Finance Banking

The study sought to investigate the key factors that influence inflation dynamics in Ghana. The study found that inflation in Ghana is determined primarily by inflation persistence, reflecting price expectations, domestic food prices, petroleum prices and exchange rate. The other determinants of inflation used in this study such as money supply and world food prices weakly affect domestic inflation. The study also recommended that anchoring inflation expectations and managing exchange rate misalignment remains key policy strategies in any effort and attempt by the monetary authorities to achieving and maintaining price stability in the country coupled with moderating the negative effects of other inflation determining factors.

We investigate the impact of risk management committee attributes on firm performance for a sample of 37 finance companies listed on the Malaysian stock exchange covering period from 2007 financial year to 2011. The result indicates that a committee composed of majority independent directors positively enhances firm market valuation and negatively affects accounting returns. Independent committee chair was found to positively enhance accounting returns while prior executive experience of directors enhances both accounting returns and market valuation of the companies. Lastly, presence of executive on RMC shows a significant negative relationship with ROA. The result supports agency theory which suggests that independent directors are in a better position to monitor the executive and protect the interest of the various stakeholders. In addition, the result suggests that regulatory agencies should consider recommending finance companies to have directors with prior executive experienc...

This work investigated the impact of the bank's liquidity management in the profitability of the bank, considering the fact that different research has found that their relationship is negative in some other positive research. The relationship between these two components depends on the variables used to measure them. In this study are included commercial banks operating in southern and central Europe for the period 2009-2017. Following the study, it was possible to determine which is the optimal level of liquidity that gives us the highest level of profitability, and the results showed that not necessarily the high-level liquidity banks can achieve high-level profitability. The data had non-normal distribution, so as a technique of analysis non-parametric tests were used.

The study provides further empirical insight to the behavior of stocks in four selected sectors of the Nigerian economy using the Runs and GARCH techniques to analyze monthly stock data for the period January 2006 to December, 2011. The results of the Runs Test do not support random movements of stocks in all the sectors, indicating homoscedasticity. The GARCH estimated model also shows volatility clustering in all the sectors except the Agricultural sector, which implies weak form inefficiency of the Nigerian capital market.

This paper investigate whether macroeconomics indicators influences stock price behavior in Nigerian stock market, using an annual time series data spanning from 1985-2015. The study employed some econometric tools such as Augmented Dicker Fuller (ADF) Unit Root test, Johansen’s co integration test, Vector Error Correction Model (VECM) to analyze the variables of interest. The study found out that Money Supply (MS) has an inverse but statistically significant  influence on stock prices in Nigerian stock market also Treasury Bill Rate (TBR) has an inverse and statistically insignificant influence on stock market prices. While on the other hand, Market Capitalization (MCAP) has a positive and statistically significant influence on stock prices while Exchange Rate (EXR) has positive but statistically insignificant relationship with stock prices in the Nigerian Stock Market. In view of the above, the study recommends amongst others that monetary authorities should try as much as possibl...

E-banking implies provision of banking products and services through electronic delivery channels. The study was designed to investigate ATM services in Bangladesh, its impact on social life and security of ATM accounts. The main objective of present study is to find out the practice, impact and security status of ATM booths in Bangladesh. The investigation was concentrated in various divisions, districts and towns in Bangladesh. The sample consisted of 120 bankers and bank customers, were selected purposively from various territory. Out of 120 respondents, 38 bankers and 72 bank customers who use ATM card have given their opinion on many issues of ATM accounts. Data was collected using questionnaire administrated by the researcher. Data were processed through micro computer using Statistical Package for Social Science (SPSS). From the analysis of data the following major findings were obtained i. ATM card holders in Bangladesh feel insecurity from hijacker to withdraw and deposit m...

The aim of this study is to choose and estimate the effect of foreign investments in engine for economic growth and hence poverty reduction in the developing countries. The study concluded that there is a weak effect of non-moral of foreign investments on decreasing unemployment in the developing countries, regardless of the existence or absence of development. In addition, the study concluded with a negative effect for the total local production on unemployment and poverty. Finally, we concluded that this may be a result of profit repatriation of foreign firms, crowding out of domestic investment because of FDI or low level of human capital in the country.Consequently, the study recommended to despite how desirable the inflow of FDI is to developing countries, care should be taken when attracting foreign investments and they should be directed to the productive sectors of the economy. Also government should create a competitive environment so as to maximize the benefits of FDI beca...

Purpose—The purpose of this paper is to examine the relationship between accounting information and share price. In order to achieve this, a model that includes specific accounting ratios (earning per share, book value per share, capital employed per share and operating cash flow per share) and shares a price is developed. Design/methodology/approach—The data were collected from the companies listed in KSE-30 index. The time frame spans from 2006 to 2013 and OLS regression models were used to examine the relationshipsFindings—The resulting evidence suggest that accounting information parameters have significant influence on share price and they have joint explanatory power in determining stock prices. This research finds the consistent results with pervious empirical researches.Originality/value—The present study adds to the existing literature by examining the impact of accounting information on share prices within the context of an emerging capital market such as Pakistan Stock Ex...

This study examines the reaction of stock returns to acquisition news. A data of 51 observations of acquiring companies with publicly traded shares on the London Stock Exchange (FTSE100) is used over a period, from July 2012 to May 2013 with an estimation period [-100, -10] and test period [-5, +5]. The market model is applied here in order to predict future stock returns and the use of the simple regression to get the parameters of the regression equation. With this a test statistics obtained on average, is significantly positive and greater than the critical value. Therefore, the event of acquisition does appear to be related significantly to the abnormal returns and the null hypothesis being rejected.

We examine macro-economic determinants of stock market development in Kenya for the period 2000 to 2009, using quarterly secondary data. The hypothesis on the existence of a co-integrated relationship between stock market development and macro-economic determinants is tested using Johansen-Julius co-integration technique. While an error correction model is used in estimating the relationship between macroeconomic variables, on the one hand, and stock market development on the other. The results indicate that macro-economic factors such as income level, banking sector development and stock market liquidity are important determinants of the development of the Nairobi Stock market. The results also show that macro-economic stability is not a significant predictor of the development of the securities market.

Observations of significant differences in access to credit, loan terms and the volume of lending between demographically distinct groups of borrowers are often interpreted as evidence of potential ethnic, racial or gender discrimination by lenders. The competitive structure of credit markets and the accuracy of measuring individual credit risk render extant models of lending discrimination based on assumptions of credit market inefficiencies, such as adverse selection, increasingly implausible. In stark contrast to existing models of demographic discrimination, we consider a model of mortgage lending in an economy having complete markets, common knowledge and arbitrage-free pricing. Market equilibria in this classical environment may exhibit discrimination even when borrowers, who are distinguished only by observable demographic traits, share an identical measure of individual credit risk. Relatively costlier loan terms, a higher frequency of loan denials, or a complete rationing o...

Corporate governance is the system by which organizations are directed, monitored and controlled. It is an oversight mechanism to ensure the management team efficiently allocates the organizational resources, so as to protect the interest of shareholders and stakeholders. There is a need for good corporate governance practice to stabilize the performance of financial institutions. This study investigated the influence of corporate governance in banking performance. Panel data analysis has been conducted for the top nine public and private commercial banks operating in Bangladesh for a period of 2009 to 2017. Board size, structure of internal audit committee and capital adequacy ratio were being taken as independent variables to measure the effects of corporate governance whereas return on asset, return on equity and earnings per share were being taken as dimensions for measuring bank performance. Correlation and regression analysis techniques were being used to examine the relations...

This paper examines work as guidance in formulating the relationship between Israeli and Palestinian Economy, in the context of fulfilling the requirements of Palestinian state as there are two scenarios related to trade relations between Palestinians & Israeli Economy, if it’s custom union or free trade area, the shape of this relation Consist a framework for Economic Policies for Palestinian state. By reason of the findings of Michael Porter in 1998, this research focused on the determinants of competitive advantage as written by Michael Porter is done. In determining if the Palestinian economy has improved through the years, the parameters used in 1998 were adopted. The researcher adopted the determinants used by Porter in his study of the Palestinian Economy in 1998. Using these as parameters, the programs under the different areas in the PIF was assessed to come up with a paradigm to establish a competitive advantage for the State of Palestine based on the different areas of in...

The purpose of this study is to investigate the association between financial inclusion and levels of profitability and liquidity of Egyptian banks. Two hypotheses are tested; the first is about whether financial inclusion has an impact on the Egyptian banks’ profitability, and the second is about whether financial inclusion has an impact on the Egyptian banks’ liquidity. Data of Egyptian banks for the period from 2012 to September 2018 are used to test the hypotheses of the study. Financial inclusion is measured by the access and usage measures derived from the G20 summit “Global partnership for Financial Inclusion”, profitability and liquidity are measured by multiple agreed-upon measures. The study which employed various regression models reveals that 53% of the variance in the Egyptian banks’ profitability can be explained by the variance in the financial inclusion measures, and that the various measures of banks’ liquidity are significantly affected by financial inclusion.

This study examined the relationship between interest rate liberalization and credit to private sector in Nigeria, using annual time series data spanning from 1986 to 2016. The study employed ARDL (p,q) model as suggested by Pesaran and Shin (1997) to analyzed the data. The study commenced with the Augmented Dickey Fuller (ADF) unit root test and the results reveal that all the variables were integrated at order I (1). While the result of the estimated coefficient reveals that interest rate with the first lag was positive and statistically insignificant. And that a percent increase will lead to a 0.087 percent increase in the dependent variable (interest rate). In the same vain Inflation rate has a negative influence on interest rate and was not statistically significant. A percentage change in inflation will lead to 0.08 percent decrease in interest rate.The coefficient of determination (R2 = 0.78) of the estimated model ARDL(1,2,4,1) shows that about 78 percent of the systematic v...