Imo Ibe | Renaissance University Ugbawka (original) (raw)

Papers by Imo Ibe

Cogent Economics & Finance

This paper examined the impact of financial deepening on economic growth in Nigeria. Adopting the... more This paper examined the impact of financial deepening on economic growth in Nigeria. Adopting the supply-leading hypothesis using variables such as broad money velocity, money stock diversification, economic volatility, market capitalization and market liquidity as proxies for financial deepening and gross domestic product growth rate for economic growth, we found that broad money velocity and market liquidity promote economic growth in Nigeria while money stock diversification, economic volatility and market capitalization did not within the period studied (1992-2008). Government policy should therefore be geared towards strategically increasing money supply and promoting efficient capital market that will enhance overall economic efficiency, create and expand liquidity, mobilize savings, enhance capital accumulation, transfer resources from traditional sectors to growth inducing sectors (such as manufacturing and industry, agriculture and the services sectors) and also promote competent entrepreneurial response in various sectors of the economy.

Journal of Economics, Management and Trade, 2020

The paper investigated the effect of saving behavior and debt-service on the debt burden and its ... more The paper investigated the effect of saving behavior and debt-service on the debt burden and its effect on some economic indicators, debt service to export, export to GDP, debt service to GDP, savings rate and income per capita of 14 West African Countries. The data from the World Bank economic indicators for the period 1985-2015 were used as models. This was analyzed using fixed and random effect regressions and houseman tests to determine the most appropriate estimator. The results revealed that the national savings of these countries should play a significant role in terms of payment of debt services and the countries' ability to reducing their total debt burden. It is also revealed that an increase in the export/GDP growth will lead to growth in the country’s economy by providing more resources to pay the national debt, both external and domestic debt. The national saving rate should aim at improving the economic growth rate through a higher saving ]rate. The paper recommend...

SAGE Open, 2018

The goal of this study is to assess the industry effects of monetary policy transmission channels... more The goal of this study is to assess the industry effects of monetary policy transmission channels in Nigeria within the period 1981-2014. Techniques of analysis employed in the study are the Johansen cointegration and the error correction model (ECM). Our regression estimates reveal that the private sector credit, interest rate, and exchange rate channels have negative effects on real output growth, both in the long run and in the short run. The results further show that, relatively, the degrees of the established effects are higher in the long run than in the short run. We employed the Johansen cointegration approach to determine the nature of relationship that exists between our dependent variable and the independent variables. The results show that, in the Nigerian case, monetary policy transmission channels jointly have a long-run relationship with real output growth of the industrial sector, and disequilibrium in the system is corrected at the speed of 72.2% annually.

Journal of Applied Finance and Banking, 2016

The use of external financing is a balancing act between higher returns for shareholders versus h... more The use of external financing is a balancing act between higher returns for shareholders versus higher risk to shareholders. Though external financing can boost stock performance of firms, it is still inconclusive as to its impact on performance of firms in developing economies like Nigeria. It is, therefore, against this background that this study sought to investigate the impact of external financing on dividend per share of manufacturing firms in Nigeria and the result of this study reveals that external financing has negative and non-significant impact on dividend per share. In view of this, the financial decision which the firm makes must enhance value for shareholders, potential investors and stakeholders involved with the firm. Also, as a going-concern, it is the wish of investors and investees that the firm should continually exist; therefore, the financial decision of the firm should ultimately help in achieving the overall objective of the firm that is, enhancing sharehold...

A B ST R A C T A profitable banking sector is better able to withstand negative shocks and contri... more A B ST R A C T A profitable banking sector is better able to withstand negative shocks and contribute to the stability of the financial system. The importance of bank profitability can be appraised at the micro and macro levels of the economy. At the micro level, profit is determined by bank’s management decisions and policy objectives, while the macroeconomic determinants look at variables that reflect the economic and legal environment where the credit institution operates. Bank profitability, typically measured by the return on assets (ROA) and/or the return on equity (ROE), and/or net interest margin (NIM) is usually expressed as a function of internal and external determinants. These issues engaged the minds of the authors in this paper. Industry related dataset that covers a 10year period of time was used. The regression results indicate that bank-specific characteristics and macroeconomic variables explain up to 97.4% variations in bank profitability when NIM was used as a de...

This study examines the impact of dividend on stock prices. The study adopts the ex-post facto re... more This study examines the impact of dividend on stock prices. The study adopts the ex-post facto research design and data were handpicked from the annual report and statement of account of selected banks listed on the Nigerian Stock Exchange for the period. The findings of this study support the opposite view that dividend yields do not have positive and significant impact on stock prices. This implies that stock prices tend to increase when an increase in dividend is announced but tend to decrease when a decrease or omission is announced. Article visualizations:

Economic development must be sustainable, improving and dynamic in order to achieve the critical ... more Economic development must be sustainable, improving and dynamic in order to achieve the critical goal of poverty alleviation. A review of extant literature indicates that studies in this area of finance have focused on the impact of finance on economic growth arising more from developed economies. Recommendations from these works may obviously have favoured these economies to the detriment of the developing ones. It is therefore, against the need to explore the role of finance in tackling developmental issues in developing economies with bias to sub-Saharan African countries that this study examined the impact of financial intermediation on human capital development of sub Saharan African countries from 1980 to 2012 utilizing panel data set from the World Bank and applying the Ordinary Least Square (OLS) regression in analysis. Results reveal that financial intermediation did not have positive and significant impact on human development in sub Saharan Africa within the period of thi...

INTERNATIONAL JOURNAL OF MANAGEMENT & INFORMATION TECHNOLOGY, Oct 23, 2013

Corporate mergers and acquisition has become a highly popular strategy in recent years. Thus, muc... more Corporate mergers and acquisition has become a highly popular strategy in recent years. Thus, much attention has been focused on its outcomes. It has served as a substitute for innovation, a greater means of diversification. The banking sector is often referred to as an engine growth of the economy. The intermediation role which the sector plays in national development cannot be overemphasized. Thus, given the recent consolidation exercise in the Nigerian banking sector, we explored the impact of mergers and acquisition on managerial commitment in this paper. We adopted the descriptive survey method and primary data were obtained using oral interview and questionnaire. The population of this study comprised all consolidated banks in Nigeria and the total sample size for this study was 384 respondents from commercial banks in South East Nigeria. The Chi-square (X 2) non-parametric statistic was used to test the hypotheses. The results revealed that mergers and acquisitions have significant positive effect on managerial role and commitment of managers of commercial banks in Nigeria's South East Region. We, therefore, recommend that incentive measures such as improved pay and good working environment should be promoted in commercial banks during mergers and acquisitions as these will further enhance managerial commitment.

Journal of Capital Markets Studies, 2022

PurposeThis research investigates the bond between stock market development and agricultural grow... more PurposeThis research investigates the bond between stock market development and agricultural growth in African emerging economies from 1990 to 2020.Design/methodology/approachAgricultural value added to the gross domestic product measures agricultural growth and market capitalization and stock value traded measure stock market development.FindingsThe findings disclose that market capitalization negatively affects agricultural growth while stock value traded positively affects agricultural growth in the fully modified and dynamic ordinary least square techniques. The findings unveil bidirectional causality between labour and agricultural value added with unidirectional causality flow from agricultural value added to market capitalization and stock value traded.Research limitations/implicationsThe governments should promote agricultural growth initiatives which stimulate stock market development. Effective methods required to encourage credit flow to the agricultural enterprises throu...

A nation's financial system is much more than just an intermediary that ensures the allocatio... more A nation's financial system is much more than just an intermediary that ensures the allocation of savings to investment. The efficiency of such a system is endogenously achieved if the financial structure of that economy promotes optimal use of the resources available for development. It is against the importance of finance in enhancing economic growth and development especially in developing economies like Nigeria, that we questioned whether financial structure has positive and significant impact on economic growth and development in Nigeria. The results revealed from our findings support existing literature that total financial structure has positive and significant impact on economic growth. However, while some sectors exert more influence (banking and market), other sectors (such as insurance) were found to have non-significant impact on economic growth. We therefore recommend that greater efforts should be made by govern-ment and the regulatory authorities at ensuring that ...

The intellectual platform for financial liberalization in developing countries was provided by th... more The intellectual platform for financial liberalization in developing countries was provided by the seminar works of Mckinnon (1973) and Shaw (1973). They were of the view that interest rate liberalization causes interest rate to rise, thereby increasing savings and investment. This study took a careful look at the impact of interest rate liberalization on savings and investment in Nigeria. It covers the period 1976 to 1999. Simple linear regression technique was adopted using SPSS statistical software. The study reveals that interest rate liberalization had negative non significant impact on savings and negative significant impact on investment in Nigeria. Thus, interest rate liberalization, though a good policy, was counterproductive in Nigeria. This might probably be as a result of improper pace and sequencing. In determining the appropriate sequencing of interest rate liberalization, we recommend that the authorities need to distinguish not only between loan and deposit transactions but also between wholesale and retail transactions. Interest rates on wholesale transactions between sophisticated entities should be liberalized first, followed by lending rates and then deposit rates. This gradual approach safeguards the profitability of banks while allowing time for people and firms to adjust to liberalization. Keywords: Interest Rate Liberalization, Savings, Investment, Nigeria

European Journal of Business and Management, 2012

The capital market connects the financial sector with other non-financial sectors of the economy ... more The capital market connects the financial sector with other non-financial sectors of the economy and, in the process, facilitates growth and economic development. Literature abound on the impact of stock market on economic growth however, little literature are available from the demand-following hypothesis which claims that it is the growth of the economy that causes increased demand for financial services which, in turn, leads to the development of financial markets. It is against this background that we examined the impact of stock market development on economic growth from the demand-following arguments from the period 1996-2010. Employing the Ordinary Least Square (OLS) regression, we found that economic growth has positive and non-significant impact on market capitalization ratio and turnover ratio of the Nigerian stock exchange but had a negative on the Nigerian stock market value traded ratio. Our study thus recommends an increased effort by the Nigerian government to grow th...

European Journal of Business and Management, 2012

The need to better the lots of citizens through government expenditure has raised questions on th... more The need to better the lots of citizens through government expenditure has raised questions on the impact of government expenditure on its impact on economic development and growth of nations. It is against this background that this paper examines the impact of government expenditure (disaggregated into recurrent and capital expenditure) on economic growth from 1987 to 2010. Three variable multiple regression model was adopted while recurrent expenditure and capital expenditure were used as independent variable and gross domestic product growth rate as dependent variable. The result emanating from this study reveals that while recurrent government expenditure had positive and non-significant impact on economic growth, capital expenditure had negative and non-significant impact on economic growth thus re-echoing the need for increase and encouragement of private sector investment while have proven over the years as a more efficient utilization of resources compared to public sector. ...

Journal of economics and sustainable development, 2012

This work takes a cursory look at different aspects of African economies and their potentials for... more This work takes a cursory look at different aspects of African economies and their potentials for growth within the context of financial crisis. Financial crisis is applied broadly to a variety of situations in which some financial institutions or assets suddenly lose a large part of their value due to lot of factors. The history of financial crisis in the world could be traced back to sovereign defaults which were the form of crisis prior to the 18th century. However, the bursting of the South Sea Bubble and the Mississipi Bubble in 1720 is regarded as the first modern financial crises. Other crises have followed culminating in the recent global financial crisis which was as a result of the bursting of the housing bubble in the United States in August, 2007. The crisis caused a serious setback for Africa because it took place at a time when the region was making some progress in economic performance and management. Most, if not all the economies in Africa are faced with several pro...

European Journal of Business and Management, 2012

This study investigated the impact of working capital policies of Nigerian firms on profitability... more This study investigated the impact of working capital policies of Nigerian firms on profitability for the period, 2004-2008. Adopting the aggressive investment working capital policies and aggressive financing policies as independent variables and return on assets as dependent variable and controlling for size and leverage, the study revealed that aggressive investment working capital policies of Nigerian firms have a positive significant impact on profitability while aggressive financing policies have a positive non-significant impact on profitability. The findings from this study indicate that firms pursuing aggressive investment working capital policy will become risky in the long-run because as profitability increases; the firm grows and the amount of outsiders’ contributions also increases. The result also indicates that as the firm grows and outsiders’ contribution increases; the use of aggressive financing working capital policy decreases the profitability of the firm. Approp...

Cogent Economics & Finance

Journal of Economics, Management and Trade, 2020

SAGE Open, 2018

Journal of Applied Finance and Banking, 2016

INTERNATIONAL JOURNAL OF MANAGEMENT & INFORMATION TECHNOLOGY, Oct 23, 2013

Journal of Capital Markets Studies, 2022

European Journal of Business and Management, 2012

Journal of economics and sustainable development, 2012

European Journal of Business and Management, 2012