Finance

This study shows that China has strategically, for the time period studied between 2000 and 2010 increased its investments in Kenya. The increase in China’s economic and political involvement in Africa is arguably the most momentous development on the continent today. One of the contentious issues surrounding Sino-African relations involves investments. Although Africa and China have been trading with each other for centuries, the level and intensity of their trade relationship have increased dramatically since 2000. China has gained long strides in the global arena and more so by investing heavily in Africa. China has become a major source of a wide range of manufactured goods and foreign investment in many Africa countries. The trends and patterns of trade between China and Africa suggest many possible impacts in Africa. While many African welcome the capital and know-how, others fear that China is stepping in with heavy boots in various cycles. This has raised concerns with the developed nations and big world donors raising concerns whether China would bring hope or problems. This paper examined the impact of the China’s Investments, economic and developmental activities in Africa with focus to Kenya. However, there are both gains and losses in the relationship between the two countries. Data and information was gathered from the existing literature, books, journals, newspapers and internet search. It appeared that there is scarcity of the up to date data and information about China-Kenya and much of the information available captured a number of the past years and since this was the information the author could access, it was the same information used to examine the research paper study issue.

Currently, there are about 1,750 urban co-operative banks in India, which form 14% of the banking sector. While the focus has always been on private and public sector banks who are riding the technology wave to emerge as front runners in the global banking arena, cooperative banks, have been laggards when it comes to technology adoption. The drivers of performance for UCBs, as for any organisation, includes indicators such as increased employee satisfaction, increased customer satisfaction, financial stability, lower average time to resolution, and innovations in information and communications technology (ICT). Co-operative banks can play a significant role in rural financial inclusion if they ably take advantage of the technology in place. Besides enabling faster services, their decision to bring technology into play will open up possibilities of providing new cost-effective banking products and services to the farming community in particular. It is envisaged that post implementation of CBS including Financial Inclusion, Cooperative banks will also implement internet banking, phone banking, ATM network etc. According to industry watchers, technology deployments like CBS are a big challenge in cooperative banks. Factors such as high costs of implementation and maintenance coupled with lack of regional language software support for CBS are deterrents.

Working capital can be considered as source of existence for a financial body and management of working capital is regarded as one of the most essential part of business management. This study aims to find out the impact of working capital policies on profitability. Return on assets is used as a measure of profitability. Current assets to total assets ratio is used to compute the investment policy of working capital management and to determine financing policy of working capital management current liabilities to total assets ratio is used. Other variables that are used in this study are quick ratio, debt to equity ratio and size of the firms. Secondary data of 117 textile firms listed on Karachi stock exchange is taken for a period of six years i.e. 2005-2010 to calculate all these variables. Results of the regression analysis show that aggressiveness of working capital management policies is negatively associated with profitability. Moreover liquidity and size of the firm have positive relation profitability whereas debt to equity ratio is negatively correlated with profitability. Textile sector is one of the majors sectors of Pakistan. It needs due consideration regarding the management of assets and liabilities. So, the aim of this study is to provide some useful recommendations for the people responsible for the management of this sector. This study also establishes the basis for future research in this area of business.

Basel II initially published in June 2004, was intended to create an international standard for banking regulators to control how much capital bank need to put aside to guard against the types of financial and operational risks bank faces. Basel II attempted to accomplish this by setting up risk and capital management requirement designed to ensure that a bank has adequate capital for the risk the bank exposes itself to through its lending and investment practices. This paper helps in detailed study about the Basel II and also helps in to find out the relationship between capital adequacy, non performing assets and net profits of some selected private and public sector banks. This paper also explores the effect on Net profit due to change in Capital Adequacy ratio and non Performing Assets.

The impact caused by microfinance on growth of the economy has always been a debatable issue. Ample researches have been conducted to determine whether it helps poor masses to get out of the poverty trap or it further deteriorates the financial position of the masses at individual level and the economy in aggregate. It is quite surprising that the results and findings of these researches vary. This study is aimed at excogitating whether microfinance actually proves to be a blessing or is an additional burden for the poor. It is a conceptual study based on meta-analysis. Existing literature based on studies conducted by researchers, analysts, scholars, institutions and policy makers around the world has been reviewed to determine the impact of microfinance and to conclude whether it is a burden or a blessing. Six different aspects through which the growth of the economy can be measured have been taken into consideration. These include women empowerment, SME/entrepreneurs, rural transportation, poverty alleviation, health and education. Findings indicate that overall microfinance proves to be a blessing for the users but it poses certain challenges that hamper its performance up to the desired optimal level. Policy makers in this regard should play a positive role in formulating a clear roadmap and designing strategies for microfinance.

The global liberalization and integration of financial markets has created new investment opportunities, which, in turn, require the development of new instruments that are more efficient to deal with the increased risks which is a characteristic feature of any investment. Derivatives products provide certain important economic benefits such as risk management or redistribution of risk away from risk-averse investors towards those more willing and able to bear risk. These functions of derivatives help in efficient capital allocation and price discovery in the economy. Since its inception in June 2000, derivatives market has exhibited exponential growth as the market turn-over has boosted from Rs. 40180 million in 2000-2001 to Rs. 474308323 Million in 2013-2014 .Within a short span of fourteen years, derivatives trading in India has surpassed cash segment in terms of turnover and number of traded contracts. The present study attempts mainly to focus on growth and performance of derivative market in India during post liberalization era. This paper also attempts to analyze sector wise classification of derivative market like stock, index, currency etc. Some space is also devoted for a brief discussion of basic concepts and fundamentals of derivatives. The paper concludes by pointing out trends of derivatives and factors affecting the growth of same. This work can serve as a source of guide for the study related to derivatives.

Travel and Tourism industry is helping India’s economy in generating employment opportunities directly and indirectly. The present investigation is an analysis of financial and operating performance of a specialised financial institution came into existence to promote tourism in India i.e. Tourism Finance Corporation of India Ltd. It contributes in the development of tourism facilities in the country. The main concern of the study is to analyse financial and operational performance of the corporation through Financial Statement Analysis. The study is based exclusively on secondary data, which has been collected from various annual reports of Tourism Finance Corporation of India Ltd. The data has been analysed and interpreted by FSA, tables and graphs to make the data presentable and easy to understand. The research will provide assistance to the TFCI and other financial institutions to judge their financial and operational efficiency in respect to its beneficiaries in the society.

This Study examines the effect of inflation targeting policy on inflation tax in selected countries of the world. For this purpose panel data model was used in 36 selected countries during 2003-2009. Also by using mean difference test, the inflation tax for three years before and after inflation targeting was examined. Results suggested an inverse relationship between inflation targeting and the inflation tax by Friedman method. In addition, results of mean difference test for all countries and for each country separately, unexpectedly suggested an increase in inflation tax in the most countries after implementation of inflation targeting policies. In addition results of mean difference test for all countries and for each country separately suggested after implementation of inflation targeting policies, inflation tax is rising. In other words we can say that inflation targeting policies has not been granted to reduce the inflation tax.

This paper interacts to explain ownership structure, post promoters holdings and Ex-ante information at the level of underpricing in the Indian primary market. The study is based on IPO that listed at Bombay stock exchange given that (April-1999 to Dec-2012). Multiple linear regressions are used to distinguish the relationship between various independent variables with the dependent variable, i.e. level of underpricing. Therefore, we used ordered probit regression to find the exact relationship of pricing mechanism (book build pricing mechanism) with the other variables. The outcomes reveal that, Firm’s age, book build pricing mechanism, ownership structure, retail subscriptions & market capitalization explained the degree of underpricing, These findings were more important to the retail and institutional investors, who likely to buy IPOs in the Indian primary market.

Property tax is gradually becoming a major source of revenue for local councils in Nigeria. However, in generating revenue through property tax there is the need for local councils to consider the attitude of the residents within their jurisdiction to payment of the property tax in order to encourage public participation in the usage and the collection of the property tax. The methodology of study therefore is based on the questionaire distribution of 0.00035% of the population of the study and analysed with multivariate analysis. The multivariate analysis examined the payment of property tax as an independent variable against three dependent variables which are Awareness of Property tax, willingness to pay if property tax is splited into forms and willingness to reside or shift location if the property tax is reviewed upward. The result of the study suggest that with a calculated alpha level of 0.024 which is less than 0.05, commercial property occupants in this local government will shift location if the property tax is reviewed upward. It is the recommendation of the study therefore, that there will be the need for local government to set up a machinery to monitor the attitude of the residents as this findings may be different in other local government areas.