IOSR Journal of Economics and Finance Research Papers (original) (raw)

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- Economics, Language Change, IOSR Journal of Economics and Finance

The rapid rise in food prices has been a burden on the poor in developing countries. In many countries such as in Bangladesh, food price inflation is higher than aggregate inflation and contributing to underlying inflationary pressures. Losing the purchasing power and increasing the cost of production indicates the high rate of inflation. Sometimes high inflation has adverse impact on growth through a variety of channels. It will increase uncertainty in investment and withdrawal of saving for consumption support. In south Asia-Bangladesh, Pakistan has experienced double digit inflation rate. However inflation and growth rate called real GDP growth rate have positive and negative relationship depending on situation. Due to supply gap for natural disaster cause rapid growth of inflation rate mainly contributed by food price and regression analysis reflect a positive relationship with inflation and GDP. Inflation fluctuates all the time because of the fluctuation of the money supply. But in recent years, we came to know that international affairs are influencing to increase the inflation rate. So M3 expansion and global price hike also contrite to inflationary pressure. Consistent budget deficit and exchange rate deteriorate the economic growth which directly relates with inflation and also can increase unemployment as a result of high inflation due o increased production cost resources may be reduced. So authority may work on inflation control for the clear future signals.

- by Mahjabeen Progga
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- IOSR Journal of Economics and Finance
- by ila gairola
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- Business, Development Studies, Indian studies, Gender Equality

This paper gives the definition of disinvestment, states the difference between disinvestment and privatisation, gives a brief account of public sector in India and changes in government policy towards the public sector. This Paper also consider some issues related to disinvestment such as why disinvestment, how much disinvestment, how to make disinvestment etc and conclusion.

- by Jaydeb Sarkhel
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- IOSR Journal of Economics and Finance

Abstract: Transformation of production and consumption patterns of fisheries sector will impact the long term economic growth and contribute to the reduction in inequalities among the various fisheries clusters. There is Structural revolution in the fisheries sector due to changing consumption pattern, changing quality standards, technological development, emerging market forces and so on. This paper examines an overview of the structural changes in the fisheries sector of Kerala. A concerted approach is needed to promote private and public cooperation in establishing an efficient quality infrastructure for improving the seafood export. Keywords: Structural Revolution, Commercialization of Fisheries Sector, Fishing Allied Activities, Modernized Processing Facilities and Marketing System.

The industry-institute relationship as a result of industrial attachment program among TVET institutions plays a key role in ensuring up to date skill transfer among TVET graduates. This paper highlights the various forms of collaboration between TVET institutions and Industry in Kenya through an industrial attachment program. The study focused on TVET institutions in North Rift region, Kenya. The study adopted descriptive survey design. Stratified proportionate simple random sampling technique was used to select a sample of 245 respondents which included 30 lecturers, 3 industrial liaison officers, 5 workplace supervisors and 207 TVET students. The research instruments for data collection were; the structured questionnaire and interview schedule. Data was analyzed using descriptive statistics. Descriptive statistics included frequencies, percentages and mean. Data was presented in form of pie charts, bar charts, and tables. The study recommends that training institutions need to strengthen institute-industry linkage to ensure quality training.

- by Catherine Kiprop
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- IOSR Journal of Economics and Finance

Abstract: The aim of the research is to identify the determinants of bank profitability. The researcher identified that internal factors are the major determinants of bank profitability. A sample of 5 commercial banks out of a population of 18 was used. The researcher recommended that macroeconomic policies are of great important. Inflation reduces credit expansion by contributing to higher net interest margins. Thus, policies aimed at controlling inflation should be given priority in fostering financial intermediation. Since the output cycle matters for bank profits, fiscal and monetary police that are designed to promote output stability and sustainable growth are good for financial intermediation. Also fees and commission should be monitored and managed so that a customer is not deceived.
Key words: Bank charges, commercial banks, determinants, interest rates, profitability

Abstract: This study examined the impact of banking system credit to small and medium scale enterprises (SMEs) and economic growth in Nigeria using annual data covering 1981 to 2013 periods. The study employed ordinary least square (OLS) and co-integration econometric method with the use of sequential modified LR test statistic as lag length selection criteria to conduct its tests and analysis. The results revealed that the banking system credit to SMEs though gradually increased yearly as a result of increase in population and hence economic activities, the credit to SMEs as a percentage of total credit to the private sector declined yearly. Banking system credit to SMEs was not significant and thus did not contribute meaningfully to economic growth in Nigeria. Total credit to the private sector was statistically significant and positive at 5% level of significance. While lending rate has negative and significant impact on economic growth in Nigeria. The need for the government to intervene in a more meaningful way through articulated policies and programmes that will promote funding of SMEs and reduce the level of lending interest rate have been recommended. This will stimulate and rejuvenate SMEs development and sustainability in Nigeria. Keywords: Banking System, Credit, SMEs, Economic Growth, Lending Rate, Collateral Security, Indigenous Technology. JE : Classification: G01, G21, G28, F43.

Abstract: This paper has examined budget tracking as one of the possible strategies for fighting corruption in Nigeria to promote resource management for sustainable development and it is based on a conceptual analysis that is largely dependent on a literature review. Budget tracking, also referred to as resource flow tracking is very important in the management of public funds because the approved financial resources meant for specified programmes normally pass through many stages of government bureaucracy before getting to the ultimate service facilities that are set up to exercise spending power. Budget tracking is undertaken in tandem with the two major components of budgets; accordingly, there is revenue tracking and expenditure tracking. Revenue tracking begins immediately with budget implementation; it seeks to develop government capacity to translate budget intensions into reality. It is concerned with ensuring that all budgeted revenues are diligently collected and fully remitted into government coffers. In Nigeria the correct practice is that all revenues collected on behalf of government are must be first paid into the Consolidated Revenue Fund (or Treasury) before obtaining allocations for the recurrent and capital spending. Many Ministries, Departments and Agencies (MDAs) of government in Nigeria do not remit revenues collected by them to the treasury, yet their recurrent and capital spending needs are fully appropriated. Budget tracking can be employed as one of the strategies for sustaining the fight against corruption. Nevertheless, before this strategy can be gainfully employed in the fight against corruption, the legislature must rise and surmount the challenges that confront and hinder them from performing their constitutional duty of budget tracking. Key words: Budget tracking, Accountability, Revenue tracking, Expenditure tracking, Legislature.

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- IOSR Journal of Economics and Finance

Abstract: Corruption is a complex social phenomenon, which in addition to political and economic factors, also has deeply rooted cultural causes and social traditions which largely determine its existence and extent. Corruption itself in a certain sense is as old as human civilisation and it occurs everywhere in the world, in all political-economic systems. The social and economic impact of corruption is greater in developing nations than developed world. This paper discusses various definitions of corruption, their impacts to economic development, the detectability of corruption and ways to minimise corruption levels. The study has found many ways that may be followed by individuals, the government, business and anti-corruption bodies to reduce the level of corruption. Key Words: Corruption, Social Factors, Economic Factors, Government Solutions, Individual Solutions, Zimbabwe.

Abstract: Food is a basic necessity of life. Yet more than 800 million people in developing countries are not getting enough of it. Food security is a condition related to the ongoing availability of food. According to the Food (FAO), food security "exists when all people, at all times, have physical and economic access to sufficient, safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life". Individuals who are food secure do not live in hunger or fear of starvation. Food security indicators and measures are derived from country level household income and expenditure surveys to estimate per capita caloric availability. In general the objective of food security indicators and measures is to capture some or all of the main components of food security in terms of food availability, access and utilization or adequacy. With its prevalence of undernourishment (POU) indicator, the FAO reported that almost 870 million people were chronically undernourished in the years 2010-2012. This represents 12.5% of the global population, or 1 in 8 people. Higher rates occur in developing countries, where 852 million people (about 15% of the population) are chronically undernourished. The report noted that Asia and Latin America have achieved reductions in rates of undernourishment that put these regions on track for achieving the Millennium Development Goal of halving the prevalence of undernourishment by 2015. The UN noted that about 2 billion people do not consume a sufficient amount of vitamins and minerals. In India, the second-most populous country in the world, 30 million people have been added to the ranks of the hungry since the mid-1990s and 46% of children are underweight( Data source: FAO).The present paper mainly focused on the present situation of Food security in USA and developing economies, the main issues of World summit on food security .The study also highlights about the main Pillars of food security, Effects of food security, Challenges to achieving food security and Risks to achieve Food Security. Finally concluded by giving some of the Approaches under taken by the United Nation Agency for International Development,(FAO) By the Food and Agriculture Organization and By the World Food Programme to achieve food security. Key words: Food security,FAO, World summit on food security, World Food Programme

Abstract: This research aims to examine the role of situational and individual factors on premature sign offs behavior during the work of audit procedure at CPA (Certified Public Accountant) firms in Surabaya. The situational factors examined in this research consist of time pressure, audit risk, review procedure, and quality control; meanwhile, the individual factors observed in this research are organizational commitment and turnover intention. The sample of this research is auditors at CPA firms in Surabaya with 186 auditors sample as the predetermined sample who are selected by using random sampling technique. The research instrument is questionnaire. The data of this research is analyzed by using Friedman test and logistic regression analysis. The analysis result demonstrates that there is a priority sequence of the signed-offs audit procedures. The logistic regression test demonstrates that situational factor and individual factor influence premature sign-offs of the audit procedure. This research also finds high time pressure, audit risk, and turnover intention which is directly experienced by the auditor caused premature sign-offs. On the contrary, tight review procedure and quality control as well as high organizational commitment of an auditor can prevent premature sign-offs of the audit procedure. Keywords: Premature sign-offs audit procedures, audit risk, time pressure, review procedure and quality control, organizational commitments, and turnover intention

Abstract: Banks in a financial system play the important role of financial intermediation. It is the banking sector that forms the basis of financial institutionalization in a country and transforms savings into investments. Banks pool savings from fund surplus sources mainly households and allocate to the government and industries thereby effectively allocating savings for domestic capital formation. Banks in this way also offer risk free investment avenue for depositors. The paper focuses on the financial analysis of IDBI Bank which merged with its DFI (Development Financial Institution) unit in the post liberalization period with a view to ascertain whether the financial sector reforms have adversely affected the functioning of the Bank. Key words: DFI (Development Financial Institution), Capital Adequacy Ratio, NPA (Non Performing Asset), Share Capital, Net Worth, Resource Mobilization, Profit after Tax.

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- IOSR Journal of Economics and Finance

Abstract:Dollarisation can be a path to economic stability and growth if managed properly. Governments which end up dollarising only do so as a last resort.This paper used both explanatory and empirical approach to explore the nature of currency substitution and dollarisation in Zimbabwe. The paper also discuss the possibility and the requirements for de-dollarisation to take place. The process of dollarization in Zimbabwe was peculiar in that it was not backed by international reserves as is normally the case with countries that have dollarized. The only foreign currency that the government had was from taxation after full dollarisation. Currency substitution isan important phenomenon in countries with high inflation rates, complicating forecasts of money demand and making monetary policy more difficult to conduct. The most important incentive for currency substitution has been change in the domestic inflation rate, though there have been episodes of currency substitution arising for other reasons. Adequate reforms have been emphasized before de-dollarisation.
Key Words:Dollarisation, Currency substitution, Dedollarisation, Currency boards, Bad money, Good money, Gresham’s law, Monetary policy, Monetary regime

The study empirically investigated the relationship between political stability and economic growth in Nigeria for the period 1999 to 2014 using the ARDL model approach. The result revealed a positive and significant relationship between political stability and economic growth both in the long run and in the short run. The study concludes that a stable political environment is an indispensable element for economic growth and therefore, the government of Nigeria should as a matter of necessity, identify the root causes of unstable political environment and try to mitigate its effects so as to ensure sustained growth in Nigeria.

Abstract: The paper endeavour to explore the short run and long run causal relationship between select macroeconomic variables (GDP, Exchange Rate & Inflation Rate) and FDI inflows in Indian context by applying Cointegration test followed by Vector autoregression (restricted/unrestricted) model and Granger-causality test. Further, by employing simple regression model, it tries to calculate the exponential growth rate of FDI inflows in India. Eventually, Chow test has been employed to detect the presence of significant structural break in the data series of FDI inflows. However, the results show that there prevails long run equilibrium among the concerned variables. The Granger-causality test results conclude that exchange rate and GDP statistically significantly influence FDI, whereas, inflation rate is insignificant variable to predict FDI inflows. Further, the growth analysis result claims that the total FDI inflows grow exponentially at a rate of 23% per annum. However, as stated by the results of Chow test, 1991-92 (the year of initiation of New Economic Policy in India) is a statistically significant structural break year in the context of FDI inflows in India. Keywords: FDI, New economic policy, Unit root test, Cointegration test, Vector error correction model, Granger-causality test, Structural break, Chow test.

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- IOSR Journal of Economics and Finance

Inventory Management is a buzz word these days. As much as the industry focuses on revenue, profits, top lines and bottom lines there is more focus these days on inventories, working capital and efficiencies. Complexities of managing these supply chains have increased because of various factors like globalization, increased product portfolio, decentralization etc. There are various inventory models and matrices available today to monitor the supply chains which are mentioned in this paper but the main focus is to study the volatility of the supply chain and its impact on Inventory. One of the ways to classify items is based on Predictability (XYZ Analysis). Items which have  Uniform demand as X,  Varying demand as Y  Abnormal demand as Z It is always easier to group items with similar patterns and apply appropriate strategies to each group differently. But we need to understand if there are limitations and common underlying issues before these strategies are employed.

- by Dr. Dinesh Dhoka
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- IOSR Journal of Economics and Finance

A common phenomenon in the financial reports of Nigerian pharmaceutical companies is the volume of short-term and long-term liabilities that forms a considerable size of their capital structure. Explaining the role of financial leverage in companies' financial performance is one of the primary objectives of contemporary researches and this role remains a questionable subject which has continued to attract the attention of many researchers. The main objective of this study is to determine the effect of financial leverage on financial performance of the Nigeria pharmaceutical companies over a period of twelve (12) years (2001-2012) for the three (3) selected companies. This work employed three (3) financial leverage for the independent variables such as: debt ratio (DR); debt-equity ratio (DER) and interest coverage ratio (ICR) in determining their effect on financial performance for Return on Assets (ROA) as dependent variable. The ex-post facto research design was used for this study. The secondary data were obtained from the financial statement (Comprehensive income statement and Statement of financial position) of the selected pharmaceutical companies' quoted on the Nigerian Stock Exchange (NSE). Descriptive statistics, Pearson correlation and regressions were employed and used for this study. The results of the analysis showed that debt ratio (DR) and debt-equity ratio (DER) have negative relationship with Return on Assets (ROA) while interest coverage ratio (ICR) has a positive relationship with Return on Assets (ROA) in Nigeria pharmaceutical industry. The analysis also revealed that all the independent variables have no significant effect on financial performance of the sampled companies. The results further suggested that only 16.4% of the variations on the dependent variable are caused by the independent variables in our model suggesting that 83.6% of the variations in financial performance are caused by other factors outside our model. Based on the above findings, the researchers now recommend that companies' management should ensure that financial decisions made by them are in consonance with the shareholders' wealth maximization objectives which encompasses the profit maximization objective of the firm. The amount of debt finance in the financial mix of the firm should be at the optimal level so as to ensure adequate utilisation of the firms' assets. The management should also monitor the interest charged on debt financing to avoid liquidation of the company.

Abstract:Tax elasticity and buoyancy estimates are the dynamic tools for measuring the tax performance. The main objectives of the study are to explore the tax system performance of Zimbabwe through the traditional tax ratio trends, dynamic measures tax buoyancy and tax elasticity. The study has applied traditional regression approach and the Dummy Variable Approach to calculate tax buoyancy. For the study period 2000 – 2013, both methods have yielded a tax buoyancy statistic of 1.013 (more than unitary) implying that the tax system is responsive to growth in national income. Using the Dummy Variable Approach, the study revealed that there is no significant differences in tax performance for the Zimbabwean Dollar Era and the Dollarisation Era. In an effort to enhance efficiency in government operations, the study has highlighted parastatals inefficiency that need immediate attention. Tax ratio trend has revealed an increase in effort over the dollarisation period.
Key Words:Tax Buoyancy, Elasticity, Tax Stability, Tax Ratio, Revenue Performance, Parastatal, GDP, Zimbabwe.

Abstract: This paper addresses the universal worthiness of actuarial sciences and works on current status and activities in the actuarial sciences landscape vis-à-vis fetches the importance of necessity of relevance in actuarial approach, capacity, applications, developments for Bangladesh, and then seeks the necessity of the systematic, framework-wise, planned measures from erudite end, academic policy makers, curriculum setter, education management, trainer and this kind of institutional bodies to realize the importance of incorporation of actuarial sciences education courses and address it’s expected increasing demand for Bangladesh. This paper empathizes paying attention to take necessary and substantial measures for the inclusion of actuarial sciences courses in academic disciplines in Bangladeshi universities, through depicting some contemporary background, development scope, expected demand, importance to introducing actuarial sciences courses in academic domain to get long-term and sustainable actuarial development advantages for Econo-financial sector in Bangladesh. Key Words: Academic, Actuarial, Insurance, Pension, Provision

The study empirically investigated the relationship between financial intermediaries and economic growth in Nigeria. Annual time series data covering 1970 to 2013 were used to analyze the long run and short run relationship between the development of financial intermediaries and economic growth along with the direction of causality between the indicators. The results of the unit root test show that the variables are integrated at I(1). Cointegration is being found between the series in the presence of a structural break in 1987, 1992 and 1996. Using bound testing technique for cointegration a stable long-run relationship was found between the indicators of financial intermediaries and the economic growth. Error correction coefficient was statistically significant. It was concluded that insurance premium and value of stock transaction have a positive impact on economic growth in both short runs and long-run. However, bank credit has a negative influence on economic growth. The causal...

- by Siba Dayyabu
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- Econometrics, Financial Economics, Energy Economics, Statistics

Abstract:This study has traced the major determinants of FDI inflow in Bangladesh through establishing both the short run and long run equilibrium relationship between FDI and four selected determinants using ARDL approach. It has been found that GDP per capita, which has been taken as proxy of market size, and infrastructure do not have any significant impact on accelerating FDI in Bangladesh. On the other hand, trade openness has positively influenced FDI and among the four selected determinants trade openness has played the most important role in attracting FDI in Bangladesh. Low wage rate is also another driving force in attracting FDI in this country. The coefficient of error correction term suggests that the disequilibrium occurring due to a shock is totally corrected in about 2 years at the rate of 59 per cent a year. Finally this study has derived some policy implications. Keywords:FDI, Trade Openness, Wage rate index, GDP, ARDL JEL: CO1, C50, F10, F21, F40, O50, P45

The objective of the research was to establish the Effect of Internal Controls on Financial Performance of Commercial Banks in Kenya. Internal Controls were measured using the five elements of internal control as stipulated by the Committee of Sponsoring organizations of Treadway Commission framework of internal controls while Financial Performance was measured using the historical average of Return on Equity. A descriptive research design was adopted due to its ability to describe the relationship between elements of Internal Controls and Financial Performance. The study used the 43 commercial banks in Kenya. Primary data was collected using a structured questionnaire. Descriptive statistics obtained from data analysis were presented using frequency tables, while inferential data findings were presented using correlation and regression tables. The study findings revealed that the banking sector enjoys a strong financial performance partly because of implementing and maintaining effective internal controls. The existence of effective internal control is attributed to the highly regulated and structured environment in the banking sector. The study recommends banks should effectively implement and maintain internal controls due to the nature of the riskiness of the banking sector and its impact on financial performance.

- by Willy Muturi
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- IOSR Journal of Economics and Finance

Abstract: The present empirical study focuses on the trends in financing pattern as well as composition of capital structure of SMEs Small and Medium Enterprises (SMEs). The financial performance was evaluated by accessing the long-term solvency of assets using various financial ratios. The secondary data collected for a period of four years from 2010-2013 was used in the study. The quantum and structure of total funds in selected SMEs was also analyzed. The results revealed that the long term funds had apportioned nearly two-third of total funds when compared to short term funds employed. Since the firms showed more dependence on equity financing the associated financial risks were comparatively low. The companies were found to have not using their debt to the best advantage of the shareholders as revealed by a higher interest coverage ratio. The study explicates the influence of the capital structure in financial performance of SMEs. An optimal capital structure maximizes the shareholder’s wealth with best combination of debt and equity mix thereby minimizing the cost of capital.

Building the brand equity becomes an important source of differentiation. The company needed to improve competition, because the brand equity is very important to strengthen the company's reputation.However, there are only few studies on beverage value from the consumers' standpoint. And most of the researches had focused in the variables of marketing mix influencing consumers, such as price, communication, distribution or advertising. Congruence with this issue, the research have two objectives, the first objective is understanding consumer mind through brand equity in purchasing a product and willingness to pay premium price. The second is how the strategy should be done by a newcomer to the juice category. Based on sample of 330 consumers, Structural Equation Modeling is used to test hypotheses. The research shows that brand loyalty of juice is the most important dimension to build brand equity. In addition, a positive significant effect is found for brand awareness and association. Meanwhile, weak support is found for the perceived quality dimensions.Empirical support to the effect of juice's brand equity impacts on the consumers' purchase intention and willingness to pay premium price. This research brings relevant implication to the manager of juice production that should consider the relative importance of brand equity dimensions in their overall brand equity evaluationsin creating the consumers' purchase intention and willingness to pay premium price.

- by Ariesta Bougenvile
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- IOSR Journal of Economics and Finance

Loan acquisition and repayment among small scale rice farmers in Ebonyi State, Nigeria was investigated. The study determined the quantum of loan sourced and acquired by small scale rice farmers; ascertained the determinants of successful loan acquisition from formal financial institutions; estimated the repayment rates among the beneficiaries; and analyzed factors that affect loan repayment performance of the beneficiaries. A multistage simple random sampling technique was adopted in the selection of the respondents. Primary data were generated through the use of well structured questionnaire admitted to 120 small scale rice farmer beneficiaries. Descriptive statistics, multiple regression and logit regression model were employed in data analysis. Analysis revealed that each of the farmers applied for an average amount of N170,173.40 but was able to procure an average amount of N128, 557.40. Furthermore, multiple regression result indicated that farm size, cost of farm inputs and interest charge were significant in determining loan acquisition. An average of 28% of respondents defaulted in loan repayment. The logit regression indicated that farming experience, income, interest charge, loan application cost, loan size, security and number of installments were found to have played significant role in loan repayment performance. The study therefore, recommended that a sustainable credit policy framework be established by relevant agencies to enable farmers access adequate loan amount at reduced interest rate and also on time from formal financial institutions.

- by ANTHONIA ACHIKE
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- IOSR Journal of Economics and Finance

Abstract: Technical training in a country plays a strategic role in providing highly skilled artisans, craftsmen, technicians and technologists with the expectation of bringing about economic growth. The study looked at the working capital approaches used by the government technical training institutions in managing their current assets and current liabilities. All the 42 government technical training institutions were taken and the Principals were the respondents. Data was collected by use of questionnaires and were received. The data was analysed using descriptive statistics; graphs charts, percentages, means and standard deviations. The findings of this study suggest that the management of working capital components in government technical training institutions is moderate. The study has identified the factors that influence working capital management, and has also established the extent of application of finance techniques and models in these institutions. The management of working capital in these institutions must not be left to intuition or the rule of the thumb. It should be improved, by having written policies on each of the working capital components, by application of techniques and models which include planning, controlling and monitoring of current assets and current liabilities in order to achieve liquidity. Computerization of key departments will enhance operating and financial efficiencies considering that working capital management depends on quantitative data which must be accurate and timely for proper decision making. The government should continue assisting these public institutions, whose products will be instrumental in achieving the Kenya Vision 2030.
Key Words: (Technical Training Institutions, TVET, Working Capital)

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- IOSR Journal of Economics and Finance

The objective of study was to assess the effect of credit risk on financial performance of commercial banks in Kenya. The study covered the period between year 2005 and 2014. Credit risk was measured by measured by capital to risk weighted assets, asset quality, loan loss provision, loan and advance ratios and financial performance by return on equity (ROE). The study used the balance sheets components and financial ratios for 43 commercial banks in Kenyaregistered by year 2014. Panel data techniques of fixed effects estimation and generalized method of moments (GMM) were used to purge time-invariant unobserved firm specific effects and to mitigate potential endogeneity problems. The pairwise correlations between the variables were carried out. F-test was used to determine the significance of the regression while the coefficient of determination, within and between R 2 , were used to determine how much variation in dependent variable is explained by independent variables. From the results credit risk has a negative and significant relationship with bank profitability. Poor asset quality or high non-performing loans to total asset is related to poor bank performance both in short run and long run. Based on the study findings, it is recommended that management of commercial banks in Kenya should enhance their capacity in credit analysis and loan administration.Clear credit policies and lending guidelines should be established.

- by Jane Muriithi
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- IOSR Journal of Economics and Finance

Abstract: Despite the potential of the fisheries resources, the sector has not been given its deserved position in Nigerian National Economy but investment in aquaculture production has been declining in Yobe State. This study was undertaken to assess the profitability of some fish farms and investigate the factors influencing fish farming in Yobe State, Nigeria. The factors influencing fish farming are: poaching, unstable and defective government policy, inadequate/ non-updated environmental audit reports and not adopting modern methods of aquaculture negate the development and profitability of this sector in the State. An average production cost of N550/kg, sales N650/kg, profit margin N100/kg of catfish. The gross turn-over ratio is 0.8 while the net income realized per capital invested is 0.2. The aquaculture practice in Yobe state is still profitable. Recommendations to increase the production and improve the profit margin and sustainability of the sector were made. Key words: Profitability, small scale, fish farms, fish production

Kenya's CDF was a concept implemented in 2003 through an Act of parliament, whose aim was to address the challenges at grassroots level through the provision of funds to empower community-based projects in all constituencies of Kenya. The initiative targeted development projects at the constituency level aimed at alleviating poverty and addressing imbalances in regional development based on decentralization of public resources. The principle behind devolution appears to be widely accepted throughout Kenya today. Increasingly however, was the issues on Management of fund accrued from CDF funded water projects. The study used cross-sectional survey design, which emphasized on the measurement and analysis of relationships between the variables. The study used primary sources of data. The CDF funded water project managers were interviewed to obtain the primary data. Data was analyzed using SPSS program. Descriptive statistics as well as inferential statistics were used. Mean, Correlation, ANOVA and regression analysis measured the nature of the relationship between the cash management, receivable management, inventory management practices and financial performance. The study findings were that, there was a strong positive relationship between the independent variables (cash management, receivable management, inventory management practice) and the dependent variable (financial performance). The variability of financial performance attributed to changes in efficiency of Receivable Management practices, efficiency of cash management and efficiency of inventory management was 88.3%. This has a general implication that efficient fund management practices have a positive effect on the financial performance of CDF funded water projects in Kenya and therefore optimal fund Management practices should be embraced as a policy recommendation.

- by Kimani Mwangi
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- IOSR Journal of Economics and Finance

This study focused on Utilizing Innovative Instructional Strategies in the Development of Entrepreneurial Skills in Business Education Students in Ogun State, Nigeria. The study was carried out due to the realization of the writers that most graduates of Business Education in Ogun State Higher Institutions despite their knowledge and skills in Entrepreneurship Education do not get self-employed. They will go about looking for employment, getting underemployed and even being frustrated because of lack of employment. Descriptive survey research was adopted for the study.It was guided by two research questions and two hypotheses. The population of the study consisted of 24 lecturers and 289 final year students studying Business Education in six (6) Higher Institutions in Ogun State. Structured questionnaire containing 30 items on a 5 point Linkert Scale was used to obtain information from the respondents.Three hundred and thirteen (313) questionnaires were administered to respondents and three hundred and nine (309) were retrieved and used for the study. The data collected were analysed using mean and standard deviation while t-test parametric test was used to test the hypotheses at 0.05 levels of significance. The findings revealed amongst others that utilization of innovative instructional strategies in the development of Entrepreneurial Skilled in Business Education Students would make more students put the skilled into practice by becoming self-employed and employers of labour. It was also found out that most lecturers don't apply these strategies because of load of work, lack of skills on this strategy, population of students and non-availability of required resources. One major recommendation was that innovative strategies should be used for better understanding and appreciation of entrepreneurial skill to enhance innovative and creativity.

- by Fehintola Bolarinwa
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- IOSR Journal of Economics and Finance

Abstract: This study is aimed to more deeply analyze the history of accounting in Indonesia, particularly in the Majapahit empire in the reign of Gajah Mada as the mahapatih (Prime Minister). The role of Gajah Mada in the establishment of the unity of archipelago has a significant contribution to the development of the accounting ideas in Indonesia. In addition to the expansion of the territory expressed in the Palapa oath, Gajah Mada committed to his own mission to improve the economy of Majapahit Empire. Gajah Mada’s accounting strategy is one of successful strategy that formed Indonesian archipelago. In the age of Gajah Mada, Majapahit was one of the biggest ports with biggest warehouse in Asia frequently transited by foreigners from various countries. Moreover, Gajah Mada used his power to formulate legislation governing Majapahit taxes and penalties. In the Gajah Mada reign, Majapahit Empire is levied kinds of taxes, namely: (a) trade tax, (b) tax for foreigner, (c) exit-premit tax,(d) land tax, and (e) arts tax. Keywords: Gajah Mada, Accounting History of Indonesia, Foucault Power-Knowledge Framework

- by adeleke omolade
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- IOSR Journal of Economics and Finance

The most debated issue in the field of finance is over the effect of dividend policy on market price per share. There are huge literatures for and against this wisdom. The current study has been undertaken aiming at evaluating the effect of dividend policy on market price of share in the context of Bangladesh. The study has covered secondary data and analyzed the data by employing descriptive statistics, correlation and multiple regression models. It has tested hypothesis by using F test. The study has found that the effect of dividend payout is more on market price than retention. This dependency is significant at 1%. Finally, the paper concludes that the findings over the effect of dividend policy on market price supports the relevant theory of dividend policy i.e. Walter's model and Gordon's model.

- by Rashed Al Karim
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- IOSR Journal of Economics and Finance

Abstract: The aim of the paper is to examine whether different announcement of the sukuk issuance carry any new information to market for the period 2004-2011 in Malaysia. Data are collected from the Securities Commission Malaysia (SC) and Bloomberg databases. The study employs event study methodology using cumulative average abnormal return (CAAR) and the extended CAPM including data for the KLIBOR and government yield sukuk on symmetric and asymmetric events based on the reaction of the Dow Jones Islamic Market Index (DJIM) to the announcement of sukuk issuance. This study would be useful to issuers, investors and decision-makers in assessing the credit risk of sukuk issuance. Keywords: Sukuk, CAAR, extended CAPM, Dow Jone Islamic Market Index, event study

The study examined the effects of oil price, external reserves and interest rate on exchange rate volatility in Nigeria using yearly data from the year 1970 to 2011. The theoretical framework of this study is based on Generalized Autoregressive Conditional Heteroskedasity modeled by Tim Bolerslev (1986) and Exponential General Autoregressive Conditional heteroskedastic modeled by Daniel Nelson (1991). The models are used to estimate the relationship between oil price changes and exchange rate. Relevant descriptive and econometric analyses were employed. The econometric tests used include the unit root tests, Johansen co-integration technique and the Vector Error Correction Model (VECM) when the unit root tests were carried out; all the variables were stationary at first difference. The long run relationship among the variables was determined using the Johansen Co-integration technique while the vector correction mechanism was used to examine the speed of adjustment of the variables ...

- by Busayo Oyetunji
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- Economics, Energy Policy, Volatility, Petroleum Economics

Cette étude évalue le lien entre l'accès au microcrédit et la performance des entreprises informelles en Côte d'Ivoire à partir de l'approche quasi-expérimentale basée sur la méthode d'appariement sur score de propension (PSM). Les résultats révèlent que le microcrédit a un impact positif et significatif sur la performance des entreprises informelles. L'accès au microcrédit contribue à l'augmentation du chiffre d'affaires, du résultat net et de la main d'oeuvre, cependant cette contribution est faible en matière d'augmentation de la main d'oeuvre. Une des raisons essentielles qui peut expliquer cette faiblesse est la politique de remboursement pratiquée par les Institutions de Microfinance (IMF). En effet, cette politique est perçue par les bénéficiaires comme une contrainte majeure dans le développement de leurs activités.

- by Becho Isabelle
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- IOSR Journal of Economics and Finance

Abstract:The studyaimed to analyze the typology of competitiveness and economic performance of East Java’s regencies/cities, and investigate the influence of regional competitiveness to ward their economic performance.Moreover, the study appliedquantitative research approach which employedsome analysis instruments, namely: Confirmatory Factor Analysis (CFA), Regression Analysis and Region Typology. The resultsshowed: 1) The typology of competitiveness of regionswhich includes category I, II, III and IV were 31.58%, 26.32%, 15.79%, and 26.32%; 2) Competitiveness which compriseregional strength indicator, public service facilities, and investment climate proved to affect economic performance; 3) The investment climate had the greatest role compared with regional strength and public service facilities aspects; 4) Regional strength aspects that contributed significantly to the competitiveness was the quality ofhuman resources; 5) Obligatory functions service to provide educational infrastructure hadgiven largest contribution to the determinant of regioncompetiveness. Keywords:Competitiveness, Economic Performance, East Java

This study examined the impact of rice milling on poverty reduction in the three geo-political zones of Benue State. Data were obtained through structured questionnaires, focused group discussions and oral interviews. The study adopted a purposive sampling with the aid of Yamen’s Technique and a sample size of 375 respondents was selected. The study used descriptive statistical tools, budgetary analysis and logistic regression to analyze data for this study. The study found that rice milling activity has reduced the probability of its operators been poor in Benue State, which means that rice milling activity is a poverty reducing enterprise. The study also revealed that rice milling activity in the study area was faced with several problems which include poor pricing of locally milled rice, problem of electricity, water supply, increasing cost of paddy rice, high cost of milling as a result of increase in cost of equipments and the problem of capital. The study recommended that the ...

- by Isa Okpe
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- Business, IOSR Journal of Economics and Finance

Frauds are experiences Banks and other organizations have to mitigate. Depravity of mankind could be reason for increasing tendency to fraudulent acts. The banks and regulatory authorities have proposed and allowed internal control measures to check the practice of bank fraudseven in Nigeria. But the effectiveness of any internal control system is dependent on how fluid the system interacts with itself and how embedded it is into the organization's business processes. Using a survey method, this work examined how the internal control systems in the branches of the studied banks: Guaranteed Trust Bank Plc and Fidelity Bank Plc have aided in combating or preventing fraud in Nigerian banks. Among the findings were that: the internal control techniques employed by banks in checking fraud have not been very effective; and the branch managers were the dominant perpetrators of fraud in the banks. We recommend among other things that all banks should establish work ethics unit; reduce excessive confidence in any bank staff; and leadership by example should be the watch word of all bank mangers.

- by victor okonkwo
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- IOSR Journal of Economics and Finance

The main objective of the study was to determine the influence of liquidity risk on performance of commercial Banks Despite the banking sector stability and resilience in 2015, two non-systemic banks, were placed in receivership by the Central Bank of Kenya this was attributed to liquidity risk. Secondary data was used in the study. The population for secondary data were the 44 commercial banks in Kenya of which 2 were under receivership and one under statutory management. Panel data for 30 commercial banks that had data for 10 year period from 2006 to 2015 were obtained from the central bank of Kenya and banks website. Descriptive statistics, correlation analysis, and random and fixed effects were used using E-views software The findings were liquidity risk measured by Liquid assets to total assets ratio had a positive and significant relationship with performance

- by Tobias Olweny
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- IOSR Journal of Economics and Finance

Abstract: This study examines the dynamic effect of capital flight on the real exchange rate of the naira.
Specifically this study seeks to investigate if a long-run relationship exists between real exchange rate and
capital flight in Nigeria. This will be done using quarterly time series data covering the period 1981 to 2009. In
this process the short-run dynamics of the interactions between the two variables will be analyzed

Abstract: The acronym BRICS stands for Brazil, Russia, India, China and South Africa. A grouping of some of the world’s most dynamic economies, the BRICS countries have emerged as an economic block, which has shaped the direction of the global economy, particularly in the past decade. The positive trend has transformed the development profile of the BRICS countries, lifting millions out of the vicious cycle of poverty. Inclusive growth in China has spawned large-scale poverty reduction, with the head-count poverty ratio declining from 30.7 % or 250 million people in 1978 to 13.4% or 179.9 million in 2012. In the case of Brazil, which features one of the world’s most severe inequality ratios, the nation has improved the rate of impoverishment amongst its population in the last decade, reinforced by sustained economic growth. While the nation’s poverty ratio escalated from 17.4 % in 1990 to 22 % in 1998 and 31 % in 2005; it has reduced to 26 % in 2008 and 21.4% in 2013 (World factbook, 2013). South Africa presents a different scenario, with the obnoxious apartheid system excluding the majority Black population from the nation’s wealth until its emergence as a multi-racial democracy. While the nation continues to struggle against endemic poverty, particularly amongst the Black population; strong economic performance in the last decade has led to poverty reduction. Therefore, the major objective of this paper is to elaborate the nexus of inclusive growth and poverty reduction in the BRICS countries, particularly in the last decade. The paper employs empirical data to analyze economic performance in the countries and finds that inclusive growth has contributed to poverty reduction. Brazil, China and South Africa were examined as case studies, revealing the positive effects of inclusive growth on poverty reduction. The paper also presents a policy framework underpinned by macroeconomic policies, characterized by economic diversification, export-driven industrialization, foreign direct investment, as well as mainstreaming poverty reduction strategies in development policy

Abstract: This paper works on the different avenues in the crude death rates in assured lives in the
demography of Bangladesh. Crude rate is studied in multi-folded ways including status of policy, sexual
orientation, timeline response, monetary perspective and the overall patterns. This study is underpinned with the
assumption of Uniform Death Distribution (UDD) method over time (in a single year). We demonstrate the
kinetics of the contemporary crude rates along with comparative analysis with that of existing rates. Also, the
level of efficacy of the existing use of mortality components that has been using for decades in every passage of
life insurance instruments in Bangladesh. We point to the distinguished distortion in the existing practice to the
results from the studied crude rates in the life industry and then the corresponding financial atmosphere driven
by these crude rates issue. Finally, we make this instructive to the life insurance regulator in Bangladesh to pay
attention to take necessary actions in life business due to notably changed demographic pattern in Bangladesh
via going forward to take strong measure to construct a new indigenous mortality table based on the matrix of
current crude rates instead of the existing practice of stereotype loading over extraneous tables for Bangladesh
life insurance industry.
Key Words: Assured life, Crude rate, In-forced policy, Paid-up policy, Uniform Death Distribution (UDD)

Abstract: In this paper, we test two-models of capital structure by using Shyam-Sunder and Myers (1999)
approach for finding the capital structure behaviour of U.K. firms, whether firms follow pecking order or trade
off model. Sample size consists of 60 firms and 51 firms; observation period ranges from 1992 - 2012 and 1995
- 2012. By using panel data regression in the two-sample size and periods, empirical results show that neither
model is appropriate for giving any conclusive result for the capital structure behaviour of U.K. firms.
Keywords: capital structure, pecking order, trade off model, empirical, behaviour of U.K. firms.

- by IOSR Journals
- •
- IOSR Journal of Economics and Finance

- by John Karanja
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- Business, Co Operatives, Financial Leverage, Financial Performance

This study examines the determinants of financial inclusion in Nigeria. This was aimed at ascertaining the level of financial access in Nigeria. Thus, supply side data spanning 2000 to 2018 were collated for estimation. The data were sourced from the World Development Indicators and Central Bank of Nigeria databank. The time series data were estimated using ordinary least square technique. This study examines the determinants of financial inclusion in Nigeria. This was aimed at ascertaining the level of financial access in Nigeria. Thus, supply side data spanning 2000 to 2018 was collated for the estimation. The time series data were estimated using the error correction technique. The findings indicates that commercial bank branches and deposit interest rate exert a negative and insignificant impact on financial inclusion.Further results indicate that domestic credit to private sector (% of GDP),ratio of rural deposits to loans and lending interest rate exert a positive and signific...

- by Gbalam Eze
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- IOSR Journal of Economics and Finance

- by LAWSON IGBINOVIA
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- Economics, Energy Policy, Volatility, Petroleum Economics

Abstract: Present paper seeks to examine whether inflation hampers economic growth in Nepal or not with the help of Distributed Lag Models using the annual data of GDP and Consumer Price Index (CPI). The nominal GDP is converted into real terms and transformed into logarithmic form and the first difference of the real GDP in logarithmic form is taken as the proxy for economic growth. The CPI data is converted into logarithmic form and its first difference is taken as the proxy for inflation. While using the distributed lag models, the economic growth of Nepal at current time is adversely affected by inflation of the same time, whereas the current economic growth is favorably affected by the inflation of preceding time. The estimated regression of economic growth on inflation up to lag one is found to be robust and stable as indicated by residuals diagnostic test ( serial correlation, heteroscedasticity and normality tests) and Ramsey’s RESET test. The findings of the study throw light in policy point of view. The present study suggests that the rate of inflation would automatically be adjusted with increasing output if rate of investment in increased. JEL classification: E31, E58 Key Words: Inflation, Economic Growth, Distributed Lag Models, Stability of Regression

Abstract: The study examined the sources, quality perception, and marketing channel and also determined the market structure of fuel wood in the study area. For the selection of the respondents, cluster random sampling technique was adopted. In the study, 90 fuel wood harvesters in the rural areas of the study were chosen and 90 fuel wood traders namely wholesalers and retailers were chosen from urban areas of the study. Data were obtained from the respondents through primary sources. These data were analyzed by using percentage and gini-coefficient. The study revealed that fuel wood was sourced from open wood land/forests, privately owned land and plantations. The distribution channel of the wood product showed that when the fuel wood is harvested from its source, it is moved by the harvesters through wholesaler retailers and finally to consumers. The findings on quality perception of fuel wood showed that majority of harvesters (98%), wholesalers (89%) and retailer (82%) assess the quality of wood through high burning capacity of the wood. Market structure of fuel wood in the study area showed that there were many buyers and sellers, homogenity of the wood product at all levels and there are little barrier in the entry of fuel wood harvesting and sales of fuel wood at wholesale level. The analysis of gini coefficient showed that there was low degree of concentration at all levels-harvesting, wholesaling and retailing as it recorded 0.16, 0.24 and 0.11 respectively. This shows that no fuel wood harvester or seller has control over the price of his/her good. The study concluded that further improvement is needed on fuel wood business for more efficiency of the trade. Keywords: Fuel wood, Indigenous cooperatives, Quality perception and Marketing channel.