Asian Economic and Financial Review

Publish by:
Production and Hosting by Pak Publishing Group on behalf of Asian Economic and Social Socie

Online ISSN: 2222-6737
Print ISSN: 2305-2147
Total Citation: 1219

No.8

Agency Conflict and Corporate Dividend Policy Decisions in Nigeria


Pages: 1110-1121
Find References

Finding References


Agency Conflict and Corporate Dividend Policy Decisions in Nigeria

Search :
Google Scholor
Search :
Microsoft Academic Search
Cite
DOI:


Citation: 6
Export to    BibTeX   |   EndNote   |   RIS

Nwidobie Barine Michael
Abstract
|
Reference
|
XML
|
PubMed
|
Video
Statstics
PDF Download Open Access
Nwidobie Barine Michael (2013). Agency Conflict and Corporate Dividend Policy Decisions in Nigeria. Asian Economic and Financial Review, 3(8): 1110-1121. DOI:
Differences in management and shareholders priorities have been recognized and accepted to exist creating problems in the agency to which financial theorists opined that dividend payments is the best means of resolving the conflict. Results obtained using the multiple regression equation model to identify dividend policy determinants of quoted firms in Nigeria showed that solutions to agency problems past dissatisfactory behaviors of shareholders (complaints of shareholders) is not a determinant of current and future dividend decisions while there exists an inverse relationship between the needs and desires of shareholders and the naira dividend paid by the firms. Thus dividend policies of quoted firms in Nigeria are not aimed at solving the existing agency problems in these firms. To resolve the agency problems in quoted firms in Nigeria good corporate governance structure should be enthroned in quoted firms creating better decision structure for dividend; shareholders should be increasingly represented on the board of quoted firms in Nigeria improving on the chance of consideration of their interests in corporate dividend decisions; and the needs of shareholders should be considered in dividend policy design  giving them a sense of belonging, increasing satisfaction and reducing agency conflict.

  1. Aharony, J. and I. Swary, 1980. Quarterly dividend and earnings announcements and stockholders’ returns: An empirical analysis. Journal of Finance, 35.
  2. Ahmed, H. and A.Y. Javid, 2009a. Dynamics and determinants of dividend policy in pakistan: Evidence from karachi stock exchange non-financial listed firms. International Research Journal of Finance and Economics, 25. Available from www.eurojournals.com/finance.
  3. Ahmed, H. and A.Y. Javid, 2009b. The determinants of dividend policy in pakistan. International Research Journal of Finance and Economics, 29. Available from www.eurojournals.com/finance
  4. Amadi, V.I., 2005. An investigation into the role of private sector in nigerian education: A study of the university of abuja. International Journal of Research in Education. Development Universal Consortia. Ikot Ekpene.
  5. Ang, J., R. Cole and J. Lin, 2000. Agency costs and ownership structure. The Journal of Finance, 55(1): 81-106.
  6. Asquith, P. and J.D.W. Mullins, 1983. The impact of initiating dividend payments on shareholders’ wealth. The Journal of Business, 56(1): 77-96.
  7. Azhagaiah, R. and P.N. Sabari, 2008. The impact of dividend policy on shareholders’ wealth. International Journal of Finance and Economics, 20. Available from www.eurojournals.com/finance.
  8. Bajaj, M., A.M. Vijh and R.W. Westerfield, 2002. Ownership structure, agency costs and dividend policy. Research in Finance, 19: 1-28.
  9. Baker, K.H. and J. Wurgler, 2004. A catering theory of dividends. Journal of Finance, 59: 1125-1165.
  10. Bhattacharya, S., 1979. Imperfect information, dividend policy and the bird-in-hand fallacy. Bell Journal of Economics, 10: 259-327.
  11. Brockman, P. and E. Unlu, 2009. Dividend policy, creditor rights and the agency costs of debt. Journal of Financial Economics, 92: 276-299.
  12. da Silva, C.L., M. Goergen and L. Renneboog, 2004. Dividend policy and corporate governance. Oxford: Oxford University Press.
  13. Easterbrook, F.H., 1984. Two agency-cost explanation of dividends. American Economic Review, 174.
  14. Finnerty, J.D., 1986. Corporate financial analysis: A comprehensive guide to real world approaches for financial managers. New York: McGraw-Hill.
  15. Fluck, Z., 1998. Optimal financial contracting: Debt versus outside equity. Review of Financial Studies, 11: 383-418.
  16. Frankfurter, G.M. and j.B.G. Wood, 2000. Dividend policy theories and their empirical tests. Available from www.Inyernationalreviewoffinancialanalysis.org.
  17. Gordon, M.J., 1963. Optimal investment and financing policy. Journal of Finance, 18(2): 264-272.
  18. Goshen, Z., 1995. Shareholder dividend options. Yale Law Journal, 104.
  19. Grimblatt, M. and S. Titman, 2003. Financial markets and corporate strategy. 2nd Edn., New Delhi: Tata  McGraw-Hill.
  20. Healy, P.M. and K.G. Papepu, 1988. Earnings information conveyed by dividend initiations and omissions. Journal of Financial Economics, 21(2): 149-175.
  21. Jensen, M.C., 1986. Agency costs of free cash flow, corporate finance and takeovers. American Economic Review, 76.
  22. Jensen, M.C. and W.H. Meckling, 1976. Theory of the firm: Managerial behaviour, agency cost and ownership structure. Journal of Financial Economics, 3.
  23. Johnson, K. and J. Williams, 1985. Dividends, dilution, taxes: A signaling equilibrium. The Journal of Finance, 40.
  24. Kim, W.S. and E.H. Sorenson, 1986. Evidence on the impact of the agency costs of debt on corporate debt policy. Journal of Financial and Quantitative Analysis, 21: 131-144.
  25. Kindelberger, C.P., 1984. A financial history of west europe. London: George Allen & Unwin.
  26. Krejcie, R.V. and D.W. Morgan, 1970. Determining sample size for research activities. Educational and Psychological Measurement, 30: 607-610.
  27. Kumar, J., 2009. Does corporate governance influence firm value? Evidence from indian firms. Academy of Accounting and Financial Studies Journal. Mumbai. Available from www.Academyofaccountingandfinancialstudiesjournal.org.
  28. La Porta, R., F. Lopez-de-Silanes, A. Shleifer and R.W. Vishny, 2000. Agency problems and dividend policies around the world. Journal of Finance, 1(55): 1-33.
  29. Leland, H.E., 1998. Agency costs, risk management and capital structure. The Journal of Finance, 53(4): 1213-1214.
  30. Lintner, J., 1956. Distribution of income of corporations among dividend, retained earnings, and taxes. American Economic Review, 46: 97-113.
  31. Manos, R., 2002. Dividend policy and agency theory: Evidence on indian firms. Uk: Loughborough University.
  32. Mello, A.S. and J.E. Parsons, 1992. Measuring the agency cost. The Journal of Finance, 47(5): 1887-1904.
  33. Miller, M. and F. Modigliani, 1961. Dividend policy growth and valuation of shares. Journal of Business, 4: 411-433.
  34. Miller, M.H. and K. Rock, 1985. Dividend policy under asymmetric information. Journal of Finance, 40.
  35. Modigliani, F. and M. Miller, 1959. The cost of capital, corporation finance and theory of investment: A reply. American Economic Review, 49: 665-669.
  36. Myers, J.S., 2000. Outside equity. Journal of Finance, 55.
  37. Pandey, I.M., 2005. Financial management. 9th Edn., New Delhi: Vikas Publishing.
  38. Park, J.J., 2009. Shareholder compensation as dividend. Michigan Law Review, 108: 323-371. Available from www.michiganlawreview.org.
  39. Rozeff, M.S., 1982. Growth, beta and agency costs as determinants of dividend payout ratios. Journal of Financial Research, 5: 249-259.
  40. Schwartz, S.H., 1994. Beyond individualism/collectivism: New cultural dimensions of values. California: Sage publications.
  41. Shao, L., 2010. Two essays on cross-country differences in corporate dividend policies. Available from www.proposals_Shao_fmacom2009.
  42. Shao, L., C.C.Y. Kwok and Guedhami, 2008. Is national culture a missing piece of the dividend puzzle?

Moderating Effect on The Relationship Between A Companies’s Life Cycle and the Relevance of Accounting Practices Intangible Assets


Pages: 1096-1109
Find References

Finding References


Moderating Effect on The Relationship Between A Companies’s Life Cycle and the Relevance of Accounting Practices Intangible Assets

Search :
Google Scholor
Search :
Microsoft Academic Search
Cite
DOI:


Citation: 1
Export to    BibTeX   |   EndNote   |   RIS

Mehrdad Salehi, Hashem Valipour, Javad Moradi
Abstract
|
Reference
|
XML
|
PubMed
|
Video
Statstics
PDF Download Open Access
Mehrdad Salehi, Hashem Valipour, Javad Moradi (2013). Moderating Effect on The Relationship Between A Companies’s Life Cycle and the Relevance of Accounting Practices Intangible Assets. Asian Economic and Financial Review, 3(8): 1096-1109. DOI:
The main objective of this study was to investigate the relationship between the company and the value relevance of intangible assets during the life cycle before and after the implementation of the accounting standard No. 17. Data in this research has been conducted in three phases, the first sample companies to the growth, maturity and decline are classified. The relevance of intangible assets in each of the stages of growth, maturity and decline, and also the period before and after implementation of the standard have been studied, And finally statistical method using cross-correlation analysis, and regression testing of hypotheses have been. Results from 25 companies during the period 2004 to 2010, it is confirmed that the company’s life cycle, the amount of intangible assets related impacts. The overall results show that the different life cycle stages of company maturity, the strongest influence on the amount of intangible assets is concerned. Our results also suggest that the relevance of intangible assets during the period prior to the implementation of the standard is the standard.

  1. Ahmed, K. and H. Falk, 2006. The value relevance of management's research and development reporting choice: Evidence from Australia. Journal of Accounting and Public Policy, 25: 231-264.
  2. Alfredson, K., 2001. Accounting for identifiable intangibles - an unfinished standard- setting task. Australian Accounting Review, 11: 12-21.
  3. Amir, E., T.S. Harris and E.K. Venuti, 1993. A comparison of the value-relevance of u.S. Versus non-u.S. Gaap accounting measures using form 20-f reconciliations. Journal of Accounting Research, 31: 230-264.
  4. Anthony, J.H. and K. Ramesh, 1992. Association between accounting performance measures and stock prices: A test of the life cycle hypothesis. Journal of Accounting and Economics, 15: 203-227.
  5. Ball, R. and P. Brown, 1968. An empirical evaluation of accounting numbers. Journal of Accounting Research, 6: 159-178.
  6. Barth, M.E., 2000. Valuation-based accounting research: Implications for financial reporting and opportunities for future research. Accounting and Finance, 40: 7-31.
  7. Barth, M.E., W.H. Beaver and W.R. Landsman, 2001. The relevance of the value relevance literature for financial accounting standard setting: Another view. Journal of Accounting and Economics 31: 77-104.
  8. Beaver, W.H., 1968. The information content of annual earnings announcements. Journal of Accounting Research, 6: 67-92.
  9. Black, E.L., 1998. Life-cycle impacts on the incremental value-relevance of earnings and cash flow measures. Journal of Financial Statement Analysis, 4: 40-56.
  10. Cañibano, L., M. García-Ayuso and P. Sánchez, 2001. Accounting for intangibles: A literature review. Journal of Accounting Literature, 19: 102-130.
  11. Committee onauditingstandards auditingstandards, 2009. Auditingstandards. 12: 150-170.
  12. Dickinson, V., 2009. Cash flow patterns as a proxy for firm life cycle SSRN Working Paper.
  13. Etner, W.H., 2008. Perspectives on recent capital market research. The Accounting Review, 77: 453-474.
  14. Givoly, H. and C. Shi, 2008. Accounting for software development costs and the cost of capital: Evidence from ipo underpricing in the software industry. Journal of Accounting , Auditing and Finance, 23: 271-303.
  15. Guthrie, J., 2001. The management, measurement and the reporting of intellectual capital. Journal of Intellectual Capital, 2: 27-41.
  16. Hanter, B.H. and D. Manry, 2005. The value-relevance of r&d and advertising expenditures: Evidence from korea. The International Journal of Accounting, 39: 155-173.
  17. Hung, M., 2001. Accounting standards and value relevance of financial statements: An international analysis. Journal of Accounting and Economics, 30: 401-420.
  18. Kousenidis, D.V., 2005. Earnings-returns relation in greece: Some evidence on the size effect and on the life-cycle hypothesis. Managerial Finance, 31: 24-54.
  19. Lester, D.L., J.A. Parnell and S. Carraher, 2003. Organizational life-cycle: A five stage empirical scale. International Journal of Organizationak Analysis, 11: 339-354.
  20. Lev, B. and P. Zarowin, 2007. Capitalization of r&d and the informativeness of stock prices. European Accounting Review, 16: 703-726.
  21. Martinez, I., 2003. The impact of firm-specific attributes on the relevance in earnings and cash-flows: A non-linear relationship between stock returns and accounting numbers. Review of Accounting & Finance, 2: 16-40.
  22. Miller, M.H. and F. Modigliani, 1958. The cost of capital, corporation finance and the theory of investment. American Economic Review, 48: 261-297.
  23. Myers, S.C., 1977. Determinants of corporate borrowing. Journal of Financial Economics, 5: 147-175.
  24. Ohlson, J.A., 1995. Earnings, book values, and dividends in equity valuation. Contemporary Accounting Research, 11: 661-687.
  25. Oswald, D.R., 2008. The determinants and value relevance of the choice of accounting for research and development expenditures in the united kingdom. Journal of Business Finance & Accounting, 35: 1-24.
  26. Park, L. and F. chen, 2006. The valuation of high-tech "new economy" companies. Journal of Global Competitiveness, 13: 1-8.
  27. Skinner, D.J., 1993. The investment opportunity set and accounting procedure choice. Journal of Accounting and Economics 16: 407-445.
  28. Skinner, D.J., 2008. The investment opportunity set and accounting procedure choice. Journal of Accounting and Economics, 16: 407-445.
  29. Stenkemp, K.R., 2007. The pricing of discretionary accruals. Journal of Accounting and Economics, 22: 249-281.

Corporate Governance and Financial Reporting in the Nigerian Banking Sector: An Emperical Study


Pages: 1083-1095
Find References

Finding References


Corporate Governance and Financial Reporting in the Nigerian Banking Sector: An Emperical Study

Search :
Google Scholor
Search :
Microsoft Academic Search
Cite
DOI:


Citation: 3
Export to    BibTeX   |   EndNote   |   RIS

Lawrence Imeokparia
Abstract
|
Reference
|
XML
|
PubMed
|
Video
Statstics
PDF Download Open Access
Lawrence Imeokparia (2013). Corporate Governance and Financial Reporting in the Nigerian Banking Sector: An Emperical Study. Asian Economic and Financial Review, 3(8): 1083-1095. DOI:
The objective of corporate   governance in the strategic management of the banking industry in Nigeria is to ensure hearth financial system and economic development .This study therefore discusses the corporate governance and financial reporting in the banking institutions in Nigeria,   This study was embarked upon to explore the intricacies of corporate governance and financial reporting issues in the banking industry. A total of 133copies of questionnaires were distributed. The respondents consist of regulatory institution, bank employees and bank customers. The data collected were presented in frequency, tables and analysed using Statistical Package for Social Sciences. The study revealed that the relatively stronger Nigerian banking industry is faced with diverse ethical issues despite the reformative consolidation exercise and although codes and standards guiding sound governance and ethical reporting have gone a long way in salvaging the banking profession, it may not be adequate to face the new ethical challenges in post-consolidation, especially in the absence of an adequately equipped system of supervision. The recommendations highlighted by this study may be summarized into a singular action plan, which entails the unification of ethical regulations and introduction of legal enforcement to ensure compliance in governance and its consequent reporting.

  1. Adewunmi, W., 1998. Ethics in the financial services business. Lagos, Nigeria The CIBN Press.
  2. Das, A. and S. Ghosh, 2004. Corporate governance in banking system. Economic and Political Weekly 1263-1266.
  3. Davies, M. and B. Schlitzer, 2008. The impracticability of an international “one size fits all  ” corporate governance code of best practice. Managerial Auditing Journal, 23(6): 532-554.
  4. Donli, J., 2003. The state and future of the banking industry in nigeria.
  5. Egwuonwa, R., 1997. Interlocking directories and corporate governance. 1st Edn.: Lagos, Nigeria: Stride Associates.
  6. Inam, W., 2006. Corporate governance- new corporate mantra? Available from www.templers-law.com.
  7. La Porta, R., Florencio Lopez-de-Silanes and Andrei Shleifer, 1999. Corporate ownership  around the world. Journal of Finance 54: 471-518.
  8. Lemo, T., 2004. Corporate governance issues. In: NSE Biannual  Conference.
  9. Nwokoma, N.I., 2005. Issues and challenges in banking sector consolidation and economic development in nigeria. The Nigerian Stockbroker 6(3): 3-12.
  10. Nwosu, C., 2007. The effectiveness of corporate governance in financial reporting of an organization. An undergraduate research work in  Covenant University, Ota. Ogun, Nigeria. (Unpublished).
  11. Ramon, V.R., 2001. Corporate governance as competitive advantage in asia. Managing Corporate Governance in Asia, Asian Institute of Management,  Philippines.
  12. Sanusi, J.O., 2003. Embracing good corporate governance practices in nigeria. 19th Annual Directors' Seminar organised by the Financial Institutions Training Centre. Abuja: BIS Review 27: 1-2.
  13. Solomon, J. and A. Solomon, 2004. Corporate governance and accountability. Chichester: Wiley.
  14. Soludo, C., 2009. Global financial and economic crisis: How vulnerable is nigeria?
  15. The World Bank report, 2002. Building institution for markets. world bank development report.

Natural Resources, Conflict and Growth Nexus


Pages: 1063-1082
Find References

Finding References


Natural Resources, Conflict and Growth Nexus

Search :
Google Scholor
Search :
Microsoft Academic Search
Cite
DOI:


Citation: 1
Export to    BibTeX   |   EndNote   |   RIS

Shahida Wizarat
Abstract
|
Reference
|
XML
|
PubMed
|
Video
Statstics
PDF Download Open Access
Shahida Wizarat (2013). Natural Resources, Conflict and Growth Nexus. Asian Economic and Financial Review, 3(8): 1063-1082. DOI:
Using panel data and GMM estimators we find that conflict and less developed countries (LDCs) natural resources have a positive and significant impact on GDP in the developed countries (DCs), while the lagged value of the conflict coefficient has a negative and significant impact on GDP in the LDCs for the period 1980-2006. In the conflict model using panel data and GMM estimates on oil, gas and coal production in the LDCs have a profound impact on world conflict.

  1. Anderson, K., 1998. Are resource abundant economies disadvantaged? The Australian Journal of Agricultural and Resourse Economics, 42(1): 1-23.
  2. Arezki, R. and F.v.d. Ploeg, 2006. Can the natural resource curse be turned into a blessing? Role of Trade Polices and Institutions.
  3. Auty, R.M., 2001. The political economy of resource driven growth. European Economic review, 45(4/6): 839-846.
  4. Auty, R.M., 2007. Natural resource, capital accumulation and the resource curse. Ecological Economics, 61(4): 627-634.
  5. Barbier, E.B., 2002. The role of natural resources in economic development. Australian Economic Papers, 42(2): 253-227.
  6. Blundell, R.W. and S.R. Bond, 1998. Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87(1): 115-143.
  7. Blundell, R.W. and S.R. Bond, 2000. Gmm estimation with persistent panel data: An application to production functions. Econometric Reviews, 19(3): 321-340.
  8. Blundell, R.W. and R.J. Smith, 1991. Initial conditions and efficient estimation in dynamic panel data models. Journal of Econometrics, 87(1): 115-143.
  9. Bond, S.R., 2002. Dynamic panel data models: A guide to micro data methods and practice. Portuguese Economic Journal, 1(2): 141-162.
  10. Boschini, A.D., Jan Patterson and R. Jasper, 2007. Resource curse or not: A question of appropriability. Scandinavian Journal of Economics, 109(3): 593-617.
  11. Brunnschweiler, C.N., 2007. Cursing the blessing? Natural resource abundance. Institutions and Economic Growth, World Development, 36(3): 399-419.
  12. Bulte, E.H., D. Richard and D. Robert, 2005. Resource intensity, institutions and development. World Development, 33(7): 1029-1044.
  13. Collier, P., 2003. National resources, development and conflict: Channels of causation and policy interventions. Oxford University and World Bank.
  14. Collier, P. and A. Hoeffler, 1998. On economic causes of civil war. Oxford Economic Papers.
  15. Collier, P. and S. Nicholas, 2002. Understanding civil war: A new agenda. Journal of Conflict Resolution, 46(1): 3-12.
  16. Corden, W.M. and J.P. Neary, 1982. Booming sector and de-industrialization in a small open economy. Austria: International Institute for Applied Systems Analysis.
  17. Deger, S. and S. Sen, 1983. Military expenditure, spin-off and economic development. Journal of Development Economics, 13(1/2): 67-83.
  18. Easterly, W. and L. Ross, 1997. Africa’s growth tragedy: Policies and ethnic divisions. Quarterly Journal of Economics, 112(4): 1203-1250.
  19. Garcia, R. and P. Peron, 1996. An analysis of the real interest rate under regime shifts. Review of Economics and Statistics, 78(1): 111-125.
  20. Grossman, H.I. and M. Kim, 1995. Swords or plowshares? A theory of the security of claims to property. Journal of Political Economy, 103(6): 1275-1288.
  21. Gylfason, T., 1999. Natural resources and economic growth: A nordic perspective on the dutch disease
  22. Gylfason, T., 2001. Lessons from the dutch disease: Causes, treatment, and cures, statoil-econ conference volume.
  23. Gylfason, T. and Z. Gylfi, 2003. Inequality and economic growth: Do natural resources matter? Inequality and Growth: Theory and Policy Implications (MIT Press, Cambridge, MA).
  24. Gylfason, T. and G. Zoega, 2006. Natural resources and economic growth: The role of investment. The World Economy, Blackwell Publishing, Oxford.
  25. Humphreys, M., 2005. Natural resources, conflict and conflict resolution. Journal of Conflict Resolution, 49(4): 508-537.
  26. Isham, Jonathan, W. Michael, P. Lant and B. Gwen, 2005. The varieties of resource experience: Natural resource export structures and the political economy of economic growth. The World Bank  Economic Review, 19(2): 141-174.
  27. Kidron, M., 1967. A permanent arms economy. International Socialism (1st series),   No 28, Spring 1967.
  28. Koubi, V., 2005. War and economic performance. Journal of Peace  Research, 42(1): 67-82.
  29. Lederman, D. and W. Maloney, F., 2007. Natural resources neither curse nor destiny. Stanford University Press and the World Bank.
  30. Leitenberg, M., 2006. Deaths in wars and conflicts in the 20th century 3rd Edn: Cornell University Peace Studies Program me, Occasional Paper no 29.
  31. Lindgren, G., 2006. Studies in conflict economies and economic growth, report no. 72, department of peace and conflict research. Uppsala University, Uppsala.
  32. Maloney, W.F., 2007. Missed opportunities: Innovation and resource-based growth in latin america",  natural resources neither curse nor destiny. The World Bank and Stanford University Press.
  33. Mehlum, H., M. Karl and T. Ragnar, 2005. Institutions and the resource curse.
  34. Mehlum, H., M. Karl and T. Ragnar, 2006a. Cursed by resources or institutions? The World Economy, Blackwell Publishing, Oxford.
  35. Mehlum, H., M. Karl and T. Ragnar, 2006b. Institutions and the resource curse. The Economic Journal, 116(508): 1-20.
  36. Mejia, D., 2004. Conflict & economic growth. A Survey of the Theoretical Links, Internet, November.
  37. Murshed, S.M., 2004. When does natural resource abundance lead to a resource curse? Discussion Paper 04-01, March.
  38. Neumayer, E., 2004. Does the “resource curse” hold for growth in genuine income as well? . World Development, 32(10): 1627-1640.
  39. Olsson, O., 2005. Conflict diamonds. Journal of Development Economics, 82(2): 267-286.
  40. Olsson, O., 2006. Diamonds are a rebel’s best friend. The World economy, Blackwell Publishing, Oxford, MA.
  41. Organski, A.F.K. and J. Kugler, 1977. The costs of major wars: The phoenix factor. American Political Science Review, 71(4): 1347-1366.
  42. Ortega, C.B. and J. Gregorio, de, 2007. The relative richness of the poor? Natural resources, human capital, and economic growth in natural resources neither curse nor destiny. The World Bank and Stanford University Press.
  43. Papyrakis, E. and G. Reyer, 2003. Natural resources: A blessing or a curse, internet.
  44. Ross, M., 2002. What do we know about natural resources and civil war? Journal of Peace Research, 41(3): 337-356.
  45. Sachs, J.D. and A. Warner, M. Warner 1997. National resource abundance and economic growth, centre for international development, harvard institute of international development. Harvard University, Cambridge.
  46. Stijns, J.P.C., 2000. National resource abundance and economic growth revisited. Department of Economics, University of California at Berkeley, November.
  47. Torvik, R., 2002. Natural resources, rent seeking and welfare. Journal of Development Economics, 67(2): 455-470.
  48. Travaglianti, M., 2006. The role of the state in the natural resources and civil war paradigm. Jean Monnet Centre Euro Med, Department of Political Studies, University of Catania, October.
  49. Vijayaraghavan, M. and W. Ward, 2001. Institutions and economic growth. Empirical Evidence for a Cross-National Analysis, Working Papers 112952.
  50. Wright, G. and C. Jesse, 2007. Resource-based growth: Past and present. Natural Resources  Neither Curse nor Destiny: Stanford University Press and World Bank Publication.

Macroeconomic Variables and Stock Market Returns in Ghana: Any Causal Link?


Pages: 1044-1062
Find References

Finding References


Macroeconomic Variables and Stock Market Returns in Ghana: Any Causal Link?

Search :
Google Scholor
Search :
Microsoft Academic Search
Cite
DOI:


Citation: 23
Export to    BibTeX   |   EndNote   |   RIS

Haruna Issahaku , Yazidu Ustarz, Paul Bata Domanban
Abstract
|
Reference
|
XML
|
PubMed
|
Video
Statstics
PDF Download Open Access
Haruna Issahaku , Yazidu Ustarz, Paul Bata Domanban (2013). Macroeconomic Variables and Stock Market Returns in Ghana: Any Causal Link?. Asian Economic and Financial Review, 3(8): 1044-1062. DOI:
The purpose of the study is to examine the existence of causality between macroeconomic variables and stock returns in Ghana. The study employs monthly time series data spanning the period January 1995 to December 2010.  Unit root test is performed using ADF, PP and KPSS tests. Then, Vector Error Correction (VECM) model is used to establish long-run and short-run relationship between stock performance and macroeconomic variables. In order to determine the existence or otherwise of causality, the Granger Causality tests is performed. Impulse response functions and forecast error variance decomposition are used to assess the stability of the relationship between stock returns and macroeconomic variables over time. The study reveals that a significant long run relationship exists between stock returns and inflation, money supply and Foreign Direct Investment (FDI). In the short-run, a significant relationship exists between stock returns and macroeconomic variables such as interest rate, inflation and money supply. In the short-run the relationship between stock returns and FDI is only imaginary. Our VECM coefficient shows that it takes approximately 20 months for the stock market to fully adjust to equilibrium position in case a macroeconomic shock occurs. Lastly, a causal relationship running from inflation and exchange rate to stock returns has been established. Then also, a causal relationship running from stock returns to money supply, interest rate and FDI has also been revealed. The findings imply that arbitrage profit opportunities exist in the Ghana stock market contrary to the dictates of the Efficient Market Hypothesis (EMH). In terms of original value,among the studies done on the topic in Ghana so far, this is the only study that incorporates dividend in the computation of returns on the Ghana Stock Exchange.

  1. Adam, A.M. and G. Tweneboah, 2008. Macroeconomic factors and stock market  movement: Evidence from Ghana. Munich Personal RePEc Archive, No. 14079.
  2. Aga, M. and B. Kocaman, 2006. An empirical investigation of the relationship between inflation, p/e ratios and stock price behaviours using a new series called index-20 for istanbul stock exchange. International Research Journal of Finance and Economics, (6).
  3. Antwi, S., A.M.F.E. Ebenezer and X. Zhoa, 2012. The effect of macroeconomic variables on stock prices in emerging stock market: Empirical evidence from Ghana. International Journal of Social Sciences Tomorrow, 1(10): 1-10.
  4. Aydemir, O. and E. Demirhan, 2009. The relation between stock prices and exchange rates: Evidence from Turkey. International Research Journal of Finance and Economics, 23: 207-215.
  5. Brooks, C., 2008. Introductory econometrics for finance. Cambridge University Press, UK.
  6. Chen, N., R. Roll and S. Ross, 1986. Economic forces and the stock market. The Journal of Business, 59(3): 383-403.
  7. Choudhry, T., 2001. Inflation and rates of return on stocks: Evidence from high inflation countries. Journal of International Financial Markets, Institutions, and Money, 11: 75-96.
  8. Dasgupta, R., 2012. Long-run and short-run relationships between bse sensex and macroeconomic variables. International Research Journal of Finance and Economics, 95: 135-150.
  9. Dickey, D. and W. Fuller, 1979. Distribution of the estimators for autoregressive time series with a unit root. Journal of the American Statistical Association, 74(366): 427-431.
  10. Engle, R.F. and C.W.J. Granger, 1987. Cointegration and error correction representation, estimation and testing. Econometrica, 55: 251-276.
  11. Fama, E.F., 1981. Stock returns, real activity, inflation and money. American Economic Review, 71(4): 545-565.
  12. Fisher, I., 1930. The theory of interest. NY: Macmillan, New York.
  13. Frimpong, J.M., 2009. Economic forces and the stock market in a developing economy: Cointegration evidence from ghana. European Journal of Economics, Finance and Administrative Sciences, 16: 123-135.
  14. Frimpong, S., 2011. Speed of adjustment of stock prices to macroeconomic information: Evidence from Ghanaian stock exchange (gse). International Business and Management, 2(1): 151-156.
  15. Granger, C.W.J., 1969. Investigating causal relation by econometric and cross sectional method. Econometrica, 37(3): 424-438.
  16. Harjito, A.D. and B.C.J. McGowan, 2007. Stock price and exchange rate causality: The case of four asean countries. South-western Economic Review, 34(1): 103-114.
  17. Hjalmarsson, E. and P. Osterholm, 2007. Testing for cointegration using the johansen methodology when variables are near-integrated. IMF Working Paper,   WP/07/141, International Monetary Fund (IMF).
  18. Johansen, S., 1988. Statistical analysis of cointegration vectors. Journal of Economic Dynamics and Control, 12: 231-254.
  19. Johansen, S., 1991. Estimation and hypothesis testing of cointegration vectors in gaussian vector autoregressive models. Econometrica, 59(6): 1551-1580.
  20. Johansen, S., 1995. Likelihood-based inference in cointegrated vector autoregressive models. Oxford: Oxford University Press.
  21. Johansen, S., 2000. Modeling of cointegration in the vector autoregressive model. Economic Modeling, 17: 359-373.
  22. Johansen, S. and K. Juselius, 1990. Maximum likelihood estimation and inference on cointegration with application to the demand for money. Oxford Bulletin of Economics and Statistics, 52: 169-210.
  23. Kazi, M.H., 2008. Stock market price movements and macroeconomic variables. International Review of Business Research Papers, 4(3): 114-126.
  24. Khalid, 2012. Long-run relationship between macroeconomic variables and stock return: Evidence from karachi stock exchange (kse). School of Doctoral Studies (European Union) Journal, 4(1): 384-389.
  25. Kuwornu, J.K.M., 2012. Effect of macroeconomic variables on the ghanaian stock market returns: A co-integration analysis. Agris on-line Papers in Economics and Informatics, 4(2): 1-12.
  26. Kuwornu, J.K.M. and V. Owusu - Nantwi, 2011. Macroeconomic variables and stock market returns: Full information maximum likelihood estimation. Research Journal in Finance and Accounting, 2(4): 49-63.
  27. Kwiatkowski, D., P.C.B. Phillips, P. Schmidt and Y. Shin, 1992. Testing the null hypothesis of stationarity against the alternative of a unit root. Journal of Econometrics, 54: 159-178.
  28. Kyereboah-Coleman, A. and K.F. Agyire-Tettey, 2008. Impact of  macroeconomic indicators on stock market performance. The case of the Ghana stock exchange. The Journal of Risk Finance, 9(4): 365-378.
  29. Margaret, N.O., 2012. Return-volatility interactions in the nigerian stock market. Asian Economic and Financial Review, 2(2): 389-399.
  30. Mohammad, S.D., A.M. Hussain, J.M. Anwar and A. Ali, 2009. Impact of macroeconomics variables on stock prices: Emperical evidence in case of kse (karachi stock exchange). European Journal of Scientific Research, 38(1): 96-103.
  31. Mukharjee, T.K. and A. Naka, 1995. Dynamic relations between macroeconomic variables and the Japanese stock market: An application of a vector error-correction model. The Journal of Financial Research, 18(2): 223-237.
  32. Okoli, M.N., 2012. Return-volatility interactions in the Nigerian stock market. Asian Economic and Financial Review, 2(2): 389-399.
  33. Omran, M. and J. Pointon, 2001. Does the inflation rate affect the performance of  the stock market? The case of Egypt. Emerging Markets Review, 2: 263-279.
  34. Osei, K., 2006. Macroeconomic factors and Ghana stock market. The African Finance Journal, 8(1): 26-38.
  35. Osei, K.A., 1998. Analysis of factors affecting the development of an emerging capital market: The case of the Ghana stock market. Kenya: African Economic Research Consortium Paper 76. AERC, Nairobi.
  36. Owusu-Nantvi, V. and J.K.M. Kuwornu, 2012. Analysing the effect of macroeconomic variables on stock market returns: Evidence from Ghana. Journal of Economics and International Finance, 3(11): 605-615.
  37. Phillips, P.C.B. and P. Perron, 1988. Testing for a unit root in time series regression. Biometrika, 75: 335-346.
  38. Priyanka, A. and M.M. Kumar, 2012. Effect of economic variables of India and USA  on the movement of Indian capital market: An empirical study. International Journal of Engineering and Management Science, 3(3): 379-383.
  39. Saeed, S. and N. Akhter, 2012. Impact of macroeconomic factors on banking index in Pakistan. Interdisciplinary Journal of Contemporary Research in Business, 4(6): 1-19.
  40. Sohail, N. and Z. Hussain, 2009. Long-run and short-run relationship between macroeconomic variables and stock prices in Pakistan, the case of lahore stock exchange. Pakistan Economic and Social Review, 47(2): 183-198.
  41. Yusof, R.M.M., M.S.A. Majid and A.N. Razali, 2006. Macroeconomic variables and stock returns in the post 1997 financial crisis: An application of the ardl model. GUTMAN Conference Centre.

The Effects of Board Size and CEO Duality on Firms’ Capital Structure: A Study of Selected Listed Firms in Nigeria


Pages: 1033-1043
Find References

Finding References


The Effects of Board Size and CEO Duality on Firms’ Capital Structure: A Study of Selected Listed Firms in Nigeria

Search :
Google Scholor
Search :
Microsoft Academic Search
Cite
DOI:


Citation: 9
Export to    BibTeX   |   EndNote   |   RIS

Uwuigbe Olubukunola Ranti
Abstract
|
Reference
|
XML
|
PubMed
|
Video
Statstics
PDF Download Open Access
Uwuigbe Olubukunola Ranti (2013). The Effects of Board Size and CEO Duality on Firms’ Capital Structure: A Study of Selected Listed Firms in Nigeria. Asian Economic and Financial Review, 3(8): 1033-1043. DOI:
This study examined the effects of board size and CEO Duality on the capital structure of listed firms in Nigeria. To achieve the objectives of this study, a total of 40 listed firms in the Nigerian stock exchange market were selected and analyzed for the study. The choice of the selected firms arises based on the capital structure and the equity ownership structure of the listed firms. Also, the corporate annual reports for the period 2006-2011 were used for the study. The paper was basically modeled to examine the effects of board size and CEO Duality on the capital structure of listed firms operating in the Nigerian stock exchange market using the regression analysis method. The study in its findings observed that there was a significant negative relationship between board size and the capital structure of the selected listed firms. In addition, the study observed that there was a significant positive relationship between CEO duality and the capital structure of the selected listed firmsin Nigeria. The paper therefore concludes that firms having smaller board size, due to weaker corporate governance tend to use more amount of debt to reduce agency problems.

  1. Abor, J., 2007. Corporate governance and financing decisions of ghanaian listed firms. Corporate Governance, 7(1): 83-92.
  2. Abor, J. and N. Biekpe, 2007. Corporate governance, ownership structure and performance of smes in ghana: Implications for financing opportunities. Corporate Governance, 7(3): 288-300.
  3. Abor, J. and N. Bikpie, 2005. What determines the capital structure of listed firms in ghana? African Finance Journal, 7(1): 37-48.
  4. Adeyemi, S.B. and T.O. Fagbemi, 2010. Audit quality, corporate governance and firm characteristics in nigeria. International Journal of Business and Management, 5(5): 169-179.
  5. Al-Najjar, B. and K. Hussainey, 2009a. What drives firms’ capital structure and dividend policy? , UK: Working paper, Middlesex University.
  6. Al-Najjar, B. and K. Hussainey, 2009b. Revisiting the capital structure puzzle: Uk evidence. UK: Working Paper, Middlesex University.
  7. Anderson, R., S.A. Mansi and D.M. Reeb, 2004. Board characteristics, accounting report integrity, and cost of debt. Journal of Accounting and Economics, 37: 315-342.
  8. Belsely, D.A., 1991. Conditioning diagnostics: Collinearity and weak data in regressions. Wiley, New York, NY.
  9. Berger, P., E. Ofek and D. Yermark, 1997. Managerial entrenchment and capital structure decisions. Journal of Finance, 52(4): 1411-1438.
  10. Coles, J.L., N.D. Daniel and L. Naveen, 2008. Boards: Does one size fit all? . Journal of Financial Economics, 87: 329-356.
  11. Faleye, O., 2004. Does one hat fit all? The case of corporate leadership structure working paper, college of business administration. North-eastern University, Boston, MA.
  12. Field, A., 2000. Discovering statistics: Using spss for windows. London: Sage Publications.
  13. Fosberg, R.H., 2004. Agency problems and debt financing: Leadership structure effects, corporate governance. International Journal of Business in Society, 4(1): 31-38.
  14. Friend, I. and L.H. Lang, 1988. An empirical test of the impact of managerial self interest on corporate capital structure. Journal of Finance, 47: 271-281.
  15. Hassan, A. and S.A. Butt, 2009. Impact of ownership structure and corporate governance on capital structure of pakistani listed companies. International Journal of Business and Management, 4(2): 50-57.
  16. Hussainey, K. and A. Al-Nodel, 2009. Does corporate governance drive financing decisions of saudi arabian companies? . Working paper, University of Stirling, Scotland.
  17. Jensen, M.C., 1986. Agency costs of free cash flow, corporate finance and takeovers. American Economic Review, 76: 323-329.
  18. Jiraporn, P.Y.S., J.C. Kim, Kim and P. Kitsabunnarat, 2009. Does corporate governance affect capital structure? Available from http://www.ssrn.com.
  19. Krejcie, R.V. and D.W. Morgan, 1970. Determining sample size for research activities. Educational and Psychological Measurement, 30: 607-610.
  20. La Porta, Lopez-de-Silannes, Shleifer and Vishny, 2000. Investor performance and corporate governance. Journal of Financial Economics, 58: 3-27.
  21. Lipton, M. and J.W. Lorsch, 1992. A modest proposal for improved corporate governance, . The Business Lawyer 48(1): 59-67.
  22. Mehran, H., 1992. Executive incentive plans, corporate control and capital structure. Journal of Finance and Quantitative Analysis, 27: 539-560.
  23. Pfeffer, J. and G.R. Salancick, 1978. The external control of organisations: A resource-dependence perspective. New York: Publishing by Harper & Row.
  24. Saad, N.M., 2010. Corporate governance compliance and the effects to capital structure in malaysia. International Journal of Economics and Finance, 2(1): 105-114.
  25. Shapiro, A.C. and S.D. Balbirer, 2000. Modern corporate finance. Prentice Hall.
  26. Shleifer, A. and R. Vishny, 1997. A survey of corporate governance. Journal of Finance 42: 737-783.
  27. Wen, Y., K. Rwegasira and J. Bilderbeek, 2002. Corporate governance and capital structure decisions of chinese listed firms, corporate governance. An International Review, 10(2): 75-83.
  28. Wiwattanakantang, Y., 1999. An empirical study on the determinants of the capital structure of thai firms Pacific-Basin Finance Journal, 7: 371-403.

Efficiency of Moisture Stress Risk Coping Strategies in North Eastern Ethiopia: Application of Mean-Variance Efficiency Analysis


Pages: 1018-1032
Find References

Finding References


Efficiency of Moisture Stress Risk Coping Strategies in North Eastern Ethiopia: Application of Mean-Variance Efficiency Analysis

Search :
Google Scholor
Search :
Microsoft Academic Search
Cite
DOI:


Citation: 1
Export to    BibTeX   |   EndNote   |   RIS

Girma T. Kassie, Debrah Maleni, Simon Gwara,Bezabih Emana
Abstract
|
Reference
|
XML
|
PubMed
|
Video
Statstics
PDF Download Open Access
Girma T. Kassie, Debrah Maleni, Simon Gwara,Bezabih Emana (2013). Efficiency of Moisture Stress Risk Coping Strategies in North Eastern Ethiopia: Application of Mean-Variance Efficiency Analysis. Asian Economic and Financial Review, 3(8): 1018-1032. DOI:
This research investigated the efficiency of the crop enterprise mix farmers formulate to cope with moisture stress risk given the different constraints they are living with. Farmers’ moisture risk coping strategies are mainly explained by the allocation of farm land among the different crop enterprises they produce. In the less moisture stressed (LMS) parts of Kalu district, farmers increase land allotted to Tef, chickpea, lentil, field pea, and emmer wheat when they expect moisture stress. Farmers in the highly moisture stressed (HMS) areas of the district increase land under Tef, chickpea, maize, and haricot bean instead of sorghum. The results from the analysis using parametric linear programming (PLP)justify the efficiency of farmers’ moisture stress risk coping strategies. The results also imply the necessity for greater emphasis on land allocation to pulses and cereals that have attractive market prices to improve the returns to farming communities

  1. Addae-Korankye, A., 2012. Microfinance and poverty reduction in ghana. The case of central region of ghana. Asian Economic and Financial Review, 2(1): 135-141.
  2. Anderson, J.R., J.L. Dillon and J.B. Hardaker, 1977. Agricultural decision analysis. Ames. C: Iowa State University Press.
  3. Binswanger, H.P., 1980. Attitudes towards risk: Experimental measurement in rural india. American Journal of Agricultural Economics, 62: 395-407.
  4. Concern, E., 1998. Wealth ranking. Report on the process of wealth ranking data collection carried out in kalu wereda as part of ongoing research activities   Kombolcha, Ethiopia.
  5. Dillon, J.L. and J.B. Hardaker, 1993. Farm management research for small farmer development. Fao farm systems management series. Fao, rome, italy.
  6. Emana, B., 2000. The role of new varieties and chemical fertilizer under risk: The case of smallholders in eastern oromia, ethiopia. Phd dissertation hannover university, germany.
  7. Girabi, F. and A.E. Mwakaje, 2013. Impact of microfinance on smallholder farm productivity in tanzania: The case of iramba district. Asian Economic and Financial Review, 3(2): 227-242.
  8. Hardaker, J.B., 2000. Some issues in dealing with risk in agriculture. Working paper Series in Agricultural and Resource Economics. No. 2000 18. Available from http://www.une.ed.au/febl/econstud/wps.htm.
  9. Hardaker, J.B., R.M.M. Huirne, J.R. Anderson and G. Lien, 2004. Coping with risk in agriculture. 2nd Edn., Oxfordshire, UK: CAB International, Wallingford.
  10. Hazell, P.B.R. and R.D. Norton, 1986. Mathematical programming for economic analysis in agriculture. New York: Macmillan.
  11. Mruthyunjaya and A.S. Sirohi, 1979. Enterprise system for stability and growth on drought – prone farms: An application of parametric linear programming. Indian Journal of Agricultural Economics, 34(4): 27-42.
  12. OPHDI, O.P.a.H.D.I., 2013. Ethiopia country briefing. Multidimensional poverty index data bank. Ophi, university of oxford. Available from www.ophi.org.uk/multidimensional-poverty-index/mpi-country-briefings/.
  13. RRC, R.a.R.C., 1985. The challenges of drought: Ethiopia’s decade of struggle in relief and rehabilitation. A survey and project preparation mission, october-november, addis ababa, ethiopia.
  14. Tesfahun, G., B. Emana and N. Abdoulaye, 2006. Managing moisture stress risk to cope with food insecurity in kalu district. North Eastern Ethiopia Agricultural Economics Journal of Ethiopia, 6(1): 17-34.
  15. Wiebe, K., 2003. Linking land quality, agricultural productivity, and food security. Resource economics division, economic research service, u.S. Department of agriculture. Agricultural economic report no. 823.
  16. Woldemariam, M., 1991. Suffering under god’s environment: A vertical study of the predicament of peasants in north-central ethiopia. African mountains association. Geographica bernensia, berne, switzerland.
  17. Zeleke, G., W. Bewket and D. Alemu, 2010. Economics of adaptation to climate change: Ethiopia case study - learning from past experiences with extreme climate events Final Draft of World Bank Consultation Report, Addis Ababa, Ethiopia.

Sustainability of Small and Medium Scale Enterprises in Rural Ghana: The Role of Microfinance Institutions


Pages: 1003-1017
Find References

Finding References


Sustainability of Small and Medium Scale Enterprises in Rural Ghana: The Role of Microfinance Institutions

Search :
Google Scholor
Search :
Microsoft Academic Search
Cite
DOI:


Citation: 8
Export to    BibTeX   |   EndNote   |   RIS

George Kwadwo Anane, Patrick Brandful Cobbinah, Job Kwame Manu
Abstract
|
Reference
|
XML
|
PubMed
|
Video
Statstics
PDF Download Open Access
George Kwadwo Anane, Patrick Brandful Cobbinah, Job Kwame Manu (2013). Sustainability of Small and Medium Scale Enterprises in Rural Ghana: The Role of Microfinance Institutions. Asian Economic and Financial Review, 3(8): 1003-1017. DOI:
This paper is based on a research work undertaken in 2012 on the dynamics of microfinance institutions (MFIs) and their contribution to the development of small and medium scale enterprises (SMEs) in Ghana. It investigates the effects and challenges of MFIs on the development of SMEs in rural Ghana. Using a case study approach, both theoretical and empirical data were sourced to explore the role and impact of MFIs on 93 SMEs in rural Ghana. Although there are challenges of untimely disbursement and repayment of loans, the paper suggests recipients of microfinance products and services are better off in terms of enhancing the activities of their SMEs, improving outputs and ensuring prudent financial management than those without microfinance services. The paper recommends timely disbursement of credit, flexible terms of credit repayment and awareness programmes to ensure the sustainability of SMEs.

  1. Anyanwu, C.M., 2003. The role of cbn of nigeria in enterprises financing. Paper presented at small and medium industries equity investment scheme (smieis) seminar. Lagos: CBN Training Centre.
  2. Babajide, A., 2012. Effects of microfinance on micro and small enterprises (mses) growth in nigeria. Asian Economic and Financial Review, 2(3): 463-477.
  3. Boudreaux, K. and C. Tyler, 2008. The “micromagic” of microcredit. The Wilson Quarterly: 27-31.
  4. Carpenter, C., 2001. Making small business finance profitable in sme finance in nigeria. www.nipc-ng.org.
  5. Consultative Group to Assist the Poor, 2010. Exploring client preferences in microfinance: Some observations from safe save. Focus Note 18, Washington DC.
  6. Daniels, R.C., 2004. Financial intermediation, regulation and the formal microcredit sector in south africa. Development Southern Africa 21(5): 831-849.
  7. Davis, B., P. Winters and G. Carletto, 2009. A cross country comparison of rural income generating activities. Available from http://www.fao.org/fileadmin/user_upload/riga/pdf.
  8. Davis, J., 2006. Rural non-farm livelihoods in transition economies: Emerging issues and policies. Electronic Journal of Agricultural and Development Economics, 3(2): 180–224.
  9. Ghana Statistical Service, 2012. The 2010 population and housing census: Summary report of final results. Accra: Sakoa Press Limited.
  10. Helms, B., 2006. Access for all: Building inclusive financial systems. Washington, DC            World Bank          
  11. Hossain, M., 1988. Credit for alleviation of rural poverty: The grameen bank in bangladesh. Ifpri research report 65. International Food Policy Research Institute, Washington, DC.
  12. Hulme, D. and P. Mosley, 1996. Finance against poverty London: Routledge.
  13. Lawson, B., 2007. Access to finance for smes: Financial system strategy 2020. In: International conference. Abuja, Nigeria.
  14. Lee, N., 2006. Rural remote microfinance and selfish genes. Available from www.microcreditsummit.org/papers/Workshops/2_Lee.pdf.
  15. McGuire, P.B., D.J. Conroy and G.B. Thapsa, 1998. Getting the framework right: Policy and regulation for microfinance in asia. Brisbane, Australia: The Foundation for Development Cooperation.
  16. Meijerink, G. and P. Roza, 2007. The role of agriculture in development. Market chains and sustainable development strategy and policy paper 5. Available from http://www.boci.wur.nl/NR/rdonlyres/98CCE2E30FA24274BCA020713CA1E125/62608/Fullreport4_Meijerink_Roza.pdf.
  17. Musamali, M.M. and D.K. Tarus, 2013. Does firm profile influence financial access among small and medium enterprises in kenya? . Asian Economic and Financial Review, 3(6): 714-723.
  18. Ojo, A.T., 2003. Partnership and strategic alliance effective sme development, small and medium enterprises development and smieis: Effective implementation strategies. Lagos: CIBN Press Ltd.
  19. Quartey, P. and J. Abor, 2010. Issues in sme development in ghana and south africa. International Research Journal of Finance and Economics, 39(www.eurojournals.com/finance.htm).
  20. Sarantakos, S., 1998. Social research. London: McMillan Press Ltd.
  21. Todaro, M.P. and S.C. Smith, 2009. Economic development. Edinburgh Gate, Harlow- England: Pearson Education Limited.
  22. Watson, J. and J. Everett, 1999. Small business failure rate: Choice of definition and industry effects. International Small Business Journal, 17: 123-129.
  23. Westover, J., 2008. The record of microfinance: The effectiveness/ineffectiveness of microfinance programs as a means of alleviating poverty. Electronic Journal of Sociology. Available from www.sociology.org/content/2008-westover-finanance.pdf.
  24. World Bank, 2010. Scaling up sme access to financial services in the developing world. In: Report of the G20 Seoul Summit, October 2010.
  25. Yunus, M., 1997. The grameen bank: Reasons for hope. West Hartford: Kumarian Press.

Perceived Loan Risk and Ex Post Default Outcome: Are The Banks’ Loan Screening Criteria Efficient?


Pages: 991-1002
Find References

Finding References


Perceived Loan Risk and Ex Post Default Outcome: Are The Banks’ Loan Screening Criteria Efficient?

Search :
Google Scholor
Search :
Microsoft Academic Search
Cite
DOI:


Citation: 3
Export to    BibTeX   |   EndNote   |   RIS

C. Chris Ofonyelu, R. Santos Alimi
Abstract
|
Reference
|
XML
|
PubMed
|
Video
Statstics
PDF Download Open Access
C. Chris Ofonyelu, R. Santos Alimi (2013). Perceived Loan Risk and Ex Post Default Outcome: Are The Banks’ Loan Screening Criteria Efficient?. Asian Economic and Financial Review, 3(8): 991-1002. DOI:
Prospective borrowers from commercial banks are usually made to pass through stringent lending procedure. The screening procedure is intended to forestall likely default intents and reduce credit risks. Banks, through the analysis are able to predict the inherent risk level in the loans they administer and avoid risky borrowers. The recent rise in defaults rates and the size of non-performing loans among the Nigerian commercial banks therefore puts to question the efficiency of the banking system screening criteria. An efficient screening technique is expected to approximate the estimated and the ex post default risk outcome. Disparities between the two reflect the extent by which the assessment of risks by banks was inefficient. This paper provides evidence that bank screening criteria do not effectively foreclose total default risk, and affirm that perceived and ex-post default risks differ. Using data obtained from a survey of investment loans made to 210 borrowers between 2000 and 2012 among 15 commercial banks in Nigeria, this study observed that the banks’ screening criteria was limited by the presence of information asymmetry. Adverse selection and moral hazard were observed to persist in the loan markets irrespective of the stringency of the banks’ screening measures. The observed difference between estimated and ex-post default risk incidence arise because of the presence of information asymmetry.

  1. Chiappori, P. and B. Salanié, 2000. Testing for asymmetric information in the insurance markets. Journal of Political Economy, 108(1): 56-78.
  2. Edelberg, W., 2004. Testing for adverse selection and moral hazard in consumer loan markets. Federal Reserve Working Paper.
  3. Myer, S. and N. Majiluf, 1984. Corporate financing and investment decisions when firms have information that investor doesn’t have. Journal of Financial Economics, 13: 187-221.
  4. Nwankwo, G., 1980. The nigerian financial system. London: Macmillan Press Ltd.
  5. Ogun, O. and C.C. Ofonyelu, 2012. Determinant of asymmetric risks in nigerian loan market:  Any dichotomy between the banks and borrowers’ perspectives. African Journal of Economic Policy, 19(2): 27-40.
  6. Okigbo, P.M., 1981. Nigeria’s financial system. Longman Group.
  7. Onwumere, J.U.J., 2005. Banking industry reforms and developing the nigerian economy. The Nigerian Banker.
  8. Sharpe, S.A., 1990. Asymmetric information, bank lending and implicit contracts: A model of consumer relationships. Journal of Finance, 45: 1069-1087.
  9. Soyibo, A., 2008. Banking sector reforms in africa: Effects on savings, investment and financial development. African Development Review, 9(1): 52-76.
  10. Udendeh, G.I., 2009. Banking reforms: Any end in sight? . The Nigerian Banker, 3: 21-27.

The Path Dependence of Industry Structure Adjustment in Chongqing: Central Government Political Decision


Pages: 978-990
Find References

Finding References


The Path Dependence of Industry Structure Adjustment in Chongqing: Central Government Political Decision

Search :
Google Scholor
Search :
Microsoft Academic Search
Cite
DOI:


Citation: 0
Export to    BibTeX   |   EndNote   |   RIS

Wei Liu, Ziwei Huang, Abdullah Muhammad Ibrahim
Abstract
|
Reference
|
XML
|
PubMed
|
Video
Statstics
PDF Download Open Access
Wei Liu, Ziwei Huang, Abdullah Muhammad Ibrahim (2013). The Path Dependence of Industry Structure Adjustment in Chongqing: Central Government Political Decision. Asian Economic and Financial Review, 3(8): 978-990. DOI:
Reviewing Chongqing’s industrial structure evolution in the history view angle since Chongqing was opened and quantitative analyzing with shift-share analysis and Structure effect index after the Reform and Openness, this paper explores the rise of political status of Chongqing that caused industrial structure adjustment all the time. By Structure-Conduct-Performance Model, we explain that the central government’s political decision is one of the major reasons. Its influence presents a continuity spiral structure. Not only on the market development and technology progress, industry structure adjustment much depends on central government political decisions in Chongqing. Its starting points are national interest, orderly market competition and the people’s livelihood economy. In doing so, we suggest that finding the equilibrium point between plan economy and market economy is very important in the process of industry structure adjustment and upgrade. That’s maybe an exploration for centralized state upgrading the industry structure in other areas through the political position. In the exploring process, the possible contradictions and setbacks may provide more practice to China’s reform and development.

  1. Acemoglu, D., J. Simon and R. James, 2004. Institutions as the fundamental cause of long-run economic growth. NBER Working Papers No. 10481.
  2. Behrooz, S. and B. Mostafa, 2011. Determinants of foreign direct investment in developing countries: A panel data analysis. Asian Economic and Financial Review 1(2): 49-56.
  3. Chi-Feng, W., S. Yung-Ming, A. Andrew and O. Kuei-Ling, 2013. Loss reserve adjustment and its determinants: Empirical evidence from the united kingdom general insurance industry. Asian Economic and Financial Review 3(2): 160-177.
  4. Naiwei, C. and Y. Siting, 2012. Government deficits and corporate liquidity Asian Economic and Financial Review, 2(1): 59-75.
  5. North, D.C., 1990. Institution, institutional change and economic performance cambridge. New York: Cambridge University Press.
  6. North, D.C. and R.P. Thomas, 1973. The rise of the western world: A new economic history. Cambridge: Cambridge University Press.
  7. Paul, G.H., 2004. Institutional change and economic development in the reforming time Comparative Economic & Social Systems.
  8. Qian, Y., 2003. The government and the law. Comparative.
  9. Utpal, K., De.,  and P. Manoranjan, 2011. Dimensions of globalization and their effects on economic growth and human development index. Asian Economic and Financial Review 1(1): 1-13.
  10. Wang, Y., 2006. Dynamic optimal adjustment of barrier to learning externality.

ADVERTISEMENT