Journal of Banking and Financial Dynamics

Empirical Study of Bank of Industry’s Loan to the Development of Micro, Small and Medium Enterprises in Nigeria: (2002-2013)

2019-11-18T02:03:58+00:00

It has been the main objective of Nigerian government to achieve high rate of economic growth that would lead to high economic growth and reduce poverty level. The research is based on the implications of Bank of Industry and loan on development of Micro, small and medium enterprises in Nigeria. The problems noticed are that the lending of funds by Bank of Industry to micro, small and medium enterprises have not been very positive because of government unstable and inconsistent policies, high interest rate charged on loan and inability of customers to have access loan because of liquidity ratio of customers deposits. The research design used is expose fact research model involving events that have already taken place before the multiple linear regression analysis based on the classical regression methodology was used to form the main procedure that was fooled in this study. The findings are based on the implications of Bank industry’s (BOI) interest rate on micro, small and medium Enterprises output in Nigeria; the effect of Bank of Industry’s (BOI) interest rate MSMES output in Nigeria; the effect of availability of BOI credit proxies as total deposit on MSME output in Nigeria, the effect of Bank of Industry loan repayment on MSMES output. The study recommends that Bank of Industry should provide loans and advances to MSMES; reduction in the interest rate charged on loan there is need to redirect BOI focus on making Nigeria a producer nation through MSMES output in Nigeria.

Factors that Affect the Derivatives Usage of Non-Financial Listed Firms of Pakistan to Hedge Foreign Exchange Exposure

2019-11-18T03:52:17+00:00

This study aims to investigate the factors that affect the derivatives usage of non-financial listed firms of Pakistan to hedge foreign exchange exposure by using data of 51 non-financial firms listed on Pakistan stock exchange from 2010-2013. The dependent variable was derivative usage which was used as dummy since no financial information was disclosed in company annual reports but the decision of usage or not. Non-parametric tests were uses which is univariate analysis to calculate the mean difference between users and non-users of derivative usage for hedging purposes. Further, logistic regression model was used to analyze the impact of financial distress costs, tax convexity, underinvestment problem, profitability, managerial holdings of the company and foreign sales on firm’s decision to whether they use FX derivatives for hedging purposes or not. The result shows that financially distressed firms, having lower managerial holdings and lower interest coverage ration with high foreign sales are using FX derivatives in Pakistan.

Accounting Procedures within a Decentralised Zimbabwean Financial Management School System

2019-11-18T04:16:40+00:00

The study sought to examine the effective utilisation of accounting procedures by accounting officers in Zimbabwean public schools within a decentralised financial management system in order to minimise the mismanagement of public funds. A qualitative approach of an interpretive nature was employed consisting of a semi-structured interview, observation and document analysis in the collection of data. Forty participants were selected using a purposeful non-probability sampling technique. Some qualitative data collected was converted to quantitative data for analysis purposes. Results revealed that the generality of Zimbabwean public schools employ appropriate accounting procedures although the ‘Banking Register’, ‘Payment Vouchers’ and ‘Procurement Minute Book’, ‘reconciliation statements’ and ‘end of year returns’ were found wanting. Consequently, fraudulent activities and misappropriation of public funds seem to be rampant in schools. Researchers recommend that accounting officers be work-shopped, finance duties be delegated within the committee framework, both internal and external controls be intensified to curb the rot.

Credit Risk Management and Financial Performance of Microfinance Institutions in Kampala, Uganda

2019-11-18T04:56:03+00:00

The objective of this study was to evaluate whether relationship exist between credit risk management techniques and financial performance of microfinance institutions in Kampala, Uganda. Specifically, the study examined whether there is a relationship between credit risk identification, credit risk appraisal, credit risk monitoring, credit risk mitigation and financial performance of microfinance institutions in Kampala using sample of 60 members of staff in finance and credit departments of three licensed microfinance institutions in Kampala, Uganda namely Finca Uganda Ltd, Pride Microfinance Ltd, UGAFODE Microfinance Ltd. Primary data was collected using questionnaires and it comprised of closed ended questions. Secondary data was collected from the microfinance institutions (MDI’s) annual reports (2011 - 2015). Frequencies and descriptive statistics were used to analyse the population. Pearson linear correlation coefficient was adopted to examine relationship between credit risk management techniques and financial performance. The findings indicate that credit risk identification and credit risk appraisal has a strong positive relationship on financial performance of MDIs, while credit risk monitoring and credit risk mitigation have moderate significant positive relationship on financial performance of MDIs. The study recommends, among others, that the credit risk appraisal process should identify and analyse all loss exposures, and measure such loss exposures. This should guide in selection of technique or combination of techniques to handle each exposure. The study concludes that MDIs should continually emphasise effective credit risk identification, credit risk appraisal, credit risk monitoring, and credit risk mitigation techniques to enhance maximum financial performance.

Identifications of the Distribution of Treatment Effect with Duration Outcomes

2019-11-18T05:14:46+00:00

Identification in econometric models maps prior assumptions and the data to information about a parameter of interest. However, there are two important features characterize duration data. The first feature is that the data may be censored, and the second characteristic of duration data is that exogenous determinants of the event times characterizing the data may change during the event spell. The two features induce some well-known identification issues for the duration models. Following the recent literature in partial identification, we provide the conditions when the duration models could be identified and provide several suggestions for the confidence bounds of partial identifications.

Validating Marketing Strategy Measures for a Globalized Developing Country

2019-11-18T05:35:30+00:00

Due to economic globalization, business leaders are expected to monitor changes in the market, while also aligning their strategy to the realities of the context in which their businesses operate Marketing strategy effectiveness depends on strategy implementation, and thus developing an effective strategy is paramount. Although Porter’s 5-Forces model has been tried and tested, its appropriateness in a developing environment is not fully conclusive. On the basis of the theory, certain other variables have been identified which warrant investigation, namely, market strategy standardization, marketing strategy co-ordination, technology, and government policies. In order to determine whether these variables will impact the sustainability of a globalized industry in a developing economy, the items which comprise these variables need to be assessed to confirm its validity and reliability. In light of the above, this paper reports on research conducted to develop and empirically evaluate research instruments to measure the impact of specific competitive marketing strategies among a sample of stakeholders from the clothing and textile sector in Zimbabwe. More specifically, the following instruments, namely, market strategy standardization, marketing strategy co-ordination, technology, and government policies, were developed and their reliability and validity confirmed.

Risk and Return Analysis of Mutual Fund Industry in India

2019-11-18T05:51:04+00:00

The mutual funds is one of the important classes of financial intermediaries enabling tens of thousands small and large savers across India to participate in and get the benefits of the capital market. The involvement of mutual funds in the transformation of India’s economy makes it all the more important to review their services for their role in mobilization and allocation of funds in the markets. The mutual funds have a lot of potential to grow but to capitalize the potential fully, however, the need is to create and market innovative products and frame distinct marketing strategies. Moreover, the equity culture has not yet developed fully in India as such, investor education would be equally important for greater penetration of mutual funds. As such mutual funds are expected to perform better than the market, therefore calls for a continuous evaluation of the performance of funds. In an academic perspective, the goal of identifying superior fund managers is of great interest due to the challenges it provides to the efficient market hypothesis. The present study looks into the risk and return analysis of the select mutual funds in India.