020. The authors use working capital requirement (WCR) and cash conversion cycle (CCC) as proxies for working capital management and assess the effect of operating cash flow (OCF), performance as return on assets (ROA), valuation as Tobin’s Q (TQs), size, age, growth opportunities, leverage, and economic condition as the gross domestic product (GDP) over them. We use OLS and GMM estimators for the analysis of the study. Indian listed manufacturing firms’ cash conversion cycle (CCC) has been found to be positively correlated to their firm value, performance, and leverage. At the macro level, CCC is positively correlated to GDP. Further, CCC has been found to be negatively correlated with growth opportunities, operating cash flow, firm size, and age. The working capital requirement (WCR) of the firms, on the other hand, is positively associated with performance, firm age, and value, while it is negatively related to OCF, growth opportunities, leverage, size, and GDP. Our study adds uniqueness to the existing works on working capital in many ways. First, to our knowledge, very few studies exist to measure working capital management in the Indian context using two proxies WCR and CCC of working capital as dependent variables. Second, we used both OLS and GMM estimators to measure the explanatory variable’s effect over WCR and CCC which provided a more valid result. Third, we used eight factors as explanatory variables that provide a wider scope to explain the working capital management of Indian listed firms.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2199550
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2199550
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# input file: OAEF_A_2185343_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: John Kwaku Mensah Mawutor
Author-X-Name-First: John Kwaku Mensah
Author-X-Name-Last: Mawutor
Author-Name: Ernest Sogah
Author-X-Name-First: Ernest
Author-X-Name-Last: Sogah
Author-Name: Freeman Gborse Christian
Author-X-Name-First: Freeman Gborse
Author-X-Name-Last: Christian
Author-Name: Desmond Aboagye
Author-X-Name-First: Desmond
Author-X-Name-Last: Aboagye
Author-Name: Alexander Preko
Author-X-Name-First: Alexander
Author-X-Name-Last: Preko
Author-Name: Barbara Deladem Mensah
Author-X-Name-First: Barbara Deladem
Author-X-Name-Last: Mensah
Author-Name: Olivia Nanakua Boateng
Author-X-Name-First: Olivia Nanakua
Author-X-Name-Last: Boateng
Title: Foreign direct investment, remittances, real exchange rate, imports, and economic growth in Ghana: An ARDL approach
Abstract:
The main objective of this quantitative study is to ascertain the effect of foreign direct investment, real exchange rate, remittances, and import on economic growth in Ghana. Secondary data on gross domestic product, foreign direct investment, real exchange rate, remittances, import, and gross capital formation from 1980 to 2018 were analyzed. The study employed Autoregressive Distributed Lag for the econometrics analysis. The study found that foreign direct investment, real exchange rate, remittances, import, and gross capital formation cointegrates with economic growth. The main findings are that foreign direct investment, real exchange rate, import, and remittances matter from growth perspective. Remittances have a positive and significant effect on economic growth in Ghana both for the short run and the long run. The study also revealed that foreign direct investment, real exchange rate, and imports have a negative and significant effect on the growth process of Ghana’s economy for both the short run and the long run. The study recommends that the Ministry of Finance, Ghana, financial analysts and other policy makers should undertake steps to reduce imports and attract more remittances inflows to attain long-run economic growth. In addition, the economy must concentrate on viable exchange rate policies such as undervaluation of currency to stimulate sustainable economic growth.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2185343
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2185343
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# input file: OAEF_A_2197323_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Abreham Adera
Author-X-Name-First: Abreham
Author-X-Name-Last: Adera
Title: Do migrant remittances have state de-legitimizing tendencies? A micro-survey based evidence from Africa
Abstract:
This paper examines the micro-level link between migrant remittances and state legitimacy. The paper argues that there are two theoretical channels through which remittances may ultimately erode state legitimacy. First, remittance income earners may use remittance income to bribe state institutions, and thus may feel that they do not need to abide by the laws those state institutions enact. Second, remittances provide funds for political mobilization and thus may enhance uprisings against autocratic states. I test these claims using individual-level pooled data from 3 rounds of the Afrobarometer surveys. For the quantitative analysis, I use multiple linear regression, propensity score matching, and an informal method of testing for omitted variables bias. Overall, the findings of the study show that remittance-receiving Africans hold de-legitimizing behavior towards the state.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2197323
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2197323
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# input file: OAEF_A_2160127_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ayesha Sayed
Author-X-Name-First: Ayesha
Author-X-Name-Last: Sayed
Author-Name: Christo Auret
Author-X-Name-First: Christo
Author-X-Name-Last: Auret
Title: Speculative ratios and returns volatility in the South African white maize futures market
Abstract:
This paper examines the relationship between trading activity and returns volatility in white maize futures listed on the South African Futures Exchange (SAFEX) and investigates the impact of speculative activity on volatility. Returns volatility is estimated using a GARCH (1,1) model. Trading activity changes are observed by computing two negatively correlated ratios from daily trading volume and open interest. The dynamic relationship between volatility and trading activity is explored over the period April 2000 to May 2022 using a vector autoregressive framework. The paper examines not only the Granger-causality between speculative and hedging ratios and volatility but also assesses their interactions through variance decomposition and impulse response functions. The first ratio, of volume to open interest, is used to capture speculative market activity; and the second, a ratio of the change in open interest to volume, is used to reflect the activity of hedgers. The results shed light on the effectiveness of targeting speculators for regulation in grain futures markets, while also contributing to the veracity of price limits in effectively moderating volatility.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2160127
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2160127
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# input file: OAEF_A_2173125_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Manh Dung Tran
Author-X-Name-First: Manh Dung
Author-X-Name-Last: Tran
Author-Name: Hong Hanh Ha
Author-X-Name-First: Hong Hanh
Author-X-Name-Last: Ha
Title: Corporate governance disclosure and annual reports quality: An investigation in Vietnam context
Abstract:
Corporate governance reports (CGR) and annual reports are two fundamental corporate documents disseminated to shareholders about the companies’ financial condition and operation. While the annual reports could be seen as outside appearance, the CGR reflects internal processes that an entity monitors the actions, policies, practices and decisions (Muttanachai and Thanyaorn, 2022; Ho and Taylor, 2014). Vietnam’s publicly traded companies are compulsory required to provide annual reports and CGR to shareholders. The purpose of this research is to investigate the link between the level of corporate governance disclosure (CGD) and the quality of annual reports in the context of Vietnam—an emerging and dynamic country in South East Asia. The existing literature review is developed by using a bibliometric analysis (via VOSviewer software) with Scopus database from 2002 to 2022 provides comprehensive evidence for mixed effects of the level of CGD on quality of annual reports, therefore, the paper attempts to contribute to the ongoing debate by examining whether the association between CGD and the quality of annual reports is nonlinear. Furthermore, the quality of annual reports and level of CGD are measured basing on scorecard of Vietnam Listed Company Awards (VLCA) reflect the typical research issues in the context of Vietnam. A panel smooth transition regression (PSTR) model is applied in order to test the relationship and calculate the value transition threshold of 356 Vietnamese listed companies from 2017 to 2022. Empirical findings indicate that there has been a nonlinear relationship between two tested variables. In addition, the quality of annual reports positively increases when the level of CGD exceeds the value transition threshold. Hence, the listed companies with high level of CGD (exceeds threshold value) have an incentive of preparing high quality annual reports.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2173125
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2173125
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# input file: OAEF_A_2220248_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Justice Kyei-Mensah
Author-X-Name-First: Justice
Author-X-Name-Last: Kyei-Mensah
Title: The long-run validity of PPP in some major advanced and emerging countries using alternative models
Abstract:
The study examines whether the long-run validity of PPP holds in some major advanced and developing economies. The study employed the smooth time-varying cointegration (TVC) and time-varying detrended fluctuation analysis (DFA) methodology, and we are not aware of any study that has applied TVC and DFA to investigate the long-run validity and determinants of the PPP. Using both the US and Japan as base countries, the empirical results from the univariate unit root tests show that PPP does not hold and thus invalidates PPP. The study finds strong evidence for both the VAR model and the TVC. Our results show that PPP can be used for determining equilibrium exchange rates for these 15 countries, under both methods. The results of DFA and the Hurst exponents for real exchange rates (RERs) in absolute values showed that the Hurst exponent is greater than 0.5 in any country, thus persistent and not mean-reverting but in a rolling window form RERs provide mixed results about the validity of PPP in these countries. These results might be different from earlier works due to different techniques applied and also the long period of data used in this study.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2220248
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2220248
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# input file: OAEF_A_2217581_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sharmila Devi R
Author-X-Name-First: Sharmila Devi
Author-X-Name-Last: R
Author-Name: Swamy Perumandla
Author-X-Name-First: Swamy
Author-X-Name-Last: Perumandla
Title: Does hedonism influence real estate investment decisions? The moderating role of financial self-efficacy
Abstract:
The goal of this paper is to emphasize the importance of prioritizing pleasure and enjoyment in the properties being invested in over financial returns. This research aims to determine the impact of hedonism on an individual’s real estate investment decisions, with financial self-efficacy acting as a moderator. The study employs a quantitative, cross-sectional research approach, and data was collected from retail investors (homeowners and prospective home buyers) using a structured questionnaire. A total of 375 responses were obtained through snowball sampling. Further, PLS SEM was taken into consideration to test research hypothesis. The study’s findings indicate that an individual’s hedonism value has a significant positive influence on real estate investment decisions. Moreover, we found that financial self-efficacy has a significant negative impact on hedonism and real estate investment. One possible reason is that individuals with high financial self-efficacy may be more likely to analyse the financial details of a real estate investment carefully and make decisions based on a well-informed understanding of the potential returns and risks. It has also been observed that both age and income contribute positively to the decision to invest in real estate. This means that a young person is more likely to make risky investments like buying real estate stocks, land, etc. When individuals become older, real estate investment in the form of houses increases in order to provide a secure and comfortable living space for themselves and their families. Finally, when income rises, individuals seem to be looking for a comfortable life, pleasure, happiness, and social recognition, which significantly influence the real estate investment decision.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2217581
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2217581
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# input file: OAEF_A_2163543_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Norman T. Muzeza
Author-X-Name-First: Norman T.
Author-X-Name-Last: Muzeza
Author-Name: Amon Taruvinga
Author-X-Name-First: Amon
Author-X-Name-Last: Taruvinga
Author-Name: Peter Mukarumbwa
Author-X-Name-First: Peter
Author-X-Name-Last: Mukarumbwa
Title: Analysis of factors affecting technical efficiency of A1 smallholder maize farmers under command agriculture scheme in Zimbabwe: The case of Chegutu and Zvimba Districts
Abstract:
In an effort to address the decline in maize productivity, the government of Zimbabwe in 2016/17 endorsed a special program for input support named command agriculture scheme (CAS). Against this background, the study questioned the beneficiaries’ technical efficiency and factors that influence farmers to gravitate towards the frontier using Chegutu and Zvimba districts of Zimbabwe as case studies. The study used a cross-sectional survey of 240 households randomly selected through a three-stage multiple-sampling procedure. The single-stage modelling stochastic frontier approach was applied to assess technical efficiency of A1 smallholder command agriculture maize farmers. The study revealed that A1 smallholder command agriculture maize farmers in Chegutu and Zvimba districts were technically efficient at 85% and 94%, respectively. The major determinants of technical efficiency were basal fertilizer, labour, area allocated to maize production and topdressing fertilizer which all indicated a positive relationship. The main determinants of technical inefficiency were age, maize farming experience, level of education, marital status, occupation status and other sources of income. Results further revealed that farmers from Chegutu district had increasing returns to scale (1.43) while farmers from Zvimba district had decreasing returns to scale (0.54). The study therefore argues that despite the observed high technical efficiencies, Chegutu farmers could bridge their 15% gap between the observed output and the frontier output by focusing more on input usage with increasing returns to scale while Zvimba farmers could bridge their 6% gap by focusing more on socio-economic drivers of technical inefficiency given their decreasing returns to scale.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2163543
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2163543
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# input file: OAEF_A_2183638_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Patrick Kwashie Akorsu
Author-X-Name-First: Patrick Kwashie
Author-X-Name-Last: Akorsu
Author-Name: Samuel Okyere
Author-X-Name-First: Samuel
Author-X-Name-Last: Okyere
Title: Trade openness, foreign direct investment and industrialisation in Ghana
Abstract:
The industrialisation of the Ghanaian economy has seen less light despite the high levels of trade and being one of the highest receivers of foreign direct investment (FDI) in West Africa. This low performance in the industrial sector may be due to the frequent shocks the country suffers in her trade engagements and FDI inflows. Therefore, this study sought to examine the asymmetric effect of trade openness and FDI on industrialisation in Ghana. In achieving this, contemporary time series approaches, involving Autoregressive Distributed Lag (ARDL) and Non-Linear Autoregressive Distributed Lag (NARDL) approaches to cointegration, were used to analyse the time series data from 1983 to 2019. The results revealed that in both the long- and short-run, the positive shocks in trade openness have no effect on industrialisation, and the negative shocks in trade openness cause industrialisation to fall. Regarding FDI, the positive shocks in FDI exert positive effect on industrialisation in both the long- and short-run, but the negative shocks exert no effect on industrialisation in the long-run, however, a positive effect on industrialisation in the short-run. Findings from the study imply that trade openness in both the long- and short-run is detrimental to industrial progress in Ghana. Also, FDI is much needed for Ghana to industrialise her country. It is recommended that government policies should be channelled to reducing external shocks faced by traders, mostly exporters, while focusing on creating an enabling environment to attract the needed FDI to the industrial sector, and increasing infrastructural base of the country.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2183638
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2183638
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# input file: OAEF_A_2209954_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Agus Widarjono
Author-X-Name-First: Agus
Author-X-Name-Last: Widarjono
Author-Name: Abdur Rafik
Author-X-Name-First: Abdur
Author-X-Name-Last: Rafik
Title: Do Islamic banks have their benchmarks for financing rates in the dual-banking system?
Abstract:
This study examines whether conventional bank lending rates influence Islamic bank financing rates in Indonesia and Malaysia that apply the dual-banking system. We employ the ARDL, the non-linear ARDL (NARDL) model, and the Pooled Mean Group (PMG). Evidence of the long-run link between Islamic financing rate and conventional lending rate is found. However, instead of symmetry, the link between them is asymmetry. The asymmetric pricing of the Islamic financing rate and some specific contracts such as Mudharaba and Murabaha rates in Indonesia strongly follow the decrease in conventional lending rate, but it is sticky against the increase in conventional lending rate. The asymmetric pricing of the Islamic financing rate in Malaysia is obviously pegged to the conventional lending rate. The PMG results strengthen the asymmetric findings where the effect of a reduction in the conventional lending rate is larger than the effect of an increase in the conventional lending rate on the Islamic financing rate. These findings imply that Islamic bank borrowers are profit-driven borrowers in a dual-banking system. Accordingly, the Islamic financing rate is pushed to follow the conventional lending rate due to the uncompetitive Islamic financing rate.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2209954
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2209954
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# input file: OAEF_A_2223414_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Michael Amoh Asiedu
Author-X-Name-First: Michael Amoh
Author-X-Name-Last: Asiedu
Author-Name: Emmanuel Mensah
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Mensah
Title: Re-examining the corporate governance – Firm performance nexus: Fresh evidence from a causal mediation analysis
Abstract:
The role that corporate governance (CG) plays in contributing to firm performance enhancements has been widely acknowledged. However, the conduit through which CG is able to affect firm performance is an emergent theme. This paper re-examines the relationship between corporate governance (CG) and firm performance via means of causal mediation analysis using financial reporting quality (FRQ) as a mediator. The study samples 104 companies listed on the respective stock markets of nine sub-Saharan African countries, and collects annual reports data spanning over a period of 2007 to 2019 for analysis using causal mediation. The study finds that a causal relationship exists between CG and firm performance, albeit through the transmission mechanism of FRQ. Again, the study finds that CG positively affects firm performance both directly and indirectly through the mediation of FRQ. The study is useful in highlighting for mangers and CG practitioners attention, an important channel through which CG would favourably affect firm performance, being FRQ. The current study is unique, in that it is the first panel multi-cross-country investigation within Africa to introduce FRQ in the study of the relationship between CG and firm performance. It therefore extends the agency theory by employing FRQ as a mediating variable in the CG—firm performance nexus within the African context.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2223414
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2223414
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# input file: OAEF_A_2196862_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Daniel Aidoo-Mensah
Author-X-Name-First: Daniel
Author-X-Name-Last: Aidoo-Mensah
Title: Determinants of savings frequency among tomato farmers in Ghana
Abstract:
Multinomial logistic regression was employed to identify the determinants underlying the respondents’ frequency of savings—weekly, monthly and seasonally. The results of the study showed that amount saved per period, number of years of education and engagement in non-farm income generating activities significantly influenced farmers’ savings frequencies. The findings are quite significant as they take the decision to save beyond the suggested two-stage sequential process to include a third stage, which is the time horizon of savings. The findings revealed that rural households are predisposed to extend their savings time horizon by holding onto their surplus funds in order to retain some capacity for their present consumption and other needs before thinking of saving. On the other hand, the anticipation of a gloomy future as a result of bad harvest for instance may induce the rural householder to shorten his/her savings time horizon, that is, reduce the time-frame s/he holds onto surplus funds and quickly save such funds. Finally, the study suggests education as a catalyst to create a desirable behaviour of saving “now” (weekly or monthly) rather than procrastinating savings to the “future” that is, saving seasonally.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2196862
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2196862
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# input file: OAEF_A_2196843_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Abreham Adera
Author-X-Name-First: Abreham
Author-X-Name-Last: Adera
Title: Chinese aid and social ties in Africa: Evidence from sub-national aid projects
Abstract:
Is there any possibility that foreign aid may negatively affect African social ties? To answer such a question, this paper examines the impact of local Chinese aid projects on social capital in Africa. China or Chinese contractors directly control or operate Chinese projects in Africa. This feature may disengage Africans from participating in their own local development activities. Likewise, China gives unconditional aid, which may nurture corruption. By creating losers and winners, corruption may make people unhappy. Because of these features, Chinese aid projects may hinder the formation of social capital. This paper puts this claim to an empirical test using data from the Afrobarometer surveys and AidData. Conditional on a set of controls, I find several interesting results. First, Chinese aid is negatively associated with generalized trust. Second, Chinese aid projects are related to disengagement from associational life. Third, no similar pattern is found when the main analysis is replicated on aid from the World Bank. Finally, neither the Chinese nor the World Bank’s aid is related to subjective wellbeing. The results suggest that Chinese aid may wither local social ties through social disengagement. Overall, the findings imply that it is vital to engage local citizens in the design and implementation of Chinese aid projects.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2196843
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2196843
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# input file: OAEF_A_2203439_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sebastian Kaweto Kalovwe
Author-X-Name-First: Sebastian Kaweto
Author-X-Name-Last: Kalovwe
Author-Name: Joseph Ivivi Mwaniki
Author-X-Name-First: Joseph Ivivi
Author-X-Name-Last: Mwaniki
Author-Name: Richard Onyino Simwa
Author-X-Name-First: Richard Onyino
Author-X-Name-Last: Simwa
Title: On regime-switching European option pricing
Abstract:
The concern of this article is to derive a regime switching model that can be utilized to price European call options for a financial market that exhibits structural changes with time. The model is formulated based on the fact that the underlying asset process is described by a geometric Brownian motion that is modulated by a continuous-time Markov chain with two regimes. Moreover, by an application of the change of measure technique, an option price is derived under the risk neutral valuation and the model parameter estimates is performed by use of the maximum likelihood estimation. The model implementation is carried out by utilizing the Russell 2000 and Facebook in dices data sets. The model results are compared with that of the Black-Scholes model in order to establish the model with better results in terms of predicting the European call option prices. In general, the data sets have common characteristics of financial time series across the regimes and the volatility process spends longer time in regime 2 than it stays in regime 1. The predicted call option prices from both models are more or less similar across the market indices; however, the results of the Black-Scholes model are a bit closer to the market prices than that of the regime-switching model across the two markets. Therefore, the Black-Scholes model slightly gives better results for the Russell 2000 and Facebook indices data sets as compared with the RS model.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2203439
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2203439
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# input file: OAEF_A_2209952_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Olajide Oyadeyi
Author-X-Name-First: Olajide
Author-X-Name-Last: Oyadeyi
Title: Financial development, interest rate pass-through and interest rate channel of monetary policy
Abstract:
The paper examined the interest rate operations and processes in Nigeria and examined the role of financial development in incentivizing central bank monetary policies from the monetary policy rate to the money market rates, lending rates, and deposit rates. The analysis covered the period from 1981 to 2021 with sub-samples for 1981 to 2011 and 1991 to 2021 to test the consistency of the findings. The findings confirmed that interest rate pass-through is incomplete for Nigeria, albeit to a lower degree in the short run compared to the long run. The reasons for this may be due to interest rate stickiness, problems of asymmetric information, and bank switching costs. Also, the findings confirmed that financial development weakens the impact of monetary policy on the interest rate pass-through process, while the analysis of the asymmetric mean adjustment lags confirmed that changes in the policy rate are transmitted to the deposit and lending rates within the year it was announced. The analysis confirmed that the results across each sub-sample and the robustness tests are consistent with the main analysis. Therefore, it is imperative that policymakers should account for financial development when designing monetary policy effectiveness since it can hinder or strengthen the interest rate monetary policy channel.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2209952
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2209952
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# input file: OAEF_A_2225917_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Andrew Phiri
Author-X-Name-First: Andrew
Author-X-Name-Last: Phiri
Author-Name: Danai Tembo
Author-X-Name-First: Danai
Author-X-Name-Last: Tembo
Title: Ecological based environmental Kuznets curve for Africa: Evidence from the fishery sector at continental, regional and country-specific levels
Abstract:
The purpose of our study is to examine the Fishery-based Environmental Kuznets Curve (EKC) for a sample of 48 African countries between 1970–2019. We estimate cubic EKC-type models using quantile regression to account for distributional asymmetries existing in the time series data, and our empirical analysis is conducted at continental, regional and country-specific levels. Methodologically, our findings indicate that most EKC relationships are found at the tail-end of the quantile regressions, hence demonstrating their usefulness in capturing “hidden relationships” amongst the variables. Empirically, our findings reveal that Southern African countries along the Atlantic Ocean, as well as West African countries which lie along the Gulf of Guinea, tend to have exploitable Fishery-EKC. Conversely, conflict-prone countries found along the Mediterranean Sea, the Indian Ocean and landlocked nations either have inverse or non-existent Fisheries EKC. We provide a novel theoretical explanation for our findings and offer policy recommendations for different stakeholders in African Fisheries markets.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2225917
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2225917
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Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2225917
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# input file: OAEF_A_2186038_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Muhammad Farooq
Author-X-Name-First: Muhammad
Author-X-Name-Last: Farooq
Author-Name: Ahmed Imran Hunjra
Author-X-Name-First: Ahmed Imran
Author-X-Name-Last: Hunjra
Author-Name: Saif Ullah
Author-X-Name-First: Saif
Author-X-Name-Last: Ullah
Author-Name: Mamdouh Abdulaziz Saleh Al-Faryan
Author-X-Name-First: Mamdouh Abdulaziz Saleh
Author-X-Name-Last: Al-Faryan
Title: The determinants of financial distress cost: A case of emerging market
Abstract:
This study analyses the cost of financial distress of non-financial firms listed on the Pakistan stock exchange. Furthermore, it considers the moderating role of concentrated ownership in the relationship between debt and expected financial distress costs. We used the panel data of 214 firms from 2010 to 2018 to analyse the results. We apply fixed effect model to test the hypotheses. We find that ex-ante financial distress costs are based not only on the probability of financial distress but also affect the amount of time and money spent during the distress period. The use of tangible fixed assets and long-term leverage lowers the cost of financial distress, whereas the use of short-term debt has no significant impact on the cost of financial distress. Furthermore, the company’s ownership structure dampens the impact of these factors. Corporate management may reduce the cost of financial distress through better management of fixed assets and financial leverage.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2186038
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2186038
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# input file: OAEF_A_2195041_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mohd Yaziz Mohd Isa
Author-X-Name-First: Mohd Yaziz
Author-X-Name-Last: Mohd Isa
Author-Name: Mellisa Daukin
Author-X-Name-First: Mellisa
Author-X-Name-Last: Daukin
Title: The influence of retirement goals and risk attitudes on Malaysian women’s retirement planning
Abstract:
The lack of retirement savings for the future lives of many individuals, and pre-retirees in particular, is an example of one of the most critical problems facing many emerging countries. Unfortunately, a lack of preparedness can have severe effects on Malaysian cultures, especially for women who are nearing retirement. The issues persist and, most likely, are becoming worse despite all the awareness campaigns that have been running for a while. In order to express fresh thoughts and suggest an extra approach or workable solution to supplement past research and conclusions, this study will analyse this dilemma from a women’s perspective of retirement planning. This study applies a quantitative approach, where primary data was acquired through online surveys of 443 workers in various locations in Malaysia. Validation of the measurement model in this study uses the structural equation model (SEM), which interprets that if the model fits, the strength of path estimates, validity, and reliability of the construct are estimated. The results of this study show that retirement goals affect an individual’s retirement planning, but risk perception does not affect an individual’s perspective on planning for a future retirement. This study also emphasises the significance of financial literacy in retirement planning, specifically how it will boost the confidence of these female workers as they approach retirement. These findings also have useful ramifications for financial planners and advisors, enabling them to better comprehend the variables influencing retirement saving behaviour.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2195041
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2195041
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# input file: OAEF_A_2209957_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Samuel Antwi
Author-X-Name-First: Samuel
Author-X-Name-Last: Antwi
Author-Name: Anthony Buawolor Tetteh
Author-X-Name-First: Anthony Buawolor
Author-X-Name-Last: Tetteh
Author-Name: Patience Armah
Author-X-Name-First: Patience
Author-X-Name-Last: Armah
Author-Name: Eric Opoku Dankwah
Author-X-Name-First: Eric Opoku
Author-X-Name-Last: Dankwah
Title: Anti-money laundering measures and financial sector development: Empirical evidence from Africa
Abstract:
The study’s main objective was to evaluate the link between anti-money laundering (AML) regulations and financial sector development (FSD) in Africa and to test the nonlinearities in the AML regulations-FSD nexus. Panel data of 51 African countries from the World Bank’s indicators, the IMF, and the Basel Institute on Governance over the period 2012 to 2019 were used. The study employs the two-step system GMM and the dynamic panel threshold regression in estimating the model. The Hansen test and Arellano—Bond test for AR (2) were conducted to check for the robustness of the model specification. The study employed STATA 15 in analysing the study. The analysis shows that anti-money laundering regulation positively influences African financial sector development. However, the study found a significant positive coefficient for AML below the threshold value at a 1% significant level and a significant negative coefficient for AML above the threshold. This indicates that AML laws favour financial sector development below the threshold, but this link disappears for regimes with high AML requirements in Africa. This suggests that excessive AML structures might discourage financial sector development in Africa due to the cost associated with AML. Financial institutions in Africa should invest in technology solutions to support financial crime compliance efforts in combating criminal crimes involving digital payments, cryptocurrency, third parties and trafficking of proceeds and other crime-related activities such as drug trafficking, corruption, terrorism, arms dealing, confiscation of their illegal funds and bribery.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2209957
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2209957
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# input file: OAEF_A_2161773_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ayman Mohammad Al Shanti
Author-X-Name-First: Ayman Mohammad
Author-X-Name-Last: Al Shanti
Author-Name: Mohammad Salim Elessa
Author-X-Name-First: Mohammad Salim
Author-X-Name-Last: Elessa
Title: The impact of digital transformation towards blockchain technology application in banks to improve accounting information quality and corporate governance effectiveness
Abstract:
By combining two types of studies: theoretical and field, the study aims to explore the impact of digital transformation on the quality of accounting information and the efficacy of corporate governance through the deployment of blockchain technology in banks. The study’s dimensions and variables were examined using a descriptive-analytical technique. To collect data from Jordanian banks’ financial analysts, auditors of shareholders’ accounts, and financial managers in the field research community, data lists were developed. For the analysis of the field research data, SPSS was used. Both the first and third hypotheses were rejected, indicating that the null hypothesis was rejected and the alternative hypothesis was accepted. Neither the second nor the fourth hypotheses were accepted. In order to reap the benefits of blockchain technology in increasing the quality of accounting information and strengthening corporate governance, a digital transformation toward its application in commercial operations is suggested.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2161773
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2161773
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# input file: OAEF_A_2190268_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Quoc Trung Nguyen Kim
Author-X-Name-First: Quoc Trung
Author-X-Name-Last: Nguyen Kim
Title: Does COVID-19 affect small and medium enterprises’ capital structure in vietnam?
Abstract:
This study estimates the effect of COVID-19 on listed small and medium enterprises’ capital structures in Vietnam from 2010 to 2020 by a dynamic panel model with 825 observations. Conducting the generalized method of moments, the findings show that COVID-19 is a significant factor affecting small and medium enterprises’ capital structures. The current results are explained based on the signalling theory. Although the findings are consistent with the previous empirical studies indicating the capital structure and exploring its determinants in diverse ways, these studies are interpreted based on agency theory, pecking of order, trade-off theory. Furthermore, our results are robust to a series of endogeneity checks using an alternative method of regression.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2190268
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2190268
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# input file: OAEF_A_2207923_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Gemechis Merga
Author-X-Name-First: Gemechis
Author-X-Name-Last: Merga
Author-Name: Million Sileshi
Author-X-Name-First: Million
Author-X-Name-Last: Sileshi
Author-Name: Fresenbet Zeleke
Author-X-Name-First: Fresenbet
Author-X-Name-Last: Zeleke
Title: Welfare impact of improved maize varieties adoption among smallholder farmers in Amuru district of Horo Guduru Wollega, Ethiopia
Abstract:
Government policy strategies, particularly in sub-Saharan Africa (SSA), are aimed at increasing agricultural productivity, which could contribute to improve household welfare. Hence, understanding smallholder farmers’ low and variable crop yields has been a central research and policy priority in addressing food security. Likewise, the purpose of this study was to assess the impact of adopting improved maize varieties on productivity and food insecurity in Amuru district of Horo Guduru Wollega, Ethiopia. The study utilized cross-sectional household data collected in 2020/2021 from 263 randomly selected sample households. The probit model’s findings indicate that factors that positively influenced households’ adoption of the improved maize varieties included the household head’s education level, the amount of livestock owned, access to credit, access to training, farm size, access to extension agents, and access to information from farmers associations, while factors that negatively influenced adoption included family size and market distance. The endogenous treatment effect model’s findings also showed that IMV adoptions considerably improve smallholder farmers’ welfare by lowering food insecurity and raising their average calorie intake and net crop values. Thus, it is advised that governments and other interested institutions should promote the adoption of improved maize varieties on a larger scale in order to boost maize yield and lower rural household food insecurity.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2207923
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2207923
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# input file: OAEF_A_2197694_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Aminu Hassan Jakada
Author-X-Name-First: Aminu Hassan
Author-X-Name-Last: Jakada
Author-Name: Suraya Mahmood
Author-X-Name-First: Suraya
Author-X-Name-Last: Mahmood
Author-Name: Umar Ahmad Ali
Author-X-Name-First: Umar Ahmad
Author-X-Name-Last: Ali
Author-Name: Danmaraya Ismail Aliyu
Author-X-Name-First: Danmaraya
Author-X-Name-Last: Ismail Aliyu
Title: The moderating role of ICT on the relationship between foreign direct investment and the quality of environment in selected African countries
Abstract:
This empirical study examines the role of information and communication technology (ICT) in the relationship between FDI and environmental quality for six leading African economies from 1970 to 2020. The second-generation tests are used to determine the stationarity level of the variables. Furthermore, the Westerlund panel cointegration test confirms cointegration among the variables. For long-run association, CS-ARDL, which resolved the consequences of heterogeneity and cross-sectional dependency is used. The results of the study reveal that ICT, FDI, economic growth, and financial development degrade environmental quality. The interacting effect of ICT and FDI (ICT*FDI) leads to escalation of CO2 emissions thereby deteriorating the quality of the environment. The study recommends that African countries should promote FDI to support the inflow of green technologies to enhance environmental quality. The implementation of environmentally sustainable technology would help improve the quality of the environment, increase sustainability in the long term and conserve resources for future generation.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2197694
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2197694
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# input file: OAEF_A_2182454_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Emmanuel Asafo-Adjei
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Asafo-Adjei
Author-Name: Peterson Owusu Junior
Author-X-Name-First: Peterson
Author-X-Name-Last: Owusu Junior
Author-Name: Anokye M. Adam
Author-X-Name-First: Anokye M.
Author-X-Name-Last: Adam
Author-Name: Clement Lamboi Arthur
Author-X-Name-First: Clement Lamboi
Author-X-Name-Last: Arthur
Author-Name: Ebenezer Boateng
Author-X-Name-First: Ebenezer
Author-X-Name-Last: Boateng
Author-Name: Kwadwo Ankomah
Author-X-Name-First: Kwadwo
Author-X-Name-Last: Ankomah
Title: Asymmetric relationships among financial sector development, corruption, foreign direct investment, and economic growth in sub-Saharan Africa
Abstract:
Prior studies on the relationship between FDI and growth have generally concentrated on mean effects, or average growth benefits. It seems improbable that the majority of sub-Saharan economies will have similar “average” economic growth, hence the emphasis on mean effects in particular falls short. All other drivers can be seen to have an impact based on the uneven growth rates of these economies. The current study brings new evidence about the asymmetric relationship between foreign direct investment (FDI) and economic growth amidst financial sector development (FSD) and corruption covering a sample period of 2002 to 2020 for 48 sub-Saharan economies. For this reason, the instrumental variables panel quantile regression technique is employed to achieve the purpose of the study. The study finds that FDI inflows have a significant positive relationship with economic growth for economies with low growth (less than 50% quantile) but negative at high growth levels (at quantiles 50% and beyond). Also, control of corruption significantly interacts negatively with FDI and GDP per capita irrespective of the GDP levels, whereas FSD significantly positively interacts with FDI to contribute to economic growth at various growth levels. Findings from the study imply that FSD promotes economic growth in sub-Saharan Africa at diverse growth levels. On the other hand, the interacting effect of control of corruption is inimical to FDI-growth nexus at all growth levels. It is pertinent that efforts are made by financial policymakers in sub-Saharan Africa to improve the local financial sector conditions to recuperate the economic advances from FDI.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2182454
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2182454
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# input file: OAEF_A_2185347_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Andualem Kassegn
Author-X-Name-First: Andualem
Author-X-Name-Last: Kassegn
Author-Name: Umer Abdinasir
Author-X-Name-First: Umer
Author-X-Name-Last: Abdinasir
Title: Determinants of rural households’ livelihood diversification strategies: In the case of north Wollo zone, Amhara National Regional State, Ethiopia
Abstract:
Diversifying rural livelihoods plays a significant role for rain feed-dependent economy of the rural households like in Ethiopia. Hence the objective of the study was to investigate the determinants of rural households’ livelihood diversification strategies choice in north wollo zone of Ethiopia. A multi-stage stratified random sampling technique was used to select 384 rural household heads as a sample in study areas. Primary data was collected from sample rural household heads using an interview schedule. Multivariate Probit Model was employed to identify the factors influencing the rural household heads’ decision to choose livelihood strategies. The model result showed that agriculture livelihood strategy was positively and significantly associated with male headed household, land holding, cooperative membership, and participation in rural productive safety net program; while it is negatively and significantly affected by distance to market. Non-farm livelihood strategy was positively and significantly affected by dependency ratio, education level, total income, and remittance; while it is negatively and significantly affected by the sex of household head and participation in rural productive safety net program. Off-farm livelihood strategy was positively and significantly influenced by sex of household head; while it is negatively and significantly affected by the land holding, total livestock unit, cooperative membership, credit use, participation in rural productive safety net program. Therefore, the study recommends that local government should attempt to promote the above significant determinants of rural households’ livelihood diversification strategies choice to build more profitable and sustainable livelihood strategies.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2185347
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2185347
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# input file: OAEF_A_2163542_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Priviledge Cheteni
Author-X-Name-First: Priviledge
Author-X-Name-Last: Cheteni
Author-Name: Ikechukwu Umejesi
Author-X-Name-First: Ikechukwu
Author-X-Name-Last: Umejesi
Title: Evaluating the sustainability of agritourism in the wild coast region of South Africa
Abstract:
In recent decades, agritourism has been proposed by various agencies as a strategy for the sustainable development of rural areas and the diversification of the rural economy. The study aimed to examine and identify the role of agritourism in entrepreneurship and sustainability. Semi-structured interviews were used to collect data from 15 business owners and 68 residents from local households on the Wild Coast. Consequently, various facets of agritourism for sustainable rural development were investigated using a qualitative research method. The findings revealed that agritourism in the study area can be enhanced by integrating it with farm entrepreneurship. Furthermore, because many disenfranchised families already engage in crafts, subsistence farming, fishing, and other activities, agritourism has the potential to lift many of them out of poverty.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2163542
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2163542
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# input file: OAEF_A_2217583_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Syed Akmal
Author-X-Name-First: Syed
Author-X-Name-Last: Akmal
Author-Name: Mohammad Talha
Author-X-Name-First: Mohammad
Author-X-Name-Last: Talha
Author-Name: Syed Mohammad Faisal
Author-X-Name-First: Syed Mohammad
Author-X-Name-Last: Faisal
Author-Name: Moid Ahmad
Author-X-Name-First: Moid
Author-X-Name-Last: Ahmad
Author-Name: Ahmad Khalid Khan
Author-X-Name-First: Ahmad Khalid
Author-X-Name-Last: Khan
Title: Perceptions about FinTech: New evidences from the Middle East
Abstract:
The study aimed to analyze the perceptions of FinTech in the Middle East region, specifically its usage, and performance. To attain this objective, a strategy employed on surveys as the primary data acquisition method was implemented. The survey was conducted between November 2021 and February 2022, which allowed the researcher to gather comprehensive data from respondents during this period. In order to ensure the descriptive nature of the study, cross-sectional research was employed in its design. This design allowed the researcher to gather data at a single point in time, which was appropriate for the scope of this study. The researcher utilized a questionnaire during the inquiry to elicit information for data collection purposes. The questionnaire was designed to include semi-structured questions, which allowed the respondents to provide detailed information on their perceptions of FinTech. This study employed a survey-based technique to analyze the perceptions of FinTech in the Middle East region. Using a cross-sectional design and semi-structured questions allowed the researcher to achieve the descriptive nature of the research. Additionally, cross-tab analysis and SPSS provided an in-depth understanding of the data collected. The findings from the analysis suggest that FinTech enhances the performance of financial institutions and that digital banking is the best feature of FinTech across all customer groups.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2217583
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2217583
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# input file: OAEF_A_2203432_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Olivier Niyitegeka
Author-X-Name-First: Olivier
Author-X-Name-Last: Niyitegeka
Author-Name: Sheunesu Zhou
Author-X-Name-First: Sheunesu
Author-X-Name-Last: Zhou
Title: An investigation of financial contagion between cryptocurrency and equity markets: Evidence from developed and emerging markets
Abstract:
The present study conducts a dynamic conditional cross-correlation and time–frequency correlation analyses between cryptocurrency and equity markets in both advanced and emerging economies. The purpose of the study is twofold. First, the study investigates the presence of the pure (narrow) form of financial contagion between cryptocurrency and stock markets in both advanced and emerging economies, during the black swan event of the COVID-19 crisis. Second, the study examines the hedging and safe-haven properties of cryptocurrencies against equity markets, before and during periods of financial upheaval triggered by the COVID-19 pandemic. Two econometric models are used: (1) the dynamic conditional correlation (DCC) GARCH and (2) the wavelet analysis models. Using the DCC GARCH model, the study found the evidence of high conditional correlations between cryptocurrency and equity markets. The high conditional correlation was mostly detected in periods of financial turmoil corresponding to the first quarter and the second quarter of 2020. The increase in conditional correlation during periods of financial upheaval (compared to a tranquil period) indicates the presence of the pure form of financial contagion. The wavelet cross-correlation analysis showed the evidence of positive cross-correlation between the Bitcoin and the equity markets during period of financial turmoil. The cross-correlation was identified in both short and long (coarse) scales. In short scales, the equity markets lead the cryptocurrency market, while the cryptocurrency market leads equity markets in coarse scales. The findings of the present study revealed that the degree of interdependence between cryptocurrency and equity markets has substantially increased during the COVID-19 period, and this has negated the safe-haven and hedging benefits of cryptocurrencies over equity markets.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2203432
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2203432
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# input file: OAEF_A_2220250_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Cep Jandi Anwar
Author-X-Name-First: Cep Jandi
Author-X-Name-Last: Anwar
Author-Name: Indra Suhendra
Author-X-Name-First: Indra
Author-X-Name-Last: Suhendra
Author-Name: Saharuddin Didu
Author-X-Name-First: Saharuddin
Author-X-Name-Last: Didu
Author-Name: Anggi Sayektiyani
Author-X-Name-First: Anggi
Author-X-Name-Last: Sayektiyani
Author-Name: Lilis Nur Kholishoh
Author-X-Name-First: Lilis Nur
Author-X-Name-Last: Kholishoh
Title: The impact of monetary policy and credit risk on bank credit behavior: An analysis of banks listed on the Indonesian stock exchange
Abstract:
The study investigates macroeconomic and bank-specific determinants of credit for commercial banks from 2010Q1–2022.Q4 in Indonesia. The banking credit is divided into an investment, working capital, and consumption credits. The study aims to address a gap in the literature since most prior studies are concentrated on developed markets. A system generalized method of moment (GMM) estimator is employed to investigate the impact of central bank rates and credit risk on credit. Dynamic-GMM estimations find that the central bank rate has a negative impact on the three types of credits. Meanwhile, non-performing loans positively impact investment and working capital credits but negatively affect consumption credit. The interaction between central bank rate and non-performing loans negatively impacts investment and working capital credits but positively affects consumption credit. This study provides managers and policymakers with timely information regarding bank credit drivers, encouraging management to take necessary measures, and policymakers may consider the importance of macroeconomic conditions while creating a bank lending policy. Similarly, it informs potential investors on how to evaluate the data when choosing a better investment option.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2220250
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2220250
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# input file: OAEF_A_2167577_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Gyasi Genevieve
Author-X-Name-First: Gyasi
Author-X-Name-Last: Genevieve
Author-Name: Joseph Magnus Frimpong
Author-X-Name-First: Joseph Magnus
Author-X-Name-Last: Frimpong
Author-Name: Mireku Kwame
Author-X-Name-First: Mireku
Author-X-Name-Last: Kwame
Title: Moderating remittance and economic growth relationship with exchange rate: What new can we learn from Africa’s economy?
Abstract:
The paper employs partial and biwavelet coherence techniques to examine the time-frequency dependence structure of international remittance inflow on economic growth by moderating the effect of exchange rates. We investigate the comovements of remittance and economic growth from 1980 to 2020. We observed heterogeneous patterns in the comovements structure of international remittance inflow and economic growth at various timescales. By examining the biwavelet coherence, the comovements are noticeable at elevated occurrences, implying that exchange rates, when acting as moderator in the nexus between remittance and economic growth, can hamper economic growth. Findings from the partial wavelet coherence reveal that exchange rates influence remittance and economic growth connectedness in emerging and frontier economies in Africa. Consequently, in situations where radical changes occur in exchange rates, the implemented policies of emerging African countries seem to have largely influenced the comovements between remittance inflow and economic growth. The risk posed by exchange rates on remittance inflow requires sustainable policies to prevent widespread spillovers, mostly during severe economic downturns. We posit that implementation of exchange rate mechanisms are central to parity which is essential to mitigating potential risk.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2167577
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2167577
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# input file: OAEF_A_2163077_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Olajumoke Rebecca Ogunniyi
Author-X-Name-First: Olajumoke Rebecca
Author-X-Name-Last: Ogunniyi
Author-Name: Abiodun Funso Okunlola
Author-X-Name-First: Abiodun Funso
Author-X-Name-Last: Okunlola
Author-Name: Michael Akinade Alatise
Author-X-Name-First: Michael Akinade
Author-X-Name-Last: Alatise
Author-Name: Rafiu Adewale Aregbeshola
Author-X-Name-First: Rafiu Adewale
Author-X-Name-Last: Aregbeshola
Title: Socio-economic inclusion and sustainable economic growth: Empirical analysis of Nigeria and South Africa
Abstract:
In Africa, socio-economic inclusion is often predicated on the degree of access to finance that individuals have to consummate economic activities. This study is centered on this interlink with a focus on Nigeria and South Africa. From the 17 years of data (2004–2020) sourced from the Emissions Database for Global Atmospheric Research (EDGAR), International Monetary Fund (IMF) financial statistics, and the World Bank Development Indicator, the study attempted to empirically validate the existence or absence of a long-run significance of the variables used. Result confirmed that proximity to bank branches and access to credit by the private sector are vital ingredients of sustainable economic growth in both countries, while automated teller machine does not. Thus, this concluding evidence provides an avenue for expansionary policy drive for concerned authorities.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2163077
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2163077
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# input file: OAEF_A_2132649_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Menasbo Tesfay
Author-X-Name-First: Menasbo
Author-X-Name-Last: Tesfay
Title: Factors affecting renting in and renting out of land in a semi-arid economy of Tigrai, northern Ethiopia: a generalized random effect order probit model
Abstract:
In the absence of land sale, the emerging of land rental market among smallholder farmers in developing countries has important implications on land use efficiency, productivity and poverty reduction. The purpose of this study is to analyze jointly the socio-economic factors undertaking decisions renting in and renting out of land in a land scarce and semi-arid economy of Tigrai, northern Ethiopia, using a generalized random effect order probit model. The model result reveals that decisions to rent in and/or rent out of land are significantly correlated, implying that standard order probit model analysis of such decisions are biased, thereby, justifying the use of a generalized random effect order probit approach. Model results show that some of the socio-economic factors affect farmers’ renting in and renting out of land and work in the opposite directions. The likelihood of renting in land is high for farmers with better literacy rate and lived closer to the land. On the other hand, the likelihood of renting out of land is high among the illiterate farmers and lived far distant to their lands. Government policy has an important role to play in improving the factor equalization role of the land rental markets through investment in human capital and infrastructural development.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2132649
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2132649
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# input file: OAEF_A_2186032_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ahmad Bash
Author-X-Name-First: Ahmad
Author-X-Name-Last: Bash
Author-Name: Abdullah M. Al-Awadhi
Author-X-Name-First: Abdullah M.
Author-X-Name-Last: Al-Awadhi
Title: Central Bank Independence and stock market outcomes: An event study on Borsa Istanbul
Abstract:
This study explores the importance of central bank independence on stock market outcomes. Specifically, we examine the effects of President Recep Tayyip Erdogan’s decree, which removes the top officials of the Central Bank of Turkey, on Borsa Istanbul returns. We use a well-established event study methodology for five events from 20 July 2018, to 11 November 2021. The results show that the market is sensitive to the dismissal decrees in that they have positive effects on cumulative abnormal returns in the first two events, while the three events that follow have negative effects on cumulative abnormal returns. Our results support the importance of central bank independence, revealing that political intervention in central banks has a robust, positive, negative, and significant impact on stock market outcomes.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2186032
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2186032
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# input file: OAEF_A_2175457_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Arumega Zarefar
Author-X-Name-First: Arumega
Author-X-Name-Last: Zarefar
Author-Name: Nurul Azlin Azmi
Author-X-Name-First: Nurul Azlin
Author-X-Name-Last: Azmi
Author-Name: Wan Adibah Wan Ismail
Author-X-Name-First: Wan Adibah
Author-X-Name-Last: Wan Ismail
Author-Name: Khairul Anuar Kamarudin
Author-X-Name-First: Khairul Anuar
Author-X-Name-Last: Kamarudin
Title: The moderating effect of political connection on the relationship between non-audit services and accounting quality: Evidence from an emerging market
Abstract:
This study investigates whether the provision of non-audit services (NAS) is associated with accounting quality and whether political connection moderates the relationship between the NAS and accounting quality. The sample includes 2,245 firm-year observations from Malaysia during the period 2013–2017. This study uses the absolute value of discretionary accruals to measure accounting quality. We find that provision of high NAS leads to low accounting quality, exhibited by high discretionary accruals. We also find that politically connected (PCON) firms show higher discretionary accruals than non-PCON firms. However, the PCON firms weaken the positive relationship between NAS on discretionary accruals suggesting a substitutive role of political connections in determining the effect of NAS on accounting quality. We further document a non-linear association between NAS and discretionary accruals, whereby the provision of NAS would lead to low discretionary accruals after an optimal point. Therefore, regulators need to weigh the costs and benefits of regulating NAS and consider the moderating effects of PCON firms and the non-linear effect of NAS. This study adds to the limited, albeit substantial, evidence on the joint effect of PCON firms and NAS on accounting quality.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2175457
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2175457
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# input file: OAEF_A_2163081_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Biswajit Patra
Author-X-Name-First: Biswajit
Author-X-Name-Last: Patra
Author-Name: Purna Chandra Padhan
Author-X-Name-First: Purna Chandra
Author-X-Name-Last: Padhan
Author-Name: Puja Padhi
Author-X-Name-First: Puja
Author-X-Name-Last: Padhi
Title: Efficiency of Indian Banks – private versus public sector banks: A two-stage analysis
Abstract:
This paper estimates and compares various efficiencies, namely, business, profit, and Z-Score efficiencies for private and publicly owned Indian banks. It uses the data envelopment analysis (DEA) following variable returns to scale, under input and output orientation, for measuring efficiency. Further, the Tobit regression model is used in the second stage to check the significant determinants from a list of bank-specific factors for various efficiencies. The study finds that the average efficiency scores of public sector banks (PSBs) are higher than private banks. The Z-score indicates that both PSBs and private banks are facing stability risks. Tobit regression model results confirm that return on assets and capital levels are significantly related to all types of efficiencies for private banks. On the other hand, the efficiency of PSBs is mainly affected by the level of non-performing assets, market share, size of the bank, return on assets, and capital level. It is inferred that the prompt corrective action (PCA) framework of RBI (2014) and the merger and consolidation of PSBs by the government (2019) favorably impacted the efficiencies of PSBs. Additionally, it identifies the stability risk of Indian banks and suggests banks should build up adequate capital for stressful situations.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2163081
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2163081
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# input file: OAEF_A_2196852_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Chekwube V. Madichie
Author-X-Name-First: Chekwube V.
Author-X-Name-Last: Madichie
Author-Name: Franklin N. Ngwu
Author-X-Name-First: Franklin N.
Author-X-Name-Last: Ngwu
Author-Name: Eze A. Eze
Author-X-Name-First: Eze A.
Author-X-Name-Last: Eze
Author-Name: Olisaemeka D. Maduka
Author-X-Name-First: Olisaemeka D.
Author-X-Name-Last: Maduka
Title: Modelling the dynamics of cryptocurrency prices for risk hedging: The case of Bitcoin, Ethereum, and Litecoin
Abstract:
Cryptocurrencies have, over the years, gained an unprecedented prominence in financial discourse, with the market fielding over 5,300 digital currencies and reaching over $2 trillion in market capitalisation in 2022. The surge in market values of digital currencies and their popularity in the world of e-commerce have remained unabated and equally received special attention from researchers focusing on identifying the underlying factors that drive changes in their market values. Thus, this study models the dynamics of the prices of cryptocurrencies alongside their interconnectedness, focusing on Bitcoin, Ethereum, and Litecoin along the time and frequency dimensions of monthly data from 1 March 2016 to 05/31/2022. Based on the ARDL model, results show that the volume of transactions of Bitcoin, Ethereum, and Litecoin, oil prices, and gold prices exert a more significant positive influence on their prices in the longrun than in the shortrun. However, the publicity of the selected cryptocurrencies (google search rates) does not significantly influence their prices. Interestingly, results from the Wavelet Granger causality tests show no causality between the raw series of Bitcoin, Ethereum, and Litecoin prices. However, a bi-directional causality exists between Bitcoin and Ethereum prices during the longrun in their low frequencies, a unidirectional causality running from Bitcoin to Litecoin prices during the longrun in their low frequencies, and a unidirectional causality running from Litecoin to Ethereum prices during the shortrun, medium run and longrun in their high, medium, and low frequencies. These findings have profound implications for the global financial market and investor decisions.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2196852
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2196852
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# input file: OAEF_A_2186039_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Salah Mohammed Abdulahi
Author-X-Name-First: Salah Mohammed
Author-X-Name-Last: Abdulahi
Author-Name: Mekonnen Kumlachew Yitayaw
Author-X-Name-First: Mekonnen Kumlachew
Author-X-Name-Last: Yitayaw
Author-Name: Habtamu Legese Feyisa
Author-X-Name-First: Habtamu Legese
Author-X-Name-Last: Feyisa
Author-Name: Wondmagegn Biru Mamo
Author-X-Name-First: Wondmagegn Biru
Author-X-Name-Last: Mamo
Title: Factor affecting technical efficiency of the banking sector: Evidence from Ethiopia
Abstract:
An efficient bank is more robust to shocks, fosters competitiveness, and promotes stability of the financial system. This study estimates Ethiopia’s commercial banks’ level of efficiency and its determinants during the period 2014–2020. Data Envelopment Analysis (DEA), Malmquist DEA, and Tobit regression were employed to analyze the data. The result indicated that the average efficiency score of banks in the constant returns to scale (CRS), variable returns to scale (VRS), and scale efficiency (SE) models were 95.5%, 99.85%, and 96.95% , respectively. Furthermore, in the VRS model, a state bank is more efficient than private banks. During the study period, the Total Factor Productivity (TFP) of Banks improved by 1%. According to the Tobit model, the efficiency of banks grows with an increment in the number of branches, bank size, and credit risk. However, when, liquidity risk and the log of the fixed asset increase, bank efficiency will decrease. The level of capitalization, log of GDP, and inflation, on the other hand, do not influence bank efficiency. Therefore, banks should pay close attention to aspects that influence technical efficiency.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2186039
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2186039
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# input file: OAEF_A_2171609_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Khoa Dang Duong
Author-X-Name-First: Khoa Dang
Author-X-Name-Last: Duong
Author-Name: Phuong Mai Duong Tran
Author-X-Name-First: Phuong Mai Duong
Author-X-Name-Last: Tran
Author-Name: Ha Pham
Author-X-Name-First: Ha
Author-X-Name-Last: Pham
Title: CEO overpower and corporate social responsibility of commercial banks: The moderating role of state ownership
Abstract:
This study examines the impacts of powerful CEOs and state ownership on commercial banks’ corporate social responsibility (CSR) in Vietnam, a transitional market in Asia. Given the differences between emerging and developed markets in terms of their institutions and governance, it is essential to explore the impact of CEO power on CSR disclosure in emerging markets. This study collects data from 37 Vietnamese commercial banks from 2010 to 2020. We employ a dynamic system Generalized Method of Moments to overcome endogeneity and heterogeneity issues. The findings show that powerful CEOs negatively reduce CSR programs. CEO power tends to focus less on CSR investments because CSR expenses reduce the operating free cash flow. Meanwhile, our findings indicate a positive relationship between state ownership and CSR developments. This study reports a moderating role of state ownership in empowering powerful CEOs to develop CSR programs in commercial banks. We also perform a robustness test to confirm the persistence of our main findings across subsamples by CEO ages. Our robustness test results indicate that CEOs have the lowest motivation to improve CSR when their ages are from 40 to 60. Our findings align with agency theory, stakeholder theory and prior literature. Finally, our study contributes practical implications for management and policymakers to develop CSR programs sustainably.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2171609
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# input file: OAEF_A_2183642_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Rana Yassir Hussain
Author-X-Name-First: Rana Yassir
Author-X-Name-Last: Hussain
Author-Name: Namarta Kumari Bajaj
Author-X-Name-First: Namarta Kumari
Author-X-Name-Last: Bajaj
Author-Name: Sonia Kumari
Author-X-Name-First: Sonia
Author-X-Name-Last: Kumari
Author-Name: Mamdouh Abdulaziz Saleh Al-Faryan
Author-X-Name-First: Mamdouh Abdulaziz Saleh
Author-X-Name-Last: Al-Faryan
Title: Does Economic Policy Uncertainty Affect Foreign Remittances? Linear and Non-linear ARDL Approach in BRIC Economies
Abstract:
This study investigates the impact of economic policy uncertainty (EPU) on foreign remittances and whether it affects them symmetrically or asymmetrically. The ARDL model is employed to examine the short-run and long-run symmetric impact of EPU on foreign remittances, while the NARDL model is utilized to examine the short-run and long-run asymmetric impact of EPU on foreign remittances, using monthly data for the BRIC economies (Brazil, Russia, India, and China). The results indicate that in the short-run, EPU has a positive and significant impact only on the inflows of foreign remittances received in Russia. Additionally, the short-run asymmetric impact of EPU on foreign remittances is found in Russia and India. Meanwhile, the long-run asymmetric impact of EPU on foreign remittances is observed in the BRIC economies. In particular, the results show that the non-linear response of EPU varies among the sampled countries. The findings of this study enhance our understanding of the role of policy uncertainty in overseas remittances. This information would be beneficial for policymakers, migrants, and recipients, as they are directly involved in making decisions about policies and the transfer of remittances, respectively.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2183642
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2183642
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# input file: OAEF_A_2217582_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Lan Nguyen-Thi-Huong
Author-X-Name-First: Lan
Author-X-Name-Last: Nguyen-Thi-Huong
Author-Name: Hung Nguyen-Viet
Author-X-Name-First: Hung
Author-X-Name-Last: Nguyen-Viet
Author-Name: Anh Nguyen-Phuong
Author-X-Name-First: Anh
Author-X-Name-Last: Nguyen-Phuong
Author-Name: Duy Van Nguyen
Author-X-Name-First: Duy
Author-X-Name-Last: Van Nguyen
Title: How does digital transformation impact bank performance?
Abstract:
Digital transformation is a keyword that has not only been mentioned in recent years but is also strongly applied by companies. However, the benefits of digital transformation for companies are still an issue that needs to be researched. Therefore, this study is conducted to determine the dynamics of digital transformation on banking business results. The research was conducted with joint stock commercial banks in Vietnam listed on the stock exchange. Based on text analysis on annual reports to measure banks’ digital transformation level from 2015 to 2021. Research results have shown that digital transformation has a negative impact on bank’s performance (through the return on assets and return on equity). Furthermore, the study also found that there was a paradoxical situation where COVID-19 increased the profits of banks. This result provides exciting discussions related to digital transformation and bank performance.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2217582
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2217582
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# input file: OAEF_A_2188712_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Kwame Mireku
Author-X-Name-First: Kwame
Author-X-Name-Last: Mireku
Author-Name: Francis Appiah
Author-X-Name-First: Francis
Author-X-Name-Last: Appiah
Author-Name: Joseph Akadeagre Agana
Author-X-Name-First: Joseph Akadeagre
Author-X-Name-Last: Agana
Title: Is there a link between financial literacy and financial behaviour?
Abstract:
In this paper, we are motivated by the growing complexity of financial service products amidst an unending wave of Ponzi schemes as well as the low levels of financial literacy reported by prior studies. Particularly, while the extant literature has focused on various determinants of financial literacy, limited insights exist on the implications of financial literacy on financial behaviour. Consequently, we focus our empirical test on identifying the link between financial literacy and financial behaviour. We formulated our hypotheses from the family resource management theory which postulates that individual behaviour is a function of their knowledge. Thus, relative to financial literacy and financial behaviour, we argue that financially literate individuals are more likely to exhibit sound financial behaviour than those who are financially illiterate. We tested our hypothesis by using the logistic regression technique on a cross-sectional sample of 3,932 students pursuing various undergraduate and postgraduate programs in Ghanaian public and private universities. Notably, we selected our respondents from six (6) public and six (6) private universities. Consistent with our theoretical predictions, our results show that financially literate students are more likely to exhibit sound financial behaviour. Specifically, the results demonstrate that financial literacy is a major input for financial behaviour. Additionally, we observe that variables such as family characteristics particularly the father’s educational background, and discussion of financial matters at home are significant predictors of sound financial behaviour. Generally, our results have implications for various stakeholders including governments, academic institutions, and families.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2188712
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2188712
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# input file: OAEF_A_2182016_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Guglielmo Maria Caporale
Author-X-Name-First: Guglielmo Maria
Author-X-Name-Last: Caporale
Author-Name: Alex Plastun
Author-X-Name-First: Alex
Author-X-Name-Last: Plastun
Title: Witching days and abnormal profits in the us stock market
Abstract:
This paper examines price effects related to witching days in the US stock market using both weekly and daily data for three major indices, namely the Dow Jones, S&P500 and Nasdaq, over the period 2000–2021. First it analyses whether or not anomalies in price behaviour arise from witching by using various parametric (Student’s t-test, and ANOVA) and non-parametric (Mann-Whitney) tests as well as an event study method and regressions with dummies; then it investigates whether or not any detected anomalies give rise to profit opportunities by applying a trading simulation approach. The results suggest the presence of the anomaly in daily returns on witching days which can be exploited by means of suitably designed trading strategies to earn abnormal profits, especially in the case of the Nasdaq index. Such evidence is inconsistent with the Efficient Market Hypothesis (EMH).
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2182016
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2182016
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# input file: OAEF_A_2202963_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Carlos Kokuvi Tetteh
Author-X-Name-First: Carlos Kokuvi
Author-X-Name-Last: Tetteh
Author-Name: Anthony Amoah
Author-X-Name-First: Anthony
Author-X-Name-Last: Amoah
Author-Name: Edmund Kwablah
Author-X-Name-First: Edmund
Author-X-Name-Last: Kwablah
Author-Name: Rexford Kweku Asiama
Author-X-Name-First: Rexford Kweku
Author-X-Name-Last: Asiama
Author-Name: Godson Ahiabor
Author-X-Name-First: Godson
Author-X-Name-Last: Ahiabor
Title: A test of behavioural changes to electronic levy: Evidence from mobile money transactions in a developing country
Abstract:
Even before its introduction, the electronic levy in Ghana stirred up different behavioural reactions from the public, despite the intention to use its proceeds to provide better public services. As a result, this study examines some of these behavioural changes using pre-tax survey data on the proposed electronic levy. Using a sample size of 2,810 individuals with mobile money accounts, we estimate a multivariate logit model with its marginal effects to determine the associated drivers of individuals’ behavioural changes to the proposed tax. The results show that the electronic levy is likely to have an immediate impact on an individual’s behaviour in positive and negative ways. Thus, while about 88% of the respondents indicated that they are likely to stop using mobile money or reduce their transactions, approximately 12% of the respondents rather reaffirmed their willingness to keep using mobile money or perhaps increase their mobile-money transactions. Furthermore, we find evidence that income, marital status, objective knowledge, trust in government, and the implementation timeframe are the statistically significant determinants of behavioural changes to the electronic tax in Ghana. The results suggest varying behavioural responses to the electronic levy in Ghana, which threaten the realization of expected revenues. We recommend proper education and advocacy at all levels and a keen consideration to implement the levy later, perhaps, when there is more trust in the government’s ability to use tax revenues prudently.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2202963
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2202963
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# input file: OAEF_A_2209950_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Md. Asad Iqbal Chowdhury
Author-X-Name-First: Md. Asad Iqbal
Author-X-Name-Last: Chowdhury
Author-Name: Mohammad Shamsu Uddin
Author-X-Name-First: Mohammad Shamsu
Author-X-Name-Last: Uddin
Author-Name: Monir Ahmmed
Author-X-Name-First: Monir
Author-X-Name-Last: Ahmmed
Author-Name: Md. Rizwan Hassan
Author-X-Name-First: Md. Rizwan
Author-X-Name-Last: Hassan
Author-Name: Mohammad Jonaed Kabir
Author-X-Name-First: Mohammad Jonaed
Author-X-Name-Last: Kabir
Title: Potential risks of liquidity and credit affecting the efficiency of Islamic banks in Bangladesh
Abstract:
Recently worldwide Islamic finance has gained considerable attention. However, Islamic financial institutions face multiple risks to sustaining and growing further. Against this backdrop, the paper examines the impact of both liquidity and credit risk on the efficiency of Islamic banks (IBs) operating in Bangladesh. This paper uses IB’s data from 2007 to 2018 and offers a two-stage assessment. In the first stage, it uses data envelopment analysis (DEA), and in the second stage regression models to assess the impact of both liquidity and credit risk on the efficiency of the IBs. Efficiency scores confirm that IBs are operating with an 86% efficiency level through a 68% share in the constant returns to scale (CRS). Our results also confirm that both liquidity risk (LR) and credit risk (CR) have a significant impact on the efficiency of the IBs in Bangladesh. A higher score for efficiency is shown by a higher liquidity risk, whereas mixed results are confirmed by credit risk indicators. Moreover, the Z-score (a bank stability measurement) and number of branches (a measurement of the bank’s network coverage), have a positive impact on efficiency. On the other side, the size of the bank and the financial crisis period show a negative relationship with the bank’s efficiency. The findings of our paper significantly contribute to the Islamic banking sector, especially for the policymakers and academic researchers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2209950
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2209950
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# input file: OAEF_A_2190213_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Muneer Shaik
Author-X-Name-First: Muneer
Author-X-Name-Last: Shaik
Author-Name: Syed Ahsan Jamil
Author-X-Name-First: Syed Ahsan
Author-X-Name-Last: Jamil
Author-Name: Iqbal Thonse Hawaldar
Author-X-Name-First: Iqbal Thonse
Author-X-Name-Last: Hawaldar
Author-Name: Mohammad Sahabuddin
Author-X-Name-First: Mohammad
Author-X-Name-Last: Sahabuddin
Author-Name: Mustafa Raza Rabbani
Author-X-Name-First: Mustafa Raza
Author-X-Name-Last: Rabbani
Author-Name: Mohd Atif
Author-X-Name-First: Mohd
Author-X-Name-Last: Atif
Title: Impact of geo-political risk on stocks, oil, and gold returns during GFC, COVID-19, and Russian – Ukraine War
Abstract:
The study uses wavelet power spectrum and wavelet coherence transformation methodologies to examine how geopolitical risk affected the returns on stocks, oil, and gold during the GFC, COVID-19, and Russia-Ukraine war-three disruptive events that affected the world’s financial markets. For better diversification benefits during the turbulent times, we further investigate the degree of co-movement in frequency and time domains. We observe that GPR has high variations during Russia-Ukraine war period compared to COVID-19 period and is shown to have least variation during the GFC period. WTI crude oil and DJGI indexes are observed to have high variations during GFC, and COVID-19 periods followed by Russia-Ukraine war. We further observe that GOLD offers better diversification opportunity as well as leading movement against WTI and DJGI during disruptive events in financial markets. The results provide new understanding of how geopolitical risk affects financial assets for international investors, fund managers, and regulators, which would further aid to find risky and safer haven possibilities during the turmoil periods.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2190213
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2190213
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# input file: OAEF_A_2160582_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Samuel Nkosinathi Dlamini
Author-X-Name-First: Samuel Nkosinathi
Author-X-Name-Last: Dlamini
Author-Name: Dr Pfano Mashau
Author-X-Name-First: Dr Pfano
Author-X-Name-Last: Mashau
Title: Determination of the effects and optimal thresholds of monetary policy instruments: A study of Central Bank Lending system in Kingdom of Eswatini
Abstract:
This paper examines the impact of monetary policy instruments such as discount rate, reserve requirement and liquidity requirement on bank credit to the private sector in the Kingdom of Eswatini. Monthly data sourced from the Central Bank of Eswatini and Eswatini Central Statistics Office is used for the period January 2000 to December 2017. Using the Johansen cointegration test and Vector Error Correction Model, our results show that: there is one cointegration in the model and the current levels of the discount rate, reserve requirement and liquidity requirement bear a negative and significant effect to bank credit to the private sector. This indicates that the three instruments are not supportive to economic growth and they are not optimal to stimulate credit. Applying the Quadratic approach, findings of this study reveal that the optimal monetary policy mix (thresholds) to stimulate bank credit to the private sector while maintaining inflation within reasonable levels is 5.42% for the discount rate, 4.03% for the reserve requirement, 12.48% for the liquidity requirement. The study recommends that the Central Bank of Eswatini should always take into account the existence of trade-off in monetary policy instruments results in order to stimulate bank lending to the private sector.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2160582
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2160582
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# input file: OAEF_A_2160132_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Gebreegziabher Fentahun
Author-X-Name-First: Gebreegziabher
Author-X-Name-Last: Fentahun
Author-Name: Tadesse Amsalu
Author-X-Name-First: Tadesse
Author-X-Name-Last: Amsalu
Author-Name: Zewdu Birhanie
Author-X-Name-First: Zewdu
Author-X-Name-Last: Birhanie
Title: Farmers’ perceptions about the influence of land fragmentation and land quality on sustainable land management in the upper lake Tana Basin: Evidence from Dera District
Abstract:
The adoption of Sustainable Land Management (SLM) depends, among others, on land fragmentation and soil characteristics. From the factors, land fragmentation is a worldwide trait that result from various institutional, political, historical, and sociological factors which influence farmers perceptionperception on SLM practice. Henceforth, this study was carried out to investigate the effects of land fragmentation and land quality on Sustainable Land Management (SLM) in the upper Lake Tana basin of Dera Woreda. Data on land fragmentation were collected using GPS and GIS tools, and a survey was conducted on 194 farm households, 1,059 parcels, and FGD to secure data on socioeconomic issues and insight of respondents on land fragmentation and associated variable. Simple descriptive and inferential statistics were applied to analyze socioeconomic, demographic and the perception of farmers about land-related factors. Analysis of land fragmentation using the Simpson index indicated 74%, implying that there is a high degree of land fragmentation in the study area. A multivariate probit (MVP) model was used to analyze the effect of land fragmentation and related factors on the interdependent investment decisions of SLM practices (Bunds, Manure, permanent erosion control and chemical fertilizer) using a multiple household level survey. The MVP model analysis indicates that farmers use two or more practices at plot level by considering substitution and complementarity effects of the practices. The results also revealed how land quality (e.g., slope and soil depth), land fragmentation (Simpson index, parcel size and distance from homestead) influence farmers’ investments in SLM practices. The overall results indicate that farm land fragmentation hinders SLM investments, and land quality parameters also improve or hinder the decisions about investments. Policy makers should consider these various land associated factors in designing and implementing SLM policies and programs.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2160132
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2160132
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# input file: OAEF_A_2220249_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tarek Ibrahim Eldomiaty
Author-X-Name-First: Tarek Ibrahim
Author-X-Name-Last: Eldomiaty
Author-Name: Marina Apaydin
Author-X-Name-First: Marina
Author-X-Name-Last: Apaydin
Author-Name: Ahmed El-Sehwagy
Author-X-Name-First: Ahmed
Author-X-Name-Last: El-Sehwagy
Author-Name: Mohamed Hashim Rashwan
Author-X-Name-First: Mohamed Hashim
Author-X-Name-Last: Rashwan
Title: Institutional quality and firm-level financial performance: implications from G8 and MENA Countries
Abstract:
This paper examines the effects of institutional quality on firm-level financial performance. The data include non-financial firms listed in stock exchanges in G8 and MENA countries. The total number of firms in the G8 and MENA is 347 and 389, respectively, covering the period 2017–2020. The results show that, in the G8 countries, institutional quality is associated significantly and positively with asset efficiency, expense control, debt financing, and liquidity. In the MENA countries, institutional quality is associated significantly and positively with liquidity and profitability, but negatively with asset efficiency, expense control, and debt financing. The results show that the effect of corporate size is asymmetrical. The results also reveal a significant institutional convergence between G8 and MENA countries in terms of voice & accountability, political stability, and government effectiveness. Nevertheless, institutional quality in the G8 is better off that of the MENA countries in terms of Rule of law, Control of Corruption, and Regulatory Quality. The results also show that the duration of improvement in institutional quality takes between 2–4 years to have a significant effect of firms’ financial performance. This paper offers a contribution to corporate managers in terms of offering a guide to design financial strategies that adapts to the quality of institutions in the respective countries. A further contribution is offered to policy makers in terms of offering a road map to improve institutional quality that helps improve the financial performance of the business sector.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2220249
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2220249
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# input file: OAEF_A_2156094_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Gideon Link Sackitey
Author-X-Name-First: Gideon Link
Author-X-Name-Last: Sackitey
Title: Do environmental taxes affect energy consumption and energy intensity? An empirical analysis of OECD countries
Abstract:
The use of environmental taxes can encourage a shift toward eco-friendly choices. When used in conjunction with other policy tools available, environmental taxes can help bring about the adjustments needed in order to address our current environmental and climate challenges. Therefore the objective of this study was to examine the impact of environmental taxes on energy consumption and energy intensity using panel data covering the period 1995–2014 from 35 OECD countries. I employed environmental tax to total tax ratio, total energy consumption, and total energy intensity to estimate the relation between energy consumption and environmental taxes. Using the fully modified and dynamic OLS techniques and I showed that environmental taxes have a negative effect on energy consumption and energy intensity in the long run. Furthermore, using the Dumitrescu and Hurlin’s panel granger causality test I found a bi-directional long-run causality between environmental taxes and energy consumption and intensity. With regards to the disaggregated effect of environmental taxes, this study found that energy taxes (including CO2 taxes) have a larger effect on energy consumption and energy intensity than pollution and transport taxes. To test for the robustness and sensitivity of my model, I resorted to the total environmental tax to GDP ratio and employed both GMM and quantile regressions. Thus, I concluded that environmental taxes have a significant impact on energy consumption and energy intensity among OECD member countries.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2156094
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2156094
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# input file: OAEF_A_2196844_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Xolile Antoni
Author-X-Name-First: Xolile
Author-X-Name-Last: Antoni
Title: THE role of family structure on financial socialiSation techniques and behaviour of students in the Eastern Cape, South Africa
Abstract:
Financial socialisation techniques are known to influence students’ financial behaviour in the Eastern Cape. Still, the role of family structure on financial socialisation techniques and financial behaviour is unknown in the Eastern Cape. This study investigates the role of family structure on financial socialisation techniques and students’ financial behaviour in the Eastern Cape. A quantitative study was adopted, and closed-ended questionnaires were used in this study to collect primary data from 360 students in one university in the Eastern Cape. It was found that 66.11% of the students were raised in intact families, while 33.89% were raised in non-intact families. In terms of regression results, it was found that family structure significantly influences and shows differences in financial socialisation techniques and students’ financial behaviour. Also, financial socialisation techniques mediate the influence of family structure on students’ financial behaviour. It was recommended that financial educators should take into account the family variables such as family structure when planning for financial education programmes. Ideally, financial educators should develop a financial education programme that separately targets intact and non-intact families. Also, financial educators should encourage students to invite their parents to attend and participate in financial education workshops. This is to ensure that parents are educated on parental financial teaching and modelling as a way to improve students’ financial behaviour. This study demonstrates that family structures should be considered when targeting students’ financial behaviour. Also, financial socialisation techniques are important in improving students’ financial behaviour in the Eastern Cape. This study contributes to personal finance literature by providing empirical data on the role of family structure in financial socialisation and the behaviour of students.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2196844
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2196844
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# input file: OAEF_A_2190214_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Billie Anderson
Author-X-Name-First: Billie
Author-X-Name-Last: Anderson
Author-Name: Nathan Mauck
Author-X-Name-First: Nathan
Author-X-Name-Last: Mauck
Author-Name: Leigh Salzsieder
Author-X-Name-First: Leigh
Author-X-Name-Last: Salzsieder
Title: An experiment on information presentation and investor mutual fund selection
Abstract:
Our experiments evaluate the role of information presentation in reducing violations of the Law of One Price in individual investor selection of index mutual funds. The results indicate that most individuals fail to minimize fees. However, individuals allocate nearly 27% (43%) more of their investment dollars to the lowest fee index mutual fund when receiving fee information in the form of a table compared to a graph presentation (in ten-year rather than one-year form). Overall, a simple change from table to graph fee presentation results in a statistically and economically significant reduction in the fees paid by investors.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2190214
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2190214
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Handle: RePEc:taf:oaefxx:v:11:y:2023:i:1:p:2190214
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# input file: OAEF_A_2169997_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Salvatore Joseph Terregrossa
Author-X-Name-First: Salvatore Joseph
Author-X-Name-Last: Terregrossa
Author-Name: Uğur Şener
Author-X-Name-First: Uğur
Author-X-Name-Last: Şener
Title: Employing a generalized reduced gradient algorithm method to form combinations of steel price forecasts generated separately by ARIMA-TF and ANN models
Abstract:
The research objective of the present study is the development of a model for increased accuracy of steel-price forecasts, which is of paramount importance for firms who use steel as an input and thus need to make informed decisions with regard to an optimal amount and type of hedge against unfavourable steel-price movement. To achieve its aim, the study forms weighted average combinations of steel price forecasts generated separately by a transfer function ARIMA model (ARIMA-TF) and an artificial neural network model (ANN), as both models are shown to contribute independent information with regard to target variable (steel price) movement. A generalized reduced gradient algorithm (GRG) method is employed to estimate the component model forecast weights, which is a novel approach introduced by this study. The data set employed includes a time series of monthly steel prices (cold rolled flat steel) from February, 2012 to November, 2020. Explanatory variables include iron ore price, coking coal price, capacity utilization, GDP and industrial production. With regard to the out of sample forecasts of all models (component and combining), mean absolute percentage forecast errors (MAPE) are calculated and model comparisons are made. The study finds that the combining model formed with the gradient algorithm approach in which the weights are constrained to be nonnegative and sum to one has the lowest MAPE of all models tested, and overall is found to be very competitive with other models tested in the study. The policy implication for firms that use steel as a major input is to base their hedging decisions on a combination of forecasts generated by ARIMA-TF and ANN models, with the forecast weights generated by a constrained generalized reduced gradient algorithm (GRG) method.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2169997
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2169997
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# input file: OAEF_A_2218680_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Aarif Mohammad Khan
Author-X-Name-First: Aarif Mohammad
Author-X-Name-Last: Khan
Author-Name: Uzma Khan
Author-X-Name-First: Uzma
Author-X-Name-Last: Khan
Author-Name: Sana Naseem
Author-X-Name-First: Sana
Author-X-Name-Last: Naseem
Author-Name: Shaha Faisal
Author-X-Name-First: Shaha
Author-X-Name-Last: Faisal
Title: Role of energy consumption, tourism and economic growth in carbon emission: evidence from Kuwait
Abstract:
Even though the Paris Agreement and the Sustainable Development Goals say that low-carbon economic growth is essential, more research must be done to determine how the tourism sector affects carbon productivity. So, to see if increased energy usage, tourism, and economic growth jointly raise carbon productivity in Kuwait, this study uses a vector error correction strategy to look at the years 1995–2020. Predictions about how sustainable tourism will affect energy efficiency, and carbon productivity improvements are also an excellent way to learn more about this subject. As the amount of carbon dioxide in the air increases, tourism will go down by 0.13 percent. Inverse cointegration is the term for this phenomenon. However, the vector error correction model showed that carbon emissions go down as the economy grows and people pay more attention to how much energy they use. Nevertheless, Granger’s theory of cause and effect says that carbon emissions, energy use, and economic growth can only lead to more tourism in one way.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2218680
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2218680
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# input file: OAEF_A_2190215_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Alastair Marais
Author-X-Name-First: Alastair
Author-X-Name-Last: Marais
Author-Name: Claire Vermaak
Author-X-Name-First: Claire
Author-X-Name-Last: Vermaak
Author-Name: Patricia Shewell
Author-X-Name-First: Patricia
Author-X-Name-Last: Shewell
Title: Predicting financial statement manipulation in South Africa: A comparison of the Beneish and Dechow models
Abstract:
Recently, South Africa has suffered from several large financial statement frauds. To assist stakeholders in identifying fraud, this study investigated the ability of the Beneish M-score and the Dechow et al. F-score to identify fraud in South Africa. The study also explored similarities in earnings management characteristics between false positives and fraudulent companies. Finally, the study re-estimated the models’ coefficients based on current South African data to determine if this improved their predictive capabilities. The study used a sample of 23 manipulated and 2 320 non-manipulated observations from 2006 to 2018 and found that both scores showed low sensitivity and precision. The false positives share similar, or higher, earnings management characteristics to the manipulators. Re-estimating the coefficients reduced the M-scores’ sensitivity by, on average, 6.52% but improved precision by, on average, 4.21%. Conversely, re-estimation increased the F-scores’ sensitivity by, on average, 58.70% but increased the type II error by, on average, 48.09%. These findings suggested that either the M- and F-scores are unsuitable in the South African context or that regulators have failed to identify manipulators adequately. Therefore, investors and other stakeholders should use caution when applying these models in South Africa.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2190215
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2190215
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# input file: OAEF_A_2158630_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Fabrice-Gilles Ndombi Avouba
Author-X-Name-First: Fabrice-Gilles
Author-X-Name-Last: Ndombi Avouba
Author-Name: A.IBN-Saïd Akougbe
Author-X-Name-First: A.IBN-Saïd
Author-X-Name-Last: Akougbe
Author-Name: Christel le Ines Leticia Ndombi Ondze
Author-X-Name-First: Christel le Ines Leticia
Author-X-Name-Last: Ndombi Ondze
Title: Non-linearity between financial inclusion and economic growth in sub-saharan Africa: What implications for the West African Economic and Monetary Union (WAEMU)?
Abstract:
In a context where many African populations are excluded from the traditional banking system, financial inclusion appears to be a determining factor in enabling agents in need of financing, notably producers and consumers, to have easy access to financial services in order to contribute to the multiple efforts of economic and social progress of nations. However, to date, the literature remains silent on the optimal level of financial inclusion that can boost growth. Consequently, this paper aims to verify whether there is a non-linear relationship between economic growth and financial inclusion in the WAEMU zone. Econometric applications based on the PCSE (panel-corrected standard error) model on a panel of eight countries for the period 2014–2018 reveal a U-shaped relationship between the extended banking rate and economic growth. Economic growth shows two different behaviours depending on whether one is on the side of one or the other of the regimes inherent to the inflection point. In view of these results, we suggest that the public authorities: i) intensify campaigns to open accounts in local languages, ii) promote the development of online sales applications for goods and services, iii) pursue the dematerialisation of financial operations within public administrations. Finally, this paper paves the way for future research on the microeconomic component and a similar treatment of the subject, but taking into account the occurrence of the Covid pandemic19.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2022.2158630
File-URL: http://hdl.handle.net/10.1080/23322039.2022.2158630
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# input file: OAEF_A_2166733_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Salem Al Mustanyir
Author-X-Name-First: Salem
Author-X-Name-Last: Al Mustanyir
Title: Government healthcare financing and dwindling oil prices: Any alternatives for OPEC countries?
Abstract:
Crude oil is one of the sources by which budgets are financed in OPEC countries. However, the fall in oil prices in 2014 put their governments’ finances under significant pressure. Healthcare was one of the sectors experiencing fiscal strain. This study examined the effect of a fall in oil prices on healthcare financing in eight OPEC countries and whether such financing has shifted away from the dependence on oil. Quantitative healthcare expenditure data from the WHO covering the period from 2003 to 2019 were evaluated using a comparison of means Welch’s t-test. The result showed that government healthcare expenditure in Iran, Venezuela, and Kuwait increased in the period post-2014 compared to the expenditure after 2008 and 2002, suggesting that these countries succeeded in shielding such spending against the fall in oil prices. By contrast, the United Arab Emirates, Saudi Arabia, Iraq, Nigeria, and Algeria did not, highlighting that they have not yet moved from dependence on oil. With the economic uncertainty caused by oil fluctuations, global political and economic developments, and the world transitioning to green energy, oil-dependent countries should free their governments’ healthcare expenditure from dependence on such sources of funding. Furthermore, they should not focus on temporary plans by shifting the burden to private spending at a time of falling oil prices, but to utilize different financing approaches.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2166733
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2166733
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# input file: OAEF_A_2199596_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Tadele Alamneh
Author-X-Name-First: Tadele
Author-X-Name-Last: Alamneh
Author-Name: Melkamu Mada
Author-X-Name-First: Melkamu
Author-X-Name-Last: Mada
Author-Name: Tora Abebe
Author-X-Name-First: Tora
Author-X-Name-Last: Abebe
Title: Impact of Urban expansion on income of evicted farmers in the peri-Urban areas of Amhara Regional State, Ethiopia: Endogenous switching regression approach
Abstract:
The rate of urbanization in the Amhara region has apparently increased over the past three decades and is now higher than that of any other region in Ethiopia. As cities expand, peri-urban farmers in the region are being compelled to abandon their landholdings, which is their life-long asset. Therefore, the aim of this study is to investigate the impact of urban expansion on the income of evicted peri-urban farmers in Injibara, Burie and Gish Abay cities of the Amhara regional state, Ethiopia. Using stratified sampling technique, primary data was collected from 393 households (197 evicted and 196 non-evicted). The endogenous switching regression model was employed to examine the impact of urbanization on the income of evicted farmers. The model’s output of ATT revealed that evicted farmers had a substantial reduction in yearly income of 9202.36 Ethiopian Birr as compared to their counterfactuals. In other words, eviction diminishes the annual income of evicted farmers by 26.73%. Furthermore, ATU results also confirmed that non-evicted farmers’ income would have decreased by 4666.78 Birr if they had chosen to be evicted, proving that eviction might have a negative impact on farmers’ income at any circumstance. Therefore, this study suggests that the government conduct a comprehensive socioeconomic and demographic evaluation before evicting indigenous farmers and that an alternative strategy be developed to mitigate the negative effects of eviction on peri-urban farmers.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2199596
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2199596
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# input file: OAEF_A_2223809_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Zahid Jumah
Author-X-Name-First: Zahid
Author-X-Name-Last: Jumah
Author-Name: Zahid Irshad Younas
Author-X-Name-First: Zahid
Author-X-Name-Last: Irshad Younas
Author-Name: Nabeel Safdar
Author-X-Name-First: Nabeel
Author-X-Name-Last: Safdar
Author-Name: Mamdouh Abdulaziz Saleh Al-Faryan
Author-X-Name-First: Mamdouh Abdulaziz Saleh
Author-X-Name-Last: Al-Faryan
Title: Economic policy uncertainty and corporate leverage - does cash holdings matter? Evidence from the U.S.
Abstract:
This research study examines the mediating role of cash holdings between the economic policy uncertainty (EPU) and corporate leverage relationship. Using stepwise regression analysis and annual firm-level data of 2,534 U.S. firms listed at NYSE over 1995–2018, we provide novel evidence that cash holdings significantly and partially mediate the EPU-leverage relationship, accounting for a 10.72% increase in the corporate leverage during EPU. We discover that the mediating role of cash holdings between EPU and leverage is sensitive to firm-level heterogeneity. Also, the mediating effect of cash holdings remains significant based on long- and short-term leverage. Finally, our findings are robust to outliers’ effect, alternate EPU measurement, endogeneity concerns and sample-selection bias. The findings of this study highlighted the role of firm cash holdings in a firm’s leverage decision during economic uncertainty and recommends increasing debt financing to incentivize value-increasing decisions and mitigate agency problems by reducing the cost of free cash flows. Policymakers should be aware of public and private firms’ challenges during high EPU. As we showed in this study, firms have to adjust their financial decisions during high economic uncertainty. Also, the study suggests that policymakers should maintain economic policies to avoid external shocks that may force firms to adjust their financial decision-making.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2223809
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2223809
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# input file: OAEF_A_2220520_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Eleonora Sofilda
Author-X-Name-First: Eleonora
Author-X-Name-Last: Sofilda
Author-Name: Muhammad Zilal Hamzah
Author-X-Name-First: Muhammad
Author-X-Name-Last: Zilal Hamzah
Author-Name: Suhal Kusairi
Author-X-Name-First: Suhal
Author-X-Name-Last: Kusairi
Title: Analysis of fiscal decentralisation, human development, and regional economic growth in indonesia
Abstract:
In Indonesia, fiscal decentralisation has been implemented for two decades, and it is expected that the regions will have a sufficient level of independence to increase economic growth and welfare. This study investigates the influence of fiscal decentralisation and human development on regional economic growth. The sample data comprised 484 county-level in Indonesia and utilised the panel data method. The findings showed that the central government grant, locally generated revenue, and human capital development positively influenced regional economic growth, although the degree of decentralisation negatively affected regional growth. Meanwhile, for regions with independence above 50 per cent, decentralisation, locally generated revenue, central government transfer and provincial loans and human capital development positively influenced regional economic growth. In addition, findings also indicated that a dynamic effect exists, implying that the performance of previous regional economic growth influenced current economic achievements. The policy implication of the study is that policymakers cannot equalise policy to boost regional economic growth because every county has its specific characteristics.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2220520
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2220520
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# input file: OAEF_A_2223417_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Fazlul Miah
Author-X-Name-First: Fazlul
Author-X-Name-Last: Miah
Author-Name: Omar Altiti
Author-X-Name-First: Omar
Author-X-Name-Last: Altiti
Author-Name: Abdoul Wane
Author-X-Name-First: Abdoul
Author-X-Name-Last: Wane
Title: Some cross-country evidence on information rigidity in inflation forecasts
Abstract:
The study investigates the existence and extent of information rigidity in inflation forecasts among 25 developed and 18 developing economies during 2002–2017 period utilizing a survey data set never explored before on this issue. In general, the study finds some evidence of information rigidity. Rigidity is present during the recession period of global financial crisis of 2007 for both the developed and the developing countries alike, and we find weak evidence of information gathering picking up during the recession period. We also find that forecast revisions depend on both own country and cross-country lagged revisions. Therefore, one source of information rigidity is not to incorporate overseas events in forecast revisions quickly and completely.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2223417
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2223417
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# input file: OAEF_A_2190643_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Joseph Upile Matola
Author-X-Name-First: Joseph Upile
Author-X-Name-Last: Matola
Title: How monetary policy affects industrial activity in Malawi: Evidence from ARDL and VAR models
Abstract:
In this paper, the impact of monetary policy on industrial production is investigated for Malawi. Using the ARDL bounds testing approach, and VAR models, it is shown that tight monetary conditions negatively affect industrial production both in the short run and in the long run. This is the case whether the central bank’s policy rate or reserve money is used as the policy tool. The study further establishes the interest rate channel, and money supply channel as the main mechanisms through which this effect of monetary policy is transmitted to industrial production. Given these results, a recommendation is made that the Reserve Bank of Malawi should refrain from prolonged use of tight monetary policy in their quest to achieve stability of prices as this stifles growth of the industrial sector. Rather monetary policy should be used as a temporary stabilization tool when faced with temporary shocks to the bank’s policy objectives.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2190643
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2190643
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# input file: OAEF_A_2175467_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: George Okello Candiya Bongomin
Author-X-Name-First: George Okello Candiya
Author-X-Name-Last: Bongomin
Author-Name: Waswa Balunywa
Author-X-Name-First: Waswa
Author-X-Name-Last: Balunywa
Author-Name: Edith Mwebaza Basalirwa
Author-X-Name-First: Edith
Author-X-Name-Last: Mwebaza Basalirwa
Author-Name: Muhammed Ngoma
Author-X-Name-First: Muhammed
Author-X-Name-Last: Ngoma
Author-Name: Joseph Mpeera Ntayi
Author-X-Name-First: Joseph
Author-X-Name-Last: Mpeera Ntayi
Title: Contactless digital financial innovation and global contagious COVID-19 pandemic in low income countries: Evidence from Uganda
Abstract:
Since its outbreak, Covid-19 has led to upsurge in economic inactivity, leaving many households and firms without access to and use of basic services including financial services. Specifically, with the lockdown and curfew, most traditional bank branches remained closed, leaving households without access to quality, affordable, convenient, and safe financial services. This study aims to establish whether contactless digital financial innovation like mobile money can promote access to and use of financial services in the presence of pandemic positive emotions in low-income countries. SmartPLS 3.0 was used to construct the structural equation mediation model with bootstrap based on 2,737 valid responses. It was found that contactless digital financial innovation such as mobile money significantly promotes access to and use of financial services in low-income countries under pandemic situation. Additionally, the findings showed that the use of contactless digital financial innovation promotes Covid-19 standard operating procedures in low-income countries. Cognizant to the role of human behaviour in technology adoption and usage, the structural equation model with bootstrapping revealed a 4 percentage points improvement in Covid-19 standard operating procedures due to the use of contactless mobile money channel. Accordingly, the findings could be useful in the following ways: governments in low-income countries may use it to promote public health concern under pandemic situations. Mobile money can allow individuals to store, send, and receive money during situation of limited or no movements caused by pandemic health restrictions. Besides, the use of contactless digital financial innovation may promote digital commerce in low-income countries under the pandemic situation. Similarly, mobile money can be used to promote government-to-person, person-to-person, person-to-business, and business-to-person payments under emergency situations. The findings may also help governments in low-income countries to rethink about taxes levied on mobile money.
Journal: Cogent Economics & Finance
Issue: 1
Volume: 11
Year: 2023
Month: 12
X-DOI: 10.1080/23322039.2023.2175467
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2175467
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# input file: OAEF_A_2266241_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Toure Moumbark
Author-X-Name-First: Toure
Author-X-Name-Last: Moumbark
Author-Name: Yawovi M. A. Koudalo
Author-X-Name-First: Yawovi M. A.
Author-X-Name-Last: Koudalo
Title: Firm self-financing, corruption, and the quality of tax administration in Africa
Abstract:
This study aims to determine the impact of tax administration and corruption on firm self-financing in Africa. The paper also explores the level at which tax administration and corruption are firm financing obstacles and whether these effects on firms differ regarding their size. The article uses data from the World Bank Enterprise Survey, which covers 45,048 firms in 48 countries across Africa. Using the Tobit, IV Tobit, and Multinomial Probit models, the results are robust as we controlled for country, firm diversity, and survey year. The study reveals that corruption reduces a firm’s self-financing by negatively affecting its internal funds or retained earnings. In addition, weak tax administration reduces firm self-financing. The results also reveal that corruption and poor tax administration are severe obstacles to a firm’s self-financed. Furthermore, while weak tax administration generally harms firm financing, the negative impact on larger firms surpasses the adverse effects on smaller and medium firms. The corruption issue is more critical in the case of small and medium firms than big firms as they spend a large portion of their profit to government officials as gifts or informal payments to reduce the burden of regulations and circumvent taxes.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2266241
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2266241
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# input file: OAEF_A_2231226_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Chala Amante Abate
Author-X-Name-First: Chala Amante
Author-X-Name-Last: Abate
Title: The nexus of public debt and economic growth in Ethiopia: Is it symmetric?
Abstract:
This study examines the nature of relationship between public debt and economic growth of Ethiopia. To this end, a time series data was collected over the period 1982–2018. Nonlinear ARDL and multiple thresholds nonlinear ARDL models were used to uncover whether the relationship between debt and economic growth of Ethiopia is asymmetric. Instrumental variable regression model with a quadratic specification was used to test threshold effect of debt. The results reveal there are evidences that support the existence of asymmetric relationship between the indicated variables. Accordingly, it was found that a major positive shock in debt is favorable to economic growth while the effect of a minor and negative shock to debt is unfavorable. The results further reveals that there is a threshold effect of debt such that it is beneficial to economic growth of Ethiopia when it is well below 66.75% of GDP or 36.27% of GNI. Above these threshold levels, debt incurred deteriorates economic growth of the country. The study recommends that government of Ethiopia should create conducive environment that helps to secure more debts from potential creditors and at the same time, keep the annual debt well below 66.75% of GDP and 36.27%.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2231226
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2231226
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# input file: OAEF_A_2241205_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Catalin Gheorghe
Author-X-Name-First: Catalin
Author-X-Name-Last: Gheorghe
Author-Name: Oana Panazan
Author-X-Name-First: Oana
Author-X-Name-Last: Panazan
Title: Effects of information related to the Russia-Ukraine conflict on stock volatility: An EGARCH approach
Abstract:
The Russia-Ukraine military conflict, commencing on February 24, 2022, notably impacted the international community. This study aims to quantify the volatility engendered by the conflict, drawing from the analysis of stock market indices across 40 countries. Time-series returns data from January 1 to December 31, 2022, were examined utilizing EGARCH econometric models. The relationship between volatility and news regarding the conflict was analyzed through a vector autoregression model, and associations between variables were examined using the Granger causality test. Findings suggest that some markets proximate to Ukraine, notably in Hungary, Polassnd Poland, Serbia, Bosnia and Herzegovina, and the Czech Republic, reacted in anticipation of the conflict, days prior to February 24. Remote markets experienced comparatively lower volatility, along with the primary stock markets. Additionally, a decline in volatility was observed as war-related information became available. Notably, the period between March 2 and March 16, 2022, recorded the highest volatility in 21 countries. Conversely, the value markets of the US, China, Japan, the UK, and Germany navigated the analyzed period with lower volatilities. These results demonstrate that conflict shocks influence stock markets globally. The implications of these findings are significant for investors, decision-makers, portfolio managers, investment funds, and central banks.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2241205
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2241205
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# input file: OAEF_A_2261307_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Luong Vinh Quoc Duy
Author-X-Name-First: Luong Vinh Quoc
Author-X-Name-Last: Duy
Author-Name: Damien Cassells
Author-X-Name-First: Damien
Author-X-Name-Last: Cassells
Author-Name: Jim Hanly
Author-X-Name-First: Jim
Author-X-Name-Last: Hanly
Title: Household electricity consumption: A study on the role of micro-renewable energy systems in Vietnam
Abstract:
Although nearly all households in Vietnam have connected to the national grid, electricity shortage in the residential sector is still an issue. One measure of residential electricity shortage is the micro-renewable energy system (micro-RES), but little is known about the drivers for household adoption of such system and whether the presence of a micro-RES can help to reduce household energy consumption. This paper examines the characteristics of households that have adopted a micro-RES and investigates whether the presence of micro-RES would result in a decrease in energy demand by using fixed-effects models. Analysis was carried out on the 2016 and 2018 Vietnam Household Living Standard Survey data sets. The results show that the micro-RES adopters are likely to have lower educational level, lower income or living conditions, and live in the mountainous regions. Micro-RES adopters are found to spend less on electricity and fuel than the non-adopters and this finding is consistent across households of different income groups. The results also suggest that the support schemes may be beneficial to households adopting micro-RES because they really need it to meet the increasing demand in electricity.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2261307
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2261307
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# input file: OAEF_A_2279871_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Steven Schmeiser
Author-X-Name-First: Steven
Author-X-Name-Last: Schmeiser
Title: Board of discord: Conflicting preferences and performance pay
Abstract:
This study examines the interaction of conflicting preferences among directors, performance pay, and group effort. I model a corporate board in which directors voluntarily choose to research (or not research) an investment decision made by the board on behalf of the firm. Free-riding among directors creates a need for performance pay to motivate this costly research. The study shows that board diversity, modeled as heterogeneous personal preferences among directors over the chosen investment, can act as a substitute for costly performance pay and, in equilibrium, benefit the firm. This creates a direct financial incentive for firms to increase board diversity. The study then shows how the optimal level of diversity changes with board and firm characteristics and generates a set of testable empirical predictions.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2279871
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2279871
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# input file: OAEF_A_2244857_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Minh Duc Do
Author-X-Name-First: Minh Duc
Author-X-Name-Last: Do
Author-Name: Tho Dat Tran
Author-X-Name-First: Tho Dat
Author-X-Name-Last: Tran
Author-Name: Hong Nhung Nguyen
Author-X-Name-First: Hong Nhung
Author-X-Name-Last: Nguyen
Author-Name: Ngoc Mai Le
Author-X-Name-First: Ngoc Mai
Author-X-Name-Last: Le
Author-Name: Duc Hieu Ninh
Author-X-Name-First: Duc Hieu
Author-X-Name-Last: Ninh
Title: Is gold an inflation hedge in Vietnam? A non-linear approach
Abstract:
This paper investigates the inflation-hedging ability of gold in Vietnam from 2011 to 2022. In order to assess how government management has affected the domestic gold market, two local gold prices (SJC and 9999) were employed. The non-linear autoregressive distributed lags (NARDL) approach is applied to analyze the short- and long-run asymmetry between CPI and gold prices. The result reveals that the relationships between CPI and gold prices are non-linear (asymmetric) and gold can only hedge against inflation in the short run. Additionally, the global gold price fluctuations, combined with limited supply, have created a supply shock, causing domestic enterprises to proactively widen the bid-ask spread in both types of gold to mitigate risks, indirectly exacerbating the local-global price disparities.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2244857
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2244857
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# input file: OAEF_A_2273590_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Yezihalem Mebrie Gobezie
Author-X-Name-First: Yezihalem Mebrie
Author-X-Name-Last: Gobezie
Author-Name: Jonse Bane Boka
Author-X-Name-First: Jonse Bane
Author-X-Name-Last: Boka
Title: The nexus between greenhouse gas emissions and food security in sub-Saharan Africa: A system GMM analysis
Abstract:
In SSA, evidence is scanty on the association between greenhouse gas emissions and food security, though the region is highly vulnerable to climate change. Thus, this study has examined the effects of greenhouse gas emissions on food security in 22 SSA countries for the period 2005–2018. We employed a one-step system GMM to control for endogeneity and individual heterogeneity problems. The GMM was also an efficient estimator for a dynamic panel data model. Results of the study revealed that most SSA countries are in the vicious circle of food insecurity, with very limited improvement over the study period. In addition, the GMM result found that the accumulation of greenhouse gases has significantly contributed to reduction of food security in SSA. Greenhouse gas emissions have a negative and statistically significant effect on food security. A 1% increase in greenhouse gas emissions has resulted in a 1.2% decrease in food security. However, livestock production, agricultural employment, and economic growth have improved food security, though livestock production and economic growth have very low significant coefficients. Therefore, the study recommends that the region should devote an immense effort to boost food security through combating greenhouse gas emissions and achieving the net-zero emission target of SDG 13 on climate change. Policy makers and governments should also consider policy interventions like providing funding to assist green projects and sustainable agricultural practices to reduce the negative effects of climate change.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2273590
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2273590
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# input file: OAEF_A_2256197_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Isubalew Daba Ayana
Author-X-Name-First: Isubalew
Author-X-Name-Last: Daba Ayana
Author-Name: Wondaferahu Mulgeta Demissie
Author-X-Name-First: Wondaferahu Mulgeta
Author-X-Name-Last: Demissie
Author-Name: Atnafu Gebremeskel Sore
Author-X-Name-First: Atnafu Gebremeskel
Author-X-Name-Last: Sore
Title: Effect of external debt on economic growth in sub-Saharan Africa: System GMM estimation
Abstract:
Following the upsurge of external debt in SSA countries, the effect of external debt on economic growth has captured the attention of empirical studies during the last two decades of the twenty-first century. This study investigated the short- and long-run effect of external debt on the economic growth of 39 SSA countries during the last decade for the periods of 2011–2021. The annual balanced dynamic panel data for the study were sourced from a recognized trustworthy data source, the world development indicator. The result of the study divulged that external debt has a significant negative impact in both the short and long run. Unequivocally, other things remaining constant, a percentage change in total external debt is associated with a 0.034 percent decline in the real GDP of SSA in the short run, while it leads to 0.65 percent shrinkage in the real GDP of SSA in the long run. The study concludes that the negative impact of the long run is greater than that of the short run. The policy implication is that SSA countries should allocate the external debt on the projects that bring other investment opportunities to amortize external debt. Further, the strategies that improve domestic revenue mobilization sources that compliment external debt such as improving informal sectors to broaden tax bases and minimizing domestic revenue leakages need to be established in SSA countries.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2256197
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2256197
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# input file: OAEF_A_2285158_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Santosh Gopalkrishnan
Author-X-Name-First: Santosh
Author-X-Name-Last: Gopalkrishnan
Author-Name: Shiba Prasad Mohanty
Author-X-Name-First: Shiba Prasad
Author-X-Name-Last: Mohanty
Author-Name: Megha Jaiwani
Author-X-Name-First: Megha
Author-X-Name-Last: Jaiwani
Title: Do efficiencies really matter? Analysing the housing finance sector and deriving insights through data envelopment analysis
Abstract:
This study aims to assess the efficiency of housing finance companies operating in India by applying Data Envelopment Analysis (DEA). We analyse 26 housing finance companies’ efficiency using various key financial indicators. In addition to DEA, we utilised Tobit regression to investigate the determinants of efficiency in housing finance companies. The findings indicate that large firms need internal restructuring of their coefficients to achieve efficiency, while small firms maintain efficiency within their capacity in the given scenarios. The total factor productivity change for housing finance companies was the highest in 2020–21, followed by a comparative decline in the subsequent year. By considering censored or truncated data, Tobit regression allows us to identify the specific factors influencing efficiency scores derived through DEA. The independent variables used in the Tobit regression model include financial indicators and other relevant factors impacting housing finance companies’ efficiency. Overall, this study sheds light on the performance of housing finance companies and highlights the financial parameters necessary for maintaining a robust non-banking financial system in the Indian economy. The combination of DEA and Tobit regression provides a comprehensive understanding of efficiency and aids in identifying areas for improvement in the housing finance sector while benefiting policymakers and industry stakeholders alike.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2285158
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2285158
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# input file: OAEF_A_2279351_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Tasin Safwath Chowdhury
Author-X-Name-First: Tasin Safwath
Author-X-Name-Last: Chowdhury
Author-Name: Md. Hasanur Rahman
Author-X-Name-First: Md. Hasanur
Author-X-Name-Last: Rahman
Author-Name: Shapan Chandra Majumder
Author-X-Name-First: Shapan Chandra
Author-X-Name-Last: Majumder
Author-Name: Miguel Angel Esquivias
Author-X-Name-First: Miguel Angel
Author-X-Name-Last: Esquivias
Title: Significance of technological progress and capital formation to expand foreign direct investment in Bangladesh: Does money circulation matter?
Abstract:
The key objective of this study is to investigate how capital formation and technological advancement affect foreign direct investment (FDI) generation in Bangladesh and whether money circulation has a positive or negative impact on FDI. This study has used time series data from 1972–2021, and the result of the unit root test indicates an autoregressive distributed lag (ARDL) model because of stationarity at levels I(0) and I(1). The cointegration test confirms the cointegration among the variables: in the short run and long run, capital formation and technological advancement have a positive impact on FDI; on the other hand, money circulation discourages FDI because of its negative coefficient. The speed of adjustment (CointEq(−1)) is 0.28%, which indicates the estimation moves toward an equilibrium condition from a disequilibrium condition. Causality shows there is bidirectional causality between FDI and money circulation, unidirectional causality between technology and FDI, bidirectional causality between money circulation and capital formation, and unidirectional causality between technology and capital formation. This finding suggests that capital formation should be a great consideration, and technology is also required to expand FDI volume. Further study would include considering other macroeconomic variables such as labor, human resources, and energy issues.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2279351
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2279351
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# input file: OAEF_A_2268790_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Koffi Sodokin
Author-X-Name-First: Koffi
Author-X-Name-Last: Sodokin
Author-Name: Joseph Kokouvi Djafon
Author-X-Name-First: Joseph Kokouvi
Author-X-Name-Last: Djafon
Author-Name: Mawuli Kodjovi Couchoro
Author-X-Name-First: Mawuli Kodjovi
Author-X-Name-Last: Couchoro
Author-Name: Yao Mensah Kounetsron
Author-X-Name-First: Yao Mensah
Author-X-Name-Last: Kounetsron
Author-Name: Akoété Ega Agbodji
Author-X-Name-First: Akoété Ega
Author-X-Name-Last: Agbodji
Title: Technological change, the productivity of formal and informal businesses, and the impact on labor market
Abstract:
Digital transformation, both omnipresent and influential, has deeply impacted various sectors with a particular focus on the economy. The introduction and adoption of tools that facilitate technological changes and online business practices have emerged as game changers. They have endowed corporations with enhanced internal agility and improved employee communications. Online business, with its vast potential, is becoming increasingly crucial in developing countries, where Internet accessibility is steadily growing. This study explores the impact of e-commerce on company productivity by considering both formal and informal sectors. It leverages data from the 2018 General Business Census of Togo. By applying endogenous switching regression and smoothed instrumental variable quantile regression tools, this study demonstrates that online businesses can significantly increase productivity, particularly in firms within the informal sector. However, this finding highlights the potential risk of job loss. This study concludes that support strategies are essential for promoting the integration of online companies, increasing productivity, and protecting jobs.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2268790
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2268790
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# input file: OAEF_A_2230013_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Rowland Seyram Koku Dabi
Author-X-Name-First: Rowland Seyram Koku
Author-X-Name-Last: Dabi
Author-Name: Nugraha
Author-X-Name-First:
Author-X-Name-Last: Nugraha
Author-Name: Disman
Author-X-Name-First:
Author-X-Name-Last: Disman
Author-Name: Maya Sari
Author-X-Name-First: Maya
Author-X-Name-Last: Sari
Title: Capital structure, financial performance and sustainability of Microfinance Institutions (MFIs) in Ghana
Abstract:
The study examines the effect of capital structure on financial performance and sustainability of Microfinance Institutions in Ghana. We investigate the role of debt-to-equity ratio, equity-to-asset ratio, and deposit-to-loan ratio in guaranteeing financial performance and sustainability. We implement multiple regression methods to investigate the relationship between the observed performance indicators and a set of explanatory variables. The empirical analysis involves 51 Ghanaian MFIs reporting on the MIX market. We find strong empirical support for the notion that asset size is significantly and positively related to asset returns, self-sufficiency, and financial sustainability. Also, capital structure variables are strongly associated with profitability but exert insignificant impacts on operational self-sufficiency and financial instability of MFIs. The macroeconomic environment also matters to the profitability, self-sufficiency, and sustainability of MFIs. The ability of the MFIs to improve security and lessen the risk is critical in ensuring profit efficiency and self-sufficiency.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2230013
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2230013
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# input file: OAEF_A_2263305_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Bulat Mukhamediyev
Author-X-Name-First: Bulat
Author-X-Name-Last: Mukhamediyev
Author-Name: Laila Bimendiyeva
Author-X-Name-First: Laila
Author-X-Name-Last: Bimendiyeva
Author-Name: Galiya Dauliyeva
Author-X-Name-First: Galiya
Author-X-Name-Last: Dauliyeva
Author-Name: Zhansaya Temerbulatova
Author-X-Name-First: Zhansaya
Author-X-Name-Last: Temerbulatova
Title: Unrest in Kazakhstan: Economic background and causes
Abstract:
The article studies the economic background and reasons for the protest actions of the population on the example of major riots in the regions of Kazakhstan in early 2022. The theory of relative deprivation explains the occurrence of unrest by the growth of social tension in groups of the population who are dissatisfied with living conditions. According to the authors, the causes of the unrest were economic factors. There are many studies on political, inter-ethnic, inter-religious, and other factors of protest actions, but not enough research on the economic factors of urban unrest. The study aims to identify the economic causes of the outbreak of violence in the country’s regions. The research methodology was based on comparative statistical analysis and building a probit model based on panel data. We have established that the growth of the subsistence minimum, the increase in the proportion of the population with incomes below the subsistence minimum, and, especially, the depth of poverty and the acuity of poverty are reasons for social tension, which, after the small trigger, turned into large-scale urban unrest. Moreover, neither income inequality nor rising unemployment was a significant factor in the protest actions. The results indicate the need for the authorities to monitor the socio-economic indicators of the regions and take measures to prevent their significant deterioration, especially the depth and acuity of poverty. A similar empirical approach can be applied to analyzing the economic causes of unrest in regions of other countries.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2263305
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2263305
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# input file: OAEF_A_2268758_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Huynh Ngoc Chuong
Author-X-Name-First: Huynh Ngoc
Author-X-Name-Last: Chuong
Author-Name: Nguyen Chi Hai
Author-X-Name-First: Nguyen
Author-X-Name-Last: Chi Hai
Title: Measuring household social capital in rural Vietnam using MIMIC approach
Abstract:
The concept of social capital has gained significant attention in recent years due to its potential for improving individual and collective well-being, and for its significance in shaping social, economic, and political structures. This study aims to measure the social capital of rural Vietnam households with data from 2008 to 2016. The authors identified different aspects of household social capital as well as social capital proxies from livelihood papers. This paper applied the fundamental theories (the resource theories and network theories to measure the household social capital in Vietnam. We propose to apply the MIMIC model (multiple indicator multiple cause model) to construct the household social capital along with integrating the indicators in both views of household social capital. Results highlight the importance of understanding the multifaceted nature of social capital, which includes different forms of social networks, social participation, and social costs. The findings suggest that participation in diverse organizations plays a vital role in the formation of household social capital. In addition, the MIMIC model shows that participation in social networks is the most important factor in the formation of household social capital. Therefore, we give some implications for the measurement as well as characteristics in the social capital of households in Vietnam. The study contributes to the existing literature on social capital by emphasizing the importance of understanding the different aspects of social capital and how they interact with each other in shaping the livelihoods of rural Vietnamese households.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2268758
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2268758
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# input file: OAEF_A_2231662_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Daniel Page
Author-X-Name-First: Daniel
Author-X-Name-Last: Page
Author-Name: David McClelland
Author-X-Name-First: David
Author-X-Name-Last: McClelland
Author-Name: Christo Auret
Author-X-Name-First: Christo
Author-X-Name-Last: Auret
Title: Pure quantile portfolios on the Johannesburg stock exchange
Abstract:
Rules-based portfolio sorts are commonplace for the evaluation of style anomalies. An unfortunate consequence of constructing portfolios on a target style is the unintended loading on non-target factors. A plausible approach is the application of optimisation to maintain target factor loading while minimising non-target factor exposures. We test this methodology on an emerging market bourse, the Johannesburg Stock Exchange, via quintile portfolios sorted on momentum, value and size. We find that value and momentum benefit most from optimisation in terms of nominal and risk-adjusted performance. From an emerging market perspective, we show that optimisation is a viable alternative when independent sorts are infeasible.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2231662
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2231662
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# input file: OAEF_A_2239629_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Muuz Hadush
Author-X-Name-First: Muuz
Author-X-Name-Last: Hadush
Author-Name: Kidanemariam Gebregziabher
Author-X-Name-First: Kidanemariam
Author-X-Name-Last: Gebregziabher
Author-Name: Sisay Biruk
Author-X-Name-First: Sisay
Author-X-Name-Last: Biruk
Title: Determinants of economic growth in East African countries: A dynamic panel model approach
Abstract:
The purpose of this study is to analyze the determinant of economic growth in the region of East African countries from 2002 to 2018. In order to investigate empirically the key determinants of economic growth in East African countries, this study used a dynamic panel model. To improve efficiency, Generalized Moments Method (GMM) estimators are used. Based on panel data from the East African countries during the 2002–2018 period, this study, therefore, estimated the determinants of economic growth in the region. The result suggests that government expense, government revenue, volume of imports and exports of goods and services significantly contribute to the economic growth of the countries. However, the consumer price index, current account balance, gross government debt, and foreign direct investment lead to negative economic growth. The paper has three policy implications; first, promoting open trade and ensuring peace and stability in the region is a paramount policy to enhance the economic growth of the region. East African Countries should move forward in creating stability regionally and internally within the countries. Second, countries in East Africa are recommended to strengthen and sustain their policies on government expenses, government revenue and revise their policies on government debt, inflation and current account balance. Major reforms are required in foreign direct investment and general government debt within the region. Third, to address obstacles in trade, climate change and the tax collection system, political and economic integration is fundamental to the region and to making the region competitive in the international trade arena.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2239629
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2239629
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# input file: OAEF_A_2273604_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Suleiman O. Mamman
Author-X-Name-First: Suleiman O.
Author-X-Name-Last: Mamman
Author-Name: Kazi Sohag
Author-X-Name-First: Kazi
Author-X-Name-Last: Sohag
Author-Name: Attahir B. Abubakar
Author-X-Name-First: Attahir B.
Author-X-Name-Last: Abubakar
Title: Inclusive growth in Africa: Do fiscal measures matter?
Abstract:
In recent times, Africa has experienced remarkable economic growth; nonetheless, this advancement remains far from being considered inclusive, given the persistently high levels of poverty and income inequality across the continent. To this end, this study investigates the role of fiscal policy measures on inclusive growth using absolute and relative pro-poor measures of growth. The study utilizes panel data from 48 African countries spanning the period 1996 to 2020 and employs the Panel System Generalized Method of Moments (GMM) technique for analysis. Estimation results reveal a concerning trend where public debt service exacerbates both poverty and income inequality, underscoring the adverse consequences of mounting public debt pressures in the region. Interestingly, while government expenditure reduces inequality and worsens poverty, an increase in taxation reduces poverty but worsens income inequality. Further, an increase in taxation negatively affects the income shares of the bottom and middle-income groups while the top-income groups benefit. The findings of this study have significant policy implications for improving inclusive growth in the continent.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2273604
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2273604
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# input file: OAEF_A_2244769_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Hai-Tuan Nguyen
Author-X-Name-First: Hai-Tuan
Author-X-Name-Last: Nguyen
Title: Does institutional quality reduce the impact of market concentration on bank stability? Evidence of developing countries
Abstract:
This study investigates how market concentration (MC) and institutional quality (IQ) influence bank stability in developing nations, focusing on 80 banks in the ASEAN 4 countries (Indonesia, the Philippines, Malaysia, and Thailand) from 2006 to 2019. The study utilises the generalised method of moments technique to address concerns related to autocorrelation and endogeneity. The findings of the research are noteworthy. Firstly, a positive correlation between bank stability and market concentration is established, supporting the concentration-stability hypothesis. Banks operating in highly concentrated markets tend to exhibit higher stability compared to those in less concentrated markets. However, negative coefficients on square market concentration suggest a potential inverted U-shaped relationship, indicating that market concentration enhances bank stability up to a certain threshold. Secondly, the study highlights the significant impact of institutional quality on bank stability within the ASEAN 4 region. Furthermore, the study found that institutional quality might mitigate the influence of market concentration on bank stability. These results underscore the importance of a well-defined strategy for bank managers and bankers. When market concentration reaches a specific threshold, optimal bank stability is observed, and higher institutional quality contributes to improved bank stability. This research pioneers examining the effects of banking system market concentration and institutional quality on the stability of ASEAN 4 banks.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2244769
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2244769
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# input file: OAEF_A_2243167_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Mukoki James
Author-X-Name-First: Mukoki
Author-X-Name-Last: James
Author-Name: Hisali Eria
Author-X-Name-First: Hisali
Author-X-Name-Last: Eria
Author-Name: Mukisa Ibrahim
Author-X-Name-First: Mukisa
Author-X-Name-Last: Ibrahim
Title: Inter-sectoral linkages and economic growth in Uganda: A SAM-based multiplier model analysis
Abstract:
Sectors are the engines of economic growth in any economy making inter-sectoral linkages the most significant target for development practitioners and policymakers. This study examines and ascertains the magnitude of production and consumption inter-sectoral linkages in Uganda’s economy. Secondary data from 2009/10 and 2016/17 Uganda Social Accounting Matrices (SAMs) is analyzed based on the multiplier model. A buttress of robust checks including a Vector Error Correction Model (VECM) is adopted for validation purposes using a longer time series from 1980 to 2020. The study found that a one million income injection across sectors has a larger multiplier effect (in terms of output, GDP, income, and consumption) than the service sector followed by agriculture and then the industrial sector. Despite the higher multiplier effects of the services sector, its contribution to employment is limited. A large amount of labor is trapped in the low-paying subsistence agricultural sector. Therefore, the government should implement policies that supplement rapid services sector growth with strategies that attract and utilize excess labor in the agricultural sector. Results also indicate that the services sector prematurely emerged as the driver of economic growth before the economy was fully industrialized. Government should formulate industrial sector catch-up policies to rebalance its development agenda. To accomplish this, proportionately more funding should be allocated to the industrial sector. Lastly, sectoral multiplier effects projections and forecasts should be incorporated into the National Development Plans, Budgeting Frameworks, and forecasts.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2243167
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2243167
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# input file: OAEF_A_2275960_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Kindineh Sisay
Author-X-Name-First: Kindineh
Author-X-Name-Last: Sisay
Title: Rural households saving status and its determinant factors: Insight from southwest region of Ethiopia
Abstract:
Especially for developing countries like Ethiopia, saving is more significant to build capital required to generate income, smooth domestic cash requirements, and allow the ease of consumption during scarcity. However, rural saving at the household level was not substantially investigated in Ethiopia in general and in the study area in particular. The current study, therefore, assessed rural households’ saving status and its determinant factors in Gimbo district, south west region of Ethiopia. Out of the entire sample households surveyed, more than half (52.35%) of the surveyed households were non-saver. This is to mean that a lesser proportion of the sampled households were saving their income left from food and non-food spending or other expenses at formal financial institutions. When we look at the intensity of saving, the whole sampled households saved 4,788.15 ETB on average. As both logit and multiple linear regression model results showed, the education level of the household head, distance from financial institutions, farm income, financial literacy, and participation in non-farm activities were found to affect both decision to save and intensity of saving significantly and positively except distance from financial institutions, which is negatively correlated with both. Therefore, to overcome negative effects of distance from financial institutions, the study recommend the expansion of financial institutions up to kebele levels as much as possible. Moreover, policymakers and other concerned bodies responsible for the enhancement of rural private saving should have to amend rural households’ farm income, education, financial literacy, and participation in non-farm activities.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2275960
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2275960
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Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2275960
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# input file: OAEF_A_2271658_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: John Kwaku Mensah Mawutor
Author-X-Name-First: John
Author-X-Name-Last: Kwaku Mensah Mawutor
Author-Name: Isaac Boadi
Author-X-Name-First: Isaac
Author-X-Name-Last: Boadi
Author-Name: Samuel Antwi
Author-X-Name-First: Samuel
Author-X-Name-Last: Antwi
Author-Name: Anthony Buawolor Tetteh
Author-X-Name-First: Anthony
Author-X-Name-Last: Buawolor Tetteh
Title: Improving banks’ profitability through income diversification and intellectual capital: The sub-Saharan Africa perspective
Abstract:
This study explores the impact of revenue diversification and intellectual capital on the performance of sub-Saharan African banks. The study applied a panel regression technique to a data set containing information on 80 banks from 21 countries from 2000 to 2020. Secondary data was collected from the unconsolidated financial statements of banks in the Bank scope database, WDI database, and Refinitiv database. The study utilized the two-step system GMM and the dynamic panel threshold regression estimation methods to evaluate the hypotheses. The study revealed that income diversification has a negative and significant impact on the profitability of banks in Sub-Saharan Africa. The study also indicated that value-added intellectual coefficient (VAIC), human capital efficiency (HCE), and structural capital efficiency (SCE) have a positive and significant effect on the performance of banks; however, capital employed efficiency (CEE) has a negative and significant impact on banks’ profitability. The study also revealed that VAIC and HCE positively and significantly moderate the relationship between income diversification and the profitability of banks. SCE has a positive and insignificant moderating effect on the relationship between income diversification and bank performance. The study also revealed that CEE negatively and significantly mediates the relationship between income diversification and banks’ profitability. The threshold results also provide evidence that VAIC and HCE positively affect profitability; however, VAIC and HCE affect profitability above the threshold value. We also found evidence of a threshold effect of SCE below the threshold and a negative effect above the threshold value. The study also revealed that CEE negatively affects banks’ profitability at all levels. The detrimental impact of income diversification on the performance of sub-Saharan banks should be a concern for bank managers. The findings are crucial to comprehending the banking industry developments in Sub-Saharan Africa (SSA) from 2000 to 2020. The results provide important insights into the significance of the development of intellectual capital for the diversification of banking activities in SSA.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2271658
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2271658
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# input file: OAEF_A_2241228_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Sulemana Mumuni
Author-X-Name-First: Sulemana
Author-X-Name-Last: Mumuni
Author-Name: Adamu Braimah Abille
Author-X-Name-First: Adamu Braimah
Author-X-Name-Last: Abille
Title: Do trade liberalization and external debt offset income inequality? New evidence from selected African countries
Abstract:
Data from the World Bank shows that in the 21st century, over 100 million Africans have become poor and about 43% of the African population is extremely poor. Notwithstanding, African governments have over the years liberalized their economies through a low tariff regime, in addition to external debt financing of major projects and social intervention programs. However, no study has explored the nexus between trade liberalization, external debt, and income inequality in Africa. Therefore, this study examines the impact of trade liberalization and external debt on income inequality using the Driscoll and Kraay augmented fixed and random effects models on data from 2000 to 2018 for 30 African countries. The findings reveal that, while external debt worsens income inequality, win-win trade liberalization policies could act as instruments for poverty alleviation and income inequality reduction in Africa. The results further show that growth in per capita income exerts a widening effect on income inequality in Africa, implying that income is concentrated in the hands of only a few as the economies grow. The study, therefore, calls for strengthening member countries’ commitments to the African Continental Free Trade Area (AfCFTA), cutting down on external debt financing of major developments projects, rolling out more poverty alleviation programs, and enforcing proper regulatory standards to curb illicit financial flows and repatriation of profits by foreign firms.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2241228
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2241228
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Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2241228
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# input file: OAEF_A_2251272_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Hanh Hong Le
Author-X-Name-First: Hanh Hong
Author-X-Name-Last: Le
Author-Name: Jean- Laurent Viviani
Author-X-Name-First: Jean- Laurent
Author-X-Name-Last: Viviani
Author-Name: Fitriya Fauzi
Author-X-Name-First: Fitriya
Author-X-Name-Last: Fauzi
Title: Why do banks fail? An investigation via text mining
Abstract:
This study aims to investigate the material loss review published by the Federal Deposit Insurance Corporation (FDIC) on 98 failed banks from 2008 to 2015. The text mining techniques via machine learning, i.e. bag of words, document clustering, and topic modeling, are employed for the investigation. The pre-processing step of text cleaning is first performed prior to the analysis. In comparison with traditional methods using financial ratios, our study generates actionable insights extracted from semi-structured textual data, i.e. the FDIC’s reports. Our text analytics suggests that to prevent from being a failure; banks should beware of loans, board management, supervisory process, the concentration of acquisition, development, and construction (ADC), and commercial real estate (CRE). In addition, the primary reasons that US banks went failure from 2008 to 2015 are explained by two primary topics, i.e. loan and management.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2251272
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2251272
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# input file: OAEF_A_2230727_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Thuy Cao
Author-X-Name-First: Thuy
Author-X-Name-Last: Cao
Author-Name: Hoang Nguyen
Author-X-Name-First: Hoang
Author-X-Name-Last: Nguyen
Author-Name: Khuong Nguyen
Author-X-Name-First: Khuong
Author-X-Name-Last: Nguyen
Author-Name: Liem Nguyen
Author-X-Name-First: Liem
Author-X-Name-Last: Nguyen
Title: Information asymmetry on the link between corporate social responsibility and stock price crash risk
Abstract:
Theoretically, corporate social responsibility (CSR) can have both positive and negative effects on stock price crash risk, and the empirical evidence is mixed. CSR can be a useful signal of better informational quality and acts as an effective corporate governance mechanism, both of which serve important roles in emerging markets. Using a sample of 225 listed firms in Vietnam over the period 2014–2019, we examine the impact of corporate social responsibility disclosure (CSRD) on stock price crash risk, considering the moderating effect of information asymmetry. The research shows that CSRD lowers the risk of a stock price crash. Importantly, this is the first study to investigate the moderating role of information asymmetry in the relationship between CSR disclosure and stock price crash risk. This is in line with the view that CSRD decreases information asymmetry, thus lowering the likelihood of stock price crash risk. Based on the results, we provide important implications for corporate governance and investment in the context of developing countries.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2230727
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2230727
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Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2230727
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# input file: OAEF_A_2243784_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Berliana Anggun Septiani
Author-X-Name-First: Berliana Anggun
Author-X-Name-Last: Septiani
Author-Name: Maman Setiawan
Author-X-Name-First: Maman
Author-X-Name-Last: Setiawan
Title: The relationship between technical efficiency, firm growth and market structure in the Indonesian palm oil industry
Abstract:
This research investigates the relationship between efficiency and firm growth as well as the relationship between firm growth and market structure (CR4) to evaluate whether the quiet-life (QL) and/or efficient structure (ES) hypothesis applies in the Indonesian palm oil industry. This study uses large and medium industry survey data sourced from the Indonesian Bureau of Central Statistics (BPS) for the period from 1990 to 2017. The efficiency score is calculated using data envelopment analysis (DEA) using a bootstrapping approach. The two-step generalized method of moments (GMM) and panel vector auto regression (PVAR) are used to test the two hypotheses. The results show that technical efficiency can increase a firm’s market share, market concentration, and market power. These results support the ES hypothesis. This research also finds that market structure (CR4) has an impact on firm efficiency, providing evidence supporting the QL hypothesis. These results indicate that the ES and QL hypotheses apply in Indonesia during a business cycle that needs to be considered by policymakers.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2243784
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2243784
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# input file: OAEF_A_2268440_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Raphael Kolade Ayeni
Author-X-Name-First: Raphael Kolade
Author-X-Name-Last: Ayeni
Author-Name: Kemi Funlayo Akeju
Author-X-Name-First: Kemi Funlayo
Author-X-Name-Last: Akeju
Title: Human capital, capital goods import and economic growth in West Africa
Abstract:
This research paper investigates interactions of human capital, capital goods import and economic growth with a panel of 13 West African countries comprises of 7 low income and 6 low-middle income countries over the period of 1980–2018. The study adopts the Panel Auto-Regressive Distributed Lag (ARDL) cointegration techniques to establish a short and long-run relationship existing among the variables. Panel ARDL (Fixed effect) result revealed that the returns to equipment investment are moderately high on the average. Findings do not support the hypothesis that human capital makes production inputs more effective and helps countries gain from equipment investment and other imported investment for all the countries. This is due to inadequate knowhow and skill arising from the low levels of human capital in these countries. Determining the threshold of human capital development at which countries benefit from equipment investment, findings indicates that countries of the low-middle Income that exhibit a comparatively higher human capital (1.45 on the average) benefited more from imported capital stock and other importations than countries of the low income with very low human capital (1.27 on the average). Thus, we conclude that investment in human capital, innovation, and knowledge are significant contributors to economic growth and should be the priority of developing economies.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2268440
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2268440
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# input file: OAEF_A_2267854_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Jonas Tia
Author-X-Name-First: Jonas
Author-X-Name-Last: Tia
Author-Name: Naasegnibe Kuunibe
Author-X-Name-First: Naasegnibe
Author-X-Name-Last: Kuunibe
Author-Name: Paul Kwame Nkegbe
Author-X-Name-First: Paul Kwame
Author-X-Name-Last: Nkegbe
Title: Drivers of financial inclusion in Ghana: Evidence from microentrepreneurs in the Wa Municipality of the Upper West Region
Abstract:
Globally Financial inclusion provides an opportunity to promote equal access to resources for all. One of the crucial catalysts for microenterprises development is access to the financial market. However, the growth of many microenterprises has been truncated in Ghana due to limited access to financial opportunities. Despite this challenge, little is known about the drivers of financial inclusion in Wa Municipality of the Upper West Region of Ghana. This paper examines the drivers of financial inclusion of microentrepreneurs in the Wa Municipality of the Upper West Region of Ghana. Using a close ended questionnaire, this study employed an exploratory survey design to collect data from 200 engaged in trading, manufacturing, and services. The respondents were sampled using a simple random sampling technique. Given that the outcome variable is binary, the study used a binary probit regression model for the data analysis. The results predicted that religion, awareness of loan services, business registration, and preparation of financial statements drive financial inclusion in Wa Municipality. From the results, the study recommends that financial service providers should consider social networks, entrepreneurial practice, gender and religion as sensitive drivers of financial inclusion. In addition, financial education should be intensified as knowledge of the available financial products is a key driver of financial inclusion in the Municipality. While this study has contributed to the body of literature on financial inclusion in Ghana, further research is necessary to identify consumer financial needs to meet clients’ expectations.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2267854
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2267854
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# input file: OAEF_A_2223416_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Thomas Habanabakize
Author-X-Name-First: Thomas
Author-X-Name-Last: Habanabakize
Author-Name: Mulatu Fekadu Zerihun
Author-X-Name-First: Mulatu Fekadu
Author-X-Name-Last: Zerihun
Title: The criticality of financial intermediation on the South African Agro-Industrialization
Abstract:
Access to finance is one of the factors influencing economic activities. The current study aimed at determining the role of finance in the South African agro-industrialization relationship. To achieve the study objective, bounds testing, the autoregressive distributed lag (ARDL) and error correction approaches were applied on quarterly time series data spanning between the first quarter of 1994 and the last quarter of 2021. Additionally, an interaction term was included to assist the aforementioned models in determining linkage between agriculture and industrial outputs through farmer’s access to finance. Findings revealed that agricultural output and finance are valid forecasters of the industrialization behaviour in the long-run. Access to finance leads to industrial growth while agricultural output growth causes a decline in the industrialization. Nonetheless, aggregate growth of both financial access and agricultural output are associated with industrial output in the short-run. Grounded of the study findings, this study concludes that financial access influence both agriculture and industrial output. Consequently, improving famers’ financial access through financial facilities, financial intermediaries and government subsidies could be a worthwhile strategy or policy to enhance a country’s industrialization. As implication of the study, obtained finding can assist in linking effectiveness of primary, secondary and tertiary economic sectors in South Africa.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2223416
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2223416
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# input file: OAEF_A_2244864_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Abreham Adera
Author-X-Name-First: Abreham
Author-X-Name-Last: Adera
Author-Name: Lamessa T. Abdisa
Author-X-Name-First: Lamessa T.
Author-X-Name-Last: Abdisa
Title: Financial inclusion and women’s economic empowerment: Evidence from Ethiopia
Abstract:
This study examines the relationship between financial inclusion and women’s economic empowerment in the Ethiopian context. Scholars and development agents have long argued for the importance of access to financial products and services in achieving equitable economic growth and reducing poverty, particularly focusing on women. However, there is a limited understanding of how financial inclusion specifically impacts women’s economic empowerment in Ethiopia, and little evidence regarding the determinants of women’s financial inclusion within the country. This study attempts to address these research gaps. The empirical methods employed in this study include endogenous switching regression and instrumental variable methods. The data used in this study is from the Women’s module of the Ethiopian Demographic and Health Survey (DHS). The findings reveal a positive and statistically significant impact of financial inclusion on women’s economic empowerment in Ethiopia, indicating that greater access to financial services contributes to improved economic outcomes for women. These findings underscore the importance of collaboration between financial institutions, development agents, and policymakers to implement effective financial inclusion initiatives tailored to the Ethiopian context. Additionally, rigorous evaluation of these interventions is crucial to understand their specific effects and to ensure their successful implementation. By focusing on the Ethiopian case, this study contributes to our understanding of the relationship between financial inclusion and women’s economic empowerment in the country. The findings highlight the significance of prioritizing financial inclusion strategies in Ethiopia to advance gender equality, foster economic growth, and alleviate poverty.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2244864
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2244864
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# input file: OAEF_A_2276364_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Bernard Bawuah
Author-X-Name-First: Bernard
Author-X-Name-Last: Bawuah
Author-Name: Samuel Agyei-Ampomah
Author-X-Name-First: Samuel
Author-X-Name-Last: Agyei-Ampomah
Author-Name: Anthony Owusu-Ansah
Author-X-Name-First: Anthony
Author-X-Name-Last: Owusu-Ansah
Author-Name: Francis Atsu
Author-X-Name-First: Francis
Author-X-Name-Last: Atsu
Title: Currency reform, currency biases and Ghana’s forex market fluctuations: Beyond the macroeconomic fundamentals
Abstract:
Redenomination of currency has become a common phenomenon in recent past among emerging and transitional economies. In 2007, Ghana became one of the economies to redenominate in recent past. This currency policy adaptation has the potential of triggering certain individual behavioral biases on the forex market. This study provides evidence that currency biases that accompanied Ghana’s currency reform adaptation in 2007 contribute to its forex market price (exchange rate) fluctuations. Using data from 1980 to 2018 with some estimated biases and some selected macroeconomic fundamentals as covariates in an ANCOVA (Analysis of Covariance) model, the study revealed that estimated biases which were induced as a result of currency reform adaptation impact positively and significantly on Ghana’s forex market prices. It is therefore recommended that policy makers, political leaders and stakeholders begin to look at human factors that may exist in the forex market and incorporate this information into future plans in addressing issues relating to forex market fluctuations.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2276364
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2276364
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# input file: OAEF_A_2225328_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Yohannes Mekonnen Tesema
Author-X-Name-First: Yohannes Mekonnen
Author-X-Name-Last: Tesema
Author-Name: Paulos Asrat
Author-X-Name-First: Paulos
Author-X-Name-Last: Asrat
Author-Name: Dawit Tsegaye Sisay
Author-X-Name-First: Dawit Tsegaye
Author-X-Name-Last: Sisay
Title: Factors affecting farmers’ hiring decisions on agricultural mechanization services: A case study in Ethiopia
Abstract:
Using appropriate agricultural mechanization services is critical to increasing agricultural productivity and ensuring food security. A large portion of Ethiopian farmers have no access to agricultural mechanization services, including tractors, combine harvesters, and threshers. There are several factors responsible for the limited use of agricultural mechanization services in Ethiopia. The objective of this study was to investigate the key factors that determine smallholder farmers’ decisions in hiring tractor and combine harvester services in the Debre Elias district of the Amhara region of Ethiopia. A multistage sampling technique was used to collect data from 133 respondents. Data collection techniques included structured interviews and focus group discussions. Descriptive statistics and a binary logistic model were employed to analyze the data. The findings showed that promotion and support from different organizations, including the government and development partners, are the main factors that influence farmers’ decisions to hire mechanization services. The results also revealed that economically active family labor, off-farm income, number of oxen, goal of farming, and institutional influence are the main factors that significantly influence farmers’ decisions about hiring tractor services in the study area. Harvesting labor costs and weather uncertainty were discovered to be the factors that positively and significantly influenced the farmers’ hiring decisions for combine harvester services. It is important to create awareness among farmers about agricultural mechanization services. Systematic support for both private machinery service providers and cooperative unions is needed to improve mechanization services for farmers in the area.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2225328
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2225328
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Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2225328
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# input file: OAEF_A_2237715_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Kwadwo Boateng Prempeh
Author-X-Name-First: Kwadwo Boateng
Author-X-Name-Last: Prempeh
Author-Name: Christian Kyeremeh
Author-X-Name-First: Christian
Author-X-Name-Last: Kyeremeh
Author-Name: Felix Kwabena Danso
Author-X-Name-First: Felix Kwabena
Author-X-Name-Last: Danso
Title: The link between remittance inflows and financial development in Ghana: Substitutes or complements?
Abstract:
This empirical paper explores the link between remittance inflows and financial development in Ghana from 1980–2019. Empirical analyses are carried out using the ARDL VECM, DOLS, CCR and FMOLS techniques. Furthermore, the IRF and forecast FEVD analyses were employed to comprehend better financial development’s response to shocks to remittance inflows and other macroeconomic factors. The results demonstrate that the variables are cointegrated, and remittance was found to be beneficial to financial development in both the short and long run. Furthermore, from the IRF analysis, positive shocks to remittance have a favourable influence on financial development. The FEVD investigation suggests that shocks to migrant remittance accounted for almost 32% of the overall variations in financial development. The implication is that, from a policy perspective, well-structured strategies should be devised and executed to promote higher remittance flows via official conduits. This will stimulate economic growth, financial development, and other monetary benefits of remittance inflows to the nation.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2237715
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2237715
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# input file: OAEF_A_2225331_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Sylvester N. Ayambila
Author-X-Name-First: Sylvester N.
Author-X-Name-Last: Ayambila
Title: Determinants of micro and small enterprises financial performance in the non-farm sector of Ghana: A quantile regression approach
Abstract:
This study estimates the factors influencing micro and small enterprise financial performance in the non-farm sector of Ghana. Data was sourced from Ghana ECG/ISSER Socio-Economic Panel Survey in 2010. The study is underpinned by the resource-based view theory of firm performance. Ordinary least squares were used to determine the factors affecting financial performance and quantile regression used to analyse the variation of financial performance among enterprises. Many variables including; gender of the enterprise owner, enterprise owner’s age, technical education, enterprise years of operation, enterprise location, enterprise sub-sector, number of casual, hired labour, and enterprise value of assets significantly influenced enterprise financial performance. Enterprise resources dominated industry and sector characteristics in shaping enterprise financial performance. Inter-quantile regression results indicate that gender variable was statistically significant across six inter-quantiles emphasizing the importance of gender. Enterprises in the services sub-sector were less profitable relative to those from the manufacturing, trade and restaurant sub-sectors. The results from the quantile regressions dismiss the argument that a joint set of factors influence the financial performance of enterprises, and that those factors do not vary irrespective of whether the enterprise is performing well or not. Technical education should be promoted in order to improve enterprise performance.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2225331
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2225331
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# input file: OAEF_A_2244860_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Thuy T. Dang
Author-X-Name-First: Thuy T.
Author-X-Name-Last: Dang
Author-Name: Trang NT Ho
Author-X-Name-First: Trang NT
Author-X-Name-Last: Ho
Author-Name: Duc Nguyen Nguyen
Author-X-Name-First: Duc Nguyen
Author-X-Name-Last: Nguyen
Title: Board gender diversity and financial stability: Evidence from microfinance institutions
Abstract:
The effects of board gender diversity (BGD) on financial stability of financial institutions have long been an important topic, creating a rich strand of literature that focuses extensively on banks. Meanwhile, little is known about the implications of BGD on risk in microfinance institutions (MFI). This study aims to fill this gap. Using a data sample retrieved from the MIX Market database spanning the 2009–2018 period and the random-effects estimator, we find that the proportion of female directors on the board is positively associated with financial stability of MFIs measured by the Z-score. The result is robust when using alternative measures of financial stability and BGD, and alternative estimation techniques. In addition, we document a negative relationship between BGD and risk-taking behavior of MFIs. Further, the research result favors the critical mass theory rather than tokenism. Lastly, we find that BGD links with financial stability in a monotonic instead of non-monotonic manner.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2244860
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2244860
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# input file: OAEF_A_2276556_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Xin Yang
Author-X-Name-First: Xin
Author-X-Name-Last: Yang
Author-Name: Ahmad Fahmi Sheikh Hassan
Author-X-Name-First: Ahmad Fahmi
Author-X-Name-Last: Sheikh Hassan
Author-Name: Wei Theng Lau
Author-X-Name-First: Wei Theng
Author-X-Name-Last: Lau
Author-Name: Nazrul Hisyam Ab Razak
Author-X-Name-First: Nazrul Hisyam
Author-X-Name-Last: Ab Razak
Title: The discordance of governance performance from environmental and social performance on idiosyncratic risk: The effect of board composition
Abstract:
In recent years, the nexus between environmental, social, and governance (ESG) factors and financial performance has been a focal point of academic discourse. While much of the existing literature emphasizes the potential positive correlations between ESG performance and financial gains, ambiguities persist, especially concerning the governance pillar. Against this backdrop, our study delves into the relationship between ESG performance and idiosyncratic volatility, utilizing a comprehensive panel dataset of U.S. listed companies spanning 2005 to 2019. Through analytical methodologies like the two-stage least square method with instrumental variables (2SLS-IV) and the dynamic Generalised Method of Moments (GMM), we unveil an intriguing discovery: governance performance does not significantly correlate with idiosyncratic volatility, whereas environmental and social performance demonstrate a strong negative linkage. This deviation from conventional wisdom underscores our study’s unique contributions. We shed light on the governance factor’s discordance from its environmental and social counterparts in shaping firm-specific risk, introduce the emerging concept of board composition’s moderating effects on the ESG-volatility relationship, and present a holistic perspective by covering an extensive array of U.S. sectors. Our findings carry profound implications for the future trajectory of sustainable investing and corporate governance practices.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2276556
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2276556
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# input file: OAEF_A_2228096_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Yakubu Awudu Sare
Author-X-Name-First: Yakubu Awudu
Author-X-Name-Last: Sare
Author-Name: Andrew Osei Agyemang
Author-X-Name-First: Andrew Osei
Author-X-Name-Last: Agyemang
Author-Name: Emmanuel Caesar Ayamba
Author-X-Name-First: Emmanuel Caesar
Author-X-Name-Last: Ayamba
Author-Name: Bernard Bawuah
Author-X-Name-First: Bernard
Author-X-Name-Last: Bawuah
Author-Name: Akua Gyaawa Koranteng
Author-X-Name-First: Akua
Author-X-Name-Last: Gyaawa Koranteng
Title: Insurance and sectorial growth nexus: Evidence from a developing economy
Abstract:
The insurance industry plays a substantive vitality in the growth of the economy. However, there is limited literature on the activities of the insurance industry and economic growth in Ghana. As one of the fastest-growing economies in sub-Saharan Africa before the global pandemic in 2020, there is a need to investigate the factors that influence the growth of the economy, of which insurance cannot be underscored. Moreover, proxies used to measure insurance for developing economies combined life insurance (LI) and non-life insurance (NLI) as one indicator. Also, none of the earlier studies considered the impact of insurance on sectorial growth in Ghana. Hence, this study relies on methodological innovation to fill in the literature gap. We employed time-series data from 1989 to 2022. From the Autoregressive Distributed Lag Analysis, an affirmative link was seen between LI and sectorial growth in both short-term and long-term period. With regards to the link between NLI and sectorial growth, except for service sector which revealed a positive but insignificant association, the other variables revealed an affirmative link between NLI and sectorial growth for both short term and long term. The findings affirm that NLI contributes significantly to the three sectors of the economy than LI. In addition, the findings confirm that the activities of insurance in the service sector of the economy are much more enormous than that of the industry and agricultural sectors.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2228096
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2228096
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# input file: OAEF_A_2256127_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Koffi Sodokin
Author-X-Name-First: Koffi
Author-X-Name-Last: Sodokin
Author-Name: Essowaba Egbeleo
Author-X-Name-First: Essowaba
Author-X-Name-Last: Egbeleo
Author-Name: Richard Kuessi
Author-X-Name-First: Richard
Author-X-Name-Last: Kuessi
Author-Name: Mawuli Kodjovi Couchoro
Author-X-Name-First: Mawuli Kodjovi
Author-X-Name-Last: Couchoro
Author-Name: Akoété Ega Agbodji
Author-X-Name-First: Akoété Ega
Author-X-Name-Last: Agbodji
Title: Regulation, institutional quality, and stability of the banking system in West African Economic and Monetary Union
Abstract:
This study investigates the relationship between prudential regulation and banking risk in the West African Economic and Monetary Union contingent on institutional quality. The empirical analysis employed panel data from 63 banks spanning 2006–2019. The key findings reveal that stringent banking regulations and supervision enhance banks’ stability. Capital regulations, activity restrictions, and supervisory authorities reduce the risk of bank insolvency. The results suggest that a favorable institutional climate promotes rigorous enforcement of regulatory standards and robust supervision, thereby amplifying their efficacy. Overall, this study concludes that prudential policies exhibit risk-mitigating effects in West African Economic and Monetary Union countries conditional on sound institutional frameworks.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2256127
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2256127
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# input file: OAEF_A_2280349_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Guglielmo Maria Caporale
Author-X-Name-First: Guglielmo Maria
Author-X-Name-Last: Caporale
Author-Name: Luis A. Gil-Alana
Author-X-Name-First: Luis A.
Author-X-Name-Last: Gil-Alana
Author-Name: Amir Imeri
Author-X-Name-First: Amir
Author-X-Name-Last: Imeri
Title: Tourism persistence in the Southeastern European countries: The impact of covid-19
Abstract:
This paper examines tourism persistence in a group of Southeastern European (SEE) countries (Albania, Bosnia, Bulgaria, Croatia, Montenegro, North Macedonia, Serbia and Slovenia) by applying fractional integration methods to monthly data on foreign tourist arrivals and overnight stays. The results indicate that the COVID-19 pandemic has increased the degree of persistence of these series as measured by the fractional differencing parameter; specifically, it has removed the mean reversion property in some countries. In addition, it has reduced the importance of the seasonal component.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2280349
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2280349
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# input file: OAEF_A_2243200_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Hideto Shigemoto
Author-X-Name-First: Hideto
Author-X-Name-Last: Shigemoto
Author-Name: Takayuki Morimoto
Author-X-Name-First: Takayuki
Author-X-Name-Last: Morimoto
Title: On the usefulness of dynamically spilled risk: An optimal portfolio allocation based on cross-sector information contagion
Abstract:
It is well known that the volatility spillover increases when a large economic shock occurs, and then the volatility spillover pattern in the market changes. Accordingly, many papers note that clarifying the time-varying pattern of volatility transmission in domestic and international markets is useful for investors and policymakers. This paper focuses on information contagion across various industrial sectors, investigates portfolio strategies based on the volatility spillovers, and aims to clarify whether an investment strategy based on volatility spillovers benefits investors. Regarding portfolio reallocation, as soon as we observe an increase or a decrease in the effect/timing of a volatility spillover, we obtain a smaller number of reallocations and a more informative portfolio. Our results compare our proposed method with periodic portfolios, for example, daily or annually, showing that our proposed method has larger returns and a greater Sharpe ratio than the others.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2243200
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2243200
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# input file: OAEF_A_2230027_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Kholeka Mdingi
Author-X-Name-First: Kholeka
Author-X-Name-Last: Mdingi
Author-Name: Sin-Yu Ho
Author-X-Name-First: Sin-Yu
Author-X-Name-Last: Ho
Title: Income inequality and economic growth: An empirical investigation in South Africa
Abstract:
This study examines the relationship between income inequality and economic growth in South Africa for the period 1989 to 2018. The study is motivated by the high disparity in income inequality and stagnant economic growth that South Africa is experiencing. Using the autoregressive distributed lag (ARDL) bounds testing technique, we established a long-run relationship between economic growth and income inequality. The results revealed that income inequality has a negative impact on economic growth in the long run, and no effect in the short run. These results are robust with an estimation of the ARDL procedure that considers structural breaks. Therefore, policymakers should employ strategies that entail a double effect of growth in national income and consider the distribution of income in the long run. These policies include human capital accumulation, easily accessible education, and reduction in labour market dualism.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2230027
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2230027
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# input file: OAEF_A_2282809_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: John Kingsley Woode
Author-X-Name-First: John Kingsley
Author-X-Name-Last: Woode
Author-Name: Peterson Owusu Junior
Author-X-Name-First: Peterson
Author-X-Name-Last: Owusu Junior
Author-Name: Anokye M. Adam
Author-X-Name-First: Anokye M.
Author-X-Name-Last: Adam
Author-Name: Emmanuel Assifuah-Nunoo
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Assifuah-Nunoo
Author-Name: Audrey Foriwaa Adjei
Author-X-Name-First: Audrey Foriwaa
Author-X-Name-Last: Adjei
Title: Nexus between cryptocurrencies and global uncertainty: A quantile regression approach
Abstract:
The study extends the literature on the nexus between cryptocurrency and uncertainty. This study proxied the cryptocurrencies and global uncertainty, respectively, with the seven most significant and variationally susceptible cryptos and the comprehensive world uncertainty in measuring the crypto-uncertainty nexus over the period (2015–2022) and further employing the quantile regression approach. The OLS model results point to a blend of both significant and insignificant relationship between global uncertainty and cryptocurrencies. These relationships were further examined in quantiles and further accounted for the impact of investor sentiments (VIX) and volatility (OVX), and the results were largely corroborated with the results from the conventional OLS, except for the Bitcoin, Litecoin, and Ripple markets. It was also discovered that the nexus changes across quantiles. The results revealed a blend of strong and weak hedges and safe havens among the selected cryptos against global uncertainty during normal and extreme market conditions. In the face of global turmoil, it was revealed that the average crypto market could serve as a safe haven. Also, the cryptos with an insignificant nexus with global uncertainty were found to be significantly affected by investor sentiment. These findings were further confirmed by the quantile-on-quantile and causality-in-quantile estimations. Given the intense precariousness and lack of hedge and haven capacities within the majority of the cryptocurrencies, it is pertinent for investors to consider the market in general as a means of diversifying their portfolios and reserve the hedge and haven option to the few markets that possess such luxury.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2282809
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2282809
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# input file: OAEF_A_2266323_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Muhamad Umar Mai
Author-X-Name-First: Muhamad Umar
Author-X-Name-Last: Mai
Author-Name: Sudradjat
Author-X-Name-First:
Author-X-Name-Last: Sudradjat
Author-Name: Etti Ernita Sembiring
Author-X-Name-First: Etti Ernita
Author-X-Name-Last: Sembiring
Title: Board characteristics, state ownership, and corporate social responsibility: Evidence from Indonesian Islamic banks
Abstract:
This study examines the effect of the characteristics of the board of directors (BOD), the characteristics of the sharia supervisory board (SSB), and state ownership on CSR disclosure (CSRD) of Islamic commercial banks (ICBs) in Indonesia for the 2008–2021 period. The estimation results for the Generalized Least Squares model show that the presence of women in the BOD and SSB as well as the frequency of the two boards’ meetings play an important role in increasing CSRD. In addition, the interaction variables between age and tenure of the chairman of the SSB and state ownership have a positive effect on CSRD. This study contributes to the development of the corporate governance and Islamic corporate governance literature. In addition, it provides insight for practitioners regarding the main factors that influence the CSRD of ICBs in Indonesia.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2266323
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2266323
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# input file: OAEF_A_2238462_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Fabrice Nkurunziza
Author-X-Name-First: Fabrice
Author-X-Name-Last: Nkurunziza
Author-Name: Richard Kabanda
Author-X-Name-First: Richard
Author-X-Name-Last: Kabanda
Author-Name: Patrick McSharry
Author-X-Name-First: Patrick
Author-X-Name-Last: McSharry
Title: Determinants of shock-coping mechanisms adoption and rural household consumption in Rwanda: A two-stage analysis considering both idiosyncratic and covariate shocks
Abstract:
This study investigates the features that contribute to shock-coping mechanisms in rural households in Rwanda, making a significant contribution by considering both idiosyncratic and covariate shocks. We employ a combination of multinomial logit regression (MLR) and two-level hierarchical linear modeling (2-HLM). The study focused on two main characteristics: household characteristics like employment and asset ownership, and shock-coping mechanisms. 4782 Rwandan rural households that experienced shocks were analyzed, exploring variations in factors by consumption level (low, medium, high). The findings of the study revealed that: (1) shock-coping mechanisms are driven by several factors like household characteristics, particularly household composition and employment status, as well as shocks related to covariate shocks, and (2) women spend noticeably less on food, non-food items, and overall expenses than those headed by men when they face covariate shocks. The study suggests that increasing more members employed in non-agricultural businesses and raising livestock, particularly goats could be a pro-low-consumption household strategy in response to shocks. Overall, the study’s findings provide valuable insights into the factors that contribute to effective shock-coping mechanisms in rural households and highlight the importance of considering household consumption levels when designing policy interventions.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2238462
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2238462
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# input file: OAEF_A_2285142_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: King Carl Tornam Duho
Author-X-Name-First: King Carl Tornam
Author-X-Name-Last: Duho
Title: Determinants of capital adequacy and voluntary capital buffer among microfinance institutions in an emerging market
Abstract:
This study examines the determinants of capital adequacy and voluntary capital buffers among microfinance institutions (MFIs). We apply the two-stage least squares (2SLS) with instrumental variables to account for endogeneity. Using quarterly panel data of 439 MFIs in Ghana covering the period 2015–2018, the study found that credit risk, income diversification, size, profitability, lending channel, and equity-to-asset ratio significantly affect capital adequacy. Also, the factors that drive voluntary capital buffers are income diversification, size and equity-to-asset ratio, but size and economic growth are insignificant when the upper limits of Basel III requirements are applied. Generally, the results are insignificant among non-deposit-taking (i.e. Tier 3 like Financial NGOs) MFIs. The findings show that non-performing loans negatively affect capital adequacy. Income diversification increases capital adequacy, especially among deposit-taking MFIs which have the regulatory liberty to engage in additional financial intermediation activities. Size has an inverted U-shape nexus with capital adequacy and there is evidence to suggest that for non-deposit-taking MFIs, size may not matter. Profitability increases capital adequacy while equity-to-asset ratio decreases capital adequacy, especially among deposit-taking MFIs. Additionally, lending channels negatively affect capital adequacy, especially among deposit-taking MFIs. Economic growth reduces capital adequacy but results are insignificant when we control for quarter fixed-effects. These results throw light on the application of the capital buffer theory in the context of MFIs which provides useful insights for practitioners, regulators, policymakers and academia.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2285142
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2285142
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Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2285142
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# input file: OAEF_A_2267726_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Hoa Nguyen Quynh
Author-X-Name-First: Hoa
Author-X-Name-Last: Nguyen Quynh
Author-Name: Dung Ngo Quoc
Author-X-Name-First: Dung
Author-X-Name-Last: Ngo Quoc
Author-Name: Toan Pham Ngoc
Author-X-Name-First: Toan
Author-X-Name-Last: Pham Ngoc
Author-Name: Lien Nguyen Thi Thu
Author-X-Name-First: Lien
Author-X-Name-Last: Nguyen Thi Thu
Title: Impact of the environmental protection tax on household welfare in Vietnam
Abstract:
In 2010, Vietnam promulgated the Law on Environmental Protection Tax, introducing a comprehensive package of environmental levies. However, few studies have examined the impacts of such an environmental tax within the country. This study aims to explore the effects of the environmental protection tax, leading to higher fuel prices, on household welfare in Vietnam. Using data from the 2020 Household Living Standard Survey and an input-output approach, this paper finds that the total impact is relatively modest. Interestingly, the results reveal a non-linear relationship between the total effects of rising fuel prices and per capita expenditure. Households in the top quintile are the most affected, followed by those in the third and bottom quintiles. Geographically, wealthier urban households and poorer rural households are primarily affected. These findings suggest that increasing the environmental protection tax on petroleum products could be an effective measure to nudge households’ and producers’ demands toward a greener economy. Simultaneously, mitigating any adverse impacts on household welfare is crucial, particularly for poor households in rural areas. Possible solutions include (i) direct and indirect financial subsidies; (ii) clear public communication about the rationale behind an environmental tax on petroleum; (iii) promoting efficient fuel use and launching campaigns to adjust households’ and producers’ demand for fuel products, encouraging a shift from fossil fuels to greener energy alternatives.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2267726
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2267726
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# input file: OAEF_A_2241771_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Fitri Kartiasih
Author-X-Name-First: Fitri
Author-X-Name-Last: Kartiasih
Author-Name: Nachrowi Djalal Nachrowi
Author-X-Name-First: Nachrowi Djalal
Author-X-Name-Last: Nachrowi
Author-Name: I Dewa Gede Karma Wisana
Author-X-Name-First: I Dewa Gede Karma
Author-X-Name-Last: Wisana
Author-Name: Dwini Handayani
Author-X-Name-First: Dwini
Author-X-Name-Last: Handayani
Title: Towards the quest to reduce income inequality in Indonesia: Is there a synergy between ICT and the informal sector?
Abstract:
The study assesses how ICT modulates the effect of informal sector on income inequality and investigates critical mass or threshold of ICT at which the diffusion of information with mobile cellular reduce income inequality. The ICT indicators are the regional ICT development index (RIDI), computer penetration and mobile cellular penetration. The empirical strategy used is Generalized Method of Moments (GMM). Covering panel data from 460 districts/cities in Indonesia for 2015–2019, the study shows that ICT measures of RIDI and computer penetration directly exacerbate income inequality, otherwise mobile cellular penetration directly reduces it. Enhancing ICT beyond certain thresholds is necessary for ICT to modulate informal sector to reduce income inequality. The corresponding ICT thresholds for the reduction of income inequality is 32.78 mobile cellular penetration per 100 people. The established thresholds make economic sense and can be feasibly implemented by policy makers to induce favourable effects on income inequality.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2241771
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2241771
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# input file: OAEF_A_2258704_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Godfred Aawaar
Author-X-Name-First: Godfred
Author-X-Name-Last: Aawaar
Author-Name: Louis Logogye
Author-X-Name-First: Louis
Author-X-Name-Last: Logogye
Author-Name: Daniel Domeher
Author-X-Name-First: Daniel
Author-X-Name-Last: Domeher
Title: Equity return volatility in Africa’s stock markets: A dynamic panel approach
Abstract:
This study examines the determinants of time-varying return volatility of Africa’s equity markets using monthly indices of eight top African stock markets. The conditional variance is modelled as a proxy for Africa’s volatility indices using the best fitting model among SGARCH, EGARCH and GJR-GARCH. In a bid to account for the dynamic and persistent nature of volatility, the least squares dummy variable bias correction (LSDVC) model is employed. The study finds that volatility of African stock markets follows a dynamic process and is explained by past volatility, domestic exchange rates, Treasury bill rates, money supply, inflation rates, movements in world crude oil prices, volatility of the US and UK stock markets and COVID-19 shocks. The results are largely robust to sub-sample analysis. Further analysis: pre-, during and post-crisis periods (Global Financial Crisis (GFC) and COVID-19 pandemic) reveal that (1) African stock markets became sensitive to advanced market volatility in the period during the GFC and have remained sensitive in the post GFC period and (2) past domestic market return volatility, Treasury bill rates and exchange rates have been the main drivers of stock return volatility during the COVID-19 pandemic in Africa. Additionally, markets in North Africa are revealed as the only African markets immune to advanced market volatility spillovers. These markets may thus provide international diversification opportunities for portfolio managers.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2258704
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2258704
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# input file: OAEF_A_2256192_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: José Alejandro Fernández Fernández
Author-X-Name-First: José Alejandro
Author-X-Name-Last: Fernández Fernández
Title: European Banking Union structures and dynamics
Abstract:
This article begins with an analysis of banking flows in the euro zone, through a complex network, from 2006 to 2020. This analysis allows us to observe the topology of the network through different phases of the business cycle. It is obtained that there is greater fragmentation in the network that increases in three stages, with turning points in crises. In turn, the topological structure is less random and presents more capitalized subnetworks with less risk. As for the nodes of the network, Germany gives up the position of centrality in favor of France. The determinants of the links in the network are analyzed with Machine Learning, obtaining as push and pull bank variables solvency and bank income structure, respectively, and productivity as economic variable.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2256192
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2256192
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# input file: OAEF_A_2226903_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Zuhrohtun Zuhrohtun
Author-X-Name-First: Zuhrohtun
Author-X-Name-Last: Zuhrohtun
Author-Name: M. Zulkifli Salim
Author-X-Name-First: M. Zulkifli
Author-X-Name-Last: Salim
Author-Name: Kunti Sunaryo
Author-X-Name-First: Kunti
Author-X-Name-Last: Sunaryo
Author-Name: Sri Astuti
Author-X-Name-First: Sri
Author-X-Name-Last: Astuti
Title: Returns co-movement and interconnectedness: Evidence from Indonesia banking system
Abstract:
In this paper, we explore how asset returns used as a proxy to detect interconnectedness of systemic risk in the financial system. Our sample employs a mixture of Indonesian banks’ public and prudential data over the 2012–2019 period. Using the Principal Component Analysis and Granger causality the core banks in the network could explain the variance, risk co-movement, and show shocks propagation. Further, the results are also in line with Basel indicator-based to score the interconnectedness. The dominance of big size banks in the centrality measures raises issue of substitutability. This paper outstretched theories and their application provides a basis for policy makers to develop supervision frameworks to mitigate systemic risk.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2226903
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2226903
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# input file: OAEF_A_2269758_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Jamal Husein
Author-X-Name-First: Jamal
Author-X-Name-Last: Husein
Author-Name: S. Murat Kara
Author-X-Name-First: S. Murat
Author-X-Name-Last: Kara
Author-Name: Chuck Pier
Author-X-Name-First: Chuck
Author-X-Name-Last: Pier
Title: Are the current accounts of Asian-5 economies mean-reverting? New evidence from Fourier panel stationarity tests
Abstract:
This study offers a novel examination of the mean-reversion properties of the current account balances, expressed as a percentage of GDP, for the Asian-5 economies: Indonesia, Korea, Malaysia, the Philippines, and Thailand. While prior studies mainly employed traditional unit-root tests, our research stands out for its use of novel panel stationarity tests that account for cross-sectional dependence and incorporate both sharp and smooth structural breaks via a Fourier function. Our findings robustly indicate the sustainability of the current accounts of the Asian-5 nations. The emphasis on the significance of structural breaks with a Fourier component sets this research apart, offering fresh perspectives on the intricacies of current account mean-reversion dynamics and the long-term sustainability implications for these economies.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2269758
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2269758
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# input file: OAEF_A_2234129_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Quoc Trung Nguyen Kim
Author-X-Name-First: Quoc Trung Nguyen
Author-X-Name-Last: Kim
Title: Accounting information quality moderates the effect of dividends on investment decisions: Evidence in Vietnam
Abstract:
The author specifies the pivotal role of accounting information quality in moderating the influence of dividends on the investment decisions of listed firms in Vietnam from 2009 to 2020. In this study, the significant dependence of investment on dividends is proved by the Two-Step System Generalized Method of Moments. The key findings show that dividends and investment decisions have a statistically significant negative relationship. The relationship is clarified based on agency theory, asymmetric information theory, and signaling theory, which are used in low-information-transparency markets such as the Vietnamese market. Primarily, the role of a moderating factor could mitigate the negative relationship above.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2234129
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2234129
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# input file: OAEF_A_2267752_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Muhammad Salahudin Al Ayyubi
Author-X-Name-First: Muhammad Salahudin
Author-X-Name-Last: Al Ayyubi
Author-Name: Devanto Shasta Pratomo
Author-X-Name-First: Devanto Shasta
Author-X-Name-Last: Pratomo
Author-Name: Ferry Prasetyia
Author-X-Name-First: Ferry
Author-X-Name-Last: Prasetyia
Title: Does pre-employment card program improve Indonesian youth labor market performance in pandemic era?
Abstract:
The pre-employment card program, a training voucher policy initiated by Indonesian government in the beginning of 2020 emerged as an alternative instrument in economic recovery, including for youth affected by the COVID-19 pandemic. Using the multinomial logit and Lee’s selection-biased corrections, the objectives of the study then are to see the effect of the program on (1) employment status and (2) income of youth during the pandemic. The data used are sourced from the 2020 National Labor Force Survey. The results show that the participation of youth in the program increases participation in the labor market, especially in the informal sector. However, the results show that there is still no significant effect of the program on income in all employment status, suggesting a potential lagged income effect of the program.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2267752
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2267752
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# input file: OAEF_A_2267738_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Justice Gameli Djokoto
Author-X-Name-First: Justice Gameli
Author-X-Name-Last: Djokoto
Author-Name: Paragon Pomeyie
Author-X-Name-First: Paragon
Author-X-Name-Last: Pomeyie
Author-Name: Camillus Abawiera Wongnaa
Author-X-Name-First: Camillus Abawiera
Author-X-Name-Last: Wongnaa
Title: Foreign direct investment in food manufacturing and stages of human development
Abstract:
The extension of the shelf life of food through processing makes food available beyond the shelf-life of fresh agricultural produce, which has implications for food and nutrition security. Food processing creates products for the specified nutritional needs of persons with special nutritional requirements, market access for products from the agricultural sector, employment for households, opportunities for trade and marketing as well as tax revenues for the state. These contribute to the standard of living (income) as well as education and health components of human development. Existing studies have focused on assessing the human development (HD) effects of foreign direct investment (FDI). However, the differences in human development could engender differences in the effect of FDI on human development. Unlike the exante literature, we focus on food manufacturing FDI, the human development stages and the contemporaneous analysis of developed and developing countries. We used panel data from 18 and 26 developing and developed countries respectively from 1991 – 2021 and fitted it to panel generalised estimation equations and the general method of moments estimators. We find that food manufacturing FDI had a significant influence on human development for all human development stages in developing but only for low-developed countries in the category of the low human development index. Not isolating the influence of FDI on human development stages could produce misleading outcomes for developed countries. Policymakers can look at food manufacturing FDI to increase HDI and in some cases to migrate from one stage to another.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2267738
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2267738
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# input file: OAEF_A_2247162_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Grace Isidor Temba
Author-X-Name-First: Grace Isidor
Author-X-Name-Last: Temba
Author-Name: Pendo Shukrani Kasoga
Author-X-Name-First: Pendo Shukrani
Author-X-Name-Last: Kasoga
Author-Name: Chirongo Moses Keregero
Author-X-Name-First: Chirongo Moses
Author-X-Name-Last: Keregero
Title: Corporate governance and financial performance: Evidence from commercial banks in Tanzania
Abstract:
This study looks at mechanisms for improving and stabilising the financial performance of commercial banks in Tanzania. More specifically, this study aimed to assess corporate governance’s influence on financial performance regarding asset quality, efficiency use of equity, earning ability, capital adequacy, and liquidity. The study included the board aspect of governance and board control, constructs which have not been studied previously in assessing the influence of corporate governance on the performance of commercial banks. Other constructs included are the board’s gender diversity, board size, directors’ shareholding, board control, board members’ over boarding, board activities, and the existence of important board committees. Panel data were collected from published reports of 15 commercial banks covering a period of 17 and employing multiple linear regression analysis to establish causal-effect relationships among the study variables. The findings revealed that corporate governance (board aspects of governance, board members over-boarding) positively influences the financial performance of commercial banks in terms of their earning ability, asset quality, and capital adequacy. Corporate governance also negatively influences the efficient use of equity and liquidity through board gender diversity, board aspects of governance, and board control. The study recommends that corporate governance principles and mechanisms be enhanced to improve the financial performance of commercial banks.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2247162
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2247162
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# input file: OAEF_A_2242128_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Cong Minh Huynh
Author-X-Name-First: Cong Minh
Author-X-Name-Last: Huynh
Author-Name: Nam Hoai Tran
Author-X-Name-First: Nam Hoai
Author-X-Name-Last: Tran
Title: Financial development, income inequality, and institutional quality: A multi-dimensional analysis
Abstract:
Ambiguous impacts of financial development on income inequality in the literature imply that the impacts can be affected by other variables and may depend on different dimensions of financial development. This paper studies the effects of financial development with multi-dimensional analysis (financial depth, financial access, and financial efficiency) of two main categories (financial institutions and financial markets) and institutional quality on income inequality in 30 Asian countries in the period 2000–2019. Results show that the financial institutions development (FI), the financial institutions access (FIA), the financial institutions efficiency (FIE), and the financial markets access (FMA) reduce income inequality; but the overall financial development (OFD), the financial markets development (FM), the financial institutions depth (FID), and the financial markets depth (FMD) increase it. Notably, better institutional quality not only lessens income inequality but also moderates the effects of financial development on income inequality. Specifically, the improvement of institutional quality strengthens the beneficial effects of FI, FIA, FIE, and FMA on income inequality. Meanwhile, OFD, FM, FID, and FMD initially exacerbate income inequality until respective thresholds of institutional quality, and then beyond those levels of IQ, these indicators of financial development reduce income inequality. Results are robust with various estimators. These findings strongly support the importance of financial development with multi-dimensions and institutional reform in Asian countries as they have both direct and indirect impacts on income inequality through their mutual interactions.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2242128
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2242128
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# input file: OAEF_A_2245217_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Muhammad Herru Hendrawan
Author-X-Name-First: Muhammad Herru
Author-X-Name-Last: Hendrawan
Author-Name: Felisitas Defung
Author-X-Name-First: Felisitas
Author-X-Name-Last: Defung
Author-Name: Wirasmi Wardhani
Author-X-Name-First: Wirasmi
Author-X-Name-Last: Wardhani
Title: Un/desired impact of capital buffers: Evidence from Indonesian bank profitability and risk-taking
Abstract:
The study employs a two-step system GMM technique within a panel data framework to investigate the effects of capital buffers on the profitability and risk behavior of Indonesian commercial banks from 2010 to 2020. The findings reveal that capital buffers serve a dual role, acting as a safety net against potential losses while also promoting increased financial stability and stronger shareholder engagement. This ultimately benefits the bank and its stakeholders in the long run. However, the positive effects of capital buffers come at a cost, as they are associated with reduced returns on assets and return on equity. The study emphasizes the importance of managing risk effectively, striking a delicate balance between risk-taking and prudent risk management to achieve optimal profitability. It underscores the need for banks to prioritize robust risk management practices and proper capitalization to avoid pursuing profitability at the expense of these critical factors. The study further highlights the significance of policymakers finding the right equilibrium between promoting financial stability through capital requirements and fostering a competitive banking industry that can generate profits and support economic growth.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2245217
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2245217
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# input file: OAEF_A_2229177_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Muhammad Arsalan Khan
Author-X-Name-First: Muhammad Arsalan
Author-X-Name-Last: Khan
Author-Name: Siti Nuryanah
Author-X-Name-First: Siti
Author-X-Name-Last: Nuryanah
Title: Combating tax aggressiveness: Evidence from Indonesia’s tax amnesty program
Abstract:
Taxation has a vital role as a domestic financial source to achieve Sustainable Development Goals (SDGs). To increase domestic revenue, combating tax avoidance is important, especially for Indonesia, one of the most populous countries with the fact that the 2020 country’s tax-to-GDP ratio decreased to 10.1% in 2020 which is below the Asia and Pacific average of 19.1%. This paper examines the effect of the tax policy of Indonesia, i.e., tax amnesty and other factors on tax aggressiveness. Indonesia is taken as the case study for the specific characteristics of its tax reforms. The sample of this study consists of 402 observations from manufacturing companies listed in the Indonesian Stock Exchange (IDX) for the periods of 2013–2018. This study collected secondary data and employed a purposive sampling method for the selection of samples. Multiple regression analysis was used to examine the factors affecting tax aggressiveness. The results show that internal governance mechanisms, namely independent commissioners and institutional ownership, as well as the company’s characteristics, namely leverage and profitability, have a significant effect on tax aggressiveness. This study, however, cannot find the effectiveness of tax amnesty in combatting tax aggressiveness. This study brings an implication for developing tax policies for companies in Indonesia, to reduce tax aggressiveness.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2229177
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2229177
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# input file: OAEF_A_2255049_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Osama Wagdi
Author-X-Name-First: Osama
Author-X-Name-Last: Wagdi
Author-Name: Eman Salman
Author-X-Name-First: Eman
Author-X-Name-Last: Salman
Author-Name: Hatem Albanna
Author-X-Name-First: Hatem
Author-X-Name-Last: Albanna
Title: Integration between technical indicators and artificial neural networks for the prediction of the exchange rate: Evidence from emerging economies
Abstract:
The study investigated the effectiveness of technical analysis indicators in trading spot exchange rates of emerging economies’ currencies under integration with artificial neural networks (ANN) and the quantitative testing of these indicators’ success in this matter with the goal of rationalizing decisions. The study period was from January 2012 to November 2022 for twenty-four currencies against the US dollar. Based on four technical indicators: the simple moving average (SMA), momentum, moving average convergence divergence (MACD), and relative strength index (RSI), with a total of 131 months. Of them, 51 months are for ANN construction (supervised learning), while 80 months are for hypothesis testing. The study used cross-sectional analysis and hierarchical multiple regression in addition to the Wilcoxon signed ranks test and Kruskal–Wallis test. The study found a significant improvement in the values predicted for exchange rates for emerging economies by artificial neural networks versus the values predicted by technical indicators alone. Finally, the study found a significant difference of gap between the values predicted for exchange rates for emerging economies by artificial neural networks and the actual values based on currency. It is possible to study the interpretation of this result according to the difference in each of the exchange rate regimes in emerging economies, in addition to the difference in structural imbalances between those economies.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2255049
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2255049
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# input file: OAEF_A_2282838_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Dzung Viet Nguyen
Author-X-Name-First: Dzung Viet
Author-X-Name-Last: Nguyen
Author-Name: Ngan Hoang-Kim Nguyen
Author-X-Name-First: Ngan Hoang-Kim
Author-X-Name-Last: Nguyen
Author-Name: Tien Thuy Dinh
Author-X-Name-First: Tien Thuy
Author-X-Name-Last: Dinh
Title: CEO attributes and firm performance: Evidence from companies listed on Ho Chi Minh Stock Exchange
Abstract:
This study conducted on HOSE-listed companies for the period 2016–2020 examines the influence of chief executive officer (CEO) attributes on company performance. The System GMM methodology is applied to estimate and test dynamic panel data models. We investigate a fairly large number of CEO attributes including four socio-demographic and five corporate governance-related ones. For the socio-demographic attributes, the results indicate that female gender, below postgraduate education, domestic nationality and older age are the CEO traits that contribute to improve firm performance. With regard to the corporate governance-related attributes, this study provides statistical evidence that shorter CEO tenure, CEO-chairman duality, founder CEO, insider CEO and lower CEO ownership are the characteristics that enhance firm performance. The findings may offer valuable insights to shareholders when they expect to recruit the most qualified CEO to serve their benefits and increase their company performance.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2282838
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2282838
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# input file: OAEF_A_2246007_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Yongjun Ma
Author-X-Name-First: Yongjun
Author-X-Name-Last: Ma
Author-Name: Xuepin Wu
Author-X-Name-First: Xuepin
Author-X-Name-Last: Wu
Author-Name: Jingjie Shui
Author-X-Name-First: Jingjie
Author-X-Name-Last: Shui
Title: The impact of the digital economy on the cost of living of the population: Evidence from 160 cities in China
Abstract:
The cost of living has shown a gradual upward trend in recent years, which has seriously impacted the quality of life and well-being of residents. This study empirically examines the impact of the digital economy on residents’ cost of living and the mechanisms behind it by measuring the digital economy and cost of living indicators in 160 cities in China from 2010 to 2020. The results show that the digital economy can significantly reduce the cost of living for the population. The “marginal effect” of the digital economy on the cost of living is found to be non-linearly decreasing as the level of the digital economy increases, and the more severe the air pollution, the weaker the impact of the digital economy on the cost of living, using a threshold variable of the digital economy and air pollution. Finally, the analysis of mechanisms shows that environmental regulation and healthcare are important ways in which the digital economy can play a role in reducing the cost of living for the population. Meanwhile, this study reveals the intrinsic link between the digital economy and the cost of living, which is important for alleviating the cost of living and enhancing people’s well-being.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2246007
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2246007
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# input file: OAEF_A_2235821_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Isaac Ofoeda
Author-X-Name-First: Isaac
Author-X-Name-Last: Ofoeda
Author-Name: Joseph K. Tuffour
Author-X-Name-First: Joseph K.
Author-X-Name-Last: Tuffour
Author-Name: Emmanuel Adjei Nketia
Author-X-Name-First: Emmanuel Adjei
Author-X-Name-Last: Nketia
Title: The impact of anti-money laundering regulations on inclusive finance: Evidence from Sub-Saharan Africa
Abstract:
This study examined the impact of AML regulations on financial inclusion in Sub-Saharan Africa (SSA). Again, the study assessed whether the level of AML regulatory effectiveness determines the impact of AML regulations on financial inclusion. The study employed the Systems Generalized Methods of Moments (SGMM) estimation technique to assess the influence of AML regulations on financial inclusion for a panel of 44 SSA countries from 2012–2019. Data is sourced from the World Development Indicators and the Basel Institute on Governance. The study showed that AML regulations negatively impact accounts ownership and the number of commercial bank branches whereas AML regulations have a positive impact on the number of commercial bank depositors, the number of commercial bank borrowers, and the number of ATMs. Further, the study provided evidence that AML regulations positively impact the number of commercial bank branches and the number of borrowers in low-effectiveness countries (countries with AML regulations below the mean). In contrast, the study reported that AML regulations have a negative impact on accounts ownership for high-effectiveness countries (countries with AML regulations above the mean), while AML regulations have a positive influence on the number of depositors, the number of commercial bank borrowers and number of ATMs above the mean. The findings of the study imply that the impact of AML regulations on financial inclusion depends on the proxy of financial inclusion and also the extent of AML regulations in SSA countries. The uniqueness of this study is its specific focus on assessing the impact of AML regulations on financial inclusion in SSA.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2235821
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2235821
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# input file: OAEF_A_2266915_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Tafadzwanashe Zinyoro
Author-X-Name-First: Tafadzwanashe
Author-X-Name-Last: Zinyoro
Author-Name: Meshach Jesse Aziakpono
Author-X-Name-First: Meshach Jesse
Author-X-Name-Last: Aziakpono
Title: Performance determinants of life insurers: A systematic review of the literature
Abstract:
The life insurance industry plays a crucial role in the economy as it serves as one of the channels through which countries mobilize long-term savings, promote the development of capital markets, foster efficient capital allocation, and substitute and complement government security programs. Therefore, the performance of this sector is imperative. Since the early 1990s, researchers have been paying particular attention to the performance of life insurance firms, with a specific emphasis on identifying the key determinants of their performance. The objective of this study is to synthesize the studies that have explored this topic. Using a systematic literature review approach, the study reviews 129 studies published between 1990 and 2021. The analysis reveals that the literature primarily examines factors such as size, organizational structure, capital composition, diversification, distribution systems, risk management practices, and reinsurance strategies as key firm-specific drivers of life insurer performance. Additionally, the study underscores the importance of competition and macroeconomic conditions as commonly discussed external determinants. While a clear relationship between performance and factors like firm size, organizational structure, and risk management practices is evident, the impact of other factors remains inconclusive. One of the implications of this study is that policymakers should enact laws that promote competition in the insurance industry. The study also reveals several research gaps, including methodological gaps.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2266915
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2266915
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# input file: OAEF_A_2244353_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Million Adafre Bushashe
Author-X-Name-First: Million Adafre
Author-X-Name-Last: Bushashe
Author-Name: Yitbarek Bayiley
Author-X-Name-First: Yitbarek
Author-X-Name-Last: Bayiley
Title: Fiscal decentralization and macroeconomics stability nexus: Evidence from the Sub-national governments context of Ethiopia
Abstract:
This study aimed to investigate the effects of fiscal decentralization on Ethiopia’s regional (Sub-national) macroeconomic stability. The study followed a causational research design employing data from 2005–to 2018. The units of analysis in the study are sub-national governments (SNGs). The study utilized the two-step System General Methods of Moment (SYS-GMM) model since it resolves econometric issues, including endogeneity, autocorrelation, and Heteroscedasticity. The study findings revealed that revenue and composite decentralization have significantly shielded macroeconomic instability. In contrast, expenditure and fiscal dependency are significantly aggravating macroeconomic instability. Among the control variables used in the study, regional economic growth and school enrollment significantly reduce macroeconomic instability; Foreign Direct Investment (FDI), population growth, unemployment rate, welfare, and public investment claimed the opposite effect on macroeconomic stability. The primary implication is that the federal government needs to give fiscal autonomy to SNGs since fiscal dependency is causing macroeconomic instability. Expenditure decentralization is also exacerbating macroeconomic instability; it is essential to have a mechanism to engender budget constraints and make SNGs accountable for their expenditure. Besides, to grasp the shielding effect of revenue decentralization from macroeconomic instability, there should be incentive devices to boost SNG’s tax collection efforts. Since capital and welfare expenditures exacerbate macroeconomic instability, the study urges the government to follow a contractionary fiscal policy by cutting its expenditure. Finally, as opposed to prior studies, the present study used multiple fiscal decentralization indicators, making the study more thorough and closing the knowledge gap.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2244353
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2244353
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# input file: OAEF_A_2282890_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Kidanemariam Gebregziabher
Author-X-Name-First: Kidanemariam
Author-X-Name-Last: Gebregziabher
Author-Name: Muuz Hadush
Author-X-Name-First: Muuz
Author-X-Name-Last: Hadush
Author-Name: Kebede Abrha
Author-X-Name-First: Kebede
Author-X-Name-Last: Abrha
Title: Child labor and its determinants: An empirical test of the luxury axiom-cum the wealth paradox theory
Abstract:
The paper was motivated to test whether the high child labor prevalence observed in Ethiopia is explained by the poverty (luxury) hypothesis or wealth paradox theories. The data for this study is the Young Lives project, consisting of 1803 children units (a total of 7212 children in four rounds). Major determinants of child labor: household characteristics, shocks, poverty or wealth proxy indicators, and area and time fixed effect variables are controlled. The study employs a Feasible generalized least squares (FGLS) econometric technique to estimate the causal relationship between child labor; household characteristics, poverty, and wealth indicator variables. Both drought and income losses were found to be positive and significant almost across all specifications. Resource or asset ownership indicators, such as land, access to credit, and TLU) were found to be positively related to child labor, consistent with the wealth paradox. However, the wealth index, except in the two quartiles found to be negative and significant at 1 percent, consistent with the luxury axiom. One more result that is interesting is the significant differences between boys and girls in the type of tasks children engaged in. Girls’ dominance in household chores and boys in economic activity. Moreover, the current high level of child labor participation rate of 45 percent is very alarming. Finally, the household head’s educational status also has a strong negative impact on child labor. In view of, the moral obligation of societies and government; future economic benefit of investing in children, policy be directed towards pro-poor development programs especially targeting children’s welfare, promoting adult education, and introducing agricultural insurance schemes to reduce the extent and intensity of child labor.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2282890
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2282890
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# input file: OAEF_A_2266659_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: N Srinivasa Reddy
Author-X-Name-First: N Srinivasa
Author-X-Name-Last: Reddy
Author-Name: Jayanthi Thanigan
Author-X-Name-First: Jayanthi
Author-X-Name-Last: Thanigan
Title: Determinants of purchase intention, satisfaction, and risk reduction: The role of knowledge and information search among mortgage buyers
Abstract:
As housing demand rose post-COVID-19, new mortgage buyers with distinct preferences are entering the market. Nevertheless, the mortgage purchasing process can prove intricate and precarious for individuals lacking familiarity. Customers leverage various online platforms and supplementary sources to augment their knowledge and mitigate perceived risks, enabling them to make well-informed decisions during the mortgage buying process. Despite exerting these efforts, customers continue to harbor unfavorable purchase intentions due to their subpar purchasing experience, leaving mortgage lenders grappling with retention issues. Research has highlighted that only 15% of mortgage transfer customers would buy a mortgage from the original provider. The present study examines mortgage purchase intention and risk reduction by integrating customer empowerment and uncertainty reduction theories to contribute to the existing literature on mortgage decision-making. A survey was conducted among 554 mortgage buyers, and PLS-SEM was used to test the hypotheses. Knowledge positively influenced satisfaction (β = 0.15, p= = 0.01), and satisfaction positively affected purchase intention (β = 0.75, p = 0.01). The mediating mechanism of risk reduction through involvement and information search is also established. The findings suggest that customers involved in decision-making and information search are more likely to be satisfied with their purchase and experience less risk. Mortgage companies should encourage customers to be more involved and provide complete information during buying. As involved customers experience less confusion; they will make sound financial decisions and remain satisfied and loyal to the mortgage company. Using behavioral finance, policymakers could provide customers necessary nudges to improve decision-making.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2266659
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2266659
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# input file: OAEF_A_2210382_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Teguh Dartanto
Author-X-Name-First: Teguh
Author-X-Name-Last: Dartanto
Author-Name: Hera Susanti
Author-X-Name-First: Hera
Author-X-Name-Last: Susanti
Author-Name: Eldest Augustin
Author-X-Name-First: Eldest
Author-X-Name-Last: Augustin
Author-Name: Kania Fitriani
Author-X-Name-First: Kania
Author-X-Name-Last: Fitriani
Title: Reemployment during the Covid-19 pandemic in Indonesia: What kinds of skill sets are needed?
Abstract:
The COVID-19 pandemic has disrupted the labor market leading to significant unemployment. This study explores the 2019, 2020, and 2021 National Labor Force Survey (Sakernas) to examine the labor market changes and the relationship between workers’ skill sets, such as hard skills (vocational education), soft skills, and digital literacy and reemployment during the COVID-19 pandemic. Our descriptive statistics analysis confirms that the scarring effect exists as the share of the informal sector increases by around 4.5 percentage points during the COVID-19 pandemic. Moreover, our estimations using the Bivariate Probit Model show that social skills and digital literacy are important determinants for reemployment at the national level. In contrast, vocational education and problem-solving skills are statistically insignificant. Workers with social skills tend to have a higher probability of being reemployed, by 41% in 2020 and 27% in 2021, compared to workers without any. Our study also finds a heterogenous relationship between skill sets and reemployment. Social skill is significantly correlated with reemployment in an urban area, Java-Bali, and young workers in the 15–24 age group. In addition, vocational education is crucial for reemployment, especially among young workers during the economic recovery period in 2021. Our study suggests that the government should focus on preparing the correct and relevant skill sets for young workers aged 15–24 to respond to the significant demand changes in the post-pandemic labor market.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2210382
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2210382
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# input file: OAEF_A_2236887_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Djomo Choumbou Raoul Fani
Author-X-Name-First: Djomo Choumbou
Author-X-Name-Last: Raoul Fani
Author-Name: Ukpe Udeme Henrietta
Author-X-Name-First: Ukpe Udeme
Author-X-Name-Last: Henrietta
Author-Name: Rayner Tabetando
Author-X-Name-First: Rayner
Author-X-Name-Last: Tabetando
Author-Name: Gama Emmanuel Nkwi
Author-X-Name-First: Gama Emmanuel
Author-X-Name-Last: Nkwi
Author-Name: Zoubeirou Mainassara
Author-X-Name-First: Zoubeirou
Author-X-Name-Last: Mainassara
Title: Are young maize and rice farmers’ profit efficient? A gender differential analysis
Abstract:
The recent trend of development policy makes emphasis on gender disparity in performance, especially in the agricultural sector whereby women partake and play a crucial role and their contribution to the sector cannot be overemphasized. However, the contention is whether such disparity in performance exists typically at old age or whether it exists at youth age as well. A representative household survey with structured questionnaires and assistance from extension agents who served as enumerators make use of multistage sampling techniques to collect datasets from 1019 young producer-marketers involved in the two value chains from three regions of Cameroon including Far North, North, and West Regions. Findings show that the mean profit efficiency for young males is 0.53, and 0.61 while for young females are 0.59, and 0.69 respectively. The result found a significant difference (.001; .002) in the profit efficiency among young males and females rice and maize producer-marketers due to socioeconomic and financial factors such as household size, cost of transport, tax paid, amount of credit received, membership to the association, cost of labour, cost of seed, cost of herbicides and cost of fertilizer. Findings indicate that there is a need to set up agrochemical and improved seed varieties subsidy schemes with special attention given to young female rice and maize producer-marketers given that cost of agrochemical and improved seed varieties significantly affect their profitability. Young females engaged in the rice and maize value chains could benefit from setting up labour-sharing arrangements for mutual help.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2236887
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2236887
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# input file: OAEF_A_2230733_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Nurjannah Nurjannah
Author-X-Name-First: Nurjannah
Author-X-Name-Last: Nurjannah
Author-Name: Raja Masbar
Author-X-Name-First: Raja
Author-X-Name-Last: Masbar
Author-Name: M. Shabri Abd. Majid
Author-X-Name-First: M. Shabri Abd.
Author-X-Name-Last: Majid
Author-Name: Suriani Suriani
Author-X-Name-First: Suriani
Author-X-Name-Last: Suriani
Title: Inter-regional trade and economic growth of ASEAN low middle income: Are corruption control and HDI important?
Abstract:
The current study aims to analyze the factors influencing ASEAN economic growth and integration. Specifically, the variables of inter-regional trade, human resource development, and corruption were investigated in six lower-middle-income countries from 1996 to 2019 through Driscoll and Kraay’s, Newey and West’s, and Dumitrescu and Hurlin’s as causal analysis. The study’s results found that capital had an impact of 0.248%, labor had an impact of 0.467%, human development had 3.010%, intra-regional trade had an impact of 0.014%, and corruption control had 0.260%. Statistically, all variables have a significant effect except for inflation. Furthermore, a bidirectional found in economic growth from the capital, corruption control, and intra-trade. A unidirectional was found for economic growth between the labor force and human development. At the same time, a neutral relationship was found between inflation and economic growth. Based on these findings, strengthening the economy in the integration area needs to be done, even if it’s only trading with fellow LMIs. Besides that, there is an increasing need to increase the allocation of education and health, which stimulates productivity. The government also needs to strengthen corruption control, which is detrimental to developing nations and economic growth.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2230733
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2230733
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# input file: OAEF_A_2243174_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: John Kwaku Amoh
Author-X-Name-First: John Kwaku
Author-X-Name-Last: Amoh
Author-Name: Kenneth Ofori-Boateng
Author-X-Name-First: Kenneth
Author-X-Name-Last: Ofori-Boateng
Author-Name: Randolph Nsor-Ambala
Author-X-Name-First: Randolph
Author-X-Name-Last: Nsor-Ambala
Author-Name: Ebenezer Bugri Anarfo
Author-X-Name-First: Ebenezer
Author-X-Name-Last: Bugri Anarfo
Title: Tax efforts and tax evasion–economic development Nexus. Does institutional quality matter?
Abstract:
As a result of the failure to meet tax collection targets, policymakers, economists, and financiers have focused their attention in recent years on how a country’s tax effort has been employed to combat tax evasion and maximise tax collections for economic growth. The study looked at the nexus between tax efforts, tax evasion, and economic development, as well as the effect of institutional quality on moderating the nexus in Ghana. The maximum likelihood (ML) estimation and structural equation modelling (SEM) techniques were used in the study to analyse a sample of quartered data from 1996 to 2020. Testing the hypotheses reveals that both tax efforts and tax evasion have negative effects on the economic freedom of the world index (EFWI) but positive effects on urbanisation. A test of the third hypothesis shows that institutional quality moderates tax evasion in Ghana in order to influence economic development. The findings imply that the idea that tax evasion is bad for an economy or that tax efforts drive domestic revenue mobilisation is based mainly on prima facie evidence. Tax efforts such as tax amnesty may appear to compliant taxpayers as an incentive for tax evaders, which could affect their compliance. The adoption of the tax efforts index measure to examine its econometric impact on economic development is one of the pioneering attempts in the field. The study recommends well-thought-out strategies to ensure that tax efforts achieve their intended goals.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2243174
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2243174
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# input file: OAEF_A_2230724_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Abebe Dagnew
Author-X-Name-First: Abebe
Author-X-Name-Last: Dagnew
Author-Name: Degye Goshu
Author-X-Name-First: Degye
Author-X-Name-Last: Goshu
Author-Name: Lemma Zemedu
Author-X-Name-First: Lemma
Author-X-Name-Last: Zemedu
Author-Name: Million Sileshi
Author-X-Name-First: Million
Author-X-Name-Last: Sileshi
Title: Impacts of contract farming on asset accumulation of malt barley farmers in Northwestern Ethiopia
Abstract:
Agriculture is the mainstay of the Ethiopian economy. Barley, including food and malt barley, is one of the major cereals produced by smallholder farmers. Though malt barley is the fastest-growing industry, demand is outpacing supply. As a result, Ethiopia is a net importer of raw malt barley. Recently, contract farming was implemented to address this issue in malt barley-potential areas. It has been one of the strategies utilized to enhance the commercialization of malt barley and replace imported malt barley, besides solving production and marketing challenges. The predicted results also include satisfying domestic malt barley demand, enhancing the welfare of smallholder farmers, and conserving the nation’s foreign exchange. Although not thoroughly investigated, the research area has a low rate of CF participation and a low malt barley yield. Furthermore, previous research has focused on the CF impact of income, food security, and yield indicators of welfare, but no attention has been devoted to the implications of asset accumulation, which is a greater long-term indicator of welfare. Given the issues and research gaps identified, this study seeks to evaluate the impact of CF on malt barley farmers’ asset accumulation in Northwestern Ethiopia. The data were collected from 398 samples in two districts, selected using multistage sampling techniques. The endogenous switching regression (ESR) model was used to account for bias coming from both observable and unobservable sources. For malt barley farmers, the average treatment effect on treated and untreated was 9652.7ETB and 7417.3ETB, respectively, and was significant at 1%. The base heterogeneities for CF participation and non-participation were 886ETB and −1349.4ETB, respectively. The average transitional heterogeneity was 2235.4ETB and statistically significant at 1%. Consequently, malt barley CF participation has a positive association with asset accumulation; this result supports transaction cost economic theory. Cooperative membership, off-farm employment, and age were all positively associated with the propensity to increase asset accumulation. The finding also reveals that land affected participants, whereas credit, household size, and farming experiences had a significant and positive effect on non-participants’ assets. This shows that the asset accumulation of the two groups was determined by common variables with different magnitudes and different variables. Therefore, the concerned bodies should consider these heterogeneities to strengthen and improve the CF participation of malt barley farmers as long as they are adjusted to local conditions. Furthermore, spillover effects of CF on other sectors (other crops and the environment) and non-participants should be considered to check whether it has negative or positive external effects.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2230724
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2230724
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# input file: OAEF_A_2231208_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: John Owusu-Afriyie
Author-X-Name-First: John
Author-X-Name-Last: Owusu-Afriyie
Author-Name: Priscilla Twumasi Baffour
Author-X-Name-First: Priscilla
Author-X-Name-Last: Twumasi Baffour
Author-Name: William Baah-Boateng
Author-X-Name-First: William
Author-X-Name-Last: Baah-Boateng
Title: Union wage effect: Evidence from Ghana
Abstract:
Consistent with Convention 87 of the International Labour Organization (ILO), Section 79 of the Labour Act, 2003 (Act 651) empowers every employee in an organization to either form or join a trade union of their choice for the promotion and protection of their economic and social interests. In spite of this legal provision, union coverage and density in Ghana have continually declined in recent years. The decline in union density and coverage is likely to decrease the collective bargaining strength of unions. It is against this background that our study seeks to examine the effect of unions’ bargaining (proxied by union presence variable) on wages in Ghana. We employ the Heckman Selection Model and quantile regression technique to analyze data extracted from the sixth round of the Ghana Living Standards Survey (GLSS 6) and 2015 Ghana Labour Force Survey (GLFS 2015) respectively. The findings indicate that unions’ bargaining effect on wages is positive. Furthermore, the study finds that the union wage premium is highest at the lowest point of the wage distribution (25th quantile) but lowest at the highest point of the wage distribution (75th quantile). Whilst the study acknowledges the importance of education in earnings determination, we recommend that low-wage employees in a non-union establishment should join a trade union in order to earn a living/decent wage.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2231208
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2231208
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# input file: OAEF_A_2183667_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Mohammed M. Elgammal
Author-X-Name-First: Mohammed M.
Author-X-Name-Last: Elgammal
Author-Name: Anas A. Al Bakri
Author-X-Name-First: Anas A.
Author-X-Name-Last: Al Bakri
Author-Name: AlDana Y. AlJanahi
Author-X-Name-First: AlDana Y.
Author-X-Name-Last: AlJanahi
Title: The Effect of New and Traditional Sources of Financing on the Performance of Small and Entrepreneurship Businesses: The Case of Qatar
Abstract:
Purpose: This paper investigates how entrepreneurial finance in Qatar affects the performance of small and entrepreneurship businesses (SEB). It is the first study examining the financial decisions of SEB in Qatar, illustrating the advantages and disadvantages of traditional and innovative sources of finance. In addition, we investigate the impact of different funding sources on three dimensions of SEB performance: financial, marketing and internal business and development performance. Methodology: Our sample included 300 SEB owners and managers, selected randomly and contacted in January to March 2020. Following the delivery and collection process, the study obtained 161 questionnaires, which were analysed using ordinary least squares regression. Findings: The results suggest that diversity and accessing new and innovative sources of finance affect the performance of SEBs. Meanwhile, this effect varies among different aspects of performance. The study concluded that SEBs prefer equity to debts. The performance of SBEs is mainly derived through accessibility to funds, governmental support, using innovative finance and the availability of collateral. Implications: This study contributes to the literature and industry by being the first to examine the accessibility of innovative sources of funds for SEBs in Qatar and their impact on different dimensions of performance. Our findings can help decision-makers to consider the impact of diverse sources of funds on different performance dimensions, which affect financing decisions made based on the performance priorities. Moreover, we find a negative impact of governmental support and using crowdfunding on internal business and development performance; this implies that less efficient SEBs, in terms of their internal business and marketing performance, are more active in obtaining both governmental support and crowdfunding, as they may be not eligible for other sources of finance. Our work highlights the key role of adapting to the new accessibility of funds in improving the performance of SBEs in Qatar, which is ultimately reflected in the diversification of the economy.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2183667
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2183667
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# input file: OAEF_A_2243695_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Williams Ohemeng
Author-X-Name-First: Williams
Author-X-Name-Last: Ohemeng
Author-Name: Kenneth Ofori-Boateng
Author-X-Name-First: Kenneth
Author-X-Name-Last: Ofori-Boateng
Author-Name: Elvis Kwame Agyapong
Author-X-Name-First: Elvis
Author-X-Name-Last: Kwame Agyapong
Author-Name: Joseph Darmoe
Author-X-Name-First: Joseph
Author-X-Name-Last: Darmoe
Title: Environmental risk and growth in foreign direct investment: Is the composition of FDI in sub-Saharan Africa a speculative type?
Abstract:
The study explores the influence of environmental risk (macroeconomic uncertainty and environmental sustainability risk) on the inflow of foreign direct investment (FDI), utilizing data from 37 economies in sub-Saharan Africa (SSA) from 1996 to 2019. The empirical analyses were carried out using Panel Corrected Standard Error (PCSE) estimation technique. The outcomes show that higher level of uncertainty in GDP growth, inflation uncertainty and financial development volatility induce more FDI inflows whilst uncertainty in exchange rate adversely impacts FDI inflows in SSA. The paper highlights how effectiveness of governance, stable political atmosphere and quality of regulatory structures moderate the relationship between environmental risk and FDI with striking varying outcomes. Consistent with the pollution haven hypothesis, the interactions between governance effectiveness, political stability, regulatory structures and environmental risk suggest that the sub-region is attracted to risk loving speculative investors who prefer poorly regulated and weak governance environment. From policy implication, the findings imply that FDI composition in the sub-region may have moved more towards the speculative type, which may not necessarily be classified as pro-growth in nature.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2243695
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2243695
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# input file: OAEF_A_2245274_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Nisha Prakash
Author-X-Name-First: Nisha
Author-X-Name-Last: Prakash
Author-Name: Madhvi Sethi
Author-X-Name-First: Madhvi
Author-X-Name-Last: Sethi
Title: Relationship between fixed capital formation and carbon emissions: Impact of trade liberalization in India
Abstract:
The liberalization of economies is aimed at boosting domestic growth through foreign investment and trade. The proponents of liberalization argue that opening up markets in developing economies provides access to capital to enhance production. However, proponents of the pollution haven hypothesis (PHH) argue that liberalization and trade agreements have led to the export of carbon-intensive production from wealthier countries to developing economies. The difference between the two outcomes lies in the nature of fixed assets built by developing countries. In this study, we examine the role of fixed capital formation on carbon emissions during two distinct periods of India’s economic development. India liberalized its economy with trade reforms in 1991, thereby providing two distinct time periods of closed and open trade policies. The economic data during 1971–2021 is divided into two parts—before (1971–1990) and after (1991–2021) liberalization. Gross fixed capital formation (GFCF) is used as a measure of capital formation while carbon emissions are used to represent environmental impact. Auto-regressive distributed lag (ARDL) model is used for analysis. Results indicate that GFCF had no significant relationship with carbon emission before liberalization, whereas, there was a significant, positive impact post-liberalization. The study is of significance to policymakers in developing countries as it suggests a change in the capital formation towards low carbon-intensive products and services. It also strengthens the argument for investing capital in cleaner energy and technologies.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2245274
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2245274
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# input file: OAEF_A_2234220_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Kumba Digdowiseiso
Author-X-Name-First: Kumba
Author-X-Name-Last: Digdowiseiso
Title: Institutional quality as the driver of fiscal decentralization in developing countries
Abstract:
In this essay, I argue that the various institutional settings of fiscal decentralization observed in developing countries are contingent on institutional quality. Other incentives may exist for policymakers to change the degrees of fiscal power. My research is based on a five-year average of data from 34 developing countries between 1990 and 2014.I employ the Generalized Method of Moments (GMM) to address the issue of endogeneity, which is a common issue in fiscal decentralization studies. The findings show a strong nonlinear relationship between institutional quality and fiscal decentralization metrics. In this context, since democracy (polity), participatory democracy, bureaucratic quality, law and order, and fiscal decentralization are all emerging from low levels of development, an increase in the magnitude of these institutional quality variables will further reduce fiscal autonomy.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2234220
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2234220
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# input file: OAEF_A_2270231_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Sugam Agarwal
Author-X-Name-First: Sugam
Author-X-Name-Last: Agarwal
Author-Name: Smruti Ranjan Behera
Author-X-Name-First: Smruti Ranjan
Author-X-Name-Last: Behera
Title: Spatial concentration of Indian service industries in rural and urban areas: A micro-unit-level analysis
Abstract:
This paper explores the spatial concentration of 120 service industries in India’s rural and urban areas, covering 33.60 million establishments using Economic census (2013) data at the district level. Besides, this study uses a cartogram map to examine knowledge-intensive business services (KIBS) industries’ spatial concentration patterns and geographical concentration of employment of workers in rural and urban areas in India. Empirical results show that the magnitude of the spatial concentration effect varies in rural and urban areas. Further, empirical results reveal that KIBS industries are localized in rural and urban areas but have a skewed distribution toward urban areas. Moreover, results show that hotspots in rural areas seem higher than urban hotspots, although rural hotspots employ fewer employees than urban hotspots. The empirical results suggest that urban planners and district municipal authorities can give more emphasis and implement suitable KIBS industry-specific policies to boost regional economic growth and employment in rural and urban India.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2270231
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2270231
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# input file: OAEF_A_2282812_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Goodhope Hance Mkaro
Author-X-Name-First: Goodhope Hance
Author-X-Name-Last: Mkaro
Author-Name: Lin Sea Lau
Author-X-Name-First: Lin Sea
Author-X-Name-Last: Lau
Author-Name: Chee Keong Choong
Author-X-Name-First: Chee Keong
Author-X-Name-Last: Choong
Title: The determinants of banking sector performance in Tanzania: A pre-post Treasury Single Account analysis
Abstract:
This study examined how the Treasury Single Account (TSA) policy, aimed at withdrawing government deposits from commercial banks, impacted the Tanzanian banking sector’s performance in relation to ownership concentration, bank size, and macroeconomic variables. Balanced panel dataset comprising thirty (30) banks, from 2010Q1 to 2020Q4, was analyzed. Regression results revealed that, while foreign and state-owned banks were more resilient, private and domestic banks’ performance deteriorated after TSA adoption. Small banks survived the negative TSA shock while the performance of the larger ones was negatively affected. The effects of interest rate, GDP, and exchange rate turned negative whilst the inflationary effects on bank performance were enhanced after TSA. The study enhances comprehension of the relatively new TSA system in Africa while addressing a literature gap by exploring its influence on banking sector’s performance across various bank classifications. Following TSA adoption, regulators should strike a balance between tightening or relaxing regulatory limits while enforcing banks’ compliance to ensure the sector’s stability. Government support for key economic growth-driving sectors potentially attracts more deposits into the banking system, thus promoting the sector’s stability. Banks are encouraged to innovate strategies to attract deposits from the general public, while deviating from dependence on government funds.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2282812
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2282812
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# input file: OAEF_A_2287908_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Baeyong Lee
Author-X-Name-First: Baeyong
Author-X-Name-Last: Lee
Author-Name: Hoolda Kim
Author-X-Name-First: Hoolda
Author-X-Name-Last: Kim
Author-Name: Assad Tavakoli
Author-X-Name-First: Assad
Author-X-Name-Last: Tavakoli
Title: The impact of economic growth, inflation and unemployment on subjective financial satisfaction: A New global evidence
Abstract:
Using the happiness survey data, a robust body of literature has supported that people’s subjective well-being is related to economic growth, employment, and inflation. Motivated by “Happiness Economics,” this paper focuses on financial satisfaction, a proxy of subjective well-being. It examines the relationship between people’s financial satisfaction and nations’ macroeconomic performances. We use the World Values Survey and inflation, unemployment, and economic growth data collected from 2010–2014 to 2017–2022. We use the ordered probit and ordinary least squares regressions for the analysis. The findings show that financial satisfaction has a negative relationship with inflation and unemployment and a positive relationship with economic growth. Heterogeneity checks indicate that the association’s strength and statistical significance vary by gender, age, household income, marital status, educational attainment level, and employment status. The overall results suggest policymakers should strive to mitigate the economic vulnerability of women, older adults, low-income earners, low-educated, those who are not married but live together, and those who are not in the labor force to maximize the financial satisfaction of individuals and thus promote subjective well-being of them.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2287908
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2287908
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# input file: OAEF_A_2246318_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Emmanuel Opoku Marfo
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Opoku Marfo
Author-Name: Paul Adjei Kwakwa
Author-X-Name-First: Paul Adjei
Author-X-Name-Last: Kwakwa
Author-Name: Solomon Aboagye
Author-X-Name-First: Solomon
Author-X-Name-Last: Aboagye
Author-Name: Peter Ansu-Mensah
Author-X-Name-First: Peter
Author-X-Name-Last: Ansu-Mensah
Title: The role of female population, urbanization and trade openness in sustainable environment: The case of carbon dioxide emissions in Ghana
Abstract:
Sustainable environment offers many benefits to individuals and societies. As a result, the agenda to reduce carbon dioxide emissions in order to mitigate climate change remains a global concern. Researchers, policymakers and governments have shown interest in this regard. Empirical studies on the subject matter have been increasing conflicting results and little evidence on the effects of some variables necessitate for further studies. To offer value to the literature, in this study, the effect of female population, urbanization and trade openness on carbon dioxide emission in Ghana is assessed. The study used the Stochastic Impacts by Regression on Population, Affluence, & Technology (STIRPAT) model as the foundation for empirical modelling. Time-series data spanning from 1971–2021 were used for regression analysis. In both long run and short run periods, urbanization was noted to exert positive influence on carbon dioxide emission while trade openness and female population exert a negative effect on carbon dioxide emission. Thus, growth in urbanization increases carbon dioxide emission while the opposite effect is the case for trade openness and the female population. Findings from the study suggest the need to intensify the empowerment of women, which could be a crucial catalyst for the achievement of Ghana’s nationally determined contributions toward CO2 reduction. Also, international trade negotiations that promote environmental protection should not be relaxed.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2246318
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2246318
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# input file: OAEF_A_2273651_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Li He
Author-X-Name-First: Li
Author-X-Name-Last: He
Title: Assessing the smart city: A review of metrics for performance assessment, risk assessment and construction ability assessment
Abstract:
With the growing interest and concerns about the concept of smart city, assessing the smart city gains increasing attention from government planners, policy makers and related researchers around the world. This paper aims to provide a critical review of metrics involving national frameworks, institutional standards, and local reports, which focuses not only on the evaluation systems but also the assessing methodologies for assessing performance, risk and construction ability of smart cities. It is concluded that, most existing standards and research foci are on performance, and more attention needs to be paid to assessments of risk and construction ability. The former one suffers from the poor reliability and comparability resulting from massive indicators and unclear calculations, while the latter two are constrained by vague evaluation systems and insufficient method applications. Based on the comparison and discussion of the current research status, limitations and the future research directions, this research sheds light on better planning, monitoring and governance of smart cities. It also contributes to understanding and promoting the development of related research and even strategies or policies.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2273651
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2273651
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# input file: OAEF_A_2255496_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Million Adafre Bushashe
Author-X-Name-First: Million Adafre
Author-X-Name-Last: Bushashe
Author-Name: Yitbarek Bayiley
Author-X-Name-First: Yitbarek
Author-X-Name-Last: Bayiley
Title: Fiscal federalism and public service provision in Ethiopia: A mediating role of sub-national governments capacity
Abstract:
This study’s purpose is to assess fiscal federalism’s effect on public service provision in Ethiopia. The study adopted an explanatory research design. Considering 10 Sub-National Governments (SNGs) from 2005 to 2018, it employed Partial Least Square Structural Model (PLS-SEM). It also utilized Gaussian copula (GC) estimations since it helps to avoid the endogeneity. The study proved that expenditure decentralization significantly fosters public service provision. Revenue decentralization has no significant role in enhancing public service provision. Besides, though expenditure decentralization has adversely affected SNGs’ capacity, revenue decentralization positively contributes to SNGs’ capacity. On the one hand, SNG’s capacity plays a significant positive mediating role in the impact of revenue decentralization on public service provision. On the other hand, it negatively mediates the contribution of expenditure decentralization on public provision. The most important implication is that the government should raise revenue sources for SNGs and reduce federal grants. In addition, inter-governmental fiscal interactions should uphold the benefit principle and connectedness between the expenditure and revenue sides. The present study bridges gaps in the existing knowledge since it embraced ignored variables (i.e. SNG capacity) essential in the debates of fiscal federalism theories. Therefore, this makes the study more complete and gives a remedy for the piecemeal work of previous studies.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2255496
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2255496
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# input file: OAEF_A_2273599_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Abdisa Olkeba
Author-X-Name-First: Abdisa
Author-X-Name-Last: Olkeba
Author-Name: Tsegamariam Dula
Author-X-Name-First: Tsegamariam
Author-X-Name-Last: Dula
Author-Name: Paulos Gutema
Author-X-Name-First: Paulos
Author-X-Name-Last: Gutema
Author-Name: Degefa Tolossa
Author-X-Name-First: Degefa
Author-X-Name-Last: Tolossa
Author-Name: Abate Mekuriaw
Author-X-Name-First: Abate
Author-X-Name-Last: Mekuriaw
Author-Name: Alemu Azmeraw Bekele
Author-X-Name-First: Alemu Azmeraw
Author-X-Name-Last: Bekele
Title: The effects of schooling on rural unemployment in Ethiopia
Abstract:
Nowadays, education is considered an instrument that we use to eradicate poverty. It is also presumed as an indicator of modernization and a development realization tool. Education creates an opportunity to be employed in good positions in reducing unemployment. Scholars debate whether education reduces rural unemployment. Some scholars argue that education is a powerful weapon to reduce rural unemployment. Others encounter that education does not necessarily decrease rural unemployment. This paper describes the effects of schooling on rural unemployment in Ethiopia. We used a quantitative approach with a descriptive research design in this study. A sample of 8700 participants, based on the Ethiopian Central Statistics Agency data collected in 2021, was obtained. We used descriptive and probit models to analyze the data. The descriptive results showed that rural unemployment is unequally distributed based on education, sex, and regional states. The majority are still participating in the agriculture sector. Besides, the finding also reveals that lack of job opportunities, training, experience, and unrelated jobs to education in rural areas is the cause of unemployment. However, the probit model result shows that schooling has a statistically significant positive effect on employment. As a result, for a one-unit increase in education, the probability of employment increases by 0.15. It concludes that schooling is paramount in decreasing rural unemployment in Ethiopia if much attention is given. We recommend that the government should transform rural areas’ activities from agricultural-oriented to services-oriented activities to create extensive job opportunities in rural areas for rural youths, especially educators.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2273599
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2273599
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# input file: OAEF_A_2235118_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Lydia Cheruto Pkaremba
Author-X-Name-First: Lydia Cheruto
Author-X-Name-Last: Pkaremba
Author-Name: Martine Odhiambo Oleche
Author-X-Name-First: Martine Odhiambo
Author-X-Name-Last: Oleche
Author-Name: Elizabeth Owiti
Author-X-Name-First: Elizabeth
Author-X-Name-Last: Owiti
Title: Analysis of contraceptive use among homeless women in Kenya – a case of Nairobi county
Abstract:
Many factors influence the utilization of reproductive healthcare services in Kenya. Despite the effort by the government and other stakeholders to improve access and utilization of these services, there remains a major challenge in reaching out to marginalized segments of society. The study aims to examine the factors affecting the utilization of modern contraceptives by homeless women in Nairobi, Kenya, and draw policy recommendations based on the findings. The study utilized the logit model to analyze determinants of contraceptive utilization by homeless women in Nairobi using primary data collected from 196 households within Nairobi. The number of children per woman, age at first birth, living with a partner, drug abuse by the respondent, drug abuse by respondents’ partner, poverty, child planning, health facility delivery, neonatal death incidence, knowledge of male sterilization, never attending school, primary school attendance, secondary school attendance, operating of small business and contraceptive spending significantly affect the utilization of modern contraceptives by homeless women in Nairobi, Kenya. The majority of homeless women in Nairobi utilized injectibles (26.63%) and implants (24.07%) as a form of contraception. The government should therefore provide a contraceptive mix that incorporates these forms of contraception to ensure maximum utilization.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2235118
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2235118
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# input file: OAEF_A_2254560_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Shubham Kakran
Author-X-Name-First: Shubham
Author-X-Name-Last: Kakran
Author-Name: Arpit Sidhu
Author-X-Name-First: Arpit
Author-X-Name-Last: Sidhu
Author-Name: Parminder Kaur Bajaj
Author-X-Name-First: Parminder Kaur
Author-X-Name-Last: Bajaj
Author-Name: Vishal Dagar
Author-X-Name-First: Vishal
Author-X-Name-Last: Dagar
Title: Novel evidence from APEC countries on stock market integration and volatility spillover: A Diebold and Yilmaz approach
Abstract:
The interconnection of stock markets offers valuable insights into the broader dynamics of global financial markets. This study uses the Diebold and Yilmaz index model to analyze and measure volatility spillovers and interconnectedness among APEC stock markets. The objective is to identify major transmitters of volatility spillovers and assess the magnitude of different crisis cycles. The results show that the US is the major contributor (69.54%) to volatility spillovers in APEC stock markets, followed by Canada (52.92%) and Mexico (37.09%). These three economies are part of the highly integrated regional bloc, say, North American Free Trade Agreement (NAFTA). New Zealand has the highest net inflow of spillovers, while spillovers account for 32.86% of the error variance across APEC equity markets. Moreover, notable spikes in volatility spillovers have been observed as a result of various events, including the Chinese stock bubble, the Global Financial Crisis (2007–2008), European debt crises, the Chinese stock market crash, the cryptocurrency crash, the COVID-19 pandemic, and the Russia-Ukraine conflict. The study’s findings imply that policymakers should enhance economic integration and cooperation within APEC countries to manage volatility spillovers effectively. The research highlights market interactions for a large sample, aiding in identifying investment opportunities and risk management strategies.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2254560
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2254560
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# input file: OAEF_A_2281844_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Paul Adjei Kwakwa
Author-X-Name-First: Paul Adjei
Author-X-Name-Last: Kwakwa
Author-Name: Justice Boateng Dankwah
Author-X-Name-First: Justice Boateng
Author-X-Name-Last: Dankwah
Author-Name: Emmanuel Adu Boahen
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Adu Boahen
Author-Name: Paul Hammond
Author-X-Name-First: Paul
Author-X-Name-Last: Hammond
Title: Financial development in South Africa: The role of natural resources, IT infrastructure, and government size
Abstract:
The purpose of this paper is to identify the driving elements of the South African financial sector. While South Africa’s financial sector appears robust, there exists a dearth of empirical research investigating the determinants of its development. Thus, this work assesses how three critical factors: natural resource abundance (NR), IT infrastructure, and government expenditure levels affect financial development (FD) in South Africa using annual data from 1971 to 2020. Preliminary findings show that the series are integrated, and they are cointegrated. Results from regression analysis suggest that the abundance of NR does not significantly contribute to financial development in South Africa. Conversely, advanced IT infrastructure, larger government size, and openness to trade are associated with a more developed financial sector. The implications of these findings are essential for policymakers and stakeholders in understanding the factors that drive financial development in South Africa. The study recommends that, among others, innovative approaches are needed to channel gains from natural resources effectively into the financial sector.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2281844
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2281844
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# input file: OAEF_A_2242177_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Fasika Chekol
Author-X-Name-First: Fasika
Author-X-Name-Last: Chekol
Author-Name: Kindie Abetie
Author-X-Name-First: Kindie
Author-X-Name-Last: Abetie
Author-Name: Teshome Sirany
Author-X-Name-First: Teshome
Author-X-Name-Last: Sirany
Title: Technical efficiency of garlic production under rain fed agriculture in Northwest Ethiopia: Stochastic frontier approach
Abstract:
The article focuses on evaluating the technical efficiency of garlic production in northwest Ethiopia. The average yield in the region was lower than its potential, indicating a need to improve farming practices. Data were collected from 359 garlic producers using random sampling. The Cobb-Douglas stochastic frontier production function was used to estimate technical efficiency, which was found to be 73%. This means that about 27% of potential garlic output was lost due to inefficiency. Factors such as land size, seed, fertilizer, insecticide, and oxen days were found to have a positive and significant impact on garlic production. On the other hand, factors like age, extension contact, distance, renting land, garlic disease shock, access to finance, and access to information were linked to technical inefficiency. The study suggests that investing in high-quality seeds, improved farming inputs, and access to information can enhance garlic output by leveraging its high efficiency level.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2242177
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2242177
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# input file: OAEF_A_2245258_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Kwame Adjei-Mantey
Author-X-Name-First: Kwame
Author-X-Name-Last: Adjei-Mantey
Author-Name: Frank Adusah-Poku
Author-X-Name-First: Frank
Author-X-Name-Last: Adusah-Poku
Author-Name: Paul Adjei Kwakwa
Author-X-Name-First: Paul Adjei
Author-X-Name-Last: Kwakwa
Title: International tourism, exchange rate, and renewable energy: Do they boost or burden efforts towards a low carbon economy in selected African countries?
Abstract:
Africa continues to suffer from the effects of climate change in many ways. Records show that the continent’s carbon dioxide (CO2) emissions have seen tremendous upward adjustments over the past decades. While international tourism and renewable energy have been touted as sources of reducing CO2 emissions, the empirical evidence has been mixed, and it is also unclear how exchange rates moderate the effect of tourism on CO2 emissions. With the recent pace of tourism and renewable energy development, as well as exchange rate fluctuations in Africa, the study assesses the impact of international tourism, exchange rate, and renewable energy on CO2 emissions of seven most visited countries in Africa. Carbon dioxide emission was modelled within the Environmental Kuznets Curve (EKC) hypothesis. Regression analyses were performed using the quantile regression and fully modified OLS. Regression analysis from the fully modified OLS method shows that the EKC hypothesis holds for the selected countries; renewable energy and international tourism reduce carbon dioxide emissions; and exchange rate interacts with international tourism to reduce carbon dioxide emissions. The quantile regression shows variations in the impacts across the various quantiles. Countries in this study can rely on economic expansion, international tourism, and renewable energy to curb carbon dioxide emissions. It is recommended, among other things, that there should be the development of additional tourism locations and renewable energy adoption be scaled up as a means of reducing heavy polluting energy sources to reduce emissions emanating from the energy sector.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2245258
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2245258
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# input file: OAEF_A_2269738_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Aamir Hussain
Author-X-Name-First: Aamir
Author-X-Name-Last: Hussain
Author-Name: Siti Aznor Ahmad
Author-X-Name-First: Siti Aznor
Author-X-Name-Last: Ahmad
Author-Name: Md Shahin Mia
Author-X-Name-First: Md Shahin
Author-X-Name-Last: Mia
Title: A systematic literature review on performance of social enterprises
Abstract:
Assessing the performance of social enterprises is gaining popularity in the academic world in recent years. However, different studies focused on different dimensions of performance evaluation. For instance, some studies measured social performance of the social enterprises while others paid attention to financial performance. Consequently, it creates a research gap lacking a complete picture of performance evaluation of social enterprises globally. Insufficient performance evaluation, limited assessment methods, and a lack of systematic thinking are the causes of this research gap. Therefore, this study aims to carry out a systematic literature review to provide a complete picture on performance of social enterprises. Preferred Reporting Items for Systematic Reviews and Meta-Analyses were used to generate a systematic literature review. The study reviewed systematically 35 scholarly articles that focused on social and financial performance of social enterprises. The findings indicate that social enterprises have strong financial and social support and can incorporate different types of resources and goals. It is also reported that performance, which is frequently linked with specific external and internal assistance are essential variables in enabling social enterprises to grow. The study findings might provide a new insight and understanding to fulfil the research gap in this area.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2269738
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2269738
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# input file: OAEF_A_2251300_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Izunna Anyikwa
Author-X-Name-First: Izunna
Author-X-Name-Last: Anyikwa
Author-Name: Andrew Phiri
Author-X-Name-First: Andrew
Author-X-Name-Last: Phiri
Title: Quantile connectedness amongst BRICS equity markets during the COVID-19 pandemic and Russia–Ukraine war
Abstract:
Our study uses the quantile vector autoregressive (QVAR) network approach to compare the median-based and tail connectedness in BRICS equity markets using daily time series spanning from 3rd March 2020 to 9th September 2022. The study is conducted on both returns and volatility series, and the findings from our static and dynamic analysis can be summarized as follows. From the static perspective, we observe stronger connectedness and spillover effects on the left and right (right only) tails for returns (volatility) series. For the returns series, China and South Africa (Brazil, Russia and India) are net receivers (transmitters) of shocks at the left tail and median quantiles whilst China and Russia (Brazil, India and South Africa) are net receivers (transmitters) at the right-tail, whereas for the volatility series China and India (Brazil, Russia and South Africa) are the net receivers (transmitters) at both quantile tails, whilst Brazil (Russia, India, China and South Africa) is (are) the net receiver(s) (transmitters) at the median. From a dynamic perspective, time-varying total connectedness is higher at the median (tail-end) quantile(s) during the COVID-19 pandemic (Russia–Ukraine war). Moreover, the time-varying market-specific analysis distinguishes which individual equities are most or least vulnerable to systemic tail-risk transmission effects during the COVID-19 pandemic and more recent Russia–Ukraine. Ultimately, these findings are relevant for investors in their search for better hedging opportunities in equity markets as well as for market regulators who can use systematic risk as an early warning signal for contagion and market crash.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2251300
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2251300
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# input file: OAEF_A_2282864_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Amon Taruvinga
Author-X-Name-First: Amon
Author-X-Name-Last: Taruvinga
Author-Name: Siyabonga Jonga
Author-X-Name-First: Siyabonga
Author-X-Name-Last: Jonga
Author-Name: Owethu Zamisa
Author-X-Name-First: Owethu
Author-X-Name-Last: Zamisa
Author-Name: Derick Nomuh Forbanka
Author-X-Name-First: Derick Nomuh
Author-X-Name-Last: Forbanka
Title: Rural women’s participation in wild honey hunting and associated income, dietary diversity, and food insecurity implications: Evidence from South Africa
Abstract:
Wild raw honey hunting and consumption is very popular among rural communities in South Africa as a source of income and food for households. Although men traditionally dominate wild honey hunting, in recent years participation of women has increased. However, evidence of the participation of rural women in wild honey hunting is often lacking. This study focused on assessing the status of wild honey hunting by women, factors that influence their decision to participate and associated income, dietary diversity, and food insecurity implications. A cross-sectional survey of 200 rural women purposively selected from Ncera communal area in the Eastern Cape Province of South Africa was conducted. The study revealed that an emerging number of rural women were actively involved in wild honey hunting and participation is triggered by age, access to extension services and livelihood diversification, while access to formal honey markets discouraged wild honey hunting. Results further revealed a positive income, dietary diversity, and a significant reduction in food insecurity among participants compared to non-participants.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2282864
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2282864
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# input file: OAEF_A_2276794_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Muhammad Mehboob Alam
Author-X-Name-First: Muhammad Mehboob
Author-X-Name-Last: Alam
Author-Name: Sayed Irshad Hussain
Author-X-Name-First: Sayed Irshad
Author-X-Name-Last: Hussain
Author-Name: Akhtar Hussain
Author-X-Name-First: Akhtar
Author-X-Name-Last: Hussain
Author-Name: Izhar Ul Hassan
Author-X-Name-First: Izhar
Author-X-Name-Last: Ul Hassan
Title: Rural Poverty profile in Pakistan: Incidence, Severity, and Correlates through Consumption Based Approach
Abstract:
This study is an attempt to estimate the incidence, severity, depth, and determinants of poverty in Jhang district, Punjab, Pakistan. For this purpose, the data were collected from 1,000 households through a specifically designed questionnaire using multistages sampling technique in all four subdistricts of Jhang district. The study used both income-regression model and logistic regression to assess the impact of demographic and socioeconomic factors on poverty incidence. The results show that 54.3% of households are below the poverty line, including 16% extremely poor. Poverty measures including headcount index, severity, and depth of poverty are worse among the households headed by farmers, daily-wagers, and illiterates. Moreover, the results confirm that the household’s livestock population, landholding, ownership of agricultural land, total assets, and earners per household considerably reduced the poverty incidence in Jhang district. While household size, age of household head, economic dependency ratio, and total dependency ratio significantly increased the level of poverty. The study concludes that demographic and socioeconomic characteristics of the households are of greater importance in alleviating poverty generally in Pakistan but particularly in rural areas. Hence, it is suggested that governments should increase public spending on socioeconomic programs and services with a particular focus on education, women’s empowerment, family planning, employment opportunity, pro-agriculture policies, and equitable distribution of land and wealth to alleviate poverty in rural areas of Pakistan. Further research can be conducted by selecting large sample size and analyzing the household characteristics at the disaggregated level incorporating time variations to develop a more impactful policy framework.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2276794
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2276794
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# input file: OAEF_A_2282867_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Christina Nizamidou
Author-X-Name-First: Christina
Author-X-Name-Last: Nizamidou
Title: Resilience, crisis management and continuous improvement against the impact of COVID-19 on employees’ engagement and emotions. Insights from a Cypriot SME
Abstract:
COVID-19 forced governments and organizations to navigate unchartered waters and shift to remote work to prevent its spreading, aiming to be resilient and maintain their sustainability. Recent research showed that COVID-19 impacted employees’ engagement and emotions. As every crisis is unique and every organization experiences a crisis differently, this study adopts the single-case study research method to understand better how a Cypriot SME in the financial service dealt with COVID-19 and its aftermath. By interviewing multiple employees from all hierarchical levels, it assesses the company’s level of resilience. Moreover, it demonstrates the company’s challenges to preserve its commitment to continuous improvement and the implications of remote work on employees’ engagement and emotions. Based on the findings, the company showed a high level of resilience, though it adopted a reactive behavior toward crisis management. These findings are beneficial as they expand on research on the importance of proactive behavior that advances continuous improvement and crisis preparedness. Additionally, it expands research about the implications of remote work. Lastly, by showing that their customers’ financial sustainability directly influenced the company’s financial sustainability due to COVID-19 and the ongoing Russo-Ukrainian War, the current offers novel insights about the impact of two mega-crises combined.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2282867
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2282867
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# input file: OAEF_A_2275974_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Zainal Abidin
Author-X-Name-First: Zainal
Author-X-Name-Last: Abidin
Author-Name: Sakinah
Author-X-Name-First:
Author-X-Name-Last: Sakinah
Author-Name: Farid Firmansyah
Author-X-Name-First: Farid
Author-X-Name-Last: Firmansyah
Author-Name: Moch Cholid Wardi
Author-X-Name-First: Moch
Author-X-Name-Last: Cholid Wardi
Author-Name: Rudy Haryanto
Author-X-Name-First: Rudy
Author-X-Name-Last: Haryanto
Author-Name: Sri Handayani
Author-X-Name-First: Sri
Author-X-Name-Last: Handayani
Author-Name: Zaenuddin Hudi Prasojo
Author-X-Name-First: Zaenuddin Hudi
Author-X-Name-Last: Prasojo
Title: Islamic business development of Madurese-owned ethnic-based grocery stores: Study from Indonesia
Abstract:
The retail grocery business is experiencing rapid expansion in several major Indonesian cities. A significant proportion of these establishments is owned and managed by a particular ethnic group, specifically the Madurese community hailing from East Java, who take pride in their identity as Muslim entrepreneurs. This research endeavors to investigate the fundamental factors contributing to the sustainability and expansion of Madurese-owned Muslim-run grocery stores as ethnic-based grocery stores (EGS). The data for this study were acquired through observations and in-depth interviews with key figures among EGS owners and staff. The findings highlight that the pivotal strategy for the success and growth of EGS lies in their capacity to adapt and emulate modern retail outlets. Furthermore, the principles of cooperation, familial bonds, cultural preservation, and adherence to Islamic values that have been fostered within the Madurese Muslim ethnic groups residing in urban environments play a significant role. Additionally, the distinctive relationships between store proprietors and employees contribute significantly to the swift proliferation of EGS across Indonesia.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2275974
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2275974
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# input file: OAEF_A_2272485_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Carina Burs
Author-X-Name-First: Carina
Author-X-Name-Last: Burs
Title: A model of cycles and bubbles under heterogeneous beliefs in financial markets
Abstract:
I study the effect of heterogeneous beliefs about asset prices on the long-term behavior of financial markets. Starting from the ideas of Abreu and Brunnermeier (2003), a two-dimensional system of differential equations is developed. The first dynamic variable is the asset price growth rate. The second dynamic variable is the number of investors who believe that asset prices are abnormally high. In a phase plane analysis, I find both stable and unstable equilibria, depending on the spread of information and the response to other agents’ beliefs. If individuals try to increase their returns while perceiving more overpricing, these equilibria can be spirals or even approach limit cycles. Although I intend to study general price patterns, abnormally high asset prices can be caused by financial bubbles. In this model, bubbles can emerge and deflate both in cycles or directly, or they can grow until they burst. Further, I analyze market behavior after a central bank increases the interest rate. This can lead to new stable equilibria, but the emergence and bursting of bubbles cannot be prevented.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2272485
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2272485
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# input file: OAEF_A_2251822_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Samuel Osei-Gyebi
Author-X-Name-First: Samuel
Author-X-Name-Last: Osei-Gyebi
Author-Name: John Bosco Dramani
Author-X-Name-First: John Bosco
Author-X-Name-Last: Dramani
Title: Firm performance in sub-Saharan Africa: What role do electricity shortages play?
Abstract:
Electricity outages affect the performance of firms in sub-Saharan Africa (SSA) through a reduction in production capacity and over-reliance on backup generators, which raises the cost of production and render them uncompetitive. Based on this, we estimated the joint effect of electricity outage frequency and duration of outages on the performance of firms in SSA through the method of instrumental variable (IV). Employing firm-level data from the World Bank Enterprise Survey for 28 SSA countries from 2007 to 2018, the study found a unit increase in outage frequency and its duration combine to reduce yearly sales of firms in SSA by $114.9. Also, the study revealed that small-size firms in SSA incur $408.894 losses relative to large firms for every joint increase in outage frequency and outage duration largely because they cannot cope with electricity outages. Since electricity shortages persist in SSA, mitigation policies must target small firms as they are the worst affected by electricity outages.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2251822
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2251822
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# input file: OAEF_A_2267270_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Fan Yang
Author-X-Name-First: Fan
Author-X-Name-Last: Yang
Author-Name: Tajul Ariffin Masron
Author-X-Name-First: Tajul Ariffin
Author-X-Name-Last: Masron
Title: Does financial inclusion moderate the effect of digital transformation on banks’ performance in China?
Abstract:
Digital transformation remains a passion. Globally, science and technology are transforming businesses to make them more competitive and conducive to sustainable development. However, rapid advancements in financial technology have enabled financial institutions to steal customers from traditional banks, resulting in their demise. Consequently, this study employs the System GMM-two step estimator and data from 118 Chinese banks from 2014 to 2021 investigate the issue. Empirical evidence suggests that banks’ digital transformation has a negative impact on their profitability to some extent, but digital inclusive finance has enabled the bank to change its digital transformation behavior and enhance its operational performance. Therefore, banks must continue to strengthen their digital transformation by expanding online customer services, increasing the use of e-accounts and mobile applications, providing digital offline services, strengthening digital risk management and privacy and security controls, reducing customer psychological risk, and promoting financial inclusion. Financial inclusion should simultaneously achieve reduced financial exclusion of customers and increased financial literacy of customers. All these factors will help banks to maintain profitability by leveraging synergies with financial inclusion in the process of digital transformation.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2267270
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2267270
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# input file: OAEF_A_2269796_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Sriram K.V
Author-X-Name-First:
Author-X-Name-Last: Sriram K.V
Author-Name: Riddhima Singh
Author-X-Name-First: Riddhima
Author-X-Name-Last: Singh
Author-Name: Vibha
Author-X-Name-First:
Author-X-Name-Last: Vibha
Author-Name: Giridhar B Kamath
Author-X-Name-First: Giridhar B
Author-X-Name-Last: Kamath
Title: Antecedents of credit card usage behaviour: An Indian perspective
Abstract:
The use of credit cards is closely connected to how well someone is doing financially. It has been associated with behaviors like excessive shopping and materialism. In India, there has been a recent increase in the number of credit cards issued. This research aims to study how Indian consumers use credit cards and how it affects their debt. The study focuses on three factors: power-prestige, credit card features, and ease of use. By understanding these factors, we can gain insights that will help both consumers and credit card issuers improve their financial well-being. The study identified three different groups of consumers based on their motivations for using credit cards. The first group is driven by a desire for power and prestige, while the second group is influenced by credit card features. The third group, which finds credit cards easy to use, has a negative impact on credit card usage. The research discovered several variables that affect how people use credit cards. By classifying consumers based on their motivations, the findings can provide a starting point for both consumers and issuers to better understand their financial well-being.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2269796
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2269796
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# input file: OAEF_A_2258672_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Yaregal Tilahun
Author-X-Name-First: Yaregal
Author-X-Name-Last: Tilahun
Author-Name: Benyam Tadesse
Author-X-Name-First: Benyam
Author-X-Name-Last: Tadesse
Author-Name: Engida Gebre
Author-X-Name-First: Engida
Author-X-Name-Last: Gebre
Author-Name: Kusse Haile
Author-X-Name-First: Kusse
Author-X-Name-Last: Haile
Author-Name: Mekuanint Bayu
Author-X-Name-First: Mekuanint
Author-X-Name-Last: Bayu
Author-Name: Zelalem Adimasu
Author-X-Name-First: Zelalem
Author-X-Name-Last: Adimasu
Author-Name: Zarihun Tolera
Author-X-Name-First: Zarihun
Author-X-Name-Last: Tolera
Author-Name: Buzeye Zegeye
Author-X-Name-First: Buzeye
Author-X-Name-Last: Zegeye
Author-Name: Abebe Bayu
Author-X-Name-First: Abebe
Author-X-Name-Last: Bayu
Title: Factors influencing the intensity of market participation of smallholder livestock producers in southwest Ethiopia
Abstract:
Livestock market participation is an important way to improve the livelihoods and income of the smallholder farmers in Southwest Ethiopia. Although it plays an important role, livestock producers do not fully participate in the livestock market. The purpose of this study was to investigate the factors that influence the intensity of livestock market participation in Southwest Ethiopia. To analyze the result, descriptive statistics and Poisson regression analysis were used. The results showed that 65.4% of the respondents have participated in livestock markets whereas 34.6% were not market participants. The Poisson regression result showed that experience in livestock production, education status, market access, access to grazing land, livestock owned and extension contact frequency affect positively while distance to a nearby market affects negatively and significantly on the intensity of livestock market participation. Based on the result of the study; lack of market access, long market distance, and lack of updated market information are the factors influencing livestock producers to engage in livestock market participation. Finally, this study suggests boosting farmer education through adult education and developing rural infrastructure (updated market information, road, and market and transport access), increase in farmers’ training centers, improves consultation and training service could enhance the intensity of livestock market participation.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2258672
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2258672
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# input file: OAEF_A_2280326_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Eugene Msizi Buthelezi
Author-X-Name-First: Eugene Msizi
Author-X-Name-Last: Buthelezi
Author-Name: Phocenah Nyatanga
Author-X-Name-First: Phocenah
Author-X-Name-Last: Nyatanga
Title: Impact of fiscal consolidation in different states of domestic government debt in South Africa 1979 to 2022
Abstract:
This paper investigates the impact of fiscal consolidation in different states on domestic government debt in South Africa. The government budget constraint theoretical framework and Markov-switching dynamic regression (MSDR) from 1979 to 2022. The contribution of this paper is to examine fiscal consolidation on domestic government debt in different states using measures of fiscal consolidation that account for time-varying elasticity in the cyclical adjusted primary balance (CAPB). The U-shape is found which indicates that fiscal consolidation is effective in reducing domestic government debt at a low level. However, as domestic government debt reaches a high-level fiscal consolidation becomes detrimental and further increase domestic government. Given the result, it recommended that South Africa use less fiscal consolidation in the effort to reduce domestic government debt. Fiscal authorities need to use government expenditure in the productive sector of the economy that will bring about an increase in revenue rather than an increase in the tax rate as advocated in the fiscal consolidation policy. Moreover, develop a tax system that generates optimal tax revenue with adjustment of the tax rates.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2280326
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2280326
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Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2280326
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# input file: OAEF_A_2267920_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Eugene Msizi Buthelezi
Author-X-Name-First: Eugene Msizi
Author-X-Name-Last: Buthelezi
Title: Exploring the relationship between exchange rate misalignment uncertainty and economic growth in South Africa
Abstract:
This paper aims to address the relatively limited attention given to the examination of exchange rate misalignment uncertainty in the specific context of South Africa. By specifically focusing on exchange rate misalignment uncertainty, this study fills a crucial gap in the literature and gains a deeper understanding of the factors influencing economic growth in South Africa. While previous literature has provided valuable insights into the relationship between exchange rate uncertainty and economic growth, there is a dearth of studies focusing on the particular issue of exchange rate misalignment uncertainty in South Africa. Therefore, the objective of this research is to investigate the effects of exchange rate misalignment uncertainty on short-term and long-term economic growth in South Africa. To achieve this objective, we employ the generalized autoregressive conditional heteroskedasticity (GARCH) and vector error correction (VEC) models. The analysis utilizes quarterly data spanning from the first quarter of 1960 to the third quarter of 2022. The findings of this study reveal a negative association between exchange rate uncertainty and short-term economic growth, while the long-term effects yield mixed results. Moreover, we observe that higher exchange rate misalignment is linked to positive implications for economic growth. These findings emphasize the significance of managing exchange rate volatility and reducing uncertainty to ensure economic stability and foster long-term growth. Considering these findings, policymakers should prioritize implementing strategies that promote a stable exchange rate and cultivate a favorable business environment.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2267920
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2267920
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# input file: OAEF_A_2228087_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Shatha Mustafa Hussain
Author-X-Name-First: Shatha
Author-X-Name-Last: Mustafa Hussain
Author-Name: Amer Alaya
Author-X-Name-First: Amer
Author-X-Name-Last: Alaya
Author-Name: Thana A. Azizi
Author-X-Name-First: Thana A.
Author-X-Name-Last: Azizi
Title: The impact of financial accounting disclosures on investors’ reactions towards bad news: The moderating role of investors’ sentiments
Abstract:
This paper examines the influence of financial accounting disclosures (FAD) on the investors’ reactions towards bad news (IRBN), and analytically assesses the moderation effect of the individual investor’s sentiments particularly” Subjective norms” on that relationship in project-based organizations (PBOs) listed in the UAE financial markets from a financial, and psychological perspective. Structural equation modelling (SEM) was used to analyse 310 completed questionnaires using Statistical Package for Social Sciences (SPSS) and Analysis of Moment Structures (AMOS) by multiple regression, path, and moderation analysis. Findings show that four dimensions of the studied FAD have a direct positive impact on the IRBN except for the external auditing and audit service (EAUS). Results also revealed that the subjective norms have a moderating impact on the relationship between FAD and the IRBN. Academically, this research contributes to both the reasoned action theory and the agency theory and satisfies an important gap in FAD literature. Practically, organizations, policymakers, and officials can use the findings of reliable and valid measurements of FAD, IRBN, and investors’ sentiment items to control and develop purposes, as IRBN can be controlled by healthy communication tools via different disclosure channels and healthy disclosure content. Investor Relations (IR) managers can realize if the desired disclosure is well comprehended in investors’ awareness, trust, intention, and perceptual reaction. It is one of the first empirical studies to establish a model illustrating the relationships between FAD, Subjective norms, and IRBN. The proposed model comprises processes and practices that could be used to enhance the decision-making process of investors and control their reactions that impact PBOs in the United Arab Emirates (UAE).
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2228087
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2228087
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# input file: OAEF_A_2285625_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Ibrahim Musah
Author-X-Name-First: Ibrahim
Author-X-Name-Last: Musah
Title: An empirical investigation of macroeconomic determinants of public debt in Ghana
Abstract:
Ghana has a lengthy history of accumulating public debt, primarily driven by the expansion of fiscal deficits. This has resulted in a persistent increase in the public debt ratio, as the country borrowed both externally and internally to stimulate economic growth and augment its capital stock. However, this trajectory has led to concerns about debt sustainability. The study examines the macroeconomic determinants of public debt accumulation in Ghana. It aims to analyse these determinants’ short- and long-term effects using the autoregressive distributed lag (ARDL) model. The study finds a positive association between merchandise trade and public debt, indicating that an increase in trade due to heavy reliance on external trade to meet domestic consumption needs leads to a rise in public debt. Furthermore, it identifies a positive relationship between gross fixed capital formation (growth) and public debt, indicating that as the economy grows and more capital is invested in fixed assets, public debt also increases. The study also reveals that higher interest payments contribute to a greater accumulation of public debt. It further demonstrates that government spending plays a crucial role in shaping the trajectory of public debt, as an increase in spending leads to an increase in public debt. The findings suggest that fiscal policies, external borrowing, trade, interest payments, and budget deficits substantially influence public debt levels in Ghana. As a result, the study highlights the need for policies that promote fiscal discipline, debt sustainability, and transparency to manage public debt effectively.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2285625
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2285625
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# input file: OAEF_A_2241700_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Koffi Sodokin
Author-X-Name-First: Koffi
Author-X-Name-Last: Sodokin
Author-Name: Joseph Kokouvi Djafon
Author-X-Name-First: Joseph Kokouvi
Author-X-Name-Last: Djafon
Author-Name: Mawuli Kodjovi Couchoro
Author-X-Name-First: Mawuli Kodjovi
Author-X-Name-Last: Couchoro
Author-Name: Akoété Ega Agbodji
Author-X-Name-First: Akoété Ega
Author-X-Name-Last: Agbodji
Title: Digital transformation, financial access and discrepancies in household wealth accumulation
Abstract:
In a world where financial capital serves as the backbone of individual and societal economic health, understanding the mechanisms that can stimulate or hinder its accumulation is critical. This study explores how the accessibility of banking services and the integration of digital finance can influence the accumulation of financial wealth, as well as disparities in household savings. Drawing on data derived from the Finscope Consumer Survey for Togo 2016 and the Harmonized Living Standards Measurement Study 2018 for Togo, this study employs a range of analytical methodologies including propensity score matching, double difference, and smoothed instrumental variable quantile regression tools. The outcomes of this study underscore that access to banking services and digital finance significantly enhances physical asset investment and the adoption of sound financial practices rather than an increase in bank savings alone. Therefore, the emergence of digital finance can be seen as a missing link in the formal financial system’s ability to improve the efficiency of financial service provision and make a significant contribution to reducing inequalities in wealth accumulation. This study sheds light on the significant decrease in inequality concerning the capacity for wealth accumulation among households.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2241700
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2241700
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# input file: OAEF_A_2237716_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Amanuel Kussia Guyalo
Author-X-Name-First: Amanuel Kussia
Author-X-Name-Last: Guyalo
Author-Name: Lensa Tekalign Ifa
Author-X-Name-First: Lensa Tekalign
Author-X-Name-Last: Ifa
Title: Impact of agricultural cooperatives on the food security status of households in Oromia regional state, Ethiopia: The case of Halu Woreda
Abstract:
Agricultural cooperatives are considered as an institutional instrument for supporting smallholder farmers and contributing to poverty alleviation and food security. However, empirical literature and practices on the ground are mixed and inconclusive. The main purpose of this study is, therefore, to analyze the impact of agricultural cooperatives on households’ food security status in the context of Halu Woreda. The study employed a quasi-experimental research design to estimate the impact of such collective organizations on food security. Primary data were collected from 260 rural households drawn via a stratified random sampling technique. A variety of impact estimation models were employed to check the robustness of the results. The findings revealed that being a cooperative member is determined by a combination of factors, including the sex and age of the household head; access to farm inputs, credit, and training; and the welfare status of the household head. The findings also showed that agricultural cooperatives have a statistically significant positive impact on the food security status of households. It is concluded that agricultural cooperatives are effective in improving the food security status of the households in the study area. Therefore, regional rural development policy and strategy should focus on strengthening and genuinely supporting the existing agricultural cooperatives while encouraging the establishment of new ones through an inclusive approach in ways that directly address poverty and food insecurity. By highlighting the implications of the impact of agricultural cooperatives on food security, this article contributes to the ongoing debates on the potential benefits of such associations to farmers’ livelihoods in rural areas.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2237716
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2237716
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# input file: OAEF_A_2233315_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Mosab I. Tabash
Author-X-Name-First: Mosab I.
Author-X-Name-Last: Tabash
Author-Name: Umar Farooq
Author-X-Name-First: Umar
Author-X-Name-Last: Farooq
Author-Name: Basem Hamouri
Author-X-Name-First: Basem
Author-X-Name-Last: Hamouri
Author-Name: Ashish Kumar
Author-X-Name-First: Ashish
Author-X-Name-Last: Kumar
Author-Name: Mamdouh Abdulaziz Saleh Al-Faryan
Author-X-Name-First: Mamdouh Abdulaziz Saleh
Author-X-Name-Last: Al-Faryan
Title: Effect of country governance on trade credit activities: Empirical evidence from Pakistan
Abstract:
An existence of good governance situation ensures the progress of economic sectors. The recent literature has mentioned the role of country governance in multiple business operations. However, the effect of country governance on trade credit is not yet explored in the literature. Thus, the current analysis aims to test the empirical nexus between country governance and trade credit activities. The empirical analysis was arranged on Pakistani non-financial enterprises over the period 2010–2019. The regression between variables was established by employing the generalized least square and generalized method of the moment models. The empirical analysis documents the positive effect of aggregate governance index and other proxies of governance including voice and accountability, political stability, regulatory quality, and corruption control on both trade payables and receivables. The favorable governance situation makes business operations more transparent, reduces market uncertainty, and ensures the protection of rights. All these factors positively achieve trade credit operations. We find robust evidence in the presence of both firm-specific and macroeconomic factors. The findings of the study yield an important policy regarding the role of better governance in boosting trade-credit operations. By enlightening the direct effect of country governance on trade credit, this research adds the innovative arrangement of the variable in the existing literature.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2233315
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2233315
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# input file: OAEF_A_2285649_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: P.V. Thayyib
Author-X-Name-First: P.V.
Author-X-Name-Last: Thayyib
Author-Name: Muhammed Navas Thorakkattle
Author-X-Name-First: Muhammed Navas
Author-X-Name-Last: Thorakkattle
Author-Name: Faisal Usmani
Author-X-Name-First: Faisal
Author-X-Name-Last: Usmani
Author-Name: Ali T Yahya
Author-X-Name-First: Ali T
Author-X-Name-Last: Yahya
Author-Name: Najib H.S Farhan
Author-X-Name-First: Najib H.S
Author-X-Name-Last: Farhan
Title: Forecasting Indian Goods and Services Tax revenue using TBATS, ETS, Neural Networks, and hybrid time series models
Abstract:
This study focuses on the crucial task of forecasting tax revenue for India, specifically the Goods and Services Tax (GST), which plays a pivotal role in fiscal spending and taxation policymaking. Practically, the GST time series datasets exhibit linear and non-linear fluctuations due to the dynamic economic environment, changes in tax rates and tax base, and tax non-compliance, posing challenges for accurate forecasting. Traditional time-series forecasting methods like ARIMA, assuming linearity, often yield inaccurate results. To address this, we explore alternative forecasting models, including Trigonometric Seasonality Box-Cox Transformation ARIMA errors Trend Seasonal components (TBATS) and Neural Networks: Artificial Neural Networks (ANN), Neural Networks for Autoregression (NNAR), which capture both linear and non-linear relationships. First, we test single time series models like Exponential Smoothing (ETS), TBATS, ANN, and NNAR. Second, we also test hybrid models combining linear models, non-linear models, and neural network models. The findings reveal that the Hybrid Theta-TBATS model offers superior forecasting accuracy, challenging recent research favouring neural network models. The study highlights the effectiveness of advanced non-linear models, particularly TBATS and its hybridisations with linear models, in GST revenue forecasting. Our study also found that the single TBATS is the second-best model, which offers better forecasting accuracy. These insights have significant implications for policymakers and researchers in taxation and fiscal planning, emphasising the need to incorporate non-linear dynamics and advanced modelling techniques to enhance the accuracy of GST revenue forecasts.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2285649
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2285649
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# input file: OAEF_A_2285638_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Simon Akumbo Eugene Mbilla
Author-X-Name-First: Simon Akumbo Eugene
Author-X-Name-Last: Mbilla
Title: Social drivers and tax revenue: The mediation effect of tax compliance. Evidence from an emerging economy
Abstract:
This study examined how social drivers such as culture, tax education, attitude, and equity affect tax compliance behaviour among SMEs in Ghana. Quantitative research approach was adopted for this study. The survey research design was employed for this study, and the data collection instrument was a questionnaire. The sample size of this study comprises of 350 SMEs. The hypotheses were tested with the help of Smart-PLS structural equation modelling version_3. The results revealed that social drivers significantly affect tax compliance behaviour. This study contributes to the body of knowledge, adds to practice and policy by demonstrating that tax compliance has taken on a social dimension in Ghana. While the study has become necessary to improve tax compliance among SMEs, the researcher also seeks to contribute globally to the UN’S sustainable development goals (SDG 10), which aim to reduce inequalities.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2285638
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2285638
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# input file: OAEF_A_2237714_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Richard Takyi Opoku
Author-X-Name-First: Richard Takyi
Author-X-Name-Last: Opoku
Author-Name: Anokye M. Adam
Author-X-Name-First: Anokye M.
Author-X-Name-Last: Adam
Author-Name: Zangina Mohammed Isshaq
Author-X-Name-First: Zangina Mohammed
Author-X-Name-Last: Isshaq
Author-Name: Peterson Owusu Junior
Author-X-Name-First: Peterson
Author-X-Name-Last: Owusu Junior
Title: Time-varying connectedness and contagion between commodity prices and exchange rate in Sub-Saharan Africa
Abstract:
Market participants, policymakers, and practitioners might have ignored the connection between global commodities and the currency markets in sub-Saharan Africa and the potential for contagion at various time scales. We examine the degree of time-varying connectivity and contagion between commodities and the exchange rates of sub-Saharan African countries (SSA). We use the Barunik and Krehlik (BK18) spillover index on monthly data from 1990 to 2019 to illustrate the dynamic connectivity in the time and frequency domains. The BK18 captures the nonlinear, nonstationary, asymmetric, and time-dependent comovements in the relationship. Our analysis indicates that the relationship between commodity returns and exchange rates in Sub-Saharan Africa (SSA) is both time- and frequency-dependent, but stronger at higher frequencies. We observe that, among the three commodities, only crude oil is a dominant spillover propagator. The exchange rates of South Africa dominate spillover transmission among metal-producing countries, and those of Cote d’Ivoire dominate agricultural-producing countries. The dynamic results reveal significant spillovers between commodities and exchange rates during economic turmoil, indicating contagion among the markets. Since uncertainty spillover is more severe amid market upheaval, investors should use their awareness of market dynamics and fluctuations to protect their holdings from lower asset returns. Policymakers should keep a close eye on spillovers because they endanger cross-market connections.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2237714
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2237714
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# input file: OAEF_A_2257069_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Eric Fosu Oteng-Abayie
Author-X-Name-First: Eric Fosu
Author-X-Name-Last: Oteng-Abayie
Author-Name: Emmanuel Duodu
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Duodu
Author-Name: Seth Oduro
Author-X-Name-First: Seth
Author-X-Name-Last: Oduro
Author-Name: Samuel Tawiah Baidoo
Author-X-Name-First: Samuel
Author-X-Name-Last: Tawiah Baidoo
Title: Greening the future: Unveiling the link between industrial structure upgrading and pollution emission in sub-Saharan Africa
Abstract:
Industrial structure upgrading (ISU) in sub-Saharan Africa (SSA) has been improving in recent years, making it essential to examine how such upgrading influences pollution emissions in SSA. However, studies concerning the environment in SSA have overlooked this important role. Consequently, achieving the Sustainable Development Goals becomes futile if such critical issues are not given due attention in policy discourse. In light of this, this study examined the effect of ISU on pollution emissions in 28 SSA countries using data from 1980 to 2020 and employed two key measures of ISU as contributions to the literature. Regarding the analysis, the fixed effects, random effects, and feasible generalized least squares estimators and the Dumitrescu and Hurlin (D-H) causality test were employed. The results show that ISU improves the sustainable environment by reducing pollution emissions in SSA by 0.03–0.04%. Furthermore, economic growth (EG) increases pollution emissions by 0.63–0.72%, but after reaching a threshold level of 0.10%, EG reduces pollution emissions by 0.03–0.04%. This confirms the EKC hypothesis in the selected SSAs. The D-H causality analysis also reveals a bidirectional relationship between ISU and pollution emissions. Based on these results, we conclude that upgrading the industrial structure in SSA is crucial for a clean and sustainable environment.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2257069
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2257069
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# input file: OAEF_A_2254589_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Fahd Alduais
Author-X-Name-First: Fahd
Author-X-Name-Last: Alduais
Title: Unravelling the intertwined nexus of firm performance, ESG practices, and capital cost in the Chinese business landscape
Abstract:
This research explores the relationship between a company’s commitment to Environmental, Social, and Governance (ESG) factors and its capital equity cost (COE) in the Chinese market. Using statistical methods like regression analysis, the study aims to uncover how ESG disclosure relates to COE. Key findings reveal that environmental and social disclosures increase capital equity costs, indicating higher costs for companies with strong ESG practices. However, governance disclosures don’t significantly impact COE, suggesting that environmental and social aspects carry more weight in shaping investor perceptions and influencing costs compared to governance. The research also shows that this ESG-COE link is more significant for financially sound companies, indicating greater cost implications for strong performers. The study further demonstrates that strong ESG practices are perceived as lower risk, leading to lower capital equity costs. Chinese firms with high ESG scores tend to have lower capital costs, indicating rising investor appreciation for ESG in the Chinese market. The study’s robustness check supports these findings, reinforcing the growing importance of ESG in investment decisions. This research has implications for companies, investors, and policymakers, stressing the role of ESG in attracting investment and reducing costs. Policymakers can use these insights to encourage improved ESG practices and transparency. Overall, the study underscores ESG’s impact on capital equity costs in China, offering valuable insights for decision-makers and highlighting ESG’s relevance in financial choices.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2254589
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2254589
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# input file: OAEF_A_2267857_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Khadijah Iddrisu
Author-X-Name-First: Khadijah
Author-X-Name-Last: Iddrisu
Author-Name: James N. Doku
Author-X-Name-First: James N.
Author-X-Name-Last: Doku
Author-Name: Joshua Y. Abor
Author-X-Name-First: Joshua Y.
Author-X-Name-Last: Abor
Author-Name: Raymond Dziwornu
Author-X-Name-First: Raymond
Author-X-Name-Last: Dziwornu
Title: Financial inclusion and inclusive growth in Africa: What is the moderation role of financial stability?
Abstract:
This article aims to explore the interplay between financial stability, financial inclusion, and inclusive growth in 40 African countries during the period 2004–2020. It acknowledges that an unstable financial system has the potential to erode confidence and hinder the essence of financial inclusion in promoting inclusive growth. However, studies regarding the combined effect of financial inclusion and financial stability on inclusive growth are hard to find, especially in Africa. By examining the effects of financial inclusion on inclusive growth and the synergistic relationship between financial stability and inclusive growth, this study seeks to shed light on how these factors interact in the context of African economies. To cater for endogeneity issues, we used a two-step system generalized method of moment. Our result reveals three outcomes: First, financial inclusion promotes inclusive growth. Second, financial stability alone is less effective to enhance inclusive growth. Lastly, financial stability forms synergy with financial inclusion to further spike inclusive growth. It is recommended that policymakers should strive to enhance financial inclusion by promoting financial stability.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2267857
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2267857
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# input file: OAEF_A_2235823_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Berhanu Kuma
Author-X-Name-First: Berhanu
Author-X-Name-Last: Kuma
Author-Name: Abebech Godana
Author-X-Name-First: Abebech
Author-X-Name-Last: Godana
Title: Factors affecting rural women economic empowerment in Wolaita Ethiopia
Abstract:
Empowering rural women economically helps to ensure gender equality, the well-being of nation and the basic needs of a family. This study was conducted to figure out factors affecting rural women economic empowerment endeavors of development practitioners in Wolaita Ethiopia. Multi-stage sampling techniques were used to obtain a sample size of 100 rural households. Data were collected using cross-sectional semi-structured questionnaire, which were analyzed by descriptive and binary logit model. Rural women economic empowerment index was calculated to measure dependent variables. The index result showed that 69% of the households scored less than 0.5, and thus were considered economically not empowered. The binary logit model result revealed that age of women, marital status, educational level, perception toward economic empowerment, motivation, income, participation in decision-making and participation in leadership positively and significantly affected rural women economic empowerment. It is recommended that existing programs and strategies should be reviewed and new ones should be designed to effectively improve the situation of rural women economic empowerment.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2235823
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2235823
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Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2235823
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# input file: OAEF_A_2243189_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Abdul-Malik Abdulai
Author-X-Name-First: Abdul-Malik
Author-X-Name-Last: Abdulai
Title: The impact of remittances on economic growth in Ghana: An ARDL bound test approach
Abstract:
International remittances remained one major source of international financial resources in the world. Yet very limited empirical studies exist on the impact of these remittances on economic growth, more especially in Ghana. To bridge this void in literature, the study analyzes the impact of remittances on GDP growth in Ghana from 1990 to 2020. The ARDL estimation technique was used to test the long-run association between the selected variables. The results showed that GDP growth rate has a long-run relationship with remittance inflows, foreign direct investment, unemployment rate, inflation, trade, population growth rate and official development assistance. Lastly, the mediating effect of unemployment on remittance inflows negatively affects GDP growth rate in both runs. It is therefore recommended that to ensure sustained GDP growth rate in Ghana, government should consider tapping into the contribution of remittances by ensuring reliable transfer means and cutting down the cost of transfer.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2243189
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2243189
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Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2243189
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# input file: OAEF_A_2281177_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Suresha B
Author-X-Name-First:
Author-X-Name-Last: Suresha B
Author-Name: Surekha Nayak
Author-X-Name-First: Surekha
Author-X-Name-Last: Nayak
Author-Name: Krishna T A
Author-X-Name-First:
Author-X-Name-Last: Krishna T A
Author-Name: Rejoice Thomas
Author-X-Name-First: Rejoice
Author-X-Name-Last: Thomas
Title: Determinants of Book Built IPO underpricing – differential issue size and market momentum approach revisited
Abstract:
Pricing of an Initial public offering (IPO) is a complex phenomenon. Price anomalies are commonly observed in IPO markets, especially in emerging markets. Investors perceived underpricing creates undue market momentum during the offer period with an asymmetric effect across different issue sizes. This study examines the determinants of Book Built IPOs underpricing by considering a sample of 180 Book Built IPOs that went public in India between 2011 and 2020. The determinants were verified for differential issue size public offers. Listing day performance was measured using Listing Day-Absolute Return (LD-AR) and Listing Day-Market Adjusted Return (LD-MAR) models. Further, the data obtained was tested for the explanatory capabilities of firm-specific and market momentum factors for underpricing using OLS models. Concerning the differential issue size, the study found a direct relationship between the issue size and underpricing. Dominant underpricing was observed in the case of moderate to large issue size with a linear progressive return, confirming that there was over-optimism on the part of investors. The study’s results also revealed that momentum-specific factors have a significant influence along with firm-specific factors such as firm size, cash flows, a subscription rate of QIBs and RIIs in the listing day return, and underpricing.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2281177
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2281177
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# input file: OAEF_A_2261329_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Eugene M. Buthelezi
Author-X-Name-First: Eugene M.
Author-X-Name-Last: Buthelezi
Author-Name: Phocenah Nyatanga
Author-X-Name-First: Phocenah
Author-X-Name-Last: Nyatanga
Title: The dynamic relationship between government debt, fiscal consolidation, and economic growth in South Africa: A threshold analysis
Abstract:
This paper investigates the threshold impact of government debt on economic growth in the presence of fiscal consolidation in South Africa from 1979 to 2022. The autoregressive threshold regime (TAR) model and two-stage least squares (2SLS) are used. The contribution of the paper is on the estimation of the threshold of government debt using the first difference, dummy variables, and the TAR in the presence of fiscal consolidation in South Africa. The TAR provides evidence with the consideration of fiscal consolidation, there is evidence of the U-shape impact of domestic government debt on gross domestic product per person. At a high threshold, there is evidence of an S-shape impact on gross domestic product per person when there is a range threshold. Overall high domestic government debt harms gross product per person and results in fiscal consolidation not being able to stimulate gross domestic product per person. It is recommended for fiscal authorities to not use fiscal consolidation when the domestic government debt is above 60% in South Africa.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2261329
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2261329
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Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2261329
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# input file: OAEF_A_2242652_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Solomon Zewdu Leul
Author-X-Name-First: Solomon Zewdu
Author-X-Name-Last: Leul
Author-Name: Alemu Azmeraw Bekele
Author-X-Name-First: Alemu Azmeraw
Author-X-Name-Last: Bekele
Author-Name: Alemseged Gerezgiher Hailu
Author-X-Name-First: Alemseged Gerezgiher
Author-X-Name-Last: Hailu
Author-Name: Solomon Tsehay Feleke
Author-X-Name-First: Solomon Tsehay
Author-X-Name-Last: Feleke
Title: The impact of Korra tef (Eragrostis tef) adoption on commercialization status of tef producing farmers in Northwestern Ethiopia: A propensity score matching analysis
Abstract:
The government and other development practitioners in Ethiopia have promoted crop technologies like improved tef varieties to improve crop productivity of farmers and, in turn, their commercialization status. The commercialization impacts of these crops, however, were not thoroughly examined. This study examined the commercialization impact of adopting improved tef variety (Korra) in North-western Ethiopia using cross-sectional data of 479 tef producer farm households drawn from two districts, one from the adopters and the other from non-adopters. A multi-stage sampling procedure was followed to select the respondents. A semi-structured questionnaire was used as a principal primary data collection method to collect household survey data, and interviews were conducted with the relevant key informants of the study. The extent of smallholder commercialization was examined using the Household Commercialization Index (HCI), and the impact of Korra tef adoption on adopters’ commercialization was estimated using Propensity Score Matching (PSM). The HCI result revealed that 46.95% of sampled farmers sold tef during 2020; while it was 58.92% and 36.7% for the adopters and non-adopters, respectively. This indicated that the non-adopters and adopters were, respectively, semi- and commercialized. The PSM result also revealed a positive and significant impact on households’ tef commercialization, with the adopters’ commercialization rate exceeding the non-adopters by about 23.43%. Hence, efforts should focus on ensuring that farmers have access to sufficient quantities of high-quality improved Korra tef seed as well as encouraging improved access to institutional services for the same.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2242652
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2242652
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# input file: OAEF_A_2259274_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Andi Chairil Furqan
Author-X-Name-First: Andi Chairil
Author-X-Name-Last: Furqan
Author-Name: Abdul Kahar
Author-X-Name-First: Abdul
Author-X-Name-Last: Kahar
Author-Name: Rahma Masdar
Author-X-Name-First: Rahma
Author-X-Name-Last: Masdar
Author-Name: Cinda Andriana
Author-X-Name-First: Cinda
Author-X-Name-Last: Andriana
Author-Name: Fatiah Rahmaniyah
Author-X-Name-First: Fatiah
Author-X-Name-Last: Rahmaniyah
Author-Name: Risma Risma
Author-X-Name-First: Risma
Author-X-Name-Last: Risma
Title: Mechanism of incentives and accountability in rural institutions: Regional context in global dimensions of SDGS
Abstract:
This study aims to analyze the extent to which government incentives and village accountability contribute to village development in Indonesia. The achievement of the Village Development Index (VDI) consists of three dimensions: social resilience, economic resilience, and environmental resilience. These indicators align with the goals of achieving Sustainable Development Goals (SDGs). The research was conducted using village data from Central Sulawesi Province, Indonesia. The data were obtained from 303 villages and sourced from the Central Sulawesi Statistics Agency. The results of the study show that village accountability and government incentives through the village fund have a positive effect on VDI. This finding is consistent with the differences in VDI measurements using both VDI scores and status. After exploring the dimensions based on VDI, this study also found that accountability had an impact on social resilience and economic resilience, while government incentives contributed to social resilience and environmental resilience. However, village assistance does not appear to have made a significant contribution to village development, and it has also been found that village development in Indonesia has not been evenly distributed in terms of topography. This research provides new insights about the relationship between government incentives, village accountability, and the achievement of SDGs in the rural context. It proposes the formation of accountable villages as one of the strategies and indicators for achieving SDGs in the rural areas of Indonesia.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2259274
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2259274
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# input file: OAEF_A_2260658_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Muoria Kamau
Author-X-Name-First: Muoria
Author-X-Name-Last: Kamau
Author-Name: Ivivi J. Mwaniki
Author-X-Name-First: Ivivi J.
Author-X-Name-Last: Mwaniki
Title: On a robust estimation of option-implied interest rates and dividend yields
Abstract:
In this paper, a simple no-arbitrage methodology to estimate option-implied interest rates and dividend yields simultaneously via a regression model is employed. Since the mean-based least squares estimation places equal weights on all data points making it sensitive to outliers, a robust median-based estimation approach is proposed. The proposed methodology is only valid for European options; consequently, an empirical analysis is conducted on options on the S & P 500 Index. Robust forward-looking model-free estimates of the risk-free interest rate and dividend yield, based exclusively on market prices of options, are thus obtained.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2260658
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2260658
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# input file: OAEF_A_2235117_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Hasan Mukhibad
Author-X-Name-First: Hasan
Author-X-Name-Last: Mukhibad
Author-Name: Prabowo Yudo Jayanto
Author-X-Name-First: Prabowo
Author-X-Name-Last: Yudo Jayanto
Author-Name: Risanda Alirastra Budiantoro
Author-X-Name-First: Risanda
Author-X-Name-Last: Alirastra Budiantoro
Author-Name: Bayu Bagas Hapsoro
Author-X-Name-First: Bayu
Author-X-Name-Last: Bagas Hapsoro
Author-Name: Aas Nurasyiah
Author-X-Name-First: Aas
Author-X-Name-Last: Nurasyiah
Author-Name: Ayatulloh Michael Musyaffi
Author-X-Name-First: Ayatulloh
Author-X-Name-Last: Michael Musyaffi
Title: Equity-based financing and risk in Islamic banks: A cross-country analysis
Abstract:
Equity-based financing (EBF) is an Islamic bank (IB) financing type that promotes justice, spirituality, and Islamic values. However, data shows that IBs still have low EBF. The researcher noted that with EBF, there is information asymmetry, agency problems and the potential for moral hazards, meaning EBF may be a risky type of transaction. This study aims to empirically show whether EBF is a risky transaction by looking at the role of EBF in non-performing financing (NPF), the z-score, and the return on average assets (ROAA). The research sample consisted of 54 IBs from 19 countries, with an observation period of 11 years (2009 to 2019). This study finds that EBF has a positive effect on NPF and does not affect the z-score and ROAA. The subsample test shows that EBF is riskier for large IBs than for small IBs. EBF has a positive effect on NPF and a negative one on ROAA for large IBs. In contrast, EBF has a negative effect on the z-score of small IBs. This research examines the robustness of these findings by employing other models as well as the generalised method of moment (GMM) to address any endogeneity problems.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2235117
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2235117
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# input file: OAEF_A_2246321_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Anneke Maré Moolman
Author-X-Name-First: Anneke Maré
Author-X-Name-Last: Moolman
Author-Name: Jaco Paulus Fouché
Author-X-Name-First: Jaco Paulus
Author-X-Name-Last: Fouché
Author-Name: Verona Leendertz
Author-X-Name-First: Verona
Author-X-Name-Last: Leendertz
Title: Sustainability reporting in pandemics: Theoretical development of guidelines for improved reporting
Abstract:
Given the pervasive effects that COVID-19 and previous pandemics had on companies, the purpose of this study was to develop pandemic-related sustainability reporting guidelines to improve corporate reporting. Pandemic-related reporting was found to be a necessary part of companies’ sustainability disclosure. However, this is not required by any South African or international sustainability framework scrutinised by the researchers. Literature proves the wide-ranging effects of pandemics on companies’ sustainability, though current reporting practices are lacking. The researchers consequently developed corporate reporting guidelines that specifically require and formalise pandemic-related disclosure, through applying grounded theory. With the lack of pandemic-related reporting requirements in existing corporate sustainability frameworks, this study is the first, according to the researchers’ knowledge, to propose corporate reporting guidelines to inform stakeholders of companies’ sustainability regarding pandemics. Framework setters could use these guidelines by incorporating it into existing reporting requirements. The guidelines serve to encourage pandemic-related disclosure by companies with a genuine interest in sustainability. Such disclosure would provide important information for stakeholders, especially given the recurring yet unprecedented nature of pandemics.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2246321
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2246321
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# input file: OAEF_A_2270595_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: J.C Sharmiladevi
Author-X-Name-First: J.C
Author-X-Name-Last: Sharmiladevi
Title: Impact study of agricultural value added on foreign direct investment, economic development, trade openness for India following ARDL approach
Abstract:
This research aims to identify the impact of agriculture, forest and fishing value-added on international business, capital flow, and economic growth for India from 2000 to 2022, by examining short-term and long-term equilibrium using the Auto Regressive Distributive lag (ARDL) approach. Agriculture value added is taken as a dependent variable, and inward Foreign Direct Investment (FDI), stock of net FDI, economic growth and trade openness are taken as independent variables. Results indicate that there exists a long-term and short-term relationship between agriculture value added, economic growth and trade openness. Economic growth and trade openness have a statistically significant relationship with agricultural value added in the short and long run. Inward FDI and stock of FDI are not significant to agriculture value added. ARDL Bound test results indicate that there is a long-term cointegrating relation among the variables. The error correction term is also strong and significant (−13.96), suggesting resistance to shocks. Existing literatures coverage on agriculture and international business is scarce in the Indian context, and this research will be significant in that line. The results of this study resonate with the findings of a few studies conducted in other geographical areas, indicating the fact that the receptivity and absorptive capacity prevailing in an economy play a dominant role in receiving maximum benefits from inward capital flow leading to economic growth. This research reinstates that agriculture still influences economic growth in India. Openness is essential for creating a conducive atmosphere for economic development. The study also indicates the direction for future research.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2270595
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2270595
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# input file: OAEF_A_2225327_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Yawovi M. A. Koudalo
Author-X-Name-First: Yawovi M. A.
Author-X-Name-Last: Koudalo
Author-Name: Moumbark Toure
Author-X-Name-First: Moumbark
Author-X-Name-Last: Toure
Title: Does financial inclusion promote financial stability? Evidence from Africa
Abstract:
This study aims to examine the impact of financial inclusion on financial stability across 54 African countries. Using country-level data that spans a 20-year period from 2000 to 2020, the findings suggest a positive association between the level of account penetration and financial stability. This conclusion withstands several tests of robustness performed. Furthermore, the analysis identifies income inequality, political stability and financial openness as influential factors that may condition the relationship between financial inclusion and financial stability. The implications of our findings suggest the need for increased collaboration between regulatory and supervisory agencies in African countries to promote greater financial inclusion, as policies aimed at improving financial inclusion should have the potential to enhance financial stability. It should be noted, however, that the extent to which financial inclusion should be pursued in order to achieve these goals remains an open question that requires further investigation. Future research could also explore the key barriers to financial access, as identifying these obstacles would enable policymakers to set priorities for action and allocate resources more effectively.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2225327
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2225327
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# input file: OAEF_A_2260243_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Tran Thi Kim Oanh
Author-X-Name-First: Tran Thi Kim
Author-X-Name-Last: Oanh
Author-Name: Diep Van Nguyen
Author-X-Name-First: Diep
Author-X-Name-Last: Van Nguyen
Author-Name: Hoi Vu Le
Author-X-Name-First: Hoi Vu
Author-X-Name-Last: Le
Author-Name: Khoa Dang Duong
Author-X-Name-First: Khoa Dang
Author-X-Name-Last: Duong
Title: How capital structure and bank liquidity affect bank performance: Evidence from the Bayesian approach
Abstract:
This article analyzes the impact of capital structure and bank liquidity on the performance of commercial banks in Vietnam, a transition market in Asia. This research is unique because it is the first study to employ the Bayesian Estimation methods in banking studies. The data includes 463 annual bank-year observations from 37 commercial banks in Vietnam from 2003 to 2020. The Bayesian linear regressions indicate that a higher leverage ratio reduces ROA and ROE while positively empowering EPS. Our findings also document the positive impacts of bank funding liquidity on the performance of commercial banks in Vietnam. Our results are also robust even when employing the Generalized Least Squares estimations. While our results are consistent with the Pecking Order Theory and and prior literature, they do not align with the trade-off theory. Finally, our study contributes implications for policymakers and bank managers to develop the banking system sustainably.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2260243
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2260243
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# input file: OAEF_A_2266616_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Hong Mai Phan
Author-X-Name-First: Hong Mai
Author-X-Name-Last: Phan
Author-Name: Thi Nhu Quynh Le
Author-X-Name-First: Thi Nhu Quynh
Author-X-Name-Last: Le
Author-Name: Vu Duc Hieu Dam
Author-X-Name-First: Vu Duc Hieu
Author-X-Name-Last: Dam
Author-Name: Manh Son Tran
Author-X-Name-First: Manh Son
Author-X-Name-Last: Tran
Author-Name: Thi Hoai Linh Truong
Author-X-Name-First: Thi Hoai Linh
Author-X-Name-Last: Truong
Author-Name: Quoc Anh Le
Author-X-Name-First: Quoc Anh
Author-X-Name-Last: Le
Title: Herd behavior in Vietnam’s stock market: Impacts of COVID-19
Abstract:
This paper investigates herd behavior in frontier Vietnamese stock markets under the impacts of COVID-19. Using models with two measures of return dispersions, we find that herd behavior does not exist in the three stock markets in extreme movements but in normal market conditions. Herding is more severe in two stock exchanges, HoSE and HNX, than in the OTC market UpCOM. Intentional herding is the main form and has been more intense in HoSE and HNX since the COVID-19 outbreak, while it is mainly significant in UpCOM in the pre-pandemic period. There is strong evidence of significant intentional herding on days of high volatility in UpCOM and HNX for all the timeframes, while considerable spurious herding on days with low volatility is found in UpCOM and HNX for all the examined periods except for the pandemic one. The evidence that herding was more pronounced during high volatility days in HoSE was relatively weak overall. Finally, pandemic uncertainty or government responses do not affect heightening or mitigating herd behavior, respectively.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2266616
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2266616
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# input file: OAEF_A_2243068_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Mohammed Ridwan Saani
Author-X-Name-First: Mohammed Ridwan
Author-X-Name-Last: Saani
Author-Name: Abdul-Malik Abdulai
Author-X-Name-First: Abdul-Malik
Author-X-Name-Last: Abdulai
Author-Name: Mubarik Salifu
Author-X-Name-First: Mubarik
Author-X-Name-Last: Salifu
Title: Unemployment and remittances nexus in Ghana: The gender perspective
Abstract:
The present study aims at investigating the nexus between unemployment and remittances in Ghana, with a focus on the gender perspective. Using time-series data spanning from 1990 to 2021, the ARDL model is estimated. According to the findings, remittances, inflation, FDI, exports of goods and services, and gross capital formation all have a long-run association with the unemployment rate. Remittances positively correlate with unemployment in the long run. All else being equal, remittances in Ghana tend to also increase female unemployment in the long run. In the short run, while the contemporaneous coefficient is negative, the lagged remittance positively correlates with the unemployment rate in Ghana. The lagged remittance further positively correlates with female and male unemployment in the short run. Finally, we also found a mediating effect of GDP on remittances in reducing the unemployment rate in Ghana. The study therefore recommends that, for remittances to reduce unemployment in the short run, policymakers ought to incentivize deposits of remittances in Ghanaian banks using attractive interest rates. As a result, this might encourage savings, investment, and economic growth, which would eventually result in a decrease in the unemployment rate in the long run.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2243068
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2243068
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# input file: OAEF_A_2241222_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Jianjiang Liu
Author-X-Name-First: Jianjiang
Author-X-Name-Last: Liu
Author-Name: Jie Cheng
Author-X-Name-First: Jie
Author-X-Name-Last: Cheng
Author-Name: Fidelis Ayangbah
Author-X-Name-First: Fidelis
Author-X-Name-Last: Ayangbah
Title: Impact of China’s comprehensive financial reform pilot zone on digital transformation of manufacturing companies. Evidence from listed companies
Abstract:
The establishment of the pilot financial reform zone is aimed at promoting regional financial supply-side structural reform. By giving localities broader financial autonomy, local governments are incentivized to target the “pain points and blockages” in financial services to the real economy, thus having a significant impact on the development and transformation of micro enterprises. Based on micro data of A-share listed manufacturing enterprises in Shanghai and Shenzhen from 2010–2021, this paper uses the double difference method (DID) to explore the impact of the establishment of a comprehensive financial reform pilot zone on the digital transformation of micro manufacturing enterprises and its mechanism. The results found that the pilot zone of comprehensive financial reform significantly improved the digitalization of manufacturing enterprises. Specifically, it effectively promotes the digital transformation of enterprises by reducing their financing costs and promoting their physical investment levels. In particular, it has had a stronger positive impact on the digital transformation of non-state-controlled enterprises, competitive enterprises, and labor-intensive and technology-intensive manufacturing enterprises. The results of the present study can provide a reference experience for other regions to carry out financial reforms to serve the transformation and upgrading of enterprises.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2241222
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2241222
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# input file: OAEF_A_2235827_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Gladys A. Abindaw Nabieu
Author-X-Name-First: Gladys A.
Author-X-Name-Last: Abindaw Nabieu
Author-Name: Michael Minlah
Author-X-Name-First: Michael
Author-X-Name-Last: Minlah
Author-Name: David Mensah
Author-X-Name-First: David
Author-X-Name-Last: Mensah
Title: Public debts, fiscal balance and sustainability: What can African governments learn from debt sustainability models?
Abstract:
This paper examines the impact of public debt on fiscal balance. This study uses the standard debt equation in a fiscal reaction and impulse response functions framework to assess the trajectory of public debt and its sustainability within the Sub-Sahara region from 1980–2017. From the estimations of the fiscal reaction function, the lagged primary balance significantly affects the fiscal deficits of Sub-Saharan African countries. Also, public debts to the gross domestic product beyond a threshold of fifty percent are positive and significantly associated with the primary balance. Fiscal deficits contribute to increases in the debt stock of about 120% over the ten-year for the Sub-Sahara region. The results imply that fiscal governance is required to constrict fiscal deficits whenever debt stock levels approach a certain threshold and growth. Therefore, stakeholders should implement enhanced fiscal policy rules on fiscal balance, public debts, and economic growth to improve debt sustainability.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2235827
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2235827
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# input file: OAEF_A_2250632_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Daniel Otieno Jabuya
Author-X-Name-First: Daniel
Author-X-Name-Last: Otieno Jabuya
Author-Name: Fredrick Odhiambo Sule
Author-X-Name-First: Fredrick Odhiambo
Author-X-Name-Last: Sule
Author-Name: Michael Jairo Ndwiga
Author-X-Name-First: Michael Jairo
Author-X-Name-Last: Ndwiga
Title: The effect of agricultural trade openness on economic growth in the East African Community
Abstract:
The study examined the effects of agricultural trade openness on economic growth in the EAC. We empirically analyzed the issue in five countries from 2000 to 2021. Panel data estimation methods were used in the study. The variables were found to be integrated of order one and zero. There was presence of cointegration, cross-sectional heterogeneity and cross-sectional dependence. The CS-ARDL results revealed that agricultural trade openness and economic growth enjoyed a long-run relationship. The empirical results indicated that the effect of agricultural trade openness on economic growth was positive and significant in the long run. Bootstrap panel granger causality analysis was applied in testing the nature and direction of causal relationships between variables. The results indicated that a unidirectional causal relationship existed between agricultural trade openness and economic growth. This implies that an increase in trade openness promotes economic growth. Based on the findings of the study, we recommend that strategies aimed at promoting trade openness should be complemented with strong policies to enable EAC countries to reap more growth benefits associated with open trade.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2250632
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2250632
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# input file: OAEF_A_2267927_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Lilik Sugiharti
Author-X-Name-First: Lilik
Author-X-Name-Last: Sugiharti
Author-Name: Miguel Angel Esquivias
Author-X-Name-First: Miguel Angel
Author-X-Name-Last: Esquivias
Author-Name: Mohd Shahidan Shaari
Author-X-Name-First: Mohd Shahidan
Author-X-Name-Last: Shaari
Author-Name: Ari Dwi Jayanti
Author-X-Name-First: Ari Dwi
Author-X-Name-Last: Jayanti
Author-Name: Abdul Rahim Ridzuan
Author-X-Name-First: Abdul Rahim
Author-X-Name-Last: Ridzuan
Title: Indonesia’s poverty puzzle: Chronic vs. transient poverty dynamics
Abstract:
Indonesia has lowered the total poverty rate by less than 10%. Earlier poverty measurements in Indonesia suggest that transient poverty is more prevalent. We argue that, when employing the Equally Distributed Equivalent (EDE) approach and disaggregated poverty lines, chronic poverty is more prevalent than transient poverty. We estimated chronic and transient poverty in Indonesia from 2007 to 2014 by employing a large longitudinal dataset and disaggregated poverty line measures at the district level. The empirical results are robust in various groups based on education, gender, marital status, location (urban-rural), and employment characteristics (status, farming and non-farming, type, and sector). The results indicate that chronic poverty accounts for at least two-thirds of total poverty. Poverty gaps based on education, regional location, gender, and employment are significant. Moreover, we assess whether poverty is linked to socioeconomic aspects and policy programs using quantile regression. The findings indicate that gender (female), age, number of household members, and household location are positively related to higher poverty and chronic poverty. Household head deaths and physical disabilities are positively associated with poverty. Although the urban-rural poverty gap has decreased, casual workers remain prone to poverty. Moreover, poverty is negatively linked to educational attainment, access to financial, transportation, and communication services, suggesting that improving these aspects may help reduce poverty. Social aid programs that support health, food assistance, education, and conditional cash transfers are negatively linked to both total and chronic poverty. Energy subsidies were not associated with lower levels of poverty.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2267927
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2267927
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# input file: OAEF_A_2230725_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Apriani Dorkas Rambu Atahau
Author-X-Name-First: Apriani
Author-X-Name-Last: Dorkas Rambu Atahau
Author-Name: Imanuel Madea Sakti
Author-X-Name-First: Imanuel
Author-X-Name-Last: Madea Sakti
Author-Name: Alliny Namilana Rambu Hutar
Author-X-Name-First: Alliny
Author-X-Name-Last: Namilana Rambu Hutar
Author-Name: Andrian Dolfriandra Huruta
Author-X-Name-First: Andrian
Author-X-Name-Last: Dolfriandra Huruta
Author-Name: Min-Sun Kim
Author-X-Name-First: Min-Sun
Author-X-Name-Last: Kim
Title: Financial literacy and sustainability of rural microfinance: The mediating effect of governance
Abstract:
This research aims to examine the mediating role of microfinance governance in the relationship between financial literacy and microfinance sustainability. The research used the purposive sampling method to collect data from the Women Farmers Group (WFG) “Tapa Walla Badi” in Mbatakapidu village, East Sumba, Indonesia. The survey was conducted from November through December 2021 with the valid sample for analysis was 200 questionnaires. The Partial Least Squares-Structural Equation Model (PLS-SEM) was used for analysis. The bootstrapping and the Sobel test were required for a better understanding of the findings. Robust test and focus group discussion (FGD) made our methodology more reliable. The findings show that financial literacy plays an important role in the transformation of rural microfinance institutions (MFIs). Financial literacy works positively on the sustainability of rural microfinance via governance. Age, gender, education, and employment situation were taken into account in financial literacy. This research provides a comprehensive view to policymakers in developing rural MFIs, thus implies the urgency to promote financial literacy and improve governance structures within MFIs. The local government may create pro-financial inclusion policies that support sustainable MFIs by implementing financial literacy curriculum in formal and non-formal education.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2230725
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2230725
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# input file: OAEF_A_2243709_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: M. Azeem
Author-X-Name-First: M.
Author-X-Name-Last: Azeem
Author-Name: Nisar Ahmad
Author-X-Name-First: Nisar
Author-X-Name-Last: Ahmad
Author-Name: Safyan Majid
Author-X-Name-First: Safyan
Author-X-Name-Last: Majid
Author-Name: Jamshaid Ur Rehman
Author-X-Name-First: Jamshaid
Author-X-Name-Last: Ur Rehman
Author-Name: Bilal Nafees
Author-X-Name-First: Bilal
Author-X-Name-Last: Nafees
Title: Corporate governance, financial constraints, and dividend policy: Evidence from Pakistan
Abstract:
Information asymmetry between insiders and outsiders creates various issues for a firm, such as the agency problem where managers pursue their own interests even at the cost of the well-being of the firm’s shareholders, and probable external financial constraints where external investors discount risk by causing a surge in the cost of financing. Normally, a firm manages the issues of the agency problem and external financing constraints by omitting or initiating dividend payments. Therefore, this study investigated the impact of corporate governance on dividend policies in the presence of financial constraints using a sample of 139 non-financial firms listed on PSE, where a weak regulatory framework generates agency problems and the underdevelopment of the financial sector causes financing constraints for businesses. The results reveal that, in Pakistan, dividends are an Outcome of governance practices. As the quality of firm-level governance improves, shareholders are provided with the legal strength to ultimately force firm managers to pay dividends. Along with the agency problem, the availability of external financing is an important factor related to dividend payment decisions in Pakistan. When a company is confronted with agency problems and financial constraints simultaneously, managers try to avoid costly external financing rather than reducing the agency’s problem. The results of the study can be further refined by enhancing the study period and sample size. Furthermore, the work can be extended by classifying sample subjects to the nature of industry and group ownership.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2243709
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2243709
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# input file: OAEF_A_2233773_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Awadh Saeed Bin-Dohry
Author-X-Name-First: Awadh Saeed
Author-X-Name-Last: Bin-Dohry
Author-Name: Hanita Kadir Shahar
Author-X-Name-First: Hanita Kadir
Author-X-Name-Last: Shahar
Author-Name: Sharmilawati Sabki
Author-X-Name-First: Sharmilawati
Author-X-Name-Last: Sabki
Title: Destination choice of the dual listing decision: The case ASEAN-5 firms
Abstract:
ASEAN authorities took several steps to facilitate firms’ dual listing decisions within their region. However, more than three quarters of ASEAN-5 firms chose to list in European markets, which raises the need for further investigation to assess the determinants of destination choice decisions. Therefore, this study aims to evaluate the determinants of firms’ destination choice decisions. The logistic model has been employed in this study to evaluate the firms’ destination choice and uncover the determinants that drive the dual listing destination choice decision between Europe and the US. The study collected data on firms from the ASEAN-5 countries for the period of 2003–2017. The study’s findings showed that the higher the home country’s trade openness, the lower the number of firms pursuing a dual listing in European markets. Meanwhile, the greater the openness to FDI, the more likely it is that firms will seek to list in European markets. In addition, European markets are considered the main destination for firms characterized by low ownership concentration and high stock volatility. On the other hand, the US markets are the main choice for firms that originated from countries with low trade openness and high FDI openness, as well as for firms that are described as having high ownership concentration and low stock volatility. The current study has provided information to the authorities, investors, and market makers on the relationship between the abovementioned determinants and destination choice decisions, specifically for firms from the ASEAN-5 countries.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2233773
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2233773
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# input file: OAEF_A_2268804_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Hakan Altin
Author-X-Name-First: Hakan
Author-X-Name-Last: Altin
Title: Does wealth bring happiness?
Abstract:
The main purpose of this study is to determine the relationship between wealth and happiness. The study, which uses the 2023 World Happiness Report, uses data from 74 countries. For this purpose, three static and two dynamic models are estimated in a panel data environment. According to all three models, wealth is a factor of happiness. However, happiness cannot be explained by a single wealth factor. Wealth is the fourth-factor explaining happiness. It is seen that the effect of wealth on happiness is limited. There are other important factors affecting happiness. What is certain is that there is a relationship between wealth and happiness. The strength of this relationship is different for different countries and different cultures. In addition, different benchmarks and different research methods lead to different results. The first task for governments, companies and individuals is identifying the factors explaining happiness. The second is to develop policies related to these factors. The third is to achieve social consensus. In conclusion, there is a need for more research on the relationship between wealth and happiness. Existing studies provide important information to the parties involved in understanding this relationship. Thus, they contribute to a happier world.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2268804
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2268804
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# input file: OAEF_A_2239032_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Bashar Yaser Almansour
Author-X-Name-First: Bashar Yaser
Author-X-Name-Last: Almansour
Author-Name: Sabri Elkrghli
Author-X-Name-First: Sabri
Author-X-Name-Last: Elkrghli
Author-Name: Ammar Yaser Almansour
Author-X-Name-First: Ammar Yaser
Author-X-Name-Last: Almansour
Title: Behavioral finance factors and investment decisions: A mediating role of risk perception
Abstract:
Modern finance theory assumes that the stock market is efficient, and stock prices reflect all available information. However, behavioral finance theory argues that stock prices can be influenced by psychological and emotional factors. This study aims to examine the impact of behavioral finance factors on investment decisions in the Saudi equity markets through the mediating variable of risk perception. An online questionnaire was distributed to 150 individual investors, out of which 134 were returned and ready for analysis. The data is analyzed using structural equation modeling (SEM). The results show that herding, disposition effect, and blue chip bias have a significant positive impact on risk perception. Overconfidence has a significant positive effect only on investment decision making, but not on risk perception. Risk perception is found to be significantly positively related to investment decision making. All four behavioral finance factors have a significant positive indirect effect on investment decision making through risk perception. This study is conducted in a particular cultural context, namely Saudi Arabia, and may not be generalizable to other cultural contexts. Moreover, this study focused only on four behavioral finance factors, and there may be other factors that could impact risk perception and investment decision making. The results highlight the importance of considering an individual’s perception of risk when making investment decisions, as it can significantly impact their willingness to take risks and ultimately affect the performance of their investment portfolio. The results suggest the need for investors to consider their behavioral biases and for advisors and policymakers to develop strategies to mitigate their impact.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2239032
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2239032
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# input file: OAEF_A_2238377_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Vilija Aleknevičienė
Author-X-Name-First: Vilija
Author-X-Name-Last: Aleknevičienė
Author-Name: Karolina Vilimaitė
Author-X-Name-First: Karolina
Author-X-Name-Last: Vilimaitė
Title: Effect of ownership structure on dividend payments: Evidence from public companies in Nordic and Baltic Countries
Abstract:
We investigate whether ownership structure influences the likelihood and amount of dividend payments in two groups of European Union’s public companies: Nordic and Baltic. Nordic and Baltic capital markets have become increasingly integrated through Nasdaq OMX stock exchanges and harmonized by the EU corporate governance directives. However, some differences in the corporate governance system, legislation, practice, and ownership structure still exist. The study covers Nordic and Baltic companies listed on the Nasdaq OMX for the period 2013–2020. Logit and Tobit panel regressions are applied to disclose the effect of ownership structure on the likelihood and amount of dividend payments accordingly. We find that ownership concentration positively influences the likelihood and amount of dividend payments in Nordic public companies. Managerial ownership does not influence the likelihood of dividend payments but positively influences their amount. Institutional ownership does not influence the likelihood of dividend payments but negatively influences their amount. Our findings revealed that ownership structure does not have any effect either on the likelihood of dividend payments or on their amount in Baltic public companies. We disclosed that the effect of ownership structure on dividend payments is influenced by the context behind ownership structure. The results of our research will improve understanding and predict the decision-making on dividend payments and will help investors manage their portfolios, choosing between current and future consumption.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2238377
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2238377
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# input file: OAEF_A_2225915_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Moses Segbenya
Author-X-Name-First: Moses
Author-X-Name-Last: Segbenya
Author-Name: Nana Yaw Oppong
Author-X-Name-First: Nana Yaw
Author-X-Name-Last: Oppong
Author-Name: Emmanuel Arthur Nyarko
Author-X-Name-First: Emmanuel Arthur
Author-X-Name-Last: Nyarko
Author-Name: Sally Abena Baafi-Frimpong
Author-X-Name-First: Sally Abena
Author-X-Name-Last: Baafi-Frimpong
Title: Demographic characteristics and employability skills among tertiary graduates in Ghana: Evidence from the National Service Scheme
Abstract:
This study examined the effect of demographic characteristics on graduates’ perceptions of employability skills in Ghana. Three demographic characteristics—gender, educational level and sector of national service were used against nine employability skills. The explanatory sequential design from the pragmatists’ philosophical paradigm was adopted for the study. A sample of 2269 national service persons and 363 employers at workplaces where graduates had their national service was drawn from a study population of 77,962. Thirty participants, including 17 graduates and 13 employers, were also interviewed. Data were collected with the help of a questionnaire and a semi-structured interview guide. Data were analysed with descriptive and inferential statistics such as means, standard deviations, Pearson correlation matrix and independent sample t-test. The study found three most important employability skills to employers: the ability to work under pressure with less supervision, the application of computer and technical skills, and processing and interpreting numerical data. A novel finding of the study was that gender and academic qualification were found to have significantly influenced the application of computer and technical skills, numerical data, ability to work under pressure, and entrepreneurial skills. Male graduates had more appreciation for mathematical and information and communication technology (ICT)-related employability skills, while female graduates had a more positive inclination towards emotional intelligence skills and written and verbal communication skills. It was recommended that more attention be given to a partnership between academic institutions, the national service secretariat and the industry to avoid a mismatch between employability skills acquired by graduates and employers’ requirements. The findings of this study, therefore, have implications for teaching pedagogies at tertiary levels and training for job entrants by industry.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2225915
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2225915
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# input file: OAEF_A_2242660_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Precious T Phiri
Author-X-Name-First: Precious T
Author-X-Name-Last: Phiri
Author-Name: Freddy Ruzhani
Author-X-Name-First: Freddy
Author-X-Name-Last: Ruzhani
Author-Name: Faustino Madzokere
Author-X-Name-First: Faustino
Author-X-Name-Last: Madzokere
Author-Name: Pamela Madududu
Author-X-Name-First: Pamela
Author-X-Name-Last: Madududu
Title: Factors affecting the profitability of smallholder broiler production in Mutare district, Manicaland Province, Zimbabwe: A quantile regression approach
Abstract:
Small-scale broiler farming has become one of the fastest-growing sub-sectors in Zimbabwe. However, the profitability levels of these small ventures have been questioned due to the rising production costs owing to the highly inflationary macroeconomic environment. Using a sample of 110 small-scale broiler producers selected using the exponential non-discriminative snowballing sampling method, the paper analysed the factors affecting these farmers’ profitability. Gross margin analysis and quantile regression were used to analyse the data. We found that, although feed costs constituted 56.8% of the total variable costs, small-scale broiler production is a profitable venture in the area with a mean gross margin of US$ 65.25 per batch of 100 broilers and a return per dollar variable costs invested of $ 1.15. Training on broiler production, farming experience, level of education, access to extension services, access to credit and household size significantly determine the profitability of the broiler enterprise at various quantiles, with only training affecting profitability at all three quantiles. All these factors are essential contributing factors to the profitability or lack thereof of small-scale broiler production in Mutare district. We recommend that training programs on effective broiler production be offered to small-scale farmers in the Mutare district. The government and non-governmental organisations should also develop small loan packages that can assist the farmers in improving their production levels and profits. Government extension workers should be more visible and accessible to the farmers in peri-urban areas to positively influence their profitability levels.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2242660
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2242660
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# input file: OAEF_A_2228092_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Nayef AlShammari
Author-X-Name-First: Nayef
Author-X-Name-Last: AlShammari
Author-Name: John Willoughby
Author-X-Name-First: John
Author-X-Name-Last: Willoughby
Author-Name: Mariam S. Behbehani
Author-X-Name-First: Mariam S.
Author-X-Name-Last: Behbehani
Title: Political unrest, the Arab Spring, and FDI flows: A quantitative investigation
Abstract:
The Middle East region is recognized by observers as one of the most politically unstable areas worldwide. Due to the significant growth of foreign direct investment in the MENA region during the period before the recent political turmoil, this study empirically tests the impact of these political disturbances on foreign direct investment over time across Arab Spring countries. The study uses panel techniques to estimate the regression models by applying pooled OLS, fixed effect, and random effect. In addition, the Hausman test is used in order to choose the appropriate estimated model between fixed effects and random effects. The sample covers five countries in the MENA region that experienced the Arab Spring uprising during the period (2011–2014). The whole yearly data set ranges from 1980 to 2014. The data describes the periods before and during the Arab Spring turmoil (2011–2014). According to the appropriate fixed effect approach, results show that the economic, social, and political factors are all crucial contributors to FDI movements and volumes in Arab Spring countries. Interestingly, the Arab Spring era plays a very important role in the deterioration of FDI in these countries. The movement of FDI in the Arab Spring region is related to episodes of political instability. This political unrest has created an adverse impact on foreign investment, and this indicates a lack of trust of potential international investors. This study also confirms that other economic and social factors are significant contributors to FDI in the MENA region.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2228092
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2228092
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# input file: OAEF_A_2242171_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Sasatra Sudsawasd
Author-X-Name-First: Sasatra
Author-X-Name-Last: Sudsawasd
Author-Name: Taweechai Charoensedtasin
Author-X-Name-First: Taweechai
Author-X-Name-Last: Charoensedtasin
Author-Name: Nuttawut Laksanapanyakul
Author-X-Name-First: Nuttawut
Author-X-Name-Last: Laksanapanyakul
Author-Name: Piriya Pholphirul
Author-X-Name-First: Piriya
Author-X-Name-Last: Pholphirul
Title: Modelling the overall impacts of COVID-19 on the Thai economy
Abstract:
Given that estimating the comprehensive and precise impacts of the COVID-19 crisis is challenging, this paper aims to quantify the overall impacts of the COVID-19 on Thai economy both at the macroeconomic and household levels. Our finding indicates that if government supports are not implemented, the country’s GDP could fall by 13.66 percent—the most important transmission channels of this severe impact coming from inbound and domestic tourism demand shocks. The pandemic has also significantly increased the level of poverty in Thailand. And those people facing the greatest risk of falling into poverty tend to be those living in urban areas, especially in metropolitan Bangkok, as well as those whose head of household is working in the tourism sector. In exploring the effectiveness of the mitigation measures implemented by the Thai government, our findings also show that such mitigation measures could successfully help lower the numbers of poor and almost poor people to below those of the Pre-COVID-19 era.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2242171
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2242171
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# input file: OAEF_A_2285620_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Denis Nfor Yuni
Author-X-Name-First: Denis Nfor
Author-X-Name-Last: Yuni
Author-Name: Leseko S. Makhetha
Author-X-Name-First: Leseko S.
Author-X-Name-Last: Makhetha
Author-Name: Sylvester Lelimo
Author-X-Name-First: Sylvester
Author-X-Name-Last: Lelimo
Title: Analyzing the relationship between Industrialization and economic growth in Lesotho
Abstract:
The recent twin crises of the COVID-19 pandemic and the Russia-Ukraine war have caused global economic effects, with gross variation, across countries. Evidently, higher self-sufficient economies with more effective economic performances faired relatively better with these shocks. This calls for policymakers to revisit the drivers of growth with a specific interest in sectors or tools wherein they seem to have a comparative advantage. Industrialization becomes imperative for Lesotho and inspires this study’s interest in analyzing its relationship with economic growth. Surprisingly, existing empirical literature shows heterogonous outcomes on the relationship between Industrialization and economic growth and sometimes contradicts the expected positive relationship in theories. This study employs the Auto Regressive Distributed Lag (ARDL) model, to test the dynamic effect of Industrialization on economic growth for a unique case study—Lesotho. Additionally, this study employs the nonlinear ARDL to investigate the existence of asymmetry in the model. The time span from 1981 to 2020. The findings show that industrial development has significantly impacted the economic growth of Lesotho in the short and long run. And there exists no significant asymmetry in the short and long run. This provides empirical evidence for policymakers to intensify efforts in promoting Industrialization in Lesotho.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2285620
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2285620
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# input file: OAEF_A_2242731_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Abdul-Azeez Sani Baraya
Author-X-Name-First: Abdul-Azeez Sani
Author-X-Name-Last: Baraya
Author-Name: Rossanto Dwi Handoyo
Author-X-Name-First: Rossanto Dwi
Author-X-Name-Last: Handoyo
Author-Name: Kabiru Hannafi Ibrahim
Author-X-Name-First: Kabiru Hannafi
Author-X-Name-Last: Ibrahim
Author-Name: Ahmed Abdulfatahi Yusuf
Author-X-Name-First: Ahmed Abdulfatahi
Author-X-Name-Last: Yusuf
Title: Determinants of households’ energy consumption in Kebbi State Nigeria
Abstract:
This study aims to scrutinize the determinants of household energy consumption needs in Kebbi State, Nigeria. The data for the study were sourced from household heads within the study area. The paper analyzes the determinants of household energy consumption using six energy consumption indicators (household expenditure on energy, electricity, LPG, kerosene, charcoal, and biomass). To analyze the data, the study used descriptive statistics and binary logistic regression (which has rarely been used in this kind of study) which broaden our understanding of social, economic, and environmental perspectives on energy usage. Our empirical strategy indicates that all the instruments used are appropriate based on Cronbach’s alpha scale value of greater than 0.9. Education level was found to be a significant factor in energy expenditure by household, electricity, LPG, and kerosene usage, while negatively correlated with biomass usage. A binary logit regression model revealed that household head income, availability of different energy choices, reliability, and affordability are the major determinants of household energy consumption needs. Findings further show that low-income household heads which account for more than 60% of the respondents rely heavily on the traditional methods of biomass to meet their energy needs. The finding further revealed that 72.80% of the respondents confirmed that accessibility is one of the driving forces which determines their energy choice. Based on the findings, the study therefore, recommends the need to ensure the availability and affordability of safer forms of energy as well as invest more in making renewable energy available and affordable.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2242731
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2242731
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# input file: OAEF_A_2288466_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Astewel Takele
Author-X-Name-First: Astewel
Author-X-Name-Last: Takele
Author-Name: Assefa A. Birhanu
Author-X-Name-First: Assefa A.
Author-X-Name-Last: Birhanu
Author-Name: Beneberu A. Wondimagegnhu
Author-X-Name-First: Beneberu A.
Author-X-Name-Last: Wondimagegnhu
Author-Name: Tirusew A. Ebistu
Author-X-Name-First: Tirusew A.
Author-X-Name-Last: Ebistu
Title: The impact of watershed development on food security status of farm households: Evidence from Northwest Ethiopia
Abstract:
Watershed development is part of a poverty reduction and environmental conservation initiative in Ethiopia. The study evaluates the impact of project-supported and community-based watershed development (WSD) interventions on households’ food security status and identifies the factors that affect WSD participants. A propensity score matching (PSM), a household food balance model (HFBM), a geographic information system (GIS), and a Digital Elevation Model (DEM) were employed to analyze data. The PSM model result revealed that participation in a project-supported WSD had a more significant effect on household food security than the community-based WSD. The average treatment effect for the treated (ATT) was 3845.02 Kcal, while the average treatment effect for the control group (ATE) was 3037.85 Kcal, depicting a significant difference between them. Changes in land use and land cover in the study watersheds imply that agricultural and degraded land patterns decreased, whereas grazing land, bushland, wetland, and plantation land patterns have increased in project-supported watersheds over the study period. On one hand, the main socio-economic drivers that positively impacted the food security status of the WSD participation were land size, credit access, livestock ownership, and training. On the other hand, market distance and distance from farmers’ training centers have a significant and negative impact on the status of the households’ food security. The study concludes that project-initiated WSD intervention has a crucial impact on achieving household food security. Priority should be also given to increasing the productivity of land, increasing access to credit services, improving livestock ownership, and providing veterinary services.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2288466
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2288466
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# input file: OAEF_A_2261798_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Ferdinand Ahiakpor
Author-X-Name-First: Ferdinand
Author-X-Name-Last: Ahiakpor
Author-Name: Ralph Nordjo
Author-X-Name-First: Ralph
Author-X-Name-Last: Nordjo
Author-Name: Samuel Erasmus Alnaa
Author-X-Name-First: Samuel Erasmus
Author-X-Name-Last: Alnaa
Title: Financial development and growth: Evidence from Bayesian Modelling
Abstract:
This paper examines the nexus between financial development and economic growth in Ghana between 1970 and 2020. The study adopted the Bayesian Model Averaging (BMA) techniques to address issues of model uncertainty due to many potential explanatory variables that could influence growth. The study revealed that credit to the private sector, gross domestic savings, inflation rate, labour force participation, current account balance and population growth as key promoters of growth. Therefore, there is the need to address cost of doing business and promote increased credit delivery to the private sector. The direct association between financial development and growth indicates the need for policy makers to implement measures such as provision of legal environment for efficient allocation of credit to the private sector and provide the environment for the establishment of more financial institutions to enhance the growth of the financial sector.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2261798
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2261798
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# input file: OAEF_A_2251800_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Anthony Ennin
Author-X-Name-First: Anthony
Author-X-Name-Last: Ennin
Author-Name: Emmanuel A. Wiafe
Author-X-Name-First: Emmanuel A.
Author-X-Name-Last: Wiafe
Title: The impact of mining foreign direct investment on economic growth in Ghana
Abstract:
This paper investigates the impact of mining foreign direct investment on economic growth in Ghana using quarterly time series data from 1996–2015. The study employs the Autoregressive Distributed Lag bounds testing approach to cointegration and the error correction model to investigate the existence of a long-run and short-run equilibrium relationship between foreign direct investment into the mining sector and economic growth. The study established that foreign direct investment into the mining sector hurts economic growth in Ghana in the long run but a positive in the short run. The study also finds that private sector credit, capital stock, government spending, and labour participation rate have a statistically significant positive relationship with economic growth in the long run. Trade openness exhibited a statistically significant negative long-run relationship with economic growth, while inflation had a positive but insignificant impact on economic growth for the study period. The study recommends that government should encourage research and development in the mining sector and align mining and other environmental policies to ensure sustainable growth. It is further recommended that government tactfully provide investment incentives to ensure the development of other sectors to avoid the Dutch disease.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2251800
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2251800
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# input file: OAEF_A_2266318_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Saif Ullah
Author-X-Name-First: Saif
Author-X-Name-Last: Ullah
Author-Name: Haitham Nobanee
Author-X-Name-First: Haitham
Author-X-Name-Last: Nobanee
Author-Name: M. Ali Kemal
Author-X-Name-First: M. Ali
Author-X-Name-Last: Kemal
Title: Corporate governance and default probability: The moderating role of bank’s efficiency
Abstract:
There is a need to explore the moderating role of banks’ efficiency in the relationship between corporate governance (CG) and default probability in Pakistan. Such attention is required due to poor bank governance, which threatens banks’ stability. This empirical study’s objective is to ascertain the impact of CG on bank default probability by considering banking efficiency as a moderating factor for the period spanning 2012–2020 by using secondary data from banks in Pakistan. The results, estimated using System GMM regression—whose robustness was confirmed through Driscoll and Kraay’s standard error approach findings—show a significant relationship between banks’ CG and bank efficiency. Banks’ better CG practices will improve bank efficiency toward financial soundness in Pakistan. Moreover, the current study puts forth certain implications, i.e. that the banks still need to improve the mechanism they use to implement corporate governance attributes to compete properly on the international stage.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2266318
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2266318
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Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2266318
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# input file: OAEF_A_2252652_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Astrid Maharani
Author-X-Name-First: Astrid
Author-X-Name-Last: Maharani
Author-Name: I Made Narsa
Author-X-Name-First: I Made
Author-X-Name-Last: Narsa
Title: Six-factor plus intellectual capital in the capital asset pricing model and excess stock return: Empirical evidence in emerging stock markets
Abstract:
This study expands previous research by adding intellectual capital to the capital asset pricing model and deepening the measurement of intellectual capital using more comprehensive proxies. This study is novel in that it is related to evaluation according to market developments using tests on potential factors in the asset pricing model by adding intellectual capital variables. Intangible assets have the explanatory and predictive power of size and value strategies in predicting returns. This study uses a sample of all industries from all companies listed on the Indonesia Stock Exchange during 2012–2022; the sample totals 5767 firm-years. The results show a significant relationship between the six-factor capital asset pricing model, intellectual capital, and excess stock returns. The robustness test supports these findings, suggesting that intellectual capital performs better financially as an intangible asset. This study contributes to the literature regarding the role of intellectual capital in the capital asset pricing model, which can be helpful when making investment decisions in emerging stock markets.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2252652
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2252652
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# input file: OAEF_A_2290371_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Tsegamariam Dula
Author-X-Name-First: Tsegamariam
Author-X-Name-Last: Dula
Author-Name: Jemil Yasin
Author-X-Name-First: Jemil
Author-X-Name-Last: Yasin
Author-Name: Haymanot Meseret
Author-X-Name-First: Haymanot
Author-X-Name-Last: Meseret
Author-Name: Abrham Seyoum
Author-X-Name-First: Abrham
Author-X-Name-Last: Seyoum
Title: Determinants of inequalities in welfare among households in Ethiopia: A comparative study of urban and rural Ethiopia
Abstract:
This study aims to investigate welfare inequality between households in rural and urban Ethiopia using secondary data obtained from the Living Standards Measurement Surveys (LSMS) available on the World Bank website. The data was analyzed using the Atkinson Index to identify welfare inequality among households and quantile regression to identify determinants of welfare inequality in rural and urban Ethiopia. The results show that the Atkinson index for the rural group is 0.123006, while it is 0.110899 for the urban group, indicating a higher level of welfare inequality in rural areas. Furthermore, the quantile regression analysis reveals that among the factors measured, the number of assets, access to health services, and saving are important determinants of welfare inequality in rural households. On the other hand, the number of livestock and household size are found to be significant factors contributing to welfare inequality in urban areas. This study provides valuable insights into the specific drivers of welfare inequality in both rural and urban settings and can inform policymakers on how to address these inequalities to promote social and economic development in Ethiopia.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2290371
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2290371
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Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2290371
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# input file: OAEF_A_2254579_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Gaurav Gairola
Author-X-Name-First: Gaurav
Author-X-Name-Last: Gairola
Author-Name: Kushankur Dey
Author-X-Name-First: Kushankur
Author-X-Name-Last: Dey
Title: Moderators of pricing and willingness to pay for parametric weather risk mitigants in agriculture: An integrative review, conceptual framework, and research agenda
Abstract:
The agriculture sector observed the penetration of parametric weather risk financial products, including weather index insurance and weather derivatives, between the late 1990s and the early 2000s. However, the adoption of such products remains low. While the reasons for low adoption are mentioned in the extant literature, there is a lack of a theoretical framework that captures the moderators accelerating and inhibiting pricing structure and willingness to pay for parametric weather risk mitigants in agriculture. Also, the extant literature does not adequately explain the relationships or interdependencies between pricing structure and willingness to pay for parametric weather risk mitigants. This study bridges this gap by performing an integrative literature review. The review integrates the bibliometric analysis and systematic literature review and categorizes the extant literature into five focal areas: (1) weather analytics capability; (2) design, pricing, and testing; (3) users’ criteria for adoption; (4) prototyping; and (5) product efficacy of weather risk mitigation. A conceptual framework evolved from the review classifies the moderators into accelerants and inhibitors of pricing and willingness to pay. The framework hypothesizes that product design, contract specifications such as tick size and strike levels, hedge effectiveness, and instrument adoption have a recursive interaction with the willingness to pay and pricing structure. Future research directions guided by the proposed framework can motivate scholars and practitioners to explore the scope of bundling parametric (index) insurance and weather derivatives as a standalone product to enhance adoption.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2254579
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2254579
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# input file: OAEF_A_2269806_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Ovikuomagbe Oyedele
Author-X-Name-First: Ovikuomagbe
Author-X-Name-Last: Oyedele
Author-Name: Sheriffdeen Adewale Tella
Author-X-Name-First: Sheriffdeen Adewale
Author-X-Name-Last: Tella
Title: Environmental quality and health outcomes in sub-Saharan Africa- A panel econometric approach on the role of forest investment
Abstract:
Beyond the economic support in terms of food, fuelwood, charcoal, wood, and timber supplies that investment towards forest environments provides, its contribution to environmental quality could also provide health benefits. Using data from 16 selected sub-Saharan African countries from 2002 to 2016, this study examined the effect of environmental quality on health outcomes with specific consideration for forests. Employing different panel estimation methods for robustness and conducting a sub-sample estimation for sensitivity analysis, the results showed that forest expansion initially seemed to worsen health outcomes; however, after a turning point, it ultimately improved health outcomes as shown by its reduction effect on under-five mortality and its increasing effect on life expectancy at birth. Policies towards improving population health should consider forest expansion and conservation reforms.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2269806
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2269806
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# input file: OAEF_A_2283992_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Yekin Ahmed Ali
Author-X-Name-First: Yekin Ahmed
Author-X-Name-Last: Ali
Title: Does real exchange rate matter better than trade volumes in triggering labour productivity growth? Evidence from Ethiopia
Abstract:
The trade-growth relation remains one of the controversies unsettled to this date. We test this hypothesis taking Ethiopia as a case study. Ethiopia is a developing economy aspiring to achieve a middle-income level, yet its labour force remains one of the least productive. The study draws on data between 1950 and 2019 to explore the impacts of exports, imports, capital, and the real exchange rate on labour productivity growth of Ethiopia. The Dynamic Ordinary Least Square results reveal mixed results across the time periods. In the long- run, the real exchange rate and imports positively influence labour productivity growth while exports have a negative effect, and the short-run effects of capital and imports are negative but exports have a positive impact. The multivariate Granger-causality analysis shows that: in the long-run, the real exchange is exogenous, and capital, exports, and imports have two-way causal relationships with labour productivity. In the short- run, only capital Granger—causes labour productivity, and the reverse causation runs from labour productivity to exports and to the real exchange rate. The Variance Decomposition analysis demonstrates that the real exchange rate stands out as a macroeconomic policy variable stimulating not only productivity growth but also capital, exports, and imports. To improve the productivity of labour force, it is suggested that Ethiopia adopts a prudent trade policy to better reap the benefits of international trade, and to facilitate the transfer of foreign technology through importation. It also needs to diversify its export basket and switch exports from raw materials and semi-finished goods to high-value products.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2283992
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2283992
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# input file: OAEF_A_2256125_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Princewill U. Okwoche
Author-X-Name-First: Princewill U.
Author-X-Name-Last: Okwoche
Author-Name: Christine S. Makanza
Author-X-Name-First: Christine S.
Author-X-Name-Last: Makanza
Title: Public debt and economic growth in sub-Saharan Africa: Nonlinearity and threshold effects
Abstract:
Most studies on the effects of debt on growth, particularly following the global financial crisis, have focused mainly on the advanced and emerging countries. Our focus on sub-Saharan Africa (SSA) derives from the recent experience of slow growth at a time of rising debt in the sub-region. This approach allows us the opportunity to fit a model that accounts for some region-specific characteristics, such as the quality of institutions and policies, conflict, and adverse terms of trade shocks. Our dataset comprises 24 SSA countries spanning 39 years from 1980 to 2018. We employ a variety of panel estimation techniques suitable for addressing the problems of endogeneity and cross-section dependence. The fixed effects instrumental variable technique is used as the baseline technique, while the bias corrected least-squares dummy variable and the limited information maximum likelihood are used for robustness. In agreement with recent literature, we find compelling evidence in support of a nonlinear relationship between debt and growth, which suggests that public debt may become harmful to growth if it rises beyond a certain level. Further to that, the evidence presents a threshold estimate of 78–85% in most cases. Some variations in threshold estimates based on differences in empirical estimation techniques were observed, which point to the need to localize debt–growth studies to country-specific cases for more applicable results. Policy implications based on these findings are discussed.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2256125
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2256125
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# input file: OAEF_A_2226482_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Hyangsuk Cho
Author-X-Name-First: Hyangsuk
Author-X-Name-Last: Cho
Title: Impact of income inequality on carbon-intensive extractivism
Abstract:
In recent decades, lower emissions have been driven by structural changes such as the shift from manufacturing to the service sector and investment in energy efficiency. However, many developing countries extract fossil fuels from the Earth’s surface, to export raw materials such as coal, oil, and natural gas in the global market. “Extractivism” is a mode of economic growth currently practiced by many developing countries. This way of economic growth can influence the income distribution and composition of activities that contribute to environmental degradation. Therefore, rent-seeking on fossil fuel export can lead to income inequality and a carbon-intensive economy. The relationship between carbon intensity and fossil fuel rent, which is the main concern of this paper, was first studied by Friedrichs and Inderwildi (2013) using the concept of the carbon curse. This paper follows similar model to carbon curse theory; however, it presents a new approach by examining the augmented the carbon curse theory through the lens of income inequality. Accordingly, this paper examines how extractivism affects the relationship between income distribution and carbon intensity for 137 countries from 1990 to 2014. Our findings show that countries that are highly dependent on oil rents have a higher degree of unequal income distribution and carbon-intensive developmental pathways. Additionally, there exists a unidirectional causality relationship among oil rents, income inequality, and carbon intensity. Finally, the short-run effect of oil fuel rents on income inequality typically continues in the long run but the effects changes for carbon intensity.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2226482
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2226482
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# input file: OAEF_A_2267748_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Mei Kay Loo
Author-X-Name-First: Mei Kay
Author-X-Name-Last: Loo
Author-Name: Sridar Ramachandran
Author-X-Name-First: Sridar
Author-X-Name-Last: Ramachandran
Author-Name: Raja Nerina Raja Yusof
Author-X-Name-First: Raja Nerina
Author-X-Name-Last: Raja Yusof
Title: Unleashing the potential: Enhancing technology adoption and innovation for micro, small and medium-sized enterprises (MSMEs)
Abstract:
This study conducts a comprehensive systematic review to gain insights into the challenges of technology adoption and innovation for Malaysian Micro, Small and Medium-sized Enterprises (MSMEs), which play a crucial role in the country’s economy. These MSMEs face obstacles, including challenges in adopting technology and a lack of technical efficiency. To address these issues, the study explores prominent technology adoption theories (e.g. TAM, DOI) and organizational theories (e.g. RBV, ST). By addressing these challenges, policymakers can enhance MSMEs’ competitiveness through targeted strategies, fostering innovation and effective technology adoption, thus contributing to their growth and resilience in the Malaysian economy.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2267748
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2267748
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# input file: OAEF_A_2281176_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Melkamu Wondimu
Author-X-Name-First: Melkamu
Author-X-Name-Last: Wondimu
Title: An empirical investigation of the impact of foreign direct investment on economic growth in Ethiopia
Abstract:
The main objective of this study is to empirically investigate the impact of foreign direct investment on economic growth of Ethiopia by using a time series data for the period 1992–2019. Other explanatory variables like trade openness, human capital, national saving and gross capital formation were incorporated in the model. For the purpose of undertaking the study, Autoregressive Distributed Lag (ARDL) econometric model was employed. Moreover, a Toda-Yamamoto Causality test was performed to identify the direction of the causality between economic growth and foreign direct investment. Findings from the study show that, both in the short run and long run, foreign direct investment has a positive and significant impact on economic growth. As an outcome of Toda-Yamamoto Causality test shows, there is a unidirectional causality running from economic growth to foreign direct investment. On the basis of the findings, recommendations are made for the government authorities to expand infrastructural facilities for enabling a free movement of the investors to the remote and marginalized areas to further expand investment activities that result in higher economic growth.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2281176
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2281176
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# input file: OAEF_A_2256124_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Dereje Haile
Author-X-Name-First: Dereje
Author-X-Name-Last: Haile
Author-Name: Abrham Seyoum
Author-X-Name-First: Abrham
Author-X-Name-Last: Seyoum
Author-Name: Alemu Azmeraw
Author-X-Name-First: Alemu
Author-X-Name-Last: Azmeraw
Title: Structural and stochastic poverty, shocks, and resilience capacity in rural Ethiopia
Abstract:
Whilst structurally poor households fall below the income and asset poverty line, stochastically poor households fall below the income poverty line but above the asset poverty line. This distinction suggests different challenges for the households in dealing with shocks and building the resilience to make a lasting escape from poverty. Accordingly, we examine the effect of shocks on structural and stochastic poverty, transitions, and the role of resilience as a mechanism for dealing with shocks and stochastic and structural poverty using the Ethiopian Socioeconomic Survey data. We find that recurrent and concurrent shocks adversely impact structural and stochastic poverty, whilst resilience capacities can curb poverty as shocks intensify. Access to irrigation, literacy, good vegetation cover, and non-farm economic activities help eradicate both structural and stochastic poverty. Rainfall variability, drought, conflict, input and output price volatility, and idiosyncratic shocks all drive both structural and stochastic poverty. However, the critical implication for policy is that reducing structural and stochastic poverty requires enhancing resilience capacity. This will require promoting symbiotic rural–urban links and rural revitalization to ensure a balanced mix of development. The findings suggest that two distinct sets of policies are required to protect against falling into poverty and sustain movements out of poverty, namely harmonizing cargo net and safety net policies.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2256124
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2256124
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# input file: OAEF_A_2242668_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Dorcas Gonese
Author-X-Name-First: Dorcas
Author-X-Name-Last: Gonese
Author-Name: Asrat Tsegaye
Author-X-Name-First: Asrat
Author-X-Name-Last: Tsegaye
Author-Name: Sibanesizwe Alwyn Khumalo
Author-X-Name-First: Sibanesizwe Alwyn
Author-X-Name-Last: Khumalo
Author-Name: Forget Mingiri Kapingura
Author-X-Name-First: Forget Mingiri
Author-X-Name-Last: Kapingura
Title: Trade openness and non-income poverty in Southern African Development Community (SADC) countries: A panel Autoregressive Distributive Lag (ARDL) analysis
Abstract:
The paper examines the effect of trade openness on poverty using the panel Autoregressive Distributive Lag (ARDL) estimation technique from 1980 to 2019 in Southern African Development Community (SADC) countries. The paper focuses on non-income poverty; in this paper, non-income poverty is measured by the human development index since this measure looks at poverty beyond just income. The paper assesses the direct and indirect effects by including the mediating variables in the non-income poverty trade openness model. The study results assist SADC governments and policymakers in addressing poverty reduction policies amid the trade openness era and identifying appropriate complementary policies for reducing poverty in SADC countries. The study’s findings indicate that trade openness reduces non-income poverty (NPOV) in SADC countries in the long run. Again, the empirical results suggest that trade openness reduces NPOV when economic growth and human capital development are high. Yet, trade openness worsens NPOV when income inequality increases. Surprisingly an inconsistent result indicates that a mediating variable of trade openness and financial development has a negative effect on NPOV in SADC countries. This calls for SADC governments and policymaking institutions to revamp the trade opening reform by making economic growth sustainable and inclusive, improving the education system’s quality, maintaining income distribution, and making pro-poor financial systems across the region.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2242668
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2242668
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# input file: OAEF_A_2251803_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Suparman Suparman
Author-X-Name-First: Suparman
Author-X-Name-Last: Suparman
Author-Name: Muzakir Muzakir
Author-X-Name-First: Muzakir
Author-X-Name-Last: Muzakir
Title: Regional inequality, human capital, unemployment, and economic growth in Indonesia: Panel regression approach
Abstract:
The purpose of this study is to estimate the relationship and influence between regional inequality variables, human capital, the open unemployment rate, and economic growth in Indonesia using panel data. The panel data consists of a combination of time series data from the 2010–2020 period, based on information from 32 provinces in Indonesia. The estimation model employed in this study is a panel regression model utilizing three methods: the common effect model (CEM), fixed effect model (FEM), and random effect model (REM). The findings of the study reveal a positive and significant effect of the ETI factor on the LOG (GRDP) factor. Additionally, the HDI variable exhibits a positive and significant impact on the LOG (GRDP) variable, while the UNR variable also shows a positive and significant effect on the LOG (GRDP) variable. Furthermore, the ETI variable is found to have a positive and significant influence on the UNR variable, while the HDI variable has a negative and significant impact on the UNR variable. Finally, the LOG (GRDP) variable demonstrates a positive and significant effect on the UNR variable.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2251803
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2251803
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# input file: OAEF_A_2290359_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Dong Quang Dang
Author-X-Name-First: Dong Quang
Author-X-Name-Last: Dang
Author-Name: Ioannis Korkos
Author-X-Name-First: Ioannis
Author-X-Name-Last: Korkos
Author-Name: Weiou Wu
Author-X-Name-First: Weiou
Author-X-Name-Last: Wu
Title: The effects of earnings management on information asymmetry and stock price synchronicity
Abstract:
In this study, we test whether earnings management has a positive impact on information asymmetry as well as whether earnings management has a negative impact on stock return synchronicity to investigate how discretionary accrual earnings management affects the imbalance of information and the co-movement of stock prices in Vietnam. We utilise the Pooled OLS (OLS), Random Effects (RE), Fixed Effects (FE), and System GMM models to evaluate our dataset collected from 356 non-financial companies listed on the Hochiminh City Stock Exchange (HOSE) spanning from 2012 to 2021. We find that in Vietnamese market earnings manipulations through accrual based falsify the market and cause information asymmetry leading to adverse effects on market liquidity and stock price synchronicity. Additionally, our findings exhibit greater co-movements between stock prices and earnings management at the larger firms with long incorporation history and are audited by Big Four Audit firms due to their credibility. These findings are particularly useful for foreign investors in making investment decisions as we found that their influences on earnings management in Vietnamese market is limited.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2290359
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2290359
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# input file: OAEF_A_2250692_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Somvang Phimmavong
Author-X-Name-First: Somvang
Author-X-Name-Last: Phimmavong
Author-Name: Rodney J Keenan
Author-X-Name-First: Rodney J
Author-X-Name-Last: Keenan
Author-Name: Viengvilay Phimmavong
Author-X-Name-First: Viengvilay
Author-X-Name-Last: Phimmavong
Author-Name: Jerry Maroulis
Author-X-Name-First: Jerry
Author-X-Name-Last: Maroulis
Author-Name: Tek Maraseni
Author-X-Name-First: Tek
Author-X-Name-Last: Maraseni
Title: Assessing the COVID-19 impacts on the coffee industry in Laos: An input–output modelling approach
Abstract:
This paper employs an input-output modelling approach to quantify the impact of decreases in coffee exports between 2019 and 2020 resulting from the implementation of various COVID-19 policies in Lao PDR. The analysis was undertaken at two levels in investigating the effects of these policies on (1) the regional economy in the main coffee producing region of Champasak Province in Southern Laos, and (2) the national economy of Lao PDR. Results were rather mixed at both the regional and national levels, for four reasons: (1) reduced production in other countries increased demand for green bean exports, resulting in a 1.8% (US$12 million) increase in the total value of gross outputs of the provincial economy; (2) reduced local demand and declines in processed coffee consumption and export in the food industry sector, resulted in a 1.5% decrease (US$10 million) in gross provincial production; (3) at the national level, more green bean exports increased the gross production output of the economy by 0.2% (US$24 million) while reduced processed coffee in food industry exports led to a reduction in gross production of 0.13% (US$19.6 million); and (4) the overall effects of COVID-19 restrictions are potentially positive for the coffee sector in Lao PDR in the short term but may have longer-term implications for the coffee sector due to shift away from processed coffee exports to green beans. Future policies to mitigate the impact of COVID-19 will be instrumental in stimulating investment and enhancing the benefits for the coffee sector in Laos.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2250692
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2250692
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# input file: OAEF_A_2223810_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Solomon Kebede
Author-X-Name-First: Solomon
Author-X-Name-Last: Kebede
Author-Name: Getachew Zerihun
Author-X-Name-First: Getachew
Author-X-Name-Last: Zerihun
Author-Name: Kuma Berhanu
Author-X-Name-First: Kuma
Author-X-Name-Last: Berhanu
Author-Name: Tora Abebe
Author-X-Name-First: Tora
Author-X-Name-Last: Abebe
Title: The role of foreign public debt on foreign exchange reserve in SSA countries: Does governance really matters?
Abstract:
The debt and reserve are playing a pivotal role in the growth and development of national economies. To examine the role of foreign public debt (FPD) on foreign exchange reserve (FER) the study used a panel data by considering 20 Sub-Saharan Africa (SSA) countries by interacting FPD with governance index across 15 years. The dynamic and static Generalized Method of Moments (GMM) models were utilized after checking the possible assumptions. The GMM model found that FPD, governance index, labour and human capital predicted the FER positively and significantly. While foreign debt augmented with governance predicted the variation of FER negatively and significantly. Therefore, Sub-Saharan Africa’s low performance of foreign debt in enhancing foreign exchange reserve partly attributed to bad governance. Finally, the government of SSA countries should improve their quality of governance to properly utilize FPD to enhance the stock of FER, among others.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2223810
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2223810
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# input file: OAEF_A_2250230_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Uyen Pham
Author-X-Name-First: Uyen
Author-X-Name-Last: Pham
Author-Name: Quy Trinh
Author-X-Name-First: Quy
Author-X-Name-Last: Trinh
Author-Name: Hoa Le
Author-X-Name-First: Hoa
Author-X-Name-Last: Le
Author-Name: Uyen Vo
Author-X-Name-First: Uyen
Author-X-Name-Last: Vo
Title: Impacts of regional trade agreements on international tourism demand: Empirical in Vietnam
Abstract:
This paper sheds some light on the impact of regional trade agreements (RTAs) on international tourism demand in Vietnam. They are using gravity model with data from 29 countries with the highest number of tourists to Vietnam from 2007–2019. The empirical findings indicate a relevant degree of heterogeneity in the results. While the the free trade agreement enhances the international tourism demand in Vietnam, ASEAN community it. These results emphasize the importance of solid integration in promoting Vietnam’s tourism flows.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2250230
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2250230
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# input file: OAEF_A_2246218_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Conrad Murendo
Author-X-Name-First: Conrad
Author-X-Name-Last: Murendo
Author-Name: Givious Sisito
Author-X-Name-First: Givious
Author-X-Name-Last: Sisito
Author-Name: Grown Chirongwe
Author-X-Name-First: Grown
Author-X-Name-Last: Chirongwe
Title: Resilience capacity, food consumption and socio-economic status in Zimbabwe
Abstract:
This article examined the role of resilience and resilience pillars on household food consumption differentiated by socio-economic status. The cross-sectional data of 2228 rural households came from Zimbabwe Poverty, Income, Consumption and Expenditure Survey and principal component analysis was used for computing resilience capacity. The study employed dietary diversity and food consumption as outcome variables. Negative binomial regression and linear regression are used for analysis. Resilience capacity improved household food consumption across all socio-economic classes, and effects are more pronounced among poorer households. The resilience pillars—assets (AST), access to basic services and adaptive capacity (AC)—improved household food consumption, while social safety nets (SSN) improved food consumption among the poor only. Public and private sectors and policy makers should consider promoting interventions that increase AC, AST and basic services across all socio-economic classes of households with special focus on poor households and low rainfall areas. SSN should continue to be efficiently targeted to poorer households.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2246218
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2246218
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# input file: OAEF_A_2230726_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Marvellous Ngundu
Author-X-Name-First: Marvellous
Author-X-Name-Last: Ngundu
Author-Name: Shonisani Mphinyana-Chauke
Author-X-Name-First: Shonisani
Author-X-Name-Last: Mphinyana-Chauke
Author-Name: Reon Matemane
Author-X-Name-First: Reon
Author-X-Name-Last: Matemane
Author-Name: Harold Ngalawa
Author-X-Name-First: Harold
Author-X-Name-Last: Ngalawa
Title: The effects of shock in strikes on non-agriculture employment, output, and inflation in South Africa: A structural analysis of Bayesian VAR models
Abstract:
This study empirically addresses claims about the effects of strikes on output growth, inflation, and non-agricultural employment in South Africa using a structural analysis of Bayesian VAR models with a Normal inverted Wishart prior for the period 1982–2018. We find empirical support for a strikes shock’s transitory negative impact on the country’s output growth. In any case, this was not contested. Our findings, however, contradict the claims that strikes ensue inflation and unemployment in South Africa. Precisely, the findings show that a strikes shock has a positive transient impact on non-agriculture employment but has no effect on inflation. The inflation finding suggests that strikes do not cause a wage-price spiral because the workers’ bargaining power is weak to influence a significant wage increase settlement that can trigger prices. The employment finding implies a negative net change in the number of strikers after a settlement rather than an absolute increase in non-agriculture employment. These findings reveal that strikers resume work with unfulfilled wage increase demands. Hence, the burden borne by companies as a result of strikes is mainly due to lost production rather than a substantial increase in the wage bill.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2230726
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2230726
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# input file: OAEF_A_2258696_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Muhammad Yousaf
Author-X-Name-First: Muhammad
Author-X-Name-Last: Yousaf
Author-Name: Bruce Dehning
Author-X-Name-First: Bruce
Author-X-Name-Last: Dehning
Title: The effects of sales surprise on inventory turnover: An empirical study
Abstract:
Sales surprise (SS) is a significant factor in a firm’s inventory turnover (ITO). In order to estimate SS, it is necessary to select an appropriate approach of sales forecasting. The current study’s main purpose is to examine the effects of SS on ITO. The data was gained from the Albertina database from 2017 to 2021, for two sectors: manufacturing and construction. The Czech firms’ panel data was used to estimate sales forecasts by four different methods: (i) sales linear forecast (SLF), (ii) sales change (SCH), (iii) sales growth (SG), and (iv) sales forecast random walk (SRW). The two most accurate methods were chosen to calculate SS: sales surprise linear forecast (SSLF) and sales surprise random walk (SSRW). After estimating four different regression models by employing the fixed-effect panel model, the results show that SSRW is positively correlated with ITO. The sales surprise linear forecast (SSLF) is found to be insignificant. Capital intensity (CI) has a positive impact on ITO; on the other hand, the relationship between gross margin (GMN) and ITO is negative. This is the first research in which SS is measured by four different techniques, and then the two most accurate techniques are used to examine the effects of SS on ITO. Therefore, the findings of the current research will be fruitful for managers, academics, policymakers, and directors of firms to estimate SS using different techniques and to understand the effects of SS on ITO. Hence, the research will be useful to the firms’ management in many contexts.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2258696
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2258696
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# input file: OAEF_A_2269773_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Dwi Ratmono
Author-X-Name-First: Dwi
Author-X-Name-Last: Ratmono
Author-Name: Frendy
Author-X-Name-First:
Author-X-Name-Last: Frendy
Author-Name: Zuhrohtun Zuhrohtun
Author-X-Name-First: Zuhrohtun
Author-X-Name-Last: Zuhrohtun
Title: Digitalization in management accounting systems for urban SMEs in a developing country: A mediation model analysis
Abstract:
This study aims to examine the role of digitalization in management accounting systems (DIMAS) in increasing the effectiveness of management decision-making in urban small and medium enterprises (SMEs) in a developing economy. This study also investigates the mediating role of information quality (accuracy and timeliness) and cost reduction in the relationship between DIMAS and management decision-making. This research employed primary data collected from questionnaire responses from 536 urban SMEs that implemented digitalization in a developing economy setting. The results show that DIMAS has a positive effect on the accuracy and timeliness of accounting information and cost reduction, which in turn contribute to better decision-making. The results of the mediation test reveal that the accuracy and timeliness of accounting information and cost reduction mediate the relationship between DIMAS and management decision-making. The findings of this study provide empirical evidence on the importance of digitalization for urban SMEs operating in a developing country, enabling them to survive and achieve a competitive advantage in an era of high uncertainty due to the industry 4.0 and the COVID-19 pandemic.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2269773
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2269773
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# input file: OAEF_A_2282869_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Suleiman O. Mamman
Author-X-Name-First: Suleiman O.
Author-X-Name-Last: Mamman
Author-Name: Kazi Sohag
Author-X-Name-First: Kazi
Author-X-Name-Last: Sohag
Author-Name: Attahir B. Abubakar
Author-X-Name-First: Attahir B.
Author-X-Name-Last: Abubakar
Title: Climate change and inclusive growth in Africa
Abstract:
Africa’s pursuit of inclusive and sustainable economic growth is impeded by many challenges, including climate change, whose effect is most apparent in the continent’s tropical regions. To this end, this study investigates the impact of climate change on achieving pro-poor economic growth in Africa. Predicated on poverty-inequality-climate analysis, the Augmented Mean Group (AMG) estimator is used to analyse data from 1996 to 2020 covering 51 African countries. The results reveal that climate change significantly impedes inclusive growth. Furthermore, evidence of a long-lasting negative effect of climate change on inclusive growth, which could be attributed to a lack of coping mechanisms among the poor and vulnerable groups, is found. Finally, the findings show a marginal impact of institutional quality and government spending on inclusive growth in the face of climate change. The study recommends more climate mitigation efforts and enhanced adaptation mechanisms, especially for the poor, as they are most vulnerable to the adverse effects of climate change.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2282869
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2282869
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# input file: OAEF_A_2286755_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Kinda Dooba
Author-X-Name-First: Kinda
Author-X-Name-Last: Dooba
Author-Name: Sulaiman Mouselli
Author-X-Name-First: Sulaiman
Author-X-Name-Last: Mouselli
Title: Portfolio Optimization at Damascus Securities Exchange: A Fractal Analysis Approach
Abstract:
This paper adopts the fractal analysis approach, specifically a Hurst exponent index in portfolio optimization at the Damascus Securities Exchange (DSE). We construct three portfolios based on the Hurst index from stocks listed on the DSE during the period between 2019 and 2021 and find that these portfolios outperform the market portfolio in terms of returns, Sharpe ratio, Treynor ratio, and alpha. In addition, selecting stocks with high Hurst coefficients further enhances the performance of the portfolio. Importantly, even in out-of-sample tests, the three fractal portfolios continue to outperform the market portfolio. Furthermore, we find that fractal portfolios outperform portfolios formed using the momentum and size strategies demonstrating the superiority of the fractal analysis approach. We conclude that the incorporation of fractal analysis into the portfolio optimization problem allows the creation of a more efficient portfolio. Hence, we recommend that investors consider the Hurst exponent index in their portfolio optimization for better investment decisions.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2286755
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2286755
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# input file: OAEF_A_2233778_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Bharat Ram Dhungana
Author-X-Name-First: Bharat Ram
Author-X-Name-Last: Dhungana
Author-Name: Ramkrishna Chapagain
Author-X-Name-First: Ramkrishna
Author-X-Name-Last: Chapagain
Author-Name: Arvind Ashta
Author-X-Name-First: Arvind
Author-X-Name-Last: Ashta
Title: Alternative strategies of for-profit, not-for-profit and state-owned Nepalese microfinance institutions for poverty alleviation and women empowerment
Abstract:
Microfinance is the provision of financial services to disadvantaged people and the financially excluded, often with a social mission of poverty alleviation and women empowerment. There are many different forms of microfinance institutions (MFIs): for-profit, not-for-profit and state-owned, all of which use different strategies to improve socio-economic status of their clients. The objective of this paper is to examine the alternative strategies of MFIs in Nepal. Primary data was collected through structured questionnaires from 240 women clients of three MFIs. Parametric and non-parametric tests, and exploratory factor analysis have been applied for analysis. The results show that MFIs have different segmentation strategies for their clients, focusing on income levels, total consumption and the number of children. Surprisingly, it was found that the private MFI was reaching poorer people than other MFIs. Our results show that MFIs look at total consumption expenditure rather than total income. Private MFIs target different activities for giving loans compared to government-owned MFIs. The communication strategy of the MFIs is different since the clients of government-owned MFI are better educated and are more likely to read the newspaper. The exploratory factor analysis shows that respondents perceived poverty alleviation and empowerment. The most influencing factors are related to an increase in consumption expenditure, followed by an increase in capital expenditure.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2233778
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2233778
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# input file: OAEF_A_2259738_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Lord Mensah
Author-X-Name-First: Lord
Author-X-Name-Last: Mensah
Title: Intra-Africa regional trade comovements and shock transmission: A baseline for AfCFTA
Abstract:
This paper examines the trade co-movements and shock spillover across four African geographic regions. Specifically, we were motivated by the very low intra-trade activities in Africa, despite increased regionalism to study the possibility of a country’s trade shock being transferred to its trading partners on the continent. Knowing the trade connectedness and shock transmission among African countries will serve as a baseline for the AfCFTA implementation. In our analysis, we considered the four African regional quarterly data between 2005 and 2021 from UNCTAD. The continent was divided into four regions namely, Western, Middle, Eastern, and Southern Africa. We divided the time into pre- and post-AfCFTA periods. The Dynamic Conditional Correlation (DCC) and the Diebold and Yilmaz (2012) models were adopted to determine the trade co-movement and the shock spillover respectively. The results show different trade co-movement and trade shock spillovers among the regions at different times. The trade co-movement seems to be dominant between the Middle and Southern African regions. Further analysis shows the presence of trade shock transmission across all four regions. The Western African region exhibits a sign of the biggest trade shock receiver from the other regions, while the Southern African regions turn out to be the largest contributor of trade shocks to the other regions both in the post and pre- AfCFTA period. The study contributes by sending a signal to AfCFTA implementers that trading on the African continents behaves differently among the various geographic regions. It also provides early warning signal for AfCFTA policy implementation.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2259738
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2259738
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# input file: OAEF_A_2289321_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Emmanuel Mensah
Author-X-Name-First: Emmanuel
Author-X-Name-Last: Mensah
Author-Name: Joseph Kwadwo Tuffour
Author-X-Name-First: Joseph Kwadwo
Author-X-Name-Last: Tuffour
Author-Name: Mamdouh Abdulaziz Saleh Al-Faryan
Author-X-Name-First: Mamdouh Abdulaziz Saleh
Author-X-Name-Last: Al-Faryan
Title: Does macroeconomic misery index matter in the micro firm-level earnings Management – performance nexus? Evidence from dynamic Panel threshold regression
Abstract:
Earnings management (EM) and its association with firm performance has been a subject of research interest for decades. This study re-examines the EM—firm performance nexus in a novel way using a nonlinear framework and introducing macro-economic misery index (MI) as a possible threshold variable in the analysis. 52 sampled non-financial listed firms are drawn from nine emerging sub-Saharan African countries spanning a period of 2007–2019. The study employs the dynamic panel threshold estimation approach in analyzing its models. By using MI as a threshold variable, the results show new findings of the performance effect of EM contingent on a uniquely identified MI threshold of 22.51. The study finds that the performance-enhancing effect of EM is realized only when a firm’s MI is below the identified threshold. Above this threshold, the effect of EM on performance is negligible or sometimes adverse. The estimated nonlinear effect of EM on firm performance and the threshold of MI can be benchmarks for Africa and other emerging countries. The findings suggest important implications for national governments in adopting policies that help to minimise the economic misery of the citizenry, as they would generally inure to the greater good of businesses and their varying stakeholders.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2289321
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2289321
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# input file: OAEF_A_2245309_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Seyoum Teffera Mengesha
Author-X-Name-First: Seyoum Teffera
Author-X-Name-Last: Mengesha
Author-Name: Eva Berde
Author-X-Name-First: Eva
Author-X-Name-Last: Berde
Title: Financial development and economic growth in Ethiopia: Is there a causal link?
Abstract:
The relationship between financial development and economic growth has been widely debated in the economics literature, but the results have been inconsistent and vary between the short and long run. In this study, we investigate the causal relationship between financial development and economic growth in Ethiopia using annual data from 1980 to 2021. We employ the Toda-Yamamoto causality test and the nonlinear autoregressive distributed lag (NARDL) modeling framework to analyze the data. Our results show that none of the variables are stationary at the level, but after applying first differences, all variables become stationary. Using the Toda-Yamamoto causality test, we find no causality running from financial development to economic growth, but there is evidence of reverse causality from economic growth to financial development. Furthermore, the NARDL model results suggest that economic growth drives financial development, and the relationship between financial development and economic growth in Ethiopia is nonlinear and asymmetric. Specifically, neither positive nor negative shocks to economic growth affect financial development in the short run, but both affect it in the long run and in joint short run and long run effects. We conclude from our study that financial development may not guarantee economic growth without building better institutions and following sound and stable fiscal policies. Consequently, constructing an effective economic growth strategy that maintains financial development is crucial. Our findings have significant implications for policymakers, academics, and investors and underscore the importance of informed decision-making based on a thorough understanding of the relationship between financial development and economic growth.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2245309
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2245309
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# input file: OAEF_A_2265659_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Ahmad Bash
Author-X-Name-First: Ahmad
Author-X-Name-Last: Bash
Author-Name: Abdullah M. Al-Awadhi
Author-X-Name-First: Abdullah M.
Author-X-Name-Last: Al-Awadhi
Title: Presidential elections and stock market outcomes: An event-study on the effect of Turkey's Presidential Elections on Borsa Istanbul
Abstract:
This paper uses the event-study methodology to investigate the effect of the Presidential Turkish elections in 2023 on Borsa Istanbul returns. The data used in this study cover the period from 13 June 2022, through 7 June 2023. We employ a market model to study the effect of two election rounds on the stock market’s cumulative abnormal returns (CARs). Our results show that the impact of the first round of the elections on the stock market is mixed, as it has a positive effect on CARs for event windows [−2, 2] and a negative impact on CARs for event windows [−6, 6] and [−7, 7]. However, following round 2 of the elections, results show that re-elections have a significant positive impact on CARs, with average CARs ranging from 678 basis point to 1019 basis point, indicating that uncertainty in the market has vanished and perhaps investors are optimistic about the future of Erdogan reign and his expected economic policies. Results also show that sectors’ returns reacted differently to the first round of the elections and round 2 of the re-elections. For example, the event has a significant negative effect on most of the sectors’ returns during the first presidential elections. In contrast, it has a significant positive impact on most of the sectors’ returns during round 2 re-elections.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2265659
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2265659
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# input file: OAEF_A_2246005_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Nozuko Lawana
Author-X-Name-First: Nozuko
Author-X-Name-Last: Lawana
Author-Name: Forget Mingiri Kapingura
Author-X-Name-First: Forget Mingiri
Author-X-Name-Last: Kapingura
Author-Name: Asrat Tsegaye
Author-X-Name-First: Asrat
Author-X-Name-Last: Tsegaye
Title: The impact of non-communicable diseases on employment status in South Africa
Abstract:
The study examines the impact of non-communicable diseases (NCDs) and employment status in South Africa utilising the National Income Dynamics Study longitudinal data from 2008 to 2017. The Generalized Linear Latent and Mixed Methods (GLLAMM) were employed to fit the multinomial logit model with correlated random intercept over panel multinomial logit without random effects to control for unobserved heterogeneity between individuals or intercepts. The empirical results indicate that the significant impact of NCDs on employment status differs by gender. NCDs were found to be most threatening to women employment status. The odds of women being economically inactive in the labour market are highly associated with NCDs. Further, having multiple NCDs also significantly increases the women’s probability of being economically inactive population relative to being employed. The results highlight the necessity for undertaking a massive awareness campaign regarding the prevention and control of NCDs, especially among women.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2246005
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2246005
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# input file: OAEF_A_2242662_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Kolotioloman Soro
Author-X-Name-First: Kolotioloman
Author-X-Name-Last: Soro
Author-Name: Melain Modeste Senou
Author-X-Name-First: Melain Modeste
Author-X-Name-Last: Senou
Title: Digital financial inclusion and income inequality in WAEMU: What causality for what heterogeneity?
Abstract:
In developing countries, economic inequality is attracting considerable attention. Many factors including financial exclusion are key in explaining income gap in developing countries. This paper examines the effect of access to financial services through digital technologies on income inequality. Using data from the World Development Indicator (WDI), the Central Bank of West African States (BCEAO) and the Standardized World Income Inequality Database (SWIID), we estimated a pooled means group estimation (PMGE) and a dynamic fixed effect (DFE) as a robustness test. The results indicate that digital financial inclusion leads to a decrease in income inequality. In the long run, there is a negative and significant effect of digital financial inclusion on inequality. The short run results evidenced more of the heterogeneity effect of digital financial inclusion in WAEMU countries due to the diversity, inconclusiveness, and counterintuitive results of the effect of DFI on inequality.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 06
X-DOI: 10.1080/23322039.2023.2242662
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2242662
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# input file: OAEF_A_2253076_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Saib Fakhar
Author-X-Name-First: Saib
Author-X-Name-Last: Fakhar
Author-Name: Fateh Mohd Khan
Author-X-Name-First: Fateh
Author-X-Name-Last: Mohd Khan
Author-Name: Mosab I. Tabash
Author-X-Name-First: Mosab I.
Author-X-Name-Last: Tabash
Author-Name: Gayas Ahmad
Author-X-Name-First: Gayas
Author-X-Name-Last: Ahmad
Author-Name: Javaid Akhter
Author-X-Name-First: Javaid
Author-X-Name-Last: Akhter
Author-Name: Mujeeb Saif Mohsen Al-Absy
Author-X-Name-First: Mujeeb Saif Mohsen
Author-X-Name-Last: Al-Absy
Title: Financial distress in the banking industry: A bibliometric synthesis and exploration
Abstract:
Recent financial upheavals and economic downturns have triggered and sped up the research on financial distress in general and in the Banking industry in specific. The current review attempts to gauge and map performance trends and intellectual knowledge structure of the financial distress research in the banking industry. A hybrid approach was adopted to inventorize, analyse and evaluate the financial distress literature pertaining to the banking industry (1982–2022); the authors apply bibliometric analysis to identify critical financial distress literature articles and journals, followed by the identification of central financial distress literature research themes through co-citation analysis. We found that financial distress researchers have published 11 papers each year since 1982, and the number of citations received by the research domain has significantly risen, adding more importance to this research domain. Further, the analysis helps delineate four thematic knowledge clusters throwing light on the nomological network of the field and giving a bird’s eye-view of the intellectual structure of the field. Since this review utilised data from a single database, i.e. Scopus, any shortcomings associated with the database would undoubtedly impact the results.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2253076
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2253076
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# input file: OAEF_A_2276560_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Vera Oktari
Author-X-Name-First: Vera
Author-X-Name-Last: Oktari
Author-Name: Wiwiek Dianawati
Author-X-Name-First: Wiwiek
Author-X-Name-Last: Dianawati
Title: Dividend policy, CEO Narcissism, and its influence on companies in Indonesia: A Behavioral Theory of the Firm approach
Abstract:
In the concept put forward by the Behavioral Theory of the Firm (BTF), the policies implemented must provide added value to the company. In their preparation, policies will be heavily influenced by decision-makers behavior. This study was conducted to see the company’s value dividend policy and the impact of CEO Narcissism in that policy. This empirical research involved companies indexed by Kompas 100 from 2011 to 2019 and was tested using Moderated Regression Analysis (MRA). This study confirms that dividend policy is a signal for increasing firm value, so this policy deserves further attention from management. CEO Narcissism drives the increased value generated by the dividend policy and acts as pure moderation. This result is also strengthened by the robustness test conducted on Tobin’s Q to measure firm value. This research is the first study to examine the moderating effect of CEO Narcissism on dividend policy and its impact on firm value. Through the findings of this research, it is hoped that this study will contribute to the Behavioral Theory of the Firm and become a guide for companies to pay attention to the dividend policy formulation process so that it provides value, both for shareholders and for the company.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2276560
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2276560
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# input file: OAEF_A_2258680_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Ebenezer Gyan Yirenkyi
Author-X-Name-First: Ebenezer Gyan
Author-X-Name-Last: Yirenkyi
Author-Name: Godwin Debrah
Author-X-Name-First: Godwin
Author-X-Name-Last: Debrah
Author-Name: Kwami Adanu
Author-X-Name-First: Kwami
Author-X-Name-Last: Adanu
Author-Name: Edwin Atitsogbui
Author-X-Name-First: Edwin
Author-X-Name-Last: Atitsogbui
Title: Education, skills, and duration of unemployment in Ghana
Abstract:
The unmatched growth in available jobs, given the rising youth population, is a major concern for policymakers in sub-Saharan African countries (SSAs), particularly Ghana. The weakness in the link between education and the needed skill by the industry, has been labelled as the cause of rising unemployment and prolonged unemployment duration in Ghana. This paper presents new evidence on the effect of education and skill—language, computer and numeracy skills—on unemployment duration in Ghana using the Skill Towards Employment and Productivity (STEP) skill dataset collected by the World Bank in 2013. The study employs Cox’s Proportional Hazard Model to examine the effect of education, language, computer and numeracy skill on unemployment duration. We found that education reduces the duration of unemployment in general. However, the effect is higher for exiting salaried work compared to self-employed jobs. Proficiency in computer, English or Ewe reduces the duration of unemployment. In particular, we observe that individuals highly skilled in computer use are 34.4% more likely to exit unemployment compared to those without computer skills. Interestingly, the effect of computer skills is through channels other than formal education.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2258680
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2258680
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# input file: OAEF_A_2287923_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Egi Arvian Firmansyah
Author-X-Name-First: Egi Arvian
Author-X-Name-Last: Firmansyah
Author-Name: Umar Habibu Umar
Author-X-Name-First: Umar Habibu
Author-X-Name-Last: Umar
Author-Name: Rabiu Saminu Jibril
Author-X-Name-First: Rabiu Saminu
Author-X-Name-Last: Jibril
Title: Investigating the effect of ESG disclosure on firm performance: The case of Saudi Arabian listed firms
Abstract:
This study investigates how environmental, social, and governance (ESG) disclosures influence the performance of listed Saudi Arabian companies. The study used unbalanced panel data obtained from the Bloomberg database (2010–2020). The results show that ESG has significantly reduced TOBINSQ but has an insignificant association with return on equity (ROE). Concerning the ESG components, environmental disclosure has an insignificant negative association with TOBINSQ but is significantly and positively related to ROE. Social disclosure has a significantly reduced TOBINSQ but is insignificantly and negatively associated with ROE. Meanwhile, governance disclosure significantly improved and reduced TOBINSQ and ROE, respectively. Besides, the findings offer helpful implications for regulatory bodies and policymakers toward providing practical guidelines and policies that ensure the implementation of ESG activities maximizes shareholders’ wealth.
Journal: Cogent Economics & Finance
Issue: 2
Volume: 11
Year: 2023
Month: 10
X-DOI: 10.1080/23322039.2023.2287923
File-URL: http://hdl.handle.net/10.1080/23322039.2023.2287923
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Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2287923