Financial Economics

"It is important to establish the “Proto-dynamo” as concept that represents an entirely new paradigm of economic infrastructure. The concept alludes to the “dynamo” which is a machine that uses opposing magnetic forces to efficiently produce/convert energy. The principle behind the dynamo is to use opposing forces within the same machine to get a consolidated output of energy. If the new paradigm of “protodynamism” can be represented by an electrical generator, the old paradigm of Keynesian theory can be represented by a meat grinder in which ten pounds of product goes in one side, and six ounces of tasteless sausage comes out the funnel possibly tainted with formaldehyde or some random pesticide that is unpronounceable. "

Megaprojects are large, they are constantly growing ever larger, and more and more are being built in what has been called the biggest investment boom in history. This chapter serves as an introduction to megaprojects, and to The Oxford Handbook of Megaproject Management. First, megaprojects are defined and the size of the global megaprojects business is estimated. Second, drivers of the megaproject boom are identified, including monumentalism and the technological sublime. Third, ten things you must know about megaprojects are detailed, from their tendency to suffer from uniqueness bias to their overexposure to black-swan events. Fourth, the "iron law of megaprojects" is identified as a main challenge to megaproject management: "Over budget, over time, under benefits, over and over again." Finally, the main structure of the Handbook is set out as covering the what, the why, and the how of megaproject management, in terms of the challenges, causes, and cures that students of megaprojects must decipher to better understand and better manage megaprojects.

Corporate finance and project finance are both used by corporations for the financing of projects. They both draws on debt and equity as source of finance. While corporate finance favors higher percentage of equity project finance favors higher percentage of debt. Corporate finance which requires lower capital cost is usually used for interrelated projects of different degrees as such the performance of the corporation as  well as overall balance sheet is the basis for credit evaluation. Project finance on the other hand is focused on a single particular project that is to be constructed or in few instances the expansion of an existing project, the financing is based on the projected future revenue of the project, cost of capital is higher and the  outlay is usually very high. While risk is less in project finance as it's diversified, risk is higher in corporate finance as it's not diversified.

TOPIC:
REASONS ACCOUNTING FOR THE INCREASE IN THE PRODUCTION OF READY TO WEAR GARMENTS IN GHANA

ABSTRACT
This paper examined the role of perception, personality and price on consumer preference for “ready to wear” garments as well as their assessment of locally made wears. The study was however restricted to working class consumer in Accra metropolis. Data were collected through the use of questionnaire and analysed using t- statistics. It was discovered that most consumer attributed their inability to patronise locally made garments to their social status, low quality and durability of the wears.  Also, the prices of the wears have great influence on them.  It was, therefore, recommended that local manufacturers should improve on the quality of their products.  Government should as well enforce laws intended to reduce the exploitation of consumers by producers in the areas of product quality and price.  In addition, government should ensure that high quality long fibre cotton is grown locally by providing farmers with high quality seeds at subsidized rates.  Finally, consumer should also have a change of attitude towards Ghanaian “ready to wear” garments.

This Paper explores and summarises the Director's Duties of the UK Companies Act 2006 with emphasis on "the duty to promote the success of the company.

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This study has 4 contributions to the literature. First, the authors analyze the risk characteristics for 11 Relative Value hedge fund strategies. Second, the authors introduce 3 families of behavioral factors, the D family, the L family, and the R family. In contrast to previous hedge fund studies, these new factors assume investors use historical and behavioral data such as average drawdown, run-up, and liquidity from each hedge fund category to assess the risk. Third, additional macroeconomic variables, such as the CRB, Copper, and Oil are found to be statistically significant in some strategies. This economic and historical information, when included with asset pricing models, is more powerful in explaining hedge fund returns than previous models. Fourth, unlike the previous literature, these generated models are corrected for time-series assumption violations and heteroskedasticity. To more fully understand the timing of risks and returns associated with investing in relative v...

This study investigates the impact of macroeconomic variables and stock market development in Ghana. The frequency of the data is monthly starting from February 1998 to February 2013. The Persaran et al (2001) ARDL bounds testing cointegration approach confirms the long run relationship between considered variables. Results indicate that macroeconomic variables of foreign direct investment, gross domestic product, money supply and exchange rate have significant positive relationship with the stock market development in long run as well as in short run. The sensitivity analysis by dynamic ordinary least square (DOLS) confirmed the ARDL earlier results. It is also suggested that the economic growth and stable financials are better leading indicators of stock market development in Ghana. Consequently, policy makers should formulate policies for sustainable economic growth which can lead to development of Ghana stock exchange market. The policy implication is that resilient macroeconomic environment is a plus for stock market performance in Ghana.

This paper examined the co-movement and causality between oil price and inflation using monthly data spanning between January 2007 and March 2020. The study employed the wavelet coherence techniques which are a new technique in economics and finance to verify the co-movement and causality simultaneously. Additionally, Granger and Toda Yamamoto's causality tests were deployed as a robustness check for the wavelet coherence techniques. Findings from the wavelet coherence technique reveal; (a) positive co-movement between the inflation and oil price between 2014M2 and 2017M1 at scale 4-8; (b) there is evidence of causality from oil price to inflation. Wavelet coherence technique revealed unidirectional causality running from oil price to inflation which is also confirmed by the Granger and Toda Yamamoto causality tests. To the author's understanding, no studies concerning oil price and inflation nexus in the case of Nigeria have deployed this technique. Based on these findings, recommendations were put forward.

This paper examines the asymmetrical relationship between exchange rate and consumer prices in 40 Sub-Saharan African (SSA) countries from 1990q1 to 2017q4. The exchange rate pass-through (ERPT) to consumer prices is estimated for each country by using the nonlinear autoregressive distributed lags (NARDL) framework and dynamic panel estimators robust to cross-sectionally correlated errors. Firstly, our findings suggest an asymmetrical ERPT in the SSA region during the short-term, whereas there are mixed results across sub-regions in the long-term. Next, we find incomplete and significant ERPT to consumer prices in the entire SSA region which is higher during the depreciation of the local currency than after appreciations. Third, we find nonlinear ERPT with respect to the size of the exchange rate. The pass-through is higher during large exchange rate changes than after small changes.  Finally, we find that the pass-through is greater in the countries with fixed exchange rate re...

Basel III is a framework to protect the global banking system. This article provides a policy discussion on Basel III in Africa. The significance of Basel III is discussed, and some ideas to consider when implementing Basel III to make it work in Africa, are provided. Under Basel III, the African banking industry should expect better capital quality, higher capital levels, minimum liquidity requirement for banks, reduced systemic risk, and differences in Basel III transitional arrangements. This article also emphasizes that (i) there should be enough time for the transition to Basel III in Africa, (ii) a combination of micro and macro-prudential regulations is needed; and (iii) the need to repair the balance sheets of banks, in preparation for Basel III. The discussions in this article will benefit policymakers, academics and other stakeholders interested in financial regulation in Africa such as the World bank and the International Monetary Fund (IMF). JEL codes: E44, G21, G28

The paper represents the research of matching Hurst exponent to Elliott wave models for financial time series. It illustrates that there are some values of Hurst exponent which match the most efficient using of Elliot Wave Principle for time series prediction.
Keywords: wave models, Hurst exponent, financial time series, stock market, R/S-analysis

In line with the social objectives of the PNPB (Brazilian Program of Production and Use of Biodiesel) and its “Social Seal” Framework, PETROBRAS has set up a 57 million liter/year biodiesel plant in the semi‐arid region of North of Minas Gerais State, where the socioeconomics indicators are very unfavorable. Despite the potential to boost the agricultural and agro‐industrial sector, the

Developing a moral critique of fractional reserve banking, this survey attempts to synthesize a wide range of existing ethical arguments concerning the monetary system in the United States. Starting with a history of the church’s response to economic developments, a moral argument sets the stage for five distinct areas of analysis. The purpose of the moral argument is to identify individual responsibility for systematic injustices and to provide a framework for the discussion of moral hazard, inflation, misallocation of resources, unequal distribution and private property violation that follow.
A short history of fractional reserve banking prepares the average reader to encounter the ideas presented in the later parts of the paper. A critique of government involvement is followed by an overview of moral hazard and the principal agent problem that it causes. Inflation can be linked directly to the expansion of the money supply and leads to misallocation of resources and unequal distribution. The injustice of the latter two points is compounded by their anti-capitalist nature. Finally, the last section demonstrates how fractional reserve banking violates the private property rights of the individual. In the course of research, no sources appeared to support the morality of fractional reserve banking.
Keywords: fractional reserve banking, inflation, morality, justice, capitalism, property

This paper empirically investigated the impact of financial intermediation of economic growth in Nigeria. Quarterly time series data generated from the World Bank Development indicator and the Nigerian Bureau of Statistic for the periods 1994Q1 to 2018q4 were used for the analysis, and Ordinary Least Squares (OLS) regression technique was adopted for the estimation of the hypotheses. Per-capita GDP was used as a measure of economic growth, while bank deposit, bank credit and bank reserves are measures of financial intermediation. Further investigation also show that bank deposit is positively and significantly related to GDPpc, suggesting that increase in bank deposit brings about 0.244193 increases in economic growth. We further observed that bank credit impacted positively on economic growth. Though, the impact was found to be insignificant. Hence, we also found bank reserve to assert significant and positive impacted on economic growth. From the findings, we suggest for good policy reforms that may promote the efficiency and the development of bank which serve as a critical factor for economic growth in Nigeria.

ARTICLE INFO ABSTRACT This article aims at defining the main gaps and presenting the results of literature about the determinants of capital structure, capital structure dynamics and the determinants of the speed of adjustment towards target leverage. Beside the effects of firm-specific determinants, the article covers the major macroeconomic events affecting capital structure decisions like the global financial crisis as well as political uncertainty. The article also shed the light on the differences between banks and non-financial institutions in terms of rules and regulations that shape the dynamic behavior of utilizing the different sources of finance. As a conceptual article, the author employed a reflective stance by counting solely on secondary literature. According to Dzansi and Hoeyi (2013), this stance is consistent with interpretivist reasoning in the social sciences. Analysis of empirical studies revealed that the capital structure decision is influenced by profitability, size of the firm, asset tangibility, non-debt tax shield, and growth. Too, results from different markets indicated that firms follow the implications of the pecking order theory in a sense that; firms adjust capital structure towards a target leverage ratio. The speed of adjustment is affected by firm characteristics (like size and growth) as well as the distance between current and target leverage ratios. This article presents opportunities for future research in capital structure topic based on the presented literature gaps. To the best of author's knowledge, this is the first article to address considerable number of papers in a large period of time for different aspects of capital structure and offer recommendations for future research based on the identified gaps.

12th Annual Green Economics Institute Conference  10-12th June 2017
3 Days St Hugh's College, University of Oxford, Keeping Social and Environmental Justice Alive in an age of Tyranny..
Reforming Economics.
Green Finance, Green Investment & Green Economics
Reclaiming The Economy from Privatisers, Fossil Fuellers, Xenophobes and Divide and Rulers.
Keeping social and environmental justice alive in this new age of Barbarism- Post Truth and Post Science