Finance

The purpose of the study is to examine the relationship among developed and emerging stock markets of different countries. In developed countries there are four stock markets (Australia stock exchange, London Stock exchange, U.S Stock exchange and Tokyo Stock Exchange) where in developing countries (Bombay Stock Exchange, Colombo Stock Exchange and Chinghai Stock Exchange). Ten year data has been taken for the period from 2003 to 2012. Monthly data was taken and total numbers of observation are 120. Using the co-integration analysis we find out the long run relationship among these stock exchanges. Further for stationarity of data we use unit root test and then used Descriptive analysis, correlation analysis, vector error correction model, granger causality test, variance decomposition test and impulse response test is used to examine the existence of long run relationships. Data was stationary at first difference then we used co-integration technique. Analysis shows that KSE has long run association with developing as well as developed countries. There is a unidirectional causality between KSE, Colombo and BSE30 among the developing countries. This means that movement in KSE leads toward movement in Colombo and BSE30. On the other hand, variance decomposition of KSE shows that mostly variation in the return of KSE is due to its internal factors.

The real sector of any economy is very critical to its growth and development and the beneficial effect of foreign private capital on a host country has remained an issue of discussion. The general notion is that it helps to accelerate growth and development in such a country impacting positively and significantly in those sectors they are channelled into. It is against this background that this paper empirically examined the impact of foreign private capital on three important subsectors of the Nigeria economy (Agriculture, Industry and Building and Construction) from 1987 to 2008. Findings from the study revealed that foreign private capital have not had a significant positive impact on the Nigerian economy vis-à-vis the agricultural, industrial and building and construction sectors and even when it existed, the impact had been non-significant. Therefore, the study recommends re-evaluations of government policies on foreign direct investment in Nigeria. This requires an appropriate mix of proactive government policies to direct foreign private capital inflows to priority sectors of the economy such as agriculture, industrial and building and construction as there are crucial to its sustained growth and development.

The main objective of this research is to determine the impact of corporate social responsibility on financial performance of the company, considering the role of mediation of corporate governance in companies admitted to the Tehran Stock Exchange. This research is an applied research in terms of purpose and also is a descriptive survey in terms of data collection. The statistical population of the research is the managers and experts of the companies accepted in the Tehran Stock Exchange who were members of the Stock Exchange during the years 2014 and 2015. By systematic deletion, 120 individuals are selected as samples. The collected data were analyzed using SPSS and PPL software. The hypotheses were analyzed using structural equation modeling. The results of the research showed corporate governance in relation to social responsibility on the financial performance of companies admitted to the Tehran Stock Exchange plays a mediating role.

This purpose of this paper is to study the impact of macroeconomics variables to Mudharabah Investment Deposits in Malaysia. It intends to examine the relationship and the significance influence between Gross Domestic Product (GDP), Rate of Return (ROR), Inflation Rate (INF) and Investment Deposits in Malaysia. Analysis was done using the Statistical Package for Social Science (SPSS). Pearson Correlation used in determining the relationship between the variables while three difference regression model (enter, forward, backward) used to determine the significance influence between the variables. The data gathered from Monthly Statistical Bulletin, Bank Negara Malaysia from 2003 until 2011. ROR showed there is significant strong positive relationship with Mudharabah Investment Deposit in Malaysia. It was found that by using three difference regression models, only one predictor namely Rate of Return (ROR) had significant influence with Mudharabah Investment Deposits while Gross Domestic Product (GDP) and Inflation Rate (INF) had no significant influence with Mudharabah Investment Deposits.

External debt is one of the main sources of financing for some ECOWAS countries, which plays an important role in filling up the gap of scare resources as a result of low domestic savings and high current account deficit. The impact of external debt stock and debt servicing has become a significant area of study. The main focus of this thesis is to investigate the impact of external debt and debt servicing on some ECOWAS countries? economic growth over the period 1970 to 2008 by using annual times series data. The variables of the econometric model used in the study include the Gross Domestic Product as the dependent variable and external debt stock and debt servicing as the independent variables. Using annual time series data, ADF (Augmented Dickey- Fuller) and PP (Phillips-Perron) unit root tests are employed to test stationarity. Following the stationarity check of the time series data of some ECOWAS country, the cointegration test is applied to analyze the long-run relationship between the variables. Then the Error Correction Models are estimated, which provide a useful link between the long-run equilibrium and short-run disequilibrium dynamics.The results illustrate that the economic impact of external debt stock and its servicing varied for different countries among the ECOWAS countries. External debt contributes to economic growth in Benin and Niger while the impact of external debt stock adversely affect the economic growth of Burkina Faso, Cote d?Ivoire, Gambia, Guinea- Bissau, Nigeria, Sierra-Leone and Togo.

Based on Hodrick-Prescott filter for non-performing loan ratio of commercial banks and economic growth ratio, this paper set up VAR model, also analyze the impact from economic growth to the fluctuation of non-performing loan ratio of commercial banks. The result shows that the attack from economic growth to non-performing loan ratio achieves maximum after three quarters. From the conclusion, some measures for preventing and controlling banks’ systemic risk should be implemented, such as implementing counter-cyclical mechanism for the central bank, improving the export competitiveness for government, strengthening internal credit mechanism for commercial banks.

In this modernization era, Banking activities have been automated. Technology has brought banks and services to the doorsteps of the customers. ATM is one of the boons for the customers to withdraw their money or deposit their money on any day at any time. In this context the ATM cardholders should be well versed with ATM and its related matters. In this present study, which has been conducted among 100 ATM card holders of various banks in Srimushnam Taluk, an attempt has been made to assess whether the ATM card holders are aware of certain important matters and behaviour of them.

We evaluate monitory cost to explore the reasons and find that using venture capitalists as specialized investors with lower monitoring costs than other institutional investors, earnings management is less likely for low investor beliefs but more likely for high investor beliefs for VC-backed firms relative to non-VC-backed firms. Numerous studies conclude that firms manage earnings upward prior to issuing equity Securities in an effort to minimize the dilution effect on existing shareholders (Theo, Welch and Wong, 1998a and 1998b). Erickson and Wang (1999) extend this line of reasoning to corporate mergers in which the acquiring firms pay for the target with stock. Similar to an equity offering for cash, they suggest that acquirers inflate earnings prior to the merger in order to increase stock prices, and thereby reduce the number of shares they must exchange in the stock swap. We can also obtain the same results as former study that auditor’s quality negatively related with earnings management. Considering above consequence, we documents IPOs firms engaged in managing earnings with high investor beliefs have an influence on the long-run abnormal stock return performance. These findings have implications for investors, firms, and accounting standard setters. More prudential monitory is important during market booming periods. We founded that firms have incentives to engage in earnings management before the announcement date of private equity offerings. The manipulation direction may be upward or downward according to the types of placement. Our empirical results indicated that management tended to manage reported earnings upward when the private placement was subscribed by non-insiders; whereas management tended to downward manage earnings when the private placement was subscribed by insiders.

Most NGO’s in Kenya have shifted focus to budgetary control as a way of enhancing effectiveness in their services. Recognizing the role of budget and budgetary control has gained attention which has led some organizations to establish departments for implementation. The aim of this study was to investigate the role of budgetary control on the performance of NGO’s in Mombasa County. Specifically the study looked into the following objectives: effect of budget planning on the performance of Non-Governmental Organizations; effect of budget supervision on performance of Non-Governmental Organizations; effect of participative budgeting on performance of Non-Governmental Organizations; and effect of funds availability on performance of Non-Governmental Organizations. Chapter two gives theoretical review of the study by discussing capital budgeting theory, budgetary control theory and budget forecasting theoryand a conceptual study is introduced to inform and guide the study. Literature review and empirical review are also conducted. Chapter three discusses the study research methodology where descriptive survey study research design will be used. This study examined the role of budgetary control on the performance of Non-Governmental Organizations in Mombasa County. The research target population consisted of 115 Non-Governmental Organizations. Fifty two Non-Governmental Organizations were selected using stratified random sampling technique, both local and international organizations with operations in Mombasa County. A descriptive survey (questionnaires) was used in the data collection. The statistical package for social sciences version 21.0 was used to analyze the data using descriptive statistics, including means and standard deviation. The relationship between budgetary controls and performance of the NGOs was analyzed using correlation and regression analysis. The research findings established that there is a positive effect of budgetary control on performance of Non-Governmental Organizations in Kenya measured by R square at 0.776. Thus this study recommends other studies be undertaken that take into account other factors like the employee characteristics, NGO turnover and age of the organization on performance. It also recommends that a study should be carried out that underscores the contribution of these factors on financial performance since the current study limited to non-financial performance indicators only.

This study examined the factors driving economic growth in Nigeria from the period of 1981-2014 using Johansen co-integration and VECM analysis technique to test for the existence of co-integration between the variables of this study and causal impacts. The result found that there is no causal relationship between labour and economic growth in Nigeria and causality do not run from labour to economic growth. Also, there is a causal relationship between economic growth and capital in Nigeria, and capital is causing changes in economic growth in Nigeria. There is also a causal relationship between capita and labour, the granger causality result shows that there is a causal relationship between labour and capital. This study therefore recommend that the government should use expansionary monetary and fiscal policies that reposition the structure of Nigerian economy to revive economic activities in the economy which will help rise both labour and capital for increased growth rate.