American Finance & Banking Review en-US (Executive Editor) (Administrator) Thu, 05 Mar 2020 00:00:00 +0600 OJS 60 Accounting Information and Market Value of Quoted Manufacturing Firms: Panel Data Evidence from Nigeria <p style="text-align: justify;">This study the relationship between accounting information and the market value of quoted firms in Nigeria. The general objective was to examine if accounting information have any effect on market value of quoted firms.&nbsp; Cross sectional data was sourced from financial statement of 23 manufacturing firm from 2008-2017. Market value of the firms was modeled as a function of earnings per share, return on equity and dividend per share. Ordinary least square method of cointgration, unit root and granger causality test was used to determine the extent to which human resource cost affect quality of financial report. After cross examination of the validity of the pooled effect, fixed effect and the random effect, the study accepts the fixed effect model.&nbsp; The study found that the independent variables explained 79 percent variation on the market value of the quoted firms. The beta coefficient of the variables indicates return on equity; earnings per share, dividend per share have positive effect on the market value of the quoted firms. From the regression summary, the study concludes that there is significant relationship between accounting information and market value of the quoted firms. The study recommends that management of the firms should formulate dividend policy that enhances the market value of the firms. Corporate strategies should be directed toward internal and external factors that affect earnings per share.</p> Okoro Innocent, E.A.L. Ibanichuka, L.C. Micah ##submission.copyrightStatement## Thu, 05 Mar 2020 23:31:07 +0600 Nigeria’s Fiscal Performance: Exploring the Role of Exchange Rate <p>The paper offers empirical justifications for the instrumentality of external sector in influencing the fiscal position of a country through the exchange rate. In the study, ARDL bounds test approach to cointegration analysis is adopted to examine the long run and short run relationship between exchange rate and fiscal performance in Nigeria. The validity of the findings is based on time series data between 1981 and 2017. The emerging evidence reveals that the exchange rate movement has a substantial influence on the fiscal performance, as there exists a significant adverse relationship between exchange rate and fiscal deficit in the long run as well as in the short run, while the association between exchange rate and public debt is found to be significantly positive in both periods. Empirical elucidations posit that an appreciation of the exchange rate could lead to decreasing fiscal deficits. However, the exchange rate appreciation might not induce a reduction in public debt, as it could stimulate demand for loanable funds by the government, although such effect could be mitigated through strategic investment policy and subsidized funding schemes to aid domestic production. Given that fiscal performance is considerably driven or constrained by the exchange rate movement, the study suggests that developing a strategic framework for ensuring a realistic exchange rate and the mitigation of regular fluctuations or correcting inappropriate exchange rate is crucial.</p> Fisayo Fagbemi, Olufemi Solomon Olatunde ##submission.copyrightStatement## Wed, 11 Mar 2020 23:46:58 +0600 The Dynamics of the Exchange Rate and Extension of Monetary Trilemma <p>Simultaneous making policy of interest rates, exchange rates and capital accounts can be extended to trilemma theory, contrary to its earlier theories, provided that the imbalances of the private sector, the government and the capital account adjusted through the policy variables such as the government expenditures, the interest rates on domestic deposits, the interest rates on domestic loans, effective exchange rates, foreign prices and foreign interest rates. On the other hand, the components of the extension of trilemma theory in the form of internal and external imbalances affect the exchange rate. In other words, if the real sector markets of the economy are not cleared through the aforementioned trilemma components, and policy variables, internal and external imbalances will be affected by opposite direction of net domestic assets (ΔNDA) and net foreign assets (ΔNFA) of the banking system. This is in accordance with the fundamental principles of the monetary approach balance of payments and exchange rate. Policy variables do not put pressure on the unofficial exchange rate as long as they have the same effect on the net changes in the domestic and foreign assets of the banking system. The purpose of this study is to consider the effect of internal and external imbalances on exchange rate through the simultaneous equations system, generating impulses in policy variables, and examining reactions in Iranian economy. In this paper, the monetary exchange rate determination model is analyzed and examined by using the extension of trilemma theory for macroeconomic data of Iran in the form of internal and external imbalances. The results of this study suggest that policy variables can stabilize the unofficial exchange rate (with other conditions being constant) through trading off internal and external imbalances. Thus, the economic policymaker can, while independently policing interest rates, capital accounts and government expenditures and other policy variables in this research, maintain exchange rate stability as a strategic variable and anchor the general level of prices.</p> Mahmoud Allahyarifard, Mostafa Karimzadeh, Mohammad Ali Falahi, Ali Akbar Naji Meidani ##submission.copyrightStatement## Sun, 26 Apr 2020 12:26:50 +0600 Do Monetary Policy Instruments Influence Capital Market Returns in Nigeria? <p>This study concisely examined the relationship between monetary policy variables and performance of the Nigerian Capital Market, analyzed with appropriate econometric tools. After the analysis, the outputs revealed the following; the entire monetary policy variables employed only monetary policy rate has significant relationship with the performance of the capital market in Nigeria. It was also found that the previous information about the all share index has the capacity to predict future returns in capital market in Nigeria. On this note, the researchers are of the opinion to embark on prompt disclosure of the daily all share indexes by regulatory authorities, thereby refurbishing the efficiency of the Nigeria Capital Market. It is also suggested to adopt alternative means of disclosure apart from the national television stations and national daily newspapers because of our technological know-how in Nigeria.</p> Udochukwu Godfrey Ogbonna, Chukwu Agwu Ejem ##submission.copyrightStatement## Wed, 06 May 2020 00:12:30 +0600 Financial Conditions Index and Economic Performance in Nigeria <p>The main aim of this study is to construct a financial conditions index for Nigeria and analyze its predictive power for future growth rate and inflationary trend. The study is based on yearly time series data from 1985 to 2018. The variables included in the construction of the index are riskless interest rate, stock market index, exchange rate, credit to private sector and interest rate spread. The weights attached to these variables are derived from ARDL coefficients, while the predictive power of the constructed index is examined within the VAR framework. The results from the ARDL model shows that credit to private sector and stock market index are the most significant factors for nominal GDP, hence having a substantial weight in the resultant financial conditions index. However, the results from VAR impulse response function and forecast error variance decomposition suggest that the constructed financial conditions index contain very little predictive information about future growth rate and inflationary trend.</p> <p><strong>&nbsp;</strong></p> Chukwu Agwu Ejem, Udochukwu Godfrey Ogbonna ##submission.copyrightStatement## Wed, 06 May 2020 11:49:02 +0600