Australian Finance & Banking Review (AFBR) ,Finance & Banking , Finance, Banking
FIRM SIZE MODERATOR: LINKAGE OF FIRM AGE AND FIRM'S VALUE IN INDONESIAN MANUFACTURING FIRMS AFTER COVID-19 PANDEMIC (SECTORS B AND C)
"Dual Performance" phenomenon and the contraction of the Manufacturing Purchasing Managers' Index (PMI) underscore the importance of understanding how firms' internal characteristics respond to economic volatility and the pressures of digitalization. This study aims to analyze the linkage between firm age and firm value, with firm size as a moderating variable, in sector B and C manufacturing firms listed on the Indonesia Stock Exchange (IDX) during the post-COVID-19 pandemic period of 2022-2024. Tobin's Q was used in this study to examine the impact of the linkage before and after moderation, while Firm Age and Firm Size were measured using natural logarithms. The research type is causal-comparative, with a quantitative analysis approach. The sample was selected using purposive sampling, resulting in 75 firms meeting the criteria from a total population of 228 manufacturing firms during 2024. This study employs secondary data from the Indonesian Standard Industrial Classification (KBLI) criteria on IDX. Moderated regression analysis (MRA) was used for data analysis and hypothesis testing. The results show that Firm Age has a significant negative relationship with Firm Value. This confirms the phenomenon of "Aging," or organizational rigidity, where older firms tend to be less competitive and slower to adapt to digital technology than younger firms. Furthermore, Firm Size was found to be unable to moderate the relationship between Firm Age and the Firm's Value, nor to serve as a pure moderator. This finding indicates that substantial assets alone do not automatically protect mature firms unless they are accompanied by operational agility and transparency to minimize agency conflicts in the post-pandemic era. JEL Classification Codes: C210, L600, M410.
Research Paper/Theoretical Paper/Review Paper/Short Communication Paper
Copyright (c) 2026 Siti Wardah Pratidina Nasution , Kamilah Sa‘diah https://creativecommons.org/licenses/by/4.0
THE INFLUENCE OF CURRENT RATIO, DEBT-TO EQUITY RATIO, AND TOTAL ASSET TURNOVER, AND THEIR IMPACT ON THE PROFITABILITY OF INDONESIAN COAL MINING ENTERPRISES
This study aims to assess the influence of the current ratio (CR), debt-to-equity ratio (DER), and total asset turnover (TATO) on profitability, as measured by Return on Assets. A quantitative method was used in this study, with a causal research design. The research was conducted on Coal Mining Firms in public enterprises registered at the Indonesia Stock Exchange (IDX), covering the period 2018-2024. A purposive sampling technique is used, yielding a final sample of 25 firms. Documentation is a data collection technique using secondary data from each enterprise's annual report. Processing data with multiple linear regression analysis. These findings suggest that the current ratio and debt-to-equity ratio variables have a positive and significant impact on profitability. The total asset turnover variable has a negative, but non-significant, impact on profitability. The contribution of company profitability with return on assets measurement is 43.7 percent, which is influenced by the three variables, namely Current Ratio, Debt-to Equity Ratio, and Total Asset Turnover, where DER proxy is the main factor considered to see its impact on the Return on Assets in 25 firms that are determined to be samples in this study. Companies should also more effectively and efficiently manage the use of their assets and liabilities, and increase sales growth to minimize the possibility of financial risk and achieve maximum profit. After the pandemic ends, the Government must be more strategic in making policies, especially in the mining sector enterprises listed. JEL Classification Codes: C12, G17, M21.
Return on Assets, the Debt-to-Equity Ratio
Copyright (c) 2025 Refo Arsyadana , . Ridwan, Annissa Pratiwi https://creativecommons.org/licenses/by/4.0
This paper offers a detailed exploration of the intricate history of Australian banking, unraveling its inception, progression, and pivotal junctures that have sculpted the financial terrain of the nation. Originating as modest colonial endeavors, Australian banks have evolved into significant players in the global financial arena. This journey of Australian banking mirrors a captivating fusion of economic dynamics, political frameworks, and societal shifts. By meticulously scrutinizing critical junctures, regulatory shifts, technological innovations, and socio-economic determinants, this paper endeavors to furnish a nuanced comprehension of the trajectory of Australian banking across centuries. From the pioneering ventures of the colonial era to the contemporary complexities of a digitalized world, the narrative unfolds a narrative rich in resilience, adaptation, and evolution. Through this examination, we gain insight into the enduring legacy, challenges, and transformative potential of Australian banking, illuminating its integral role in shaping the economic landscape of the continent. JEL Classification Codes: E50.
THE POST COVID EFFECT OF CORPORATE GOVERNANCE ON FIRM PERFORMANCE: A STUDY ON PRIVATE COMMERCIAL BANK IN BANGLADESH
Due to extensive corporate disgraces and catastrophes around the globe, there has been a transformed attention in the influence of corporate governance (CG) and firm performance (FP). The mainstream of research concerning CG and its effect on FP has been assumed in developed markets and countries, mostly the US and UK, but somewhat little indication is provided in the developing countries like Bangladesh. This report has examined the impact of corporate governance mechanisms on firm performance from Bangladesh’s perspective. This study primarily employs agency theory that indicates that the firms with strong corporate governance outperform firms with weaker governance. We used Board Size, Board composition, board expertise and CEO chair duality as variables of CG and EPS, ROA, and ROE as indicators of FP. We collected information from the managers, senior managers, and CFOs of private financial institutions (commercial banks) in Bangladesh for 2022-2023 financial years. The results reveal that size, composition and expertise of board could extremely influence FP positively whereas CEO chair duality could influence negatively. The outcomes of the analyses advocated that firms that comply with good corporate governance practices can expect to achieve higher return on assets and firm performance. It implies that worthy corporate governance applies lead to reduce the various costs inside the organization. Hence, it is concluded that firms of the developing world can possibly enhance their performance by implementing decent corporate governance practices. Therefore, it is desired for firm to separate CEO chair duality to achieve better performance through direct management supervision in Bangladesh. JEL Classification Codes: G34, L25.
Corporate Governance, Firm Performance, Post-Covid, Bangladesh.
Copyright (c) 2024 Md. Sazzadur Rahman Khan, Sanjida Akhtar, Sazia Afrin, Md Gulam Sharoar Hossain Khan
FINANCIAL LITERACY OF FINANCIAL INSTITUTIONS IN BANGLADESH
This research delves into the financial literacy landscape of diverse financial institutions in Bangladesh. Using a mixed-methods approach, the study assesses financial literacy levels, identifies influencing factors, and explores collaborative efforts. Quantitative data gathered through surveys from 150 institutions reveal variations in financial literacy, with banks displaying higher scores (M = 75), followed by microfinance institutions (M = 62) and non-bank entities (M = 48). Qualitative interview insights highlight effective collaborative initiatives between institutions, regulators, and educational bodies. The study contributes novelty by presenting a holistic view of financial literacy, its associations, and implications within the sector. Findings resonate with previous research, linking financial literacy to risk management and ethical decision-making. The research underlines the need for tailored training programs and sustained collaborations. Future research could explore evolving regulatory dynamics and technological impacts. This research augments our understanding of financial literacy's importance and potential to enhance the resilience and inclusivity of Bangladesh's financial sector. JEL Classification Codes: O16 G21, G28, I22.
Financial Literacy, Financial Institutions, Bangladesh, Collaborative Efforts, Risk Management.
CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE AND VALUE OF LISTED OIL AND GAS COMPANIES IN NIGERIA: THE MODERATING EFFECT OF FOREIGN OWNERSHIP
This study examines the moderating effect of foreign ownership on the relationship between corporate social responsibility disclosure and the value of listed oil and gas companies in Nigeria. This study adopted an explanatory research design to achieve this objective using secondary data collected from annual reports and accounts of the sampled companies for four years (2018-2021). The study employs multiple regression using panel-corrected standard error (PCSE) to analyze data for the study. Findings indicate that corporate social responsibility disclosure has a positive significant impact on firm value. Results also revealed that foreign ownership has a positive but insignificant impact on firm value. Furthermore, on the interaction effect of foreign ownership on the relationship between corporate social responsibility disclosure and firm value, the result indicates that foreign ownership has moderated the relationship between corporate social responsibility disclosure and the value of listed oil and gas companies in Nigeria by strengthening the existing relationship. The findings of this study encourage more investment from foreign investors to increase the disclosure of CSR to enhance the value of listed oil and gas companies in Nigeria. Finally, the study recommends that the management of listed oil and gas companies should diversify to attract more foreign investors to improve the value of their companies. JEL Classification Codes: O16.
Copyright (c) 2023 Aliyu Sulaiman Kantudu, Kabiru Isa Dandago, Abubakar Yusuf, Zaharaddeen Salisu Maigoshi, Bashir Ali Sulaiman
SATISFACTION OF INDIVIDUAL TAXPAYERS’ IN BANGLADESH
As a developing country revenue is necessary to accelerate the economic growth of Bangladesh. Besides, implementation of the tax law, individual taxpayers’ satisfaction will accelerate the collection of tax. The main objective of the study is to find out the impact of some determinants or factors which influence the overall satisfaction of the individual taxpayers’ of Bangladesh. In this study, quantitative data was gathered by taking personal interviews among 450 respondents and the response rate was 93.33%. Empirical tests using factor analysis and tests of hypothesis were performed in the study. The study incorporated three factors: tax rate, taxpaying system, and the behavior of tax employees. These three factors are considered to play a significant role in individual taxpayer satisfaction in Bangladesh. All the variables showed a significant and positive relationship between the independent variables and the dependent variable, taxpayers’ satisfaction. The study suggests some recommendations in order to increase the effectiveness of the tax collection rate by satisfying individual taxpayers’. JEL Classification Codes: H24.
Tax, Individual Taxpayers’, Satisfaction, Bangladesh.
Copyright (c) 2021 Shameem Ahmed, Md. Mahadi Masud Faisal
TREND, DIRECTION AND PERFORMANCE OF AFGHANISTAN’S INTERNATIONAL TRADE
Afghanistan is at a strategic location which acts as an important corridor in Asia and connects powerful industrial economies such as India and China to Northern Asia and to Europe via dry and seaways and vice versa through the Lapis Lazuli Corridor, Chabahar port and other corridors. The study asses to perceive the performance and trend of Afghanistan’s export and import. Moreover, the study points out to the destinations of Afghanistan's exports by regions and origin of Afghanistan’s imports by regions. The paper descriptively concentrates on direction, trend, and performance of the Afghanistan trade. The data is retrieved from numerous secondary sources encompass National Statistic and Information Authority and Ministry of Trade and Industry of Afghanistan. The period selected is from 2002 to 2018. Moreover, the research is based on quantitative data and descriptive statistics have been used to analyze the trend and direction of the Afghanistan trade. The study shows that there is an ascending direction of Afghanistan's export to Emerging and Developing Asian Economies majorly includes Pakistan, India and Bangladesh, while it indicates a descending export direction to Advanced Economies, Commonwealth Independent States, Middle East, and European Nations. Furthermore, Afghanistan's import shared with the regions is in an unstable form. JEL Classification Codes: F1, F10, F19.
International Trade, Trends, Direction, Trade Performance, Afghanistan.
Copyright (c) 2021 Sayed Ahmad Rashid Ashrafi, Vishwanatha Kalaiah
AN ANALYSIS ON THE EFFECTS OF CORONAVIRUS (COVID-19) ON THE FINANCIAL MANAGEMENT OF MULTINATIONAL CORPORATIONS
This paper develops a sensible framework to get a handle on the spatiotemporal plans of the COVID-19 event, its real nature, and its implications to the Financial Management of MNCs (Multinational Corporations). In the most straightforward structure, the construction of multinational Corporations is included a parent organization that holds all licensed innovation rights, contract makers or undeniable makers which complete the creative work in the nations with low work costs, and the restricted or undeniable wholesalers that sell the completed merchandise in different business sectors and behaviors market explores in their nations of activity. The pandemic effect on financial movement contrasts as far as extent and force. This has delivered unrivaled proportions of shortcomings. This paper tries to diagram the overall elements of worldwide Financial Management of MNCs (Multinational Corporations) with country explicit dangers and primary dangers. Fundamental data is accumulated from different online media, adroit journals, various kinds of examination papers, and other online sources, etc. The globalization of Financial Management of MNCs (Multinational Corporations) is coordinated to the enormous extension of greatness and enhancement of monetary exchanges. At long last, all areas show and portray in detail this subject and give a few suggestions to conquer the present circumstance. JEL Classification Codes: F36, G32, F23.
Coronavirus, COVID-19, International, Financial Management, Multinational Corporations, Economy, Market.
Copyright (c) 2021 Nurul Mohammad Zayed, K. M. Anwarul Islam, Shahiduzzaman Khan Shahi, Md. Sazidur Rahman, Tahsin Sharmila Raisa
THE DETERMINANCE OF THE FINANCIAL BEHAVIOR AMONG GRADUATE STUDENTS IN INDONESIA
The lifestyle of adolescents who migrate to work and college will largely determine their future. Concerns about economic conditions can cause problems with their behavior. This research has aimed to explore the most influential factors on Financial Behavior among graduate students in Indonesia. The Primary data collected by distributing questionnaires using a Likert scale. There are 239 samples have collected based on the combination of purposive and convenience sampling methods. The study used descriptive statistical techniques and path analysis techniques for data analysis. Based on path analysis results, study findings indicate that there is a significant influence of financial knowledge on financial self-efficacy; financial self-efficacy and financial knowledge on financial behavior; financial attitude and financial self-efficacy on financial behavior but there is no significant influence of financial knowledge on financial behavior. The study results also showed that adolescent habits are still not good but can be improved through education such as character education and achievement of a better motivation to deal with economic problems. The study recommended that the good habits can be passed on to friends of his age, especially adolescents so they can have a good future. JEL Classification Codes: F36, G02, A23.
Financial Behavior, Self-Efficacy, Knowledge, Attitude.
Copyright (c) 2021 Nyoto, Nicholas Renaldo, Gunasegaran Karuppannan, Abul Bashar Bhuiyan, Mokana Muthu Kumarasamy
AN EXPLORATORY STUDY ON EFFICACY OF DEMONETIZATION IN INDIA: POLICY ROLLOUT ON DEMONETIZING OLD CURRENCY
Demonetization is the process of declining the use of currency from circulation by the government or monetary authorities in a country. This research paper analyses the efficacy of Indian demonetization from common public perspectives, the policy that the government of India has implemented to fight against black money, drying the financial roots of terrorism, and direct the civilization towards digital transactions and a cashless economy. A field survey was conducted in Karnataka and Kerala’s coastal region by distributing a structured questionnaire among the common public to generate the data. The authors run descriptive statistics and ordinal regression analysis to obtain the result for the study’s objectives. The descriptive statistics result found that demonetization increased the number of bank account holders in India. There is not much impact of demonetization on controlling evasion of tax and illegal investments of black money, and the policy adversely affects regular business in the country. The findings from ordinal regression reveal that the time frame was given to the public to demonetize their old notes were sufficient; money circulation was well planned at the time of demonetization. The policy implemented at the right time and the common public, despite facing enormous challenges while purchasing goods and services at the time of demonetization, considers that demonetization implementation was effective. JEL Classification Codes: E5, E6, E7, E58, E60.
Demonetization, Common Public, Efficacy, Policy Implementation, Currency.
Copyright (c) 2021 Abdul Masood Panah, Y. Muniraju
Turkey-Africa Relations: Opportunities and Challenges
The Continent of Africa had been of great importance to many Countries outside Africa, Since the begining of the slave trade when European slave merchants invaded Africa and estalished the trade in human beings, which forced the migration of millions of Africans to America and the West Indies. Since then, the Continent had faced a continued influx of people for different purposes even after the abolution of slavery. The main attraction to Africa, has been its human and rich mineral resources scattered across the continent, as well as its vast market for foreign goods.This paper examines the relations between the republic of Turkey and countries of the African Continent, especially in 1990’s and 2000’s when the republic of Turkey began to develop interest to have relation with African countries. There were so many reasons that motivated and ignited the interest of Turkey in Africa all of a sudden, and this paper tried to present such reasons and also show how the republic of Turkey tried to establish such relations, the manner in which Turkey went about realising this objective of having deep economic, political and social relation with countries of the African Continent. The paper also tried to look at relations between Ottoman Turkey and Africa, though as a background to the present relations.It tried also to see what challenges there are in this relations, in the future or now, and also tried as much as possible to look at some policy suggestions regarding this symbiotic relations between Turkey and African countries. The paper argues that Pan Africanism poses a challenge to relations between Turkey and Africa and offered some policy suggestions that will deepen integration between Turkey and African States.
Turkey, Africa, Opportunities, Challenges, Pan-Africanism
Development of Bangladesh through SMEs Financing: A Case Study on IDLC Finance Limited
SMEs (Small and Medium Enterprises) are very much crucial for the overall development of the economy. Several banks and other non-banking financial institutions are now concentrating on this sector very actively. Industrial Development Leasing Company (IDLC) of Bangladesh Limited started its operation in the year 1985 as the pioneer leasing company to facilitate lease-financing and capital investment in the industrial sector. Over the years, the company has evolved itself as a multi-product non-banking financial institution providing a wide range of products and services. Over the last two decades, IDLC has contributed relentlessly to the country’s transition into a developing country and has emerged as Bangladesh’s leading multi-product financial institution. The company now offers a multitude of diverse financial services and solutions to both institutional and individual clients to cater to their unique requirements. In this research paper, I have tried to focus on various roles and aspects of SMEs banking. The product and service offered for the SMEs clients, portfolio structure of the SMEs banking, marketing strategy for the SMEs clients, and the total credit operation of the SMEs banking by IDLC Finance are covered through this research.
Development of Bangladesh, SMEs Financing, IDLC Finance Limited
LOAN MORATORIUM 2020- ITS IMPACT ON INDIAN BANKS
Moratoriums area period of temporary suspension of an activity or law till a decision to lift the suspension is made, as in the case of the issues that led to the moratorium are resolved. Moratoriums may be imposed by regulators, by a business, or by the government. A moratorium is often ordered in response to situations of crisis. Moratoriums are not new to the Indian banking sector and have been granted and imposed in multiple instances in the last 20 years. Since 1999 moratoriums have been imposed on 9 banks for various reasons. Recently, a six-month moratorium was offered by the Reserve Bank of India (RBI) between March 1, 2020, and August 31, 2020, on all loan equated monthly instalments, to help lessen the troubles faced by the borrowers due to the COVID-19 pandemic. This paper aims to study the recently granted moratorium by the RBI to assess and predict its impact on the banking sector. The study will also reflect on similar instances of moratoriums that have been granted in the United States, Greece, and Thailand in the last 20 years.
Moratorium, Suspension, RBI, Borrowers, Pandemic.
Copyright (c) 2020 Meera Mehta, Rishab Kaul
THE EMPIRICAL REVIEW OF CRITICAL SUCCESS FACTORS ON THE CAUSES OF DELAY IN ROAD CONSTRUCTIONS PROJECTS IN THE GCC COUNTRIES
The aim of this study is to identify the critical success factors on the delays of road constructions in the GCC countries and their effects on project delivery in Arab countries. Towards the achievement of the objectives the study used the empirical literature from all relevant online sources and data based as many as possible. The findings of this study have summarized and shortlisted the success factors in the two categories such as internal and external factors have caused to be influenced to delay of road construction in the Arab regions. However, in the category of internal factors, there are 63 factors shortlisted from seven groups of factors which has revealed to effects on the delay of road constructions especially, the consultant related factors, and the contractor related factors, designed related factors, client-related factors, labor-related factors, material related issues, equipment-related issues respectively. Moreover, external related factors are also considered to summarize especially natural disaster (flood, hurricanes, and cyclone, etc.), conflict, war, global financial crisis, compensation delay to the affected property owner, the price fluctuated, unexpected ground conditions (soil and high-water level), changing of government regulations and laws, delays in obtaining permission from the municipality, loss of time by traffic control and restrictions at the job site, the problem with the inhabitant of community, delays in providing service from utilities (water and electricity’s) and accident during constructions accordingly. The present study also concluded the effects of the above factors which have delay road constructions through increasing of cost and overrun it, taken over time, creating of disputes, going for lawsuits, finally happing of abandon of projects. Thus, the present study has given the following recommendations to overcome of above problems by increasing detailed site investigations, ensure careful monitoring and regular meetings, effective site management, collaborative working, and effective coordination’s, proper and comprehensive planning and scheduling, and ensure full and intensive commitment from all parties accordingly.
Critical Success Factors, Road Constructions Delay and Arab Countries and GCC Countries.
Copyright (c) 2020 Suleiman Said Al Hinai, Abul Bashar Bhuiyan, Setyawan Widyarto
Finance, Islamic Finance: Theoretical Analysis
The paper discusses the steps to be taken to strengthen the efficiency and transparency of the Board and management. Increasing shareholders and depositors to play a more important role in protecting their own interests. The article then describes some of the popular resources available to enhance the effectiveness and responsibility of the Board and the Executive.
Exploration of Micro-Finance Banking Policies and Strategies for Poverty Reduction in Nigeria
Poverty is one of the socioeconomic challenges bed evilling many families, particularly the northern states of Nigeria. This study applied qualitative research paradigm and generated the perceptions of informants via convinience sampling. We analyzed the data through thematic, narrative and interactional apparoach. Our objective is to explore microfinance institutions strategic policies for poverty reduction and recommend to policy makers. The results exposed that micro financial institutions were classified into formal, informal, development and those with mortgage outlook.The Central Bank of Nigeria issue the certificate for authorization, the licensing and ownership. The Paid-up capital requirements, the permissible and acceptance of deposits, savings from individuals, groups and associations were the policies which propel these institutions. The non-permissible policies are restrictions on acceptance of public sector deposits. The study identified inadequate supervsions and loans defaults, poor infrasturectural facilities in rural areas, pitiable communication and derisory banking experience among the poor and low income earners, limited standardization and operating system as well hampered their services in the quest to mitigate poverty in the study area.The re-capitalization, efffective regulatory control via financial control, regularly supervision, checks and balances. Capacity building programs and Proper staffing.Provision of appropriate business model; strategies and creation of awareness. The provision of door to door banking marketing awareness, establishment of financial literacy; consumer protection programs and Provision of non-interest banking programs were perceived to overcome the perils of these institutions respectively. The study recommended for establishment of Islamic financial institutions and Takaful insurance scheme.
Poverty Reduction, Microfinance Institutions, Types, Policies, Challenges, Strategies.
Copyright (c) 2017 Umar Farouk Musa, Inuwa Baba Abubakar
Comparative Study on Credit Monitoring Practices in Slected Banks of Nepal
Credit monitoring is performed by the banks as post approval activities for existing credit clients to indentify the early warning single of credit risk. So that, the study was accomplish to observe the credit monitoring practice in Nepalese commercial banks. The study was based on a sample of 10 commercial banks, comprising 5 private sector banks and 5 joint venture banks. This paper attempts to determine the awareness of Nepalese bankers about the significance of credit monitoring as risk identification tools. The result of the study indicates that the periodically review of the security documents, credit processing procedure, compliance of covenants setup during credit approval, technique to control default, risk reporting, review of loan account and regular follow-up were differently used as credit monitoring practice in private sector and joint venture banks in Nepal. These factors also found significant predictor for credit monitoring. Moreover, there was a positive relationship between credit monitoring practice and its factors instead of technique to control default.Credit monitoring is performed by the banks as post approval activities for existing credit clients to indentify the early warning single of credit risk. So that, the study was accomplish to observe the credit monitoring practice in Nepalese commercial banks. The study was based on a sample of 10 commercial banks, comprising 5 private sector banks and 5 joint venture banks. This paper attempts to determine the awareness of Nepalese bankers about the significance of credit monitoring as risk identification tools. The result of the study indicates that the periodically review of the security documents, credit processing procedure, compliance of covenants setup during credit approval, technique to control default, risk reporting, review of loan account and regular follow-up were differently used as credit monitoring practice in private sector and joint venture banks in Nepal. These factors also found significant predictor for credit monitoring. Moreover, there was a positive relationship between credit monitoring practice and its factors instead of technique to control default.
Monitoring, Compliance, Default, Approval, Procedure.
Copyright (c) 2017 Fatta Bahadur K.C ,Indra Kumar Kattel
Prime Equity, Leveraged Structure and Corporate Earnings in Nigeria: A Comparative AnalysisPrime Equity, Leveraged Structure and Corporate Earnings in Nigeria: A Comparative Analysis
This study examined prime equity, leveraged structure and corporate earnings in Nigeria. The objective was to examine if equity value and debt equity ratio have relationship with earnings per share of quoted deposit money banks. Earnings per share were modeled as the function of equity value and debt equity ratio. After cross examination of the validity of the pooled effect, fixed effect and the random effect, the study accepts the fixed effect model. The study found that 74.2% and 66.7% variation on earnings per share can be traced to equity value. The β coefficient indicates that of equity value has positive impact on earnings per share, while Debt equity ratio on of deposit money banks can explain 68.9% and 59.9% variation. The β coefficient proves that debt equity ratio have positive impact on earnings per share of the quoted deposit money banks. From the above results we conclude that equity value have greater impact on earnings per share than debt equity ratio. We recommend that management should ensure optimal capital structure of the quoted deposit money banks.
Corporate Earnings, Debt Equity Ratio, Leveraged Structure.
Copyright (c) 2017 Lucky Anyike Lucky ,Akobundu Charles Echewodo
Cost of Capital and Corporate Earning of Nigeria Quoted Firms: A Multi-Dimensional Analysis of Quoted Firms in Nigeria
This study examined cost of capital and corporate earning of quoted firms in Nigeria. The objective was to examine the effect of short term, medium term and long term cost of capital on earnings per share. Cross sectional data was sourced from financial statement of twenty quoted firms from 2011-2016. Earnings per share was proxy for dependent variable while cost of trade credit, cost of short term bank loans, cost of commercial paper, cost of banker acceptance, cost of line of credit, cost of revolving credit, cost of hire purchase, cost of operating lease, cost of debt, cost of preference share and cost of equity are proxy for independent variables. After cross examination of the validity of the pooled effect, fixed effect and the random effect, the study accepts the fixed and random effect models. Findings reveals that cost of short term and cost of long term have significant relationship with corporate earning while cost of medium term have no significant effect on corporate earnings. It recommends the need for corporate strategies that will reduce cost of capital.
Cost of Capital, Corporate Earnings, Quoted Firms.
MSMEs as Engine of Economic Growth in Nigeria: Challenges and Prospects of Scalability
Growing or expanding the Micro, Small and Medium Enterprises (MSMEs) sector of the economy is one key strategy to achieve economic growth and development. Micro, Small and Medium Enterprises (MSMEs) scalability (growth or expansion) have become an area of concern for economic growth in developing economies. People use the term in reference to computer or other technological systems, but those in business also use the word to describe the adaptability of a company (Thibodeaux, 2015) in today‘s fast-paced business environment where the focus on customer satisfaction is at an all-time high. This article discusses the concept of scalability as it relates to business and non-scalable components of business process as well as the importance of being scalable. It also looked at some of the challenges and practices that prevent effective scalability of MSMEs in Nigeria and the way forward.
MSMEs, challenges, scalability, economic growth, Nigeria
Copyright (c) 2018 Emmanuel Okokondem Okon
Foreign Portfolio Investment and Performance of the Nigerian Capital Market
This study examined the effect of foreign portfolio investment on the performance of Nigerian capital market. The specific objectives are to investigate the impact of Net Foreign Portfolio Investment, Foreign Portfolio Investment in Equity, Foreign Portfolio Investment in Bonds, Foreign Portfolio in Government Securities and Nigerian Exchange Rate per US Dollar on the performance of Nigerian Capital Market. The required data were sourced from Central Bank of Nigeria (CBN) Statistical Bulletin and Stock Exchange Annual Report. The study has All Share Price Index and Market Capitalization as proxy for Capital market performance while Net Foreign Portfolio Investment (NFPI), Equity Investment (PIE), Bond Investment (PIB), Portfolio Investment in Government Securities (PIGS) and Exchange Rate as predictors variables. The Ordinary Least Square multiple regressions with econometric view were used as data analysis techniques. Cointegration test, Granger Causality Test, Augmented Dickey Fuller Test and Error Correction Model were used to examine the variables and its relationship to the dependent variables. Model one revealed that foreign portfolio investment in bonds and foreign portfolio investment in government securities have negative relationship with All Share Price Index while Net Foreign Portfolio investment, foreign portfolio investment in equities and exchange rate have positive relationship with All Share Price Index. Model two revealed that Net Foreign Portfolio Investment, Portfolio Investments in Bonds and Government securities has negative relationship with market capitalization while equity investment and exchange rate have positive relationship with market capitalization. The study concludes that foreign portfolio investment have significant relationship with Nigerian capital market performance. It therefore recommends that policies should be devised to enhance the operational efficiency of the Nigerian capital market, to attract foreign investors.
Foreign Portfolio Investment, Nigerian Capital Market, Equity Investment, Net Foreign Portfolio Investment, Exchange Rate.
Copyright (c) 2018 Nwonodi Daniel Ikezam
Price-Swinging Stock Market Fundamentals: Nexus and Contemporary Features
The factors which determine stock prices in capital markets are many and diverse; hence researchers in the academic fields of accounting and finance intermittently undertake to track them with contextual emphasis. From the philosophical basics to the more rigorous econometric dispositions, analysts in different schools of thought had ventured in this regard and came up with divergent outcomes. Some factors did commonly appear for most stock markets, while various conditions surrounding the respective scenes accounted for environmental dynamics. This reinforces the truism that each market has acclimatized rules and regulations, country peculiarities, and investor typologies; all of which provide basis for uniqueness. In this conceptual analysis, the factors that feature as dominant determinants of stock prices are Earnings per Share (EPS), Dividend Per Share (DPS), and Price-Earnings Ratio (P/ER); among which the last is the most and not the least. It further attests to the prevailing value relevance of financial statement information emanating from corporate accounting reports; hence the imperativeness of stock market regulators sustaining the rules that make for adherence to best practices. The alternative to informational reliability is institutional fragility; because when investors’ confidence erodes, liquidity squeezes, efficient markets crashes, and in turn, investors withhold investments. It, therefore, requires market regulatory/administrative mechanisms to be focally directed at enhancing reportorial compliance and compelling higher due diligence, accountability and responsibility in line with international standards.
Financial Statements, Market fundamentals, Stock Prices
Copyright (c) 2018 Prince Umor C. Agundu, James T. Wula ,Usman Mamuda Musa
Micro Determinants of Dividend Policy in Quoted Manufacturing Companies in Nigeria
This study examined the factors that determine dividend policy of quoted manufacturing firms in Nigeria. The general purpose is to examine factors that affect dividend policy of the quoted firms. After exhaustive literature review, cross sectional data was sourced from financial statement of twenty quoted manufacturing firms. Dividend payout rate was proxy for dividend policy while growth opportunities, liquidity, management efficiency, profit level, cost of capital, company size and debt equity ratio were proxy for independent variables. The study applied the Pooled Ordinary Least Square (OLS), fixed effect, and random effect regression models using the e-view statistical package. Findings reveal that growth opportunities, profit level, management efficiency and debt equity ratio have negative effect on dividend payout ratio while liquidity, cost of capital and company size have positive effect on dividend payout ratio of the manufacturing firms. We conclude that liquidity cost of capital and company size significantly determine dividend policy while growth opportunities, management efficiency, profit level and debt equity ratio have no significant effect on dividend policy. The study recommends among others, that managers/consultants should carefully examine the economic factors within a firm’s operating environment when carrying out the functions of developing or designing dividend policy for the firm.
Dividend Policy, Quoted Manufacturing Companies, Dividend payout ratio, Management efficiency
Copyright (c) 2018 Ngozi G. Iheduru, Charles U. Okoro
Sustainable Reporting and Profitability of Quoted Firms in Nigeria: A Multi-Dimensional Panel Data Study
This paper used cross sectional data to examine the effect of sustainable reporting on the profitability indicators of Nigeria quoted firms between 2008-2017. Data was sourced from financial statement of the firms. Twenty firms were selected from the population of quoted firms in Nigeria. Return on equity, earnings per share and return on investment were proxy for profitability while sustainable reporting was proxied by economic, social, environmental and corporate governance disclosure. The panel data model was tested using the Hausman test. Model one and two validated the fixed effect while model three validated the random effect. The results found that economic disclosure and social disclosure have positive but insignificant effect on return on equity of the selected firms while environmental and corporate governance disclosure have negative and insignificant effect on return on equity, all the predictor variables have positive and insignificant effect on earnings per share of the firms and that economic, social and environmental disclosure have positive effect on return on investment while corporate governance disclosure have negative effect on return on investment of the selected firms in Nigeria. We recommend that operating environment of the firms should be well examined and policies should be advanced to manage factors such as economic, social, environmental and corporate governance disclosures to leverage the environmental challenges and enhance profitability, companies should ensure strict compliance to all forms of sustainability reporting.
Sustainable Reporting, Profitability, Quoted Firms, Panel Data Study
Copyright (c) 2019 Ngozi G. Iheduru,Charles U. Okoro
Capital Structure Theories in Finance Research: A Historical Review
Capital structure in one of the most converse and vital issues in the finance literature. This theoretical review of capital structure provides a synthesis of the theory utilised in capital structure literature. This theoretical review explains two categories of theories that examine the optimum capital structure of a firm. Functional market theories, which propose firms conduct share transaction without being used transaction costs and ii) costly transaction theories. The first group consists of the original capital structure theories of Modigliani and Miller (1958, 1963), Miller (1977), and De Angelo and Masulis (1980). The second range of theories captures the various effects of costly capital market transactions: Pecking Order Theory" accredited to Donaldson (1961); the debt capacity theories that depend on bankruptcy to limit a firm's use of debt financing (Robicheck and Myers, 1966) the agency models developed by Jensen and Meckling (1976), Myers (1977), Smith and Warner (1979); and signalling model by Ross (1977). Recent capital structure literature explored into an analytical structure building up the major contributions starting with the development of agency and bankruptcy theory. These theories are connected with the outcome from financing choices to real debt-equity decisions. Finally, we finish our review with established studies that explore the significances of leverage- equity relationship, as well as its determinants.
Capital Structure, Theories in Finance, Agency Theory.
Triangular Causality and Controlling Parallel Exchange Market
In this paper, the triangular relationship of money, price, and foreign exchange in a causality context are studied. It is concluded that regulating the exchange rate by volume of liquidity in a period of less than a year is not possible, but in annual and biannual analyses we can regulate the exchange rate through controlling the liquidity. In other words, in the long run, the exchange rate is affected by liquidity and price level, but in the short run, the price level has only temporary effects on the exchange rate. The results of the study show that: liquidity affects the exchange rate in the long run; price affects the liquidity in the long run; in the long run, liquidity and exchange rate affect prices. Our results show that injection of foreign exchange into the parallel exchange market with different lags has little effects with different directions on the exchange rate. The same result is true for the relationship between liquidity and dollar rate. In other words, in spite of the long run relationship between exchange rate and liquidity, we cannot justify this relationship in the short run. The same is true with the balance of payments position and exchange rate in the short run. By simulating the relationship between injecting (selling) foreign exchange in the parallel exchange market, liquidity and the cumulative balance of payments all with exchange rate, we can conclude that in the short run, regulating exchange rate by instruments such as selling exchange in the parallel market or controlling the liquidity is not possible, but in the long run, conducting foreign exchange sale policy and controlling the liquidity and the balance of payments position can control the exchange market.
Foreign exchange, Money supply targeting, Monetary policy, Market control, Exchange rate policy
Money-Transaction-Income Process: Quantification of Quantity Theory of Money
In this paper, we try to establish the relationship between money and income via transaction. In this regard, we use different processes of value-added production in the economy to find this lost chain in literature. According to our findings, we reformulate and generalize the quantity theory of money. Our empirical investigations confirm our model formulations.
Money, Quantity theory, Fisher, Transaction, Income
L1‎‎ Norm Based Data Analysis and Related Methods
This paper gives a rather general view on the L1‎‎ norm criterion on the area of data analysis and related topics. We tried to cover all aspects of mathematical properties, historical development, computational algorithms, simultaneous equations estimation, statistical modeling, and application of the L1‎‎ norm in different fields of sciences.
L1 norm, Regression, Algorithm, Computer
Capital Structure and the Value of Quoted Firms in Nigeria: A Test of Miller and Modigliani Irrelevant Hypothesis
This study tested an insignificant hypothesis of the capital structure of Miller and Modiglian in Nigeria. The aim was to investigate the validity of the irrelevant hypothesis. The Tobins Q market value measure was modeled as a function of debt-to-equity ratio, long-term debt to equity ratio, and retained earnings ratio. Twenty companies were selected on the basis of the information needed to conduct the survey and the availability of annual financial reports for the ten-year period 2008-2017. Cross-sectional data were obtained from the annual accounts and annual reports of the companies. Random effects were used in the analysis of fixed and random effects. The study showed that 77% volatility in market value can be predicted by the variation of independent variables in the regression model. The beta coefficient of the variables found that the debt-to-equity ratio, the long-term debt-to-equity ratio, the capital-to-earnings ratio is positively and significantly related to the market value of the selected listed companies. The study concludes that capital structure is relevant, unlike Miller's and Modiglian's irrelevant hypothesis. Therefore, it is recommended that managers ensure an adequate combination of capital and debt.
Capital Structure, Miller and Modigliani, Irrelevant Hypothesis
Copyright (c) 2019 Uzokwe Grace Onyinyechi