Financial Economics Research Papers - Academia.edu (original) (raw)

"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... more

"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... more

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... more

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.

Major arguments within export diversification parlance has been that, if developing countries do not put in place strategic measures to mitigate the current persistent depreciation in the price of crude-oil in the global oil market, they... more

Major arguments within export diversification parlance has been that, if developing countries do not put in place strategic measures to mitigate the current persistent depreciation in the price of crude-oil in the global oil market, they will experience untold economic hardship in the near future. Based on this, the paper empirically examined the impact of export diversification philosophy on sustainable economic growth in Nigeria from 1984 to 2018. The study adopted the Autoregressive Distributed Lags (ARDL) model to ascertain the short and long-run impact of export diversification as well as other determining factors which affect the growth of the Nigerian economy. The regression results revealed that, the extent of Trade Openness had indirect (negative) impact on the present and past values of GDP Per Capita. Conversely, IMF Export Diversification Index, Foreign investment inflows (% of GDP inflows), and Real Exchange Rate all had direct (positive) impact on the present and past values GDP Per Capita in Nigeria. Notably, only IMF Export Diversification and extent of Trade Openness passed the test of statistical significance on the short run. The study recommended that; the Nigerian government should intensify her export diversification philosophy by expanding her product reach. They may as well engage in export subsidization as well as create a more free trade business environment. However, this must be done with caution due to the fact that increased trade openness may make an economy to be more susceptible to global shock.

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,... more

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... more

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... more

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... more

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... more

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 goal of this paper is to explore the perception of Kosovo's citizens of the severity of tax evasion relative to other crimes and abuses. Perception of tax evasion may somewhat clarify the degree of rebelliousness with the tax laws.... more

The goal of this paper is to explore the perception of Kosovo's citizens of the severity of tax evasion relative to other crimes and abuses. Perception of tax evasion may somewhat clarify the degree of rebelliousness with the tax laws. Using data from a self-administered survey and a personnel structured interview, the results of mean and comparative analysis will be examined to show where the tax evasion is ranked in Kosovo in the list of fifty listed crimes. Studies, conducted about the perceptions of tax evasion as a crime, have suggested that the tax non-compliance environment has been created from the perception of the taxpayers towards tax evasion as a non-serious crime. Consequently, the degree of non-compliance with the tax laws could be explained somewhat by the perception towards the tax evasion. And, it is obvious that the public's perception of the severity of a crime has important implications for society. [1] However, those studies are inconclusive in explaining the variability of the perceptions towards tax evasion as a crime. Despite that fact that these researches conducted on this area in US, Australia, and Malaysia are a few, a study about the perception of tax evasion in Kosovo does not exist. Evidence on tax evasion perception found in the developing countries may not be generalized to the context of Kosovo because of the differences in the environmental factors such as economy, business, culture, and regulations. Consequently, differences in the environmental factors are expected to cause differences in the perception. The results of this study should be useful to business and government representatives in Kosovo and elsewhere in the Balkans or wider.

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... more

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... more

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

Inclusive financial systems in any economy cannot be ignored. In fact, it has become a policy strategy in many governments around the world, including East Africa region economies – Kenya, Uganda and Tanzania. Using panel data, this study... more

Inclusive financial systems in any economy cannot be ignored. In fact, it has become a policy strategy in many governments around the world, including East Africa region economies – Kenya, Uganda and Tanzania. Using panel data, this study presents a cross country analysis of the variables that determine financial inclusion levels with a key focus on economic growth through demand leading hypothesis. The study sought to test if economic expansion matters in financial inclusion in East Africa for the period 2006-2019. Panel ordinary least squares regression technique and fixed effect estimation method were adopted during the analysis. Following the findings of the study, economic growths depict a considerable influence on the financial access rate in East Africa. The corroboration presented by this study may help the respective countries to adopt policies that focus on improving financial inclusion levels through sustained economic growth.

Hellenic Foundation for Research and Innovation (H.F.R.I.) under the “First Call for H.F.R.I. Research Projects to support Faculty members and Researchers and the procurement of high-cost research equipment grant” (Project Number: 1310 ).... more

Hellenic Foundation for Research and Innovation (H.F.R.I.) under the “First Call for H.F.R.I. Research Projects to support Faculty members and Researchers and the procurement of high-cost research equipment grant” (Project Number: 1310 ).
Host Institution: Academy of Athens, Research Committee

To identify a potential demand for quail eggs in Guayaquil hotels, a quantitative study was conducted using the survey methodology, the sample obtained was 40 people from a database of 250 hotels. Proportion hypotheses were tested on... more

To identify a potential demand for quail eggs in Guayaquil
hotels, a quantitative study was conducted using the survey
methodology, the sample obtained was 40 people from a database of
250 hotels. Proportion hypotheses were tested on various variables of
interest such as price and potential quantity demanded. The purpose
was to verify the hypothesis that there should be a high demand for
pre-processed quail eggs should the product be offered in hotels.
Graphs and frequency tables were obtained, together with a correlation
matrix and a regression model to calculate the daily amount of
consumption. Finally, an evaluation of the model was carried out that
allowed the assessment of an unsatisfied daily demand in the hotels
of 3584 eggs, equivalent to 107,520 quail eggs boiled and peeled per
month, an attractive amount for the quail farming sector.
Para identificar una demanda potencial de huevos de
codorniz en los hoteles de Guayaquil, se realizó un estudio cuantitativo
utilizando la metodología de la encuesta. La muestra obtenida fue de 40
personas, de una base de datos de 250 hoteles. Se realizaron pruebas
de hipótesis de proporciones sobre diversas variables de interés como
el precio y la cantidad demandada, con el fin de comprobar la hipótesis
de que existía una alta demanda de huevos de codorniz pre-elaborados
si el producto se ofrecía en los hoteles. Se obtuvieron gráficas y tablas
de frecuencias, una matriz de correlación, un modelo de regresión para
calcular la cantidad diaria de consumo y, por último, se realizó una
evaluación del modelo que permitió determinar una demanda diaria
insatisfecha en los hoteles de 3584 huevos, equivalente a 107,520
huevos de codorniz mensuales cocidos y pelados, cifra que se vuelve
atractiva para el sector coturnicultor.

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... more

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

INTERNAL CORPORATE GOVERNANCE, A GLOBAL OVERVIEW OF THE EXECUTIVES REMUNERATION ISSUES

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... more

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... more

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... more

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