Finance

This paper attempts to study the determining factors of Wadiah Saving Deposits in Malaysia. It intends to examine the relationship between Gross Domestic Product (GDP), Inflation Rate (INF), and Rate of Return (ROR) and Wadiah Savings Deposits in Malaysia. Analysis was done by using the Statistical Package for Social Science (SPSS). Some of the techniques used to measure the factors were Pearson Correlation, coefficient of determination (R2), ANOVAs, Multiple regression analysis, and T-statistics. Using the data from Monthly Statistical Bulletin, Bank Negara Malaysia from 2003 until 2010, and this study found that Rate of Return (ROR) influenced the changes of Wadiah Saving Deposits in Malaysia. By using T-statistics, the results showed that only one independent variables namely Rate of Return (ROR) had significant influence with Wadiah Saving Deposits while Gross Domestic Product (GDP) and Inflation Rate (INF) had no significant influence with Wadiah Saving Deposits.

The inefficaciousness and ethical deficiency of the current “Islamic” financial industry is well known. Taking a diachronic approach whilst resorting to scriptural reasoning, historical evidence and inductive rationale, the author suggests two prerequisites for Islamic financing. The paper is concluded with five scenarios that are in the author’s view, sine qua nons as far as Islamic financing is concerned.

The purpose of this paper is to investigate the intellectual capital (IC) efficiency of Indian banking sector in utilizing intellectual capital and capital employed to run the organization by using the data envelopment analysis methodology. The authors use three individual components of value added intellectual coefficient as the input variables, and Tobin’s Q and return on equity as the output variables. Examining a sample of 35 banks in financial years 2009-2013, findings of this study show that banks listed on the Mumbai stock exchange invest most of their resources in Structural Capital as compared to Human Capital and Physical Capital, and The Jammu & Kashmir Bank Limited, Indian Overseas Bank, HDFC Bank Ltd., State Bank of India, Federal Bank Ltd. and Yes Bank Limited are the most efficient company of all the sample banks, since they have the highest coefficient of intellectual capital super efficiency based on Anderson and Peterson model. The benchmarking analysis of this study may shed light for the managers in banks to benchmark and improve their efficiency in intellectual capital management. The overall average values of Technical efficiency 0.756, Pure technical efficiency 0.984 and Scale efficiency 0.766 suggest that managers of banks are inefficient in scale efficiency intellectual capital due to the technical problem and not managing intellectual capital.

The recently introduced Market Dynamics method presents a new approach towards measuring security price movements and related indicators. The approach leads to a new formulation for measuring P/E ratio changes, and indicates clear linkages between the expected change in P/E ratio for a security and the corresponding changes in earnings and money flow. As such, money flow appears to play a key role in determining valuations of traded securities.

The paper briefly described the operational mechanism innovation of key Microfinance Service Providers (MSPs) in Bangladesh. Grameen Bank has chosen to examine the approaches of microfinance. Grameen Bank is dominating microfinance market in Bangladesh in outreach, outstanding loans, savings, and efficient selected delivery mechanism. They offer micro-credit, savings and social services to the poor who were deprived from such access offered by conventional banks. Grameen Bank of Bangladesh is known worldwide for its innovative credit delivery to the rural poor. The bank offers loans to poor particularly the women in groups of five in order to create peer social pressure and solidarity which seems to work well in a society where social networks are often of vital Importance. Grameen Bank has been able to demonstrate the effectiveness of microfinance programs towards sustainable development for the rural poor in Bangladesh. The present study contributes to the literature on diverse microfinance approaches. The study may lead to further methodological improvement of the microfinance institutions in Bangladesh and elsewhere. Finally, microfinance practitioners and policy makers might gain better understanding on existing microfinance approaches in Bangladesh and can think or re-think for adaptation.

Since the discovery of oil in the country, the attention of Nigeria's public revenue has gradually shifted from tax revenue to non-tax revenue. This has several consequences on economic growth and development in the country. This study examines the effects of tax revenue on selected macroeconomic indicators in Nigeria. It employed annual time series data from 1986 to 2015 for personal income tax (PIT), company income tax (CIT), petroleum profit tax (PPT), value added tax (VAT) as independent variables while the dependent variables are employment rate (ER) and price stability (PT). 2 (two) equations were developed to interrogate the relationships between the dependent and independent variables. An autoregressive distributive lag (ARDL) model was adopted to examine the effect of tax revenue on the designated macroeconomic indicators. The results of the analysis for the 2 equations were mixed. With the overall significant effect of tax revenue on price stability, and the mixed (significant/insignificant) effect on employment rate, it is clear that the use of taxes seem to favour price stability rather than employment generation in Nigeria. Though insignificant, the speed of adjustment to equilibrium was very high for price stability while it became very slow for employment level. This study therefore recommends that Government should avoid multiple tax, but rather grant reasonable tax holidays and reduce taxation to encourage new investments and boost employment. A good part of tax should be allocated to upgrade social and economic infrastructures to reduce cost of doing business and improve profits for businesses that could be re-invested in the economy. Finally, government should strive to balance-off the incidences between income tax and service taxes in order to reduce the tax burden on civil/public workers, who have been observed to be the only segment that pay accurate tax to cushion the overall effect on the disposable incomes of these category.

This paper reviews, appraises, and critiques theoretical and empirical research on the connections between the operation of the financial system and economic growth. It describes the role of financial system development in economic growth at the macro level, both theoretically and empirically. It also describes briefly the relationship of corporate finance and firm performance. It finally concludes the review and presents some policy implications in view of the reviewed literature. Furthermore, theory and evidence imply that better developed financial systems ease external financing constraints facing firms, which illuminates one mechanism through which financial development influences economic growth. The paper highlights many areas needing additional research.

The study investigated the operational mechanism of key Microfinance Service Providers (MSPs) in Bangladesh and China. It seeks to understand diverse methodologies toward financial inclusion of the poor. A total six microfinance service providers were taken for critical evaluation consisting three from each country. A little variation on operational mechanism found among MSPs within the country but a greater variation has appeared between two countries. The most observable differences were- (i) outreach, (ii) service provision, (iii) collateral status, (iv) interest rate, (v) financial sustainability, and (vi) regulatory status which have direct influence on institutional sustainability. Findings of the study can help microfinance practitioners and policy makers to gain a better understanding on existing MSP and leads to further methodological improvement. Finally, the cross country comparison could bring win-win situation for both countries.

The importance of the relationship between corporate social responsibility and financial performance helps managers to understand the impact of investing in corporate social responsibility, on the cost of financing, as well as on investors in obtaining economic assistive decisions And has provided researchers with more relevant information than other accounting information. The corporate social responsibility of the integrated business processes, by creating innovative methods in them, contributes to improving the organization by improving it, and it affects financial performance, which requires the exploitation of both The benefits, and the benefits of integrating different management systems. The purpose of this research is to investigate the relationship between corporate social authorities and financial performance, and the statistical population of the research is listed companies in Tehran Stock Exchange from 2011 to 2015. The present study is of a kind of applied nature, and in terms of the purpose of correlation, after preparing and extracting the social responsibility data of the company, through a questionnaire and financial performance, through the information in the stock archive, the research variables for Estimation of econometric models is analyzed using EViews software using collected data, which according to the results obtained and the regression models are validated and significant. , And according to the results, there is a significant relationship between social responsibility and financial performance in the companies admitted to the stock exchange. This research will help managers to develop effective corporate social responsibility policies that are needed to achieve their better financial performance in the long run, as well as insights for companies on the role of social responsibility, Providing future benefits.

Exchange Traded Funds (“ETFs”) are increasingly popular investment vehicles. ETFs are one type of structured exchange-traded product. An ETF is an investment product that allows an investor to buy and sell shares in a single security that represents a fractional ownership of a portfolio of securities. ETFs are open-ended investment companies or unit investment trusts that are registered under the Investment Company Act of 1940. The first ETF, SPDR Trust, was listed in 1993 with an underlying portfolio designed essentially to replicate the performance of the S&P 500 index. Since then over 700 ETFs have been introduced. This study shows the performance of ETFs & Index Fund from investors perspectives. The study is based on 6 USA based ETFs that track well known indexes. As in India ETF market is still at introductory stage so International market has been traced.