Finance

This paper has attempted to provide estimates of the size of the underground economy and estimated tax evasion in Ghana from 1990 to 2010 which have received little consideration. The Stock-Watson DOLS estimate for currency demand was employed. Our estimates suggest that underground economy is quite large accounting for about 48% of the official economy on the average. These results are consistent with the stylised fact about the Ghanaian economy, in particular the large number of persons employed in small business and trading versus the number of tax returns filed on an annual basis and also claiming to have incomes way below taxable levels. The estimated evaded tax ranges from 4% to about 14% of the official economy and higher budgetary supports and loans contracted in a year. The implication is that any success made in reducing such leakages may have positive effect on fiscal and monetary policy.

External assistance is considered a significant factor in the economic development of Bangladesh in order to bridge the gap between savings and investments along with balance of payment situation. From the viewpoint of understanding vulnerability, there is analytical interest in the potential impact of contingent liabilities on an economy. Sustainable debt is the level of debt which allows a debtor country to meet its current and future debt service obligations in full, without recourse to further debt rescheduling, avoiding accumulation of arrears, while allowing an acceptable level of economic growth. Currently Bangladesh is spending a significant portion of its potential resources and revenue in terms of debt service. Although the country is solvent in external debt burden, there exist concerns for future stability of this sustainability without hampering the necessary expenditure in other important sectors. In Bangladesh the financial support from donor has tended to decline, reflecting more difficult budgetary conditions and a general disappointment with the results of external aid among development partners.

Identification of influential factors of firms has always been one of the main concerns for both academics and practitioners in the realm of finance. The aim of this study is to identify the role of managers of the firms on this issue. Statistical society of this research is all the public equity firms of Tehran which are registered in Tehran Stock Exchange. The sample is 61 of those firms in different industries. Results show that those registered firms who have board of managers with more independency have reported more profit at the end of their financial year. Managerial implications are presented and directions for future studies are shown at the end of this research.

The paper explores the herding relationship between spot market and futures market by using two different herding measurements. Heavily traded constituents stocks of Taiwan electronic sector index and finance sector index are used to test the existence of herding. We also examine whether herding behavior has asymmetric reactions for up (bull) markets and down (bear) markets. Daily and 15-minute returns data covering Taiwan spot market and Taiwan futures market are analyzed. The results partly support the information cascade theory and rational asset pricing theory. Investors do herd temporarily but also trade rationally in a long period. Furthermore, daily and 15-minute data demonstrate the investors’ tendency toward herding is higher during market downstream.

Relationship between microfinance and economic growth has been a major concern for the policymakers of developing countries and focal point of economists to eradicate poverty, empower poor people and produce employment opportunities. This research applies OLS method to trace the impact of microfinance on economic growth in Pakistan.Variables of the study are active borrowers, active savers, active insured persons, borrowing, saving and insurance amount from microfinance institutions. Active borrowers and borrowing amount have highly significant positive relationship with economic growth of Pakistan. Active savers and saving amount have highly significant negative relationship with economic growth whereas insurance policyholders and insurance amount have no relationship. Government should not only increase outreach of microfinance but also devises a mechanism, which cannot only channelize the funds efficientlybut also avoid non-performing loans. Government should also provide some tax rebate or concession to microfinance and microcredit agencies so that maximum amount can be channelized towards economyin order to get long-run results.

This study investigates the existence of trade credit as a short term financing channel during tight credit conditions, offsetting conjecture of trade credit channel with traditional credit channel of transmission of monetary policy and subsequently relative adjustments in inventory dynamics covering a large panel of 145 Pakistani firms over the period of 2000-2011.The generalization of Lovell’s target adjustment model using Arellano & Bond approach for dynamic panel data has been employed using first difference GMM estimator .The model has been augmented with the short term bank borrowing and trade credit ratios by differentiating the firms either more or less likely to face financing constraints with the hypothesis of making high or low use of trade credit. The findings suggest that there exist a strong evidence of trade credit channel in moderating the credit channel of transmission of monetary policy. Financially constrained firms are found to have less availability of short term bank borrowings and a high dependence on trade credit in tight monetary episodes.

In tandem with the impending full liberalization of global economy and Basel III requirements in 2015, most commercial banks worldwide might encounter the risks of being taken over by larger bank on account of full liberalization. Therefore, it is imperative for commercial banks to be in the know about the macroeconomic factors that might affect their total assets. In this dissertation, macroeconomic determinants of total assets volume for commercial banks in Malaysia was scrutinized in 2008 – 2010 intervals (post 2008 financial turmoil) via quarterly data through multi-variate single-equation regression method and correlation. Regression results advocate that all the macroeconomic determinants in this thesis have statistically significant impact on total assets of the banks except Foreign Direct Investment (FDI). The empirical findings demonstrate that Base Lending Rate (BLR) together with Foreign Exchange Rate (FER) are negatively interrelated to total assets of the banks whilst FDI has positive relationship with the same dependent variable (DV). The most influential factor against total assets of the banks is BLR. Albeit correlations techniques in this paper signify that BLR, FER as well as FDI have not significantly explained the variations in total assets of the Malaysian banking sector, it is noteworthy that the empirical findings produce similar results as regression methods.

Widespread liberalization and deregulation of financial markets, cross border mergers and acquisition, increased role of investors willing to invest abroad, rapid advances in modern technology and internet – have all resulted in remarkable increase of international capital flows in India. Foreign direct investment acts as a major medium in the development of a country through up-gradation of technical know how, managerial skills and financial resources. Rise in purchasing power, growing consumption and brand flare-up has led to transformation in retail sector. FDI in retail can enlarge market by reducing operation and transformation cost of business through implementation of advanced supply chain and benefit consumers and suppliers. As well as raised concerns about employment losses, increase in competition for domestic retailers resulting in closing of small domestic retailers from the market and distortion of urban culture development. The present paper focuses on the Indian retail sector in context of opportunities of expansion of FDI in Indian retail sector and the challenges come forward that retail sector faces.

Ethics are important because finances make people do some strange things. The spreadsheet does not have a conscience, and the goal of working with spreadsheets is to make numbers add up in a way that is pleasing to the organizations and its constituents. Ethical behavior is an important aspect for the success of a company, as it influences its relations with various stakeholders. Financial managers are responsible for the difficulty in interpreting sensitive and Exchanges presenting them in the form of financial reports that can be used to evaluate corporate performance is Month interest groups are responsible. So unethical professional practice includes providing financial information poor quality can destroy public confidence in financial management. With increasing global attention to the topic of ethics and quality of information in the accounting profession, in this paper an attempt has been made to the research vacuum in the corner of the financial manager explained the moral perspective on the quality of financial reporting to be filled. Field research companies in Tehran Stock Exchange are accepted. In this study, the ethical perspective of financial management as the independent variable is the moral status was assessed with a questionnaire. Quality and usefulness of financial reporting used to be correct financial reporting as dependent variables were examined. The aims of the present study include applied research, in terms of how to collect the required data from the standpoint of descriptive and correlation research is considered. For data analysis software (SPSS) was used. Based on the results obtained from the ethical perspective of financial management and financial reporting, there is a significant relationship; It is recommended that companies choose their money managers not only scientific and practical aspects of management should be considered But the ethical aspect of the study is important for managers should pay special attention to ethics and corporate managers have a choice.

FDI is an engine in bringing the financial sector at a fast speed. FDI was encouraged by financial liberalization and market-based reforms in many Emergent Market Economies (EMEs). Now, FDI has become a key feature of national development strategies for all most all the countries over the globe. FDI has boosted the economy of India and on the other hand there are critics who have blamed the government for ousting the domestic inflows. After liberalization of Trade policies in India, there has been a positive GDP growth rate in Indian economy. The paper tries to study the need of FDI in India. The paper focuses on the trends of FDI inflows by categorize them into sector-wise, region-wise, year-wise and country wise FDI inflow in India. The result depicts that among the sectors Service sector, among the regions Mumbai and among the countries Mauritius are at the top. It also shows that there has been a remarkable increase in FDI inflow in India during the year 2000 to 2012.