Finance

Ratios are the basic tool for analyzing the financial statements; it also plays a vital role in evaluating the performance of the company. There are several important ratios used to judge the company’s performance. Further more Financial statement analysis has also should be the part of the fundamental analysis required for equity valuation. But the analysis has typically been ad hoc. The work on this topic not only identifies the relevant ratios but also gives a way organizing analysis the task. Relying on recent research on accounting based information; this paper ventures a financial statement analysis for use in equity valuation in general and all other significant ratios in particular. An analysis of financing activities is different from the analysis of operating activities. Research is identifying current ratios as predictors of the future ratios that determine equity payoffs. The financial statement analysis enable us to identify the trend either upward or downward the performance of the company. To provide historical benchmarks for forecasting, typical values for ratios are documented for the period 2008–2012. The purpose of this study is to facilitate the investor. The reason for choosing the FCCL (Fauji Cement Company Limited) is that the company is well reputed, making adequate profit, focusing on the share’s holder wealth and in the better financial position.

The aim of this paper is to examine the issue convergence of per capita income of North Africa countries to the per capita income level of countries in Southern Europe. We have applied tests of sigma-convergence and polynomial beta-convergence of Chatterji to assess convergence. We have applied the multiple endogenous breaks test advocated by Bai & Perron (2003) in order to evaluate the sigma-convergence hypothesis. According to our results, the process of sigma-convergence is not uniform over time. There exists a movement of convergence of per capita income of NA countries towards the income level of countries of Southern Europe during the period 1980-1984. The estimate of convergence clubs can refine the results for countries that have started catching up. This test rejects the hypothesis of beta-convergence on the whole period (1980-2007). If the model is estimated for each country, then there is a movement of beta-convergence only for Tunisia and Morocco on the period 1985-2000.On the other sub-periods, the assumption of divergence is accepted. The per capita income level of countries of Southern Europe does not seem to be a target toward which converge the countries of the NA region in the long term.

This paper investigates the affect of international trade and global economy through foreign direct investment. Foreign direct investment (FDI) and trade are often seen as important catalysts for economic growth in the developing countries. FDI is an important vehicle of technology transfer from developed countries to developing countries. FDI also stimulates domestic investment and facilitates improvements in human capital and institutions in the host countries. International trade is also known to be an instrument of economic growth. Global foreign direct investment (FDI) trends are likely to modify during the period 2004-2007. FDI has promoted to effective economic growth in a number of developing countries and the role of the foreign direct investment in this field has been extensively known in China and India, the world’s two most populous growing economics have been using FDI as a stimulus in the growth process. Foreign direct investment (FDI) is an integral part of an open and effective international economic system and a major catalyst to development. The growing role of foreign direct investment and multinational corporations (MNCs) in developing countries in the age of globalization is rarely disputed. The nature of the impact of FDI on the growth and development of the Third World, however, is a controversial topic in contemporary international relations and economic development theory. Historically, developing countries heavily depended on the economies of the industrialized world for their own economic survival. During the past two decades, however, the world economy has increasingly "globalized" through the liberalization of world trade and capital markets, the growing internationalization of corporate production and distribution, and the destruction of barriers to the trade of goods and services through technological advances. Meanwhile, the world’s developing countries are now more important, and influential, actors in international trade and the global market.

Banking Industry plays a significant role in the growth of economy in any country. The journey of Indian Banking Industry has faced many ups and downs at the time of economic crises. In last three years India’s average economic growth rate is nine percent and targeted to increase to ten percent within next five years. From the time of 18th Century to the reform period, the banking industry play a vital role like, Nationalization to Privatization and increase in Foreign banking sectors. Banking industry in India has also achieved a new height with the changing times. The use of technology has brought a revolution in the working style of the banks. Nevertheless, the fundamental aspects of banking i.e. trust and the confidence of the people on the institution remain the same. In this paper an attempt has been made to identify the Structural Changes, challenges and opportunities for the Indian Banking Industry. The article is divided in two parts. Initial part includes the introduction, historical background, structure and present scenario of Banking Industry and the concluding phase focuses on the challenges of banking industry in 21st Century and various challenges which are likely to be faced by Indian banking industry.

The introduction of corporate government practices in Nairobi stock exchange saw the Bull Run that kicked off in the Nairobi Securities Exchange in the year 2006, which made the market gain more than 50%. As earnings of companies increased, so did the demand for shares by the public, corporate governance was incorporated as a strategy for the company success. The price appreciation forced many companies to split shares owing to the nature of majority of the Kenyan and foreign investors who wanted to invest in listed companies. Companies such as Kenol/ Kobil (Kenya Oil Company Limited), East African Cables Limited, CMC Holdings Limited, ICDCI (Centum Investments Company Limited) and Barclays Bank Limited that were highly priced opted to split shares to make them accessible to the public, and to benefit the company as well as potential investors. Corporate governance formulated and implemented legislation and enforcement procedure in place within the CMA and the NSE, to curb massive falsification of financial reports, conspicuous dealings in the NSE and illegal collaboration of stockbrokers with the intention to defraud investors. It is good corporate governance that even with the recent collapse of many stockbrokerage firms investor confidence in the capital corporate governance still is high. This study explores the contribution of the corporate governance on investor confidence in Nairobi Securities Exchange; recommend the possible solutions to curb corporate governance irregularities that lead to tremendous loss of investor money and confidence.

The Ministry of Corporate Affairs has introduced the MCA21 e-Governance programme with a view to providing all services relating to ROC offices on-line in e-Governance mode.MCA21 replaces the erstwhile practices broadly consisting of physically filing of documents, incorporation of companies and inspection of documents with the Registrar of Companies. This project is the first of its kind and is intended to create a health business eco system conducive to foreign investment thereby boosting the Indian economy. This paper investigate whether the goals of the project i.e to improve the service standards to all the stakeholders have been achieved or not ?what are the new amendments in MCA project and how it is beneficial to all the stakeholder?. The analysis shows that among other e-governance programmes MCA 21 is the one which have a positive impact on the user and day by day its importance is increasing .It does not include other offices like Liquidators , CLB(Company Law Board)/Tribunals and Courts. Many up gradations were done in MCA 21 project like –XBRL,NEFT but still there is a need for increasing the awareness about use of online procedures relating to MCA and improvement in website facility during peak season.

In this research toward optimizing resource allocation, an innovative learning algorithm will used to select and optimize portfolio in Tehran Stock Exchange. A new method was proposed based on the combination of ICA (Imperial Competitive Algorithm) and GA (Genetic Algorithm) which improves the convergence speed and accuracy of the optimization results.. The obtained results show that compared with the previous method, the proposed algorithms are at least 32% faster in optimization processes; also the variance convergence speed is smaller than the ICA and GA.

This study evaluates the individual and overall performance of commercial banking industry in Pakistan consists of 20 banks contains almost 90% of the share in terms of deposits, advances, total assets, profitability and labor force divided into four group large, medium, small conventional banks and a group of Islamic banks for the period which is characterized by slow economic growth and precarious macro economic indicators started from 2006 till 2010 by using non parametric technique Data Envelopment Analysis. Technical efficiency under CRS and VRS models and scale efficiency in respect of production and intermediation approaches are evaluated. This study earmarks and reason out the most efficient and inefficient banks, overall performance which is seen under slow growth in commensurate with the economic growth. Where as, Islamic banking group is less efficient but flourishing significantly among all groups. Performance of large conventional banks is less affected with economic upheavals.

This research study is an attempt to examine the impact of Neutral Information, Classic, Accounting Information, Firm-Image Coincidence, Advocate Recommendation and Personal Financial Needs on individual investors’ decision making through the empirical research from Pakistan equity market. The objective of this study is that how an investor makes his decisions and what are the main factors that influence on the investor’s decision making. Quantitative research was conducted to determine the relationship between desired explanatory and response variables and also to check the reliability of questionnaire by Cronbach's alpha. Regression analysis is used to check the intensity between variables. For this purpose, SPSS 20 is used. Result shows that there is a strong positive correlation between variables as (r=0.858) and also value of R-Square (0.81) indicates that 81% independent variables effecting the investors decision. At the end it is recommended to the investors that they should invest freely in the stock market but the investment they make should not be made by making a proper feasibility plan and they should gain all the information about the factors that can influence their investment decisions.

In this paper, we exam firm’s incentive to manage earnings raising external capital varies with investor beliefs. Under the spline specification regression: a firm is more likely to management earnings when investors are more optimistic about the industry prospects, but more reluctant when investor belief is low. 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. 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.