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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
Online ISSN: 2222-6737
Print ISSN: 2305-2147
Print ISSN: 2305-2147
Total Citation: 1219
Agency Conflict and Corporate Dividend Policy Decisions in Nigeria
Nwidobie Barine Michael
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.
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Moderating Effect on The Relationship Between A Companies’s Life Cycle and the Relevance of Accounting Practices Intangible Assets
Mehrdad Salehi, Hashem Valipour, Javad Moradi
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.
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Corporate Governance and Financial Reporting in the Nigerian Banking Sector: An Emperical Study
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.
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Natural Resources, Conflict and Growth Nexus
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Macroeconomic Variables and Stock Market Returns in Ghana: Any Causal Link?
Haruna Issahaku , Yazidu Ustarz, Paul Bata Domanban
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.
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The Effects of Board Size and CEO Duality on Firms’ Capital Structure: A Study of Selected Listed Firms in Nigeria
Uwuigbe Olubukunola Ranti
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.
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Girma T. Kassie, Debrah Maleni, Simon Gwara,Bezabih Emana
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Sustainability of Small and Medium Scale Enterprises in Rural Ghana: The Role of Microfinance Institutions
George Kwadwo Anane, Patrick Brandful Cobbinah, Job Kwame Manu
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.
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Perceived Loan Risk and Ex Post Default Outcome: Are The Banks’ Loan Screening Criteria Efficient?
C. Chris Ofonyelu, R. Santos Alimi
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.
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The Path Dependence of Industry Structure Adjustment in Chongqing: Central Government Political Decision
Wei Liu, Ziwei Huang, Abdullah Muhammad Ibrahim
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.
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