American International Journal of Economics and Finance Research
Aims and Scope American International Journal of Economics and Finance Research is a Double-Blind Peer-Reviewed Refereed International Journal published by the American Center of Science and Education. The journal is published in both print and online versions. The online version is free to access and download. The online version is free to access and download. The journal accepts article submissions by e-mail (aijefr@acseusa.org). Key Topics: Asset Pricing Bankruptcy Prediction and Determinants Corporate Finance International Finance Financial Derivatives Rural Finance Insurance Fixed Income Securities Alternative Investments Portfolio and Security Analysis Time Value of Money Credit Risk Modelling and Management Financial Engineering Foreign Exchange Markets Law and Finance Mergers and Acquisitions Mutual Funds Management Portfolio Management Regulations of Financial Markets Venture Capital Microcredit Valuation Risk and Return Liquidity Management Foreign Direct Investment Financial Accounting Financial Statement Analysis Microeconomics Macroeconomics Econometrics Models Asset-Liability Management Bank Assurance Banking Crises Corporate Governance Derivatives and Structured Financial Products Efficiency and Performance of Financial Institutions and Bank Branches Financing Decisions of Banks Investment Banking Management of Financial Institutions Technological Progress and Banking Foreign Exchange Management Conventional Vs. Non-Conventional Banking Internet Banking Mobile Banking Retail Banking E-Banking CSR of Bank Money Laundering SMEs Banking etc. Subject Area – Economics, Econometrics and Finance. Subject Category – Economics, Econometrics and Finance (miscellaneous); Finance
American Center of Science and Education
MULTI CRITERIA DECISION MAKING ON BANK PERFORMANCES
Multi-Criteria Decision Making (MCDM) model, specifically the Analytic Hierarchy Process (AHP). The study's objectives were to identify key performance indicators (KPIs) relevant to bank evaluation, assess the relative importance of each KPI, develop an MCDM model considering multiple criteria, and apply the model to a sample of Nigerian commercial banks for performance comparison. The study employed four main criteria for evaluation: Customer Satisfaction (CR1), Financial Performance (CR2), Employee Productivity (CR3), and Risk Management (CR4). These criteria were selected based on their significance in the banking sector and their potential impact on overall bank performance. The alternatives considered for analysis were three branches of Nigerian commercial banks: Branch A, Branch B, and Branch C. Using the AHP model, weights were assigned to each criterion to reflect their relative importance. The criteria weights were determined through expert judgment and pairwise comparisons. Subsequently, the performance of each bank branch was evaluated based on the weighted criteria, and an overall performance score was calculated. The analysis results indicated that Branch C had the highest overall performance score, followed by Branch A and Branch B, respectively. The sensitivity analysis was conducted to assess the impact of changes in criteria weights on the overall performance rankings. The study concluded that Branch C demonstrated superior performance across the evaluated criteria, suggesting potential areas of strength and opportunities for improvement in the other branches. In conclusion, the application of the AHP model provided a structured approach to evaluating the performance of Nigeria's commercial banks based on multiple criteria. The findings of this study can inform strategic decision-making processes within the banking sector, facilitate performance benchmarking, and contribute to efforts to enhance overall bank performance and competitiveness in Nigeria's financial market. JEL Classification Codes: G32, F65, L66, L25, M41.
Original Articles/Review Articles/Case Reports/Short Communications
Copyright (c) 2024 Idoko Emmanuel Onne , Shammah Emmanuel Chaku , Mary U. Adehi , Bilkisu Maijamaa https://creativecommons.org/licenses/by/4.0
CAPITAL MARKET AND GROWTH OF THE INSURANCE SECTOR IN NIGERIA
It is expected that an efficient capital market should have significant effect on the insurance sector in any economy because capital market provides the platform for insurance companies to trade in long-term securities. It is shocking that despite all positive indices of the Nigerian capital market, the insurance sector in Nigeria is still underperforming in comparison to their counterparts in other emerging economies, considering the contribution of the sector to the gross domestic product. Thus, the study examines the effect of capital market on the growth of insurance sector in Nigeria. The study employs time series data sourced from National Insurance Commission and Annual Statistical Bulletin of Central Bank of Nigeria from 1986 to 2023. The study uses error correction model to analyze objectives one to three while Toda Yamamoto was used for the analysis of objective four. The result shows that market capitalization, all-share index and volume of transaction have positive effect on the growth of insurance sector in Nigeria. The causality test reveals a bi-directional causal link between capital market and insurance sector’s growth. Based on the discoveries from the study, it is proposed that the Nigerian Capital market should broaden its market size by introducing more innovations with new technologies and models in its trades of bonds, shares and debentures. Also, more insurance companies should be listed in the stock market to improve the volume of transaction, since the activities of the capital market has the tendency to increase the asset base of insurance companies in Nigeria. JEL Classification Codes: G22, G23.
Capital Market, Long-Term Securities, Market Capitalization, Bond, Debentures
Copyright (c) 2024 Oluwafunmilayo Adeuti Adeyefa , Felix Ademola Adeyefa https://creativecommons.org/licenses/by/4.0
GREEN FINANCE: A WAY TO FOSTER SUSTAINABLE DEVELOPMENT IN AN EMERGING COUNTRY
Bangladesh, as a densely populated nation in South Asia, faces numerous ecological concerns encompassing climate change, destruction of forests, and pollution of the air, and insufficient waste management, which ultimately obstruct the achievement of sustainable development. Minimizing the adverse environmental repercussions of economic activities necessitates significant financial commitment. Green financing is a form of financial support for environmentally sustainable initiatives through grants, debt, and equity instruments. This research aims to investigate the influence of green finance on sustainable development in an emerging nation and strategies to enhance its facilitation for the successful attainment of SD. This study employs a qualitative approach where several research papers, Sustainability analyses of Bangladesh Bank (BB), and various published documents of BB have been reviewed. The results reveal that numerous measures for green finance exist, including green credit, green investment, and carbon emissions, all of which have a significant beneficial impact on sustainable development. This study's findings suggest that the promotion of green financing is able to tackle Bangladesh’s environmental issues while simultaneously stimulating sustainable growth and enhancing the well-being of its populace. For regulators and lawmakers seeking to promote sustainable growth in developing countries, the study's results provide vital insights. JEL Classification Codes: F64, F65.
Green Finance, Environmental Issues, Sustainable Development, Emerging Country.
Copyright (c) 2024 Nurjahan Akter Monira https://creativecommons.org/licenses/by/4.0
ACCEPTABILITY AND APPLICABILITY OF ACCOUNTING SOFTWARE BY CIVIL SOCIETY ORGANIZATIONS IN KANO METROPOLIS
Civil society organizations/Non-governmental organizations complement government efforts and contribute to making life better for the people in their domain. They complement government efforts in making by improving the quality of living standards of the populace. They play an important role in creating awareness for people to know their rights and enhancing issues of accountability, transparency, and good governance by contributing to increased public debates on critical matters concerning the formulation and implementation of governmental policies. As such, they are important partners in deriving economic development in every nation globally. This paper examines the acceptability and applicability of accounting software by civil society organizations within Kano Metropolis. The population consists of 137 CSOs/NGOs operating within Kano Metropolis; the study adopted the population as a sample, primary data was used as the questionnaires were distributed and retrieved with the help of research assistants, and the chi-square (X2) analysis shows that the null hypothesis was rejected. The findings show that finance and accounts staff, including accountants, do not show passion in accepting and applying accounting software to do the financial transactions in their organizations and still prepare to use manual methods of recording financial transactions, which do not conform to the best accounting practice. The study concludes that there is a lack of positive attitude on the part of staff to accept and apply the accounting software to use in their CSOs/NGOs. Hence, this study recommends that proper orientation and training should be given to the CSOs/NGOs staff in the Kano Metropolis to change the narrative. JEL Classification Codes: H83.
Acceptability and Applicability of Accounting Software, Civil society organizations, Non-governmental organizations.
Copyright (c) 2023 Kabiru Isa Dandago , Aliyu Sulaiman Kantudu , Ibrahim Aliyu Gololo , Zaharaddeen Salisu Maigoshi , Bashir Ali Sulaiman https://creativecommons.org/licenses/by/4.0
THE ROLE AND CHALLENGES OF AUTHORIZED AGENCIES IN COMBATING MONEY LAUNDERING IN BANGLADESH: A CONCEPTUAL STUDY
Money laundering has recently become a global threat, impacting developed and poor countries. In developing countries like Bangladesh, it is more difficult to combat financial crime than in developing countries because of the inadequate regulatory environment and vulnerable financial system. Bangladesh’s central bank issues guidelines to facilitate the implementation of the Prevention of money laundering act. According to the guideline of Bangladesh Bank, all financial institutions must develop anti-money laundering policies to ensure the safety and soundness of their institutions. This study aims to focus on the role of authorized agencies in combating money laundering. In this paper, the latest trends in financial crimes have been discussed from Bangladesh's perspective. The preventive measures for money laundering and other financial crimes have been discussed elaborately. So far, money laundering is a sophisticated and dynamic crime; the criminals continuously took innovative processes to use the financial system to launder money. Hence, the challenges of authorized agencies are crucial to combat money laundering. The study will take a step in pointing out the role and challenges of the authorized agencies in combatting money laundering in Bangladesh. JEL Classification Codes: K42.
Illegal Money Transfer, White Color Crime, Financial Institute, Financial Intelligence, Bangladesh Context.
Copyright (c) 2023 Mohammad Ali Mia, Kamisah Supian https://creativecommons.org/licenses/by/4.0
PERSUADING DRIVERS OF INTERNAL AUDIT FUNCTIONS EFFECTIVENESS: DEVELOPMENT OF CONCEPTUAL MODEL
This study aims to systematically review the previous literature on the drivers influencing internal audit effectiveness and coherent these drivers in a conceptual model. A ‘systematic literature review (SLR)’ is performed to detect the drivers that influence internal auditing more effectively. Relevant past literature is swotted between January 2005 to July 2022 as considered the important drivers affecting internal audit functions' effectiveness. Apart from these, all the guidelines mentioned in the international standards regarding internal audit given by the Institute of internal audit (IIA) have also been considered in this study. Three important outcomes are identified for the internal audit function to be effective: meeting the expectation of management, meeting the expectation of the audit committee, and meeting the expectation of auditees. Moreover, based on the SLR, ten important drivers are identified that mostly affect the internal audit effectiveness, such as culture, management support, audit committee support, organizational size, professional qualification, independence, working environment, internal audit budget, employee rotation policy, and proficiency of internal auditors. Based on the identified drivers and outcomes of internal audit effectiveness, this study proposed a conceptual model for internal audit effectiveness. The proposed conceptual model encourages the regulator, policy maker, and different stakeholders to make appropriate strategic decisions to make their internal audit department more effective. JEL Classification Codes: M40, M41, M42, H83, F65,
Internal Audit Effectiveness, Conceptual Framework.
Copyright (c) 2023 Md Gulam Sharoar Hossain Khan https://creativecommons.org/licenses/by/4.0
THE EFFECTS OF ACCOUNTING MEASUREMENT OF COVID-19 PANDEMIC ON THE BUSINESS INDUSTRIES: EMPIRICAL REVIEW
The Covid-19 global pandemic has affected most companies financially as it has led to massive uncertainties across all sectors and industries. In such situation it requires the refined, and highly integrated accounting information to measure and reflect the economic operation situation and provide early warning to decision makers. The study uses online empirical recourses by the name of Covid-19 pandemic impact on the industries and accounting measurement of the business industries in different online database sources such as Google Scholars, Springer Link, Wiley, Science Direct, JSTOR, Emerald full text, Scopus, and EBSCO HOST. The review findings show that there are different accounting measurement used to measure the impact of Covid-19 on various business industries. The findings of the study also identified that different industries react differently to Covid-19, thus the study findings could be used to draw policy guideline for the industries which were significantly affected by the epidemic. JEL Classification Codes: H83, O14.
Covid-19, Pandemic; Accounting Measurement, Business Industries.
Copyright (c) 2022 Siti Aisyah Omar , Farhana Hasbolah , Abul Bashar Bhuiyan , Md. Jafor Ali https://creativecommons.org/licenses/by/4.0
IMPACT OF FINANCIAL STABILITY ON ECONOMIC GROWTH: EVIDENCE FROM NIGERIA
This study investigates the impact of financial stability on economic growth in Nigeria by employing the Autoregressive Distributed Lag (ADRL) technique using time series data from Q1, 2006-Q4, 2020. Real GDP is the experimental variable and proxy for economic growth, while financial stability is measured by capital adequacy, non-performing loans, liquidity ratios and return on assets of the banking sector as well as the All-share Index of the stock market. The results indicate that capital adequacy, non-performing loans and liquidity ratios impact negatively on economic growth. The All-share Index, however, reveals a positive and significant relationship with growth. The implication is that financial stability policy needs to be complemented by other financial development objectives in order to stimulate economic growth. The data utilised for the study is limited to the banking sector and the capital market, which dominate the financial sector in Nigeria. The study contributes to existing research as it offers new insight into the relationship between key measures of financial stability and economic growth in Nigeria considering that few studies have been carried out in this area. It established a negative relationship between financial stability and economic growth in Nigeria. JEL Classification Codes: E44, G20, O40.
ARDL, Economic Growth, Financial Development, Financial Stability, Nigeria.
Copyright (c) 2022 Ebele Amali , Gloria U. Igwe , Chikelu E. Oballum https://creativecommons.org/licenses/by/4.0
THE INSTITUTIONAL ATTRIBUTES AND EMPLOYABILITY READINESS AMONG ENGINEERING GRADUATES IN THE HIGH EDUCATION INSTITUTE’S IN OMAN
The aim of this study is to investigate the effects of Institutional attributes on the employability readiness of the engineering graduates of the High Education Institutes in Oman. The study adopted a self-directed structured questionnaire was distributed to a sample of engineering students and graduates from a number of colleges and universities. The study used structural equation modelling (SEM) for analysing the collected data. The findings of the statistical analysis of the study showed that Omani graduates signify the contribution of the HEIs Policies, Classroom environment, the implementation of Student Centric Approach strategies on the graduates’ readiness for employability skills attainment. Also, the findings of the study recommend HEIs to improve their teaching quality, overall Syllabus and Course Curriculum, assessment strategies, and teaching materials to enhance their graduates with required graduates’ readiness for employability skills. Specifically, study findings showed Institutional attributes factor could high have an influence on the Readiness for Employability of the graduates in Oman when the HEIs reform effectively the Institution-Related attributes factors analysed in the research study. Finally, the study’s implementations and recommendations could be transferred to the Gulf and Arab or other countries’ contexts having similar settings of HE systems and similar issues of skills gap and employability concern of their graduates.
Institutional Attributes, Employability Readiness, Engineering Graduates, High Education Institutes & Oman.
Copyright (c) 2021 Masoud Rashid Al Hinai, Abul Bashar Bhuiyan, Nor Azilah Husin https://creativecommons.org/licenses/by/4.0
CONCEPTUAL MODEL OF THE CAREER PATH BETWEEN CAREER PERFORMANCE ATTRIBUTES AND EMPLOYEE PERFORMANCE IN PUBLIC SECTOR IN OMAN
The aim of the present study is to review and develop a conceptual model of the relationship between career performance attributes, career path, and employee performance of the public sector in Oman. The study used online empirical recourses by the name of career performance attributes, career path, and employee performance in different online database sources such as Google Scholars, Springer Link, Wiley, Science Direct, JSTOR, Emerald full text, Scopus, and EBSCO HOST, etc. The review study summarized that Job satisfaction is the positive emotion result from the appraisal of job experience and fulfillment of employee needs. The study also found that job satisfaction can gain high performance whereas the dissatisfied performance of employees yields low employee performance. Moreover, the study also observed that career development and life changes have become very challenging for working women and there are numerous studies targeted towards gaining a better understanding of this issue, its consequences and the significance of these challenges. Finally, the research develops a conceptual framework that is to be followed in order to analyze the various elements and aspects. The framework has been designed by considering the various variables and their intricacies in particular relation to the subject matter of the research work in Oman and the regions.
Career Performance Attributes, Career Path, Employee Performance & Oman.
Copyright (c) 2021 Salim Al Abdali, Abul Bashar Bhuiyan https://creativecommons.org/licenses/by/4.0
CONSTRUCTION OF CORPORATE SOCIAL RESPONSIBILITY (CSR) DISCLOSURE INDEX AND ITS PRACTICES BY LISTED COMPANIES IN OMAN
The importance of Corporate Social Responsibility has been acknowledged greatly as an objective of business sustainability. Whereas the measurement of CSR is always a source of argument among researchers. There are different approaches identified and used by researchers to measure CSR. The main objective of this study is to measure CSR disclosure by constructing an index based on content analysis. The study used the data of non-financial listed companies' annual reports to construct an index for the period 2016, 2017, 2018, and 2019. Thus, 291 firm-year observations are used in this study to construct and measure the CSR disclosure index. 40 elements are used to measure CSR disclosure based on five sub-themes. The result of the study reveals that as CSR disclosure requirement is mandatory in Oman according to the new corporate governance system, thus the listed companies are trying to cope and developing CSR charters. The evidence indicates that some companies have high CSR disclosure while few companies are still struggling with developing CSR charter and disclosing their activities. However, CSR disclosure improves significantly from 2016 to 2019, which shows a strict implementation of the code of corporate governance.
CSR Disclosure, Content Analysis, Workforce, Community Welfare.
Copyright (c) 2021 Afshan Younas, Aza Azlina Md Kassim, Abul Bashar Bhuiyan https://creativecommons.org/licenses/by/4.0
CONCEPTUAL FRAMEWORK BETWEEN THE E-SERVICE, DIGITAL TRANSFORMATIONS ATTRIBUTES AND EFFICIENCY OF THE DIGITAL TRANSFORMATION, OMAN
As the Sultanate of Oman in the process of uses e-services among public services by adopting of technological implication in the services of the government in recent time. Therefore, it is a timely initiative to develop a conceptual framework between the e- service, digital transformations attributes and efficiency of the digital transformation, Oman. In order to development of conceptual model study examined review of literature on about the effectiveness of electronic services and digital transformation in the selected public sector in the Sultanate of Oman. The study used online empirical sources in the names of organizational, technology, environment and human resource factors, as well as the effectiveness of digital change in various online database sources such as Google Scholars, Springer Link, Wiley, Science Direct, JSTOR, Emerald Full text, Scopus and EBSCO HOST, etc. The study review results show that organizational, technological, environmental and human factors play an important role in ensuring the effectiveness of the public sector in the digital transformation in the Sultanate of Oman. The study also found that there is mediating role of E-service in the relationship between digital transformations attributes and the digital transformation. Based on the summary of literature review, the study provides guidance for the future scope of empirical research and develop a conceptual framework between the e- service, digital transformations attributes and efficiency of the digital transformation to conduct a rigorous study in Oman and its regions.
Conceptual Framework, E-Government, E-Services, Digital Transformation & Oman.
Copyright (c) 2021 Nassr Khalfan Salim Al Maamari, Abul Bashar Bhuiyan https://creativecommons.org/licenses/by/4.0
Efficient Market Hypotheses Controversy and Nigerian Stock Exchange Relations
This study; Nigerian Stock Exchange and Efficient Market Hypothesis was done using All Share Index (ASI) with daily data from January 02, 2014 to May 20, 2019 (1333 observations) and annual data from 1985 to 2018 (34 observations) collected from the Nigeria Stock Market fact books. The study employed three analytical methods namely the unit root test, GARCH Model and the Autocorrelation cum patial autocorrelation method for the assessment of weak form hypothesis on the daily and annual all share index in the Nigerian Stock market. The results of these evaluations indicated a significant relationship between the price series and their lagged values implying that stock price series do not follow a random walk process in Nigerian stock market. Thus, affirming that the Nigeria Stock Exchange is not efficient in weak form. In the light of this, the researchers recommend that the supervisory and regulatory authorities should strengthen the Nigerian Stock Market through palliating its regulations pertaining to transparency of information management rules such as market barriers and stringent listing requirement, publication of accounts, notices of annual general meeting and the like.
Random Walk, Capital market efficiency, Unit root test, GARCH Model, Autocorrelation.
Copyright (c) 2021 Ejem Chukwu Agwu, Ogbonna Udochukwu Godfrey, Okpara Godwin Chigozie https://creativecommons.org/licenses/by/4.0
The Permanent Income Hypothesis: Evidence from Ghana
This study aims to test the validity of the PIH for Ghana using aggregate annual data of GDP per capita and household consumption expenditure per capita from 1971 to 2017. The data used were taken from UN statistics. The PIH holds that the income a consumer expects to persist throughout his or her life is what determines their consumption. Earlier studies have shown that the PIH implies the magnitude of the revision in permanent income arising from innovation in the income process is proportional to the magnitude of the revision in consumption arising from the same innovation. This study tests this implication. Innovation in the income process here is the part of the income process that could not be forecasted. The study generates the innovation in the income process by estimating an ARMA model for income and then estimates a consumption equation by OLS using the consumption variable and the generated innovation in income variable. The study finds that the magnitude of the revision in permanent income arising from the innovation in income is larger than the magnitude of the revision in consumption resulting from the same innovation. This implies consumption response to changes in income is smaller than what the PIH predicts. This result is taken as evidence that the PIH does not hold for Ghana.
Copyright (c) 2021 Sherif Abdul Rahaman https://creativecommons.org/licenses/by/4.0
Impact of Military Expenditure on Economic Growth of Afghanistan
This empirical study estimates and considers the impact of military expenditure on economic growth of Afghanistan for the period of 2004-2018 by applying the VAR model and VAR Granger causality (1980). The model is run by having the dependent (predicted) variable of economic growth and independent variable of military spending and employment. Ultimately, this analysis revealed that arm expenses do not have a significant effect on the economic growth of Afghanistan for the 15 years period from 2004-2018. And after running the VAR Granger causality it revealed that if some policy changes accrue to the GDP or economic then it will cause the military expenditure (unidirectional causality) and policy changes to the military expenditure will not cause GDP. According to the joint test, it is seen that if some policy changes accrue to the employment and military expenditure so it will cause GDP, if some policy changes accrue to the employment and GDP so it will cause military expenditure.
Military Expenditure, Economic Growth, Employments and VAR Model.
Copyright (c) 2021 Khalilullah Hassani https://creativecommons.org/licenses/by/4.0
Monetary Policy and Commercial Banks Assets Quality in Nigeria: Panel Data Analysis
This study examined the effect of monetary policy on assets quality indicator of Nigeria commercial bank soundness from 2009 to 2018. Cross sectional data were sourced from annual reports of commercial banks and Central Bank of Nigeria Statistical Bulletin. Assets quality indicator of commercial banks soundness was used as proxies for the dependent variables while cash reserve ratios, open market operation rates, monetary policy rates, treasury bills rates and money supply were used as proxies for the independent variables. Panel data methodology was employed while the fixed effects model was used as estimation technique at 5% level of significance. Fixed effects, random effects and pooled estimates were tested while the Hausman test was used to determine the best fit. Panel unit roots and panel cointegration analysis were conducted on the study. Findings of the study proved that cash reserve ratio, open market operations rates, monetary policy rates and treasury bills rates have no significant relationship with assets quality indicators of commercial banks in Nigeria. However, Money supply has significant relationship with assets quality indicators of commercial bank soundness in Nigeria. From the findings we recommend that Central Bank of Nigeria should intensify the use money supply as a veritable effective monetary policy tool to achieve bank soundness in Nigeria. Furthermore, CBN should redefine these monetary policy instruments such as open market operation and adjust the monetary policy rate by reducing the cash reserve ratio which will increase liquidity to enable the commercial banks to discharge their lending and investment duties effectively to the public. The cash reserve ratio should be used to complement the open market operations in ensuring that excess liquidity or lack of it in the banking system is minimized. It was further recommended that CBN should look beyond monetary policy in her regulatory governance of commercial banks as most monetary policy tools currently deployed do not have significant relationship with commercial bank soundness indicators within the periods covered in this study.
Monetary Policy, Commercial Banks, Assets Quality, Money Supply, Cash Reserve Ratio, Monetary Policy Rate
Copyright (c) 2021 Ebulison Nelson Okheshimi https://creativecommons.org/licenses/by/4.0
Cash Flow Management, Human Capital Investment and Capital Gain of Quoted Commercial Banks in Nigeria
This study examined how cash flow management and human capital investment affect capital gain of commercial banks in Nigeria. Cross sectional data were sourced from the financial statement of the commercial banks from 2009 to 2018. Capital gain was used as dependent variables while investment on employee training, investment on employee education, investment on employee health, differed employee payment, operating cash flow, cash flow from financing activities, cash flow from investing activities and net cash flow were used as independent variables. Ordinary least square method of panel co-integration, unit root, granger causality test was used. The study found among other things that operating cash flow, cash flow financing activities and cash flow from investing activities showed negative relationship with capital gain while net operating cash flow showed positive relationship with capital gain. Investment on employee training and health has positive relationship with capital gain while differed payment and education has negative relationship with capital gain. From the findings, the study concludes that cash flow management and human capital investments have significant effect capital gain of commercial banks in Nigeria. We that management of commercial banks should investment more on employee education as this can make the employees acquire dynamic knowledge in bank management such as credit appraisal that reduces the incidence of nonperforming loans and increase profitability. Furthermore, employees differed payment procedures should be well planned and seamlessly integrated into management broad policies of investment and financing decisions.
Cash Flow Analysis, Human Capital Investment, Capital Gain, Net Operating Cash Flow, Cash Flow from Investing Activities.
Copyright (c) 2021 Lucky Anyike Lucky , Phil-Olumba Ifunanya Sheila https://creativecommons.org/licenses/by/4.0
Do Macroeconomic Variables Predict Deposit Money Banks’ Performance in Nigeria?
This study investigated the relationship between macroeconomic variables and the performance of deposit money banks in Nigeria, analyzed with suitable finametric tools. The results of the empirical examination found that all the macroeconomic variables employed (economic growth rate, interest rate, inflation rate, money supply and exchange rate in this study have no significant relationship with bank performance. It was also observed that each and jointly, the macroeconomic variables do not cause bank performance both in the short run and long run. Again, that bank performance responds insignificantly to the shocks of all the macroeconomic variables. Consequently the researchers advocate that deposit money banks in Nigeria with inherent discretionary policy be proactive to the monetary and fiscal policies of regulatory authorities in order to enhance their performance.
Macroeconomic Variables, ROA, ECM, GMM, VAR
Copyright (c) 2021 Ejem Chukwu Agwu, Ogbonna Udochukwu Godfrey, Ogbulu Onyemachi Maxwell https://creativecommons.org/licenses/by/4.0
Effect of Capital Structure on the Profitability of Listed Insurance Firms in Nigeria
This study examined the effect of capital structure on profitability of listed insurance firms in Nigeria for the period 2013-2017 The study used correlation research design. The source of data which were collected from the published annual financial reports of studies listed insurance firms in Nigeria. The population of the study comprised of the 28 listed insurance firms. The sample size was fifteen (15) listed insurance firms in Nigeria. The data collected were analyzed with the aid of OLS multiple regression technique. Using 75 firm-year paneled observations, the result of the ordinary least square regression showed that short-term debt has a negative and significant effect on the profitability of listed insurance firms in Nigeria. In addition, long-term debt has a positive and significant effect on profitability. Finally, premium growth has positively significant effect on profitability of listed insurance firms. Based on the findings, the study recommends that the management of listed insurance firms should strive towards having optimum capital structure by increasing their equity level and reducing dependence on debts so as to avoid being cash strapped and debt ridden.
Profitability, Short-Term Debt, Long-Term Debt and Premium Growth.
Copyright (c) 2021 Abdul Kerim, John Alaji, Idachaba Odekina Innocent https://creativecommons.org/licenses/by/4.0
Impact of Exchange Rate Management on the Nigerian Economic Growth: Empirical Validation
This paper examined the impact of Exchange Rate Management on economic growth in Nigeria between 1980 and 2015. The study was set to gauge how the management of exchange rate in Nigeria has impacted the economy. The study employed the Ordinary Least Square (OLS) method in its analysis. Co-integration and Error Correction Techniques were used to establish the Short-run and Long-run relationships between economic growth and other relevant economic indicators. The result revealed that exchange rate management proxy by various exchange rates regimes in Nigeria was not germane to economic growth. Rather, government expenditure, inflation rate, money supply and foreign direct investment significantly impact on economic growth in Nigeria. It is against this backdrop that the Nigerian economy must diversify her export base to create room for more inflow of foreign exchange.
Exchange Rate, Management, Nigerian Economic Growth.
Copyright (c) 2021 Friday Osaru Ovenseri Ogbomo , Precious Imuwahen Ajoonu https://creativecommons.org/licenses/by/4.0
Impact of Transactional and Transformational Leadership Styles on Employees’ Performance in Nigerian Institute for Trypanosomiasis Research (NITR), Kaduna State
The aim of this study is to determine the impact of transactional and transformational leadership styles on employee performance in Nigeria Institute for Trypanosomiasis Research, Kaduna State. A structured questionnaire was used to sample respondents using simple random sampling technique. Multifactor Leadership Questionnaire (MLQ-5X) was used to measure leadership styles and employee performance was measured using salary, job experience and job satisfaction. A total of 230 questionnaires were distributed to the respondents. Structural equation model was used to analyze data using partial least squares method SmartPLS2. The result showed that transformational and transactional leadership styles has a significant and positive impact on employee performance. Therefore, it saw recommended that Nigeria Institute for Trypanosomiasis Research should practice transformational leadership styles to improve employee performance in the organization in Kaduna State.
Transformational, transactional, Leadership style and employee performance
Copyright (c) 2021 Iliya Yusuf Mamza, Idachaba Odekina Innocent, Elam Wunaki Elkanah https://creativecommons.org/licenses/by/4.0
Implications of Tax Revenue on Economy Growth in Nigeria
The paper examined the implications of tax revenue on economy growth in Nigeria. The specific objective of this study is to examine the relationship between tax revenue and gross domestic product in Nigeria. Simple Regression was used to achieve the objective of this study. Secondary data will be sourced from International Monetary Fund’s Government Finance Statistics. It was revealed that there was a weak correlation between dependent and independent variable. It was also discovered that there was no significant relationship between tax revenue and gross domestic product in Nigeria. The study therefore recommends that Government should formulate policies that will minimize the volume of tax leakages in order to increase total tax revenue that will contribute positively to economic growth in Nigeria. The study also recommends that Government should always make sure that tax revenue is spent on social amenities and welfares of the Nigerian citizens.
Copyright (c) 2021 Samuel Olusegun James, Adewole Joseph Adeyinka, Idih Ogwu Emmanuel https://creativecommons.org/licenses/by/4.0
Revenue Mobilization and Investment on Infrastructure of Local Governments in Nigeria
This thesis examined the effects of revenue mobilization and investment of local governments in Nigeria. Secondary data were collected from Central Bank of Nigeria Statistical Bulletin. The dependent variables were proxy by value of basic amenities and value of infrastructural development. The independent variables were proxy by federal government allocation, state government allocation, value added tax, internally generated revenue and grants. Descriptive statistics and multiple regressions were used to examine dynamic long run relationship that exists between revenue mobilization and local government development. Ordinary Least Square (OLS), Augmented Dickey Fuller Test, Johansen Co-integration test, normalized co-integrating equations, parsimonious vector error correction model and pair-wise causality tests were used. The estimated model revealed that value added tax, state allocation, grants and federal allocation have positive effect on value of infrastructural development while internationally generated revenue have negative effect on infrastructural development. The unit root result (ADF) showed that the variables were stationary at the first difference of Order 1 (1). The co-integration tests revealed a long run dynamic relationship between the dependent and independent variables in the models. The parsimonious model summary shows that revenue mobilization explains positive and significant relationship between the revenue and development of local government. However, the direction of causality between revenue and development is mixed indicating uni and bi-directional causality. The study concluded that local government revenue has significant effect on infrastructural investment of Nigeria local governments. Its recommends policies should be directed toward effective utilization of revenue and local government finance should manage in line with international best practices.
Revenue Mobilization, Investment on Infrastructure, Local Governments Nigeria, Federal Allocation
Copyright (c) 2019 Briggs Alasin Captain , G. N. Ogbonna https://creativecommons.org/licenses/by/4.0
Revenue Mobilization and Investment on Basic Amenities of Local Governments in Nigeria
This paper examined the effects of revenue mobilization and investment on basic amenities of local government in Nigeria. Secondary data were collected from the Central Bank of Nigeria Annual Statistical Bulletin from 1993- 2017. Investment in basic amenities was proxy by monetary value of basic amenities while revenue mobilization was proxy by federal government allocation, state government allocation, value added tax, internally generated revenue and grants to local governments in Nigeria. Ordinary Least Square (OLS), Augmented Dickey Fuller Test, Johansen Co-integration test, normalized co-integrating equations, parsimonious vector error correction model and pair-wise causality tests were used to conduct the investigations and analysis. The empirical findings based on the models found that value added tax, internally generated revenue and grant have negative and significant effect on investment on basic amenities while federal allocation and state allocation have positive effect on the value of basic amenities. The unit root result (ADF) showed that the variables were stationary at the first difference of Order 1 (1). The co-integration tests revealed a long run dynamic relationship between the dependent and independent variables in the models. The parsimonious model summary shows that accounting bases explains a strong and positive significant relationship between the dependent and independent variables. However, the direction of causality between the accounting bases treasury management is mixed indicating uni and bi-directional causality. The study concludes that local government revenue has significant effect on investment of basic amenities of Nigeria local governments.
Revenue Mobilization, Investment on Basic Amenities, Local Governments Nigeria, Federal Allocation
Copyright (c) 2019 Briggs Alasin Captain, C. O. Ofurum https://creativecommons.org/licenses/by/4.0
Moderating Effect of Risk Perception on Financial Knowledge, Literacy and Investment Decision
Financially unsophisticated investors who consistently make sub-optimal financial decisions may suffer lasting consequences for long-term wealth accumulation and welfare. This study examines moderating effect of risk perception on financial knowledge, literacy and investment decision. Data was collected from 378 investors through the aids of structured questionnaires. The research hypotheses were tested using partial Least-square (PLS) regression. The findings reveals that there is positive and significant effect between financial knowledge, risk perception and investment decisions, while positive but insignificant effect was found between financial literacy and investment decisions. However, risk perception moderates the effect of financial literacy, investment knowledge on investment decisions. It recommends that investors, policymakers and individuals investors should embark on various educational programmes, to further influence the level of their investment decisions before committing their hard earning fund into project.
Risk Perception, Financial Literacy, Knowledge, Investment Decision
Copyright (c) 2019 Samuel Alaba Ademola, Aishat Sarki Musa, Idachaba Odekina Innocent https://creativecommons.org/licenses/by/4.0
Insurance Companies and the Efficiency of Financial Intermediation in Nigeria
The study examined the relationship between insurance companies and financial intermediation in Nigeria. The insurance industry is a vital part of the entire financial system. Apart from commercial banks, insurance companies contribute significantly to financial intermediation of the economy. Despite the fact that insurance companies are vital part of Nigerian financial system, Nigerian insurance companies have been struggling to meet up with their objective of enhancing sound financial intermediation efficiency. The objective of this study is to examine the relationship between Total insurance claims and Total insurance Income, Total insurance expenditure in order to determine the impact of insurance companies on financial intermediation efficiency in Nigerian insurance sector.This study relied basically on secondary data which are obtained from Central Bank of Nigeria statistical bulletin (CBN) and National Insurance Commission (NAICOM) annual report.The method of data analysis employed to achieve the stated objective is multiple regression analyses. It was revealed that there exist a positive or strong correlation between the dependent variable and independent variable in the insurance efficiency equation. Independent variables has been found as an increasing function of Dependent variable, this means that there is an increase in the level at which insurance companies fulfil their customers claims. It was also discovered that the parameter of total insurance income and other insurance expenditure in relationship with total insurance claim is statistically significant. The study therefore recommends that policies should be formulated to address firm-specifics and macroeconomic fundamentals that will drive down the high wedge between total insurance claims and total insurance income to further strengthen the efficiency of financial intermediation which will impact positively on economic growth. The study also recommends that there is need to strengthen the supervisory framework to curb tendencies for rent seeking behaviour of insurance company’s management.
Insurance company, Financial Intermediation, Insurance claims, Premium, Insured, Insurance expenditure.
Copyright (c) 2019 Demehin James Adeniyi, Adewole Joseph Adeyinka, Iyodo Babayaro https://creativecommons.org/licenses/by/4.0
Effect of Information and Communication Technology on the Nigerian Economy: Evidence from the Banking Sector
This paper investigated the impact of information and communication technology on the Nigerian economy, taking evidence from the banking sector. Ordinary least squares method of regression for the period 2004-2017 was employed. Generally, the paper found that there was positive relationship between bank related information and communication technology components used and economic growth, except the automated teller machine component, under a fixed effect modeling. However, using the Breusch Godfrey (BG) dynamic modeling to remove serial autocorrelation, the paper revealed that only the mobile banking payment component positively and significantly affected the gross domestic product. On the basis of the findings, the researcher recommended that the Central Bank of Nigeria, banks and stakeholders should collaborate to strengthen the information and communication infrastructures and security systems in the country to reduce frauds, make the environment user friendly and improve public confidence.
Information and communication technology, bank performance, economic growth.
Copyright (c) 2021 Okanta Sunday Ukeje https://creativecommons.org/licenses/by/4.0
CAPITAL MARKET DEVELOPMENT AND ECONOMIC GROWTH IN NIGERIA
The motivation behind this study is to experimentally look at the connection between capital market improvement and monetary development in Nigeria. The examination investigated the Central Bank of Nigeria quarterly information from 1981Q1 to 2017Q4 with the E-sees programming bundle (variant 9.0). The Vector Auto Regression (VAR) procedure was utilized to investigate the information, while theory testing depended on the Block Exogeneity Wald test. The predetermined models included stationarity tests, diminished structure VAR gauge, and primary examination. The Augmented Dickey-Fuller Test demonstrates that the examination factors are fixed at first contrast or I(1). The VAR establishes plot corresponding to unit circle demonstrates that our predetermined diminished structure VAR models are steady. The Lagrange Multiplier (LM) symptomatic tests demonstrate that our predetermined VAR models are effectively indicated. The p-esteem shows that market capitalization proportion is critical in clarifying varieties in financial development (p = 0.0205). Notwithstanding, the worth of stock proportion and banking framework capitalization proportion is not huge in deciding the Real Gross Domestic Product in Nigeria. All in all, capital market advancement in Nigeria is worked with by vigorous market capitalization. Nonetheless, it is restricted by diminishing volume of stock and lessening banking framework capitalization. It is suggested that the monetary area ought to take on forceful capital market drives and vigorous monetary development approaches to support financial development in an arising economy.
Capital Market Development, Volume of Stock, Market Capitalization, Banking System Capitalization, and Economic Growth.
Copyright (c) 2021 Adolphus Joseph Toby, Samuel Dibiah https://creativecommons.org/licenses/by/4.0
THE INNOVATIVE FINANCIAL PRODUCT DEVELOPMENT WITH ITS FUNCTIONAL PERFORMANCE
Creating new financial product and its development phases contain on the problematic but a witty process. This research article’s Objective is to check out the development of novel product and also checking its impacts on the organization’s performance. It has a budding pouring element on the performance of any organization, when it developed. Methodology: Primary and secondary both data, along with t-test applied in this research article. Sample: 250 regular clients of the commercial banks. Research journals, bank’s prospects reports were very helping as secondary data in this regard. Partial least squares (PLS) also applied for hypothesis testimonial. Values of the Cronbach’s coefficient alpha more than 0.70. New innovation product development, Relational Performance, Customer’s Satisfaction uses as (DV) collectively, and 1- firm image, on second brand strength, on third market sensing capability, on fourth product innovativeness, on fifth new product quality used as (IVs). Results: shows that with the development of ‘new innovative products’ firm also accelerates its business volume. Firms get the new clients and improve existing relationship. Brand of firm got the new identity and even reach to unknown persons. Market share level upsurge. Innovativeness of product creates flourishing image and market share. Findings: of this research article was the multiple four factors: Brand strength, new product quality firm image, Product innovativeness. In findings ‘r’ (correlation) and ‘r2’ (regression) shows the strong and positive relationship flanked-by DVs and IVs. There were some restrictions in this research article that will be resolved voguish the impending research & exploration direction.
Innovative Product Development, Market Sensing Capability, Brand Strength, Customer Satisfaction, Performance Dimension, Interpersonal Recital, Firm Image.
Copyright (c) 2021 Muhammad Zohaib, K. M. Anwarul Islam, Muhammad Yasir Tahir, Riaz Hussain, Ambreen Zaineb, Muhammad Ismail https://creativecommons.org/licenses/by/4.0