Finance

This study is focused on the empirical analysis of risk on Banks performance in Nigeria using time series data for the period of 1990 to 2014. This study employed Dickey Fuller unit root test, Johansen cointegration test and Parsimonious method augmented with error correction model. The emphasis was to test the long run relationship between non-performing loan, Average Liquidity Risk and the Return on Assets. The result of the analysis are in various folds: First, it shows that the variables were trend stationary and exhibited a long run relationships with Return on Assets (bank performance). The specific findings of the study using error correction model is that non-performing loan has made significant negative impact on Return on Assets while Average Liquidity Ratio has not made significant impact on Return on Assets. Second, this finding confirm that non performing loans is the most critical of all risk components. This study has some important policy implication: The banking operators and regulatory bodies should as a matter of urgency tighten up the monetary apparatus to safeguard and stabilize the depositors money and the banking sector in Nigeria. Also, there should be adequate credit administration, measurement, monitoring processes and good control over credit, liquidity and other risk components.

The efficiency of capital market is one of the most controversial issues in the capital market over the past three decades in financial literature. Today, the capital market in developing countries is considered as a means to increase investment and economic growth and since efficiency is the main and most important characteristic of capital market in each country, it has become one of the most controversial areas of finance and economy research. In this study, performance of Tehran Stock Exchange is examined in the period (Persian date April 2001 to March 2010) on a daily basis, using VAR method. This study is distinct from similar domestic research because the present research examines the efficiency of Tehran Stock Exchange simultaneously with the efficiency of four indices (total, price and dividends, finance and industry) that the results showed that Tehran Stock Exchange does not have efficiency based on four elected indices.

Banking in India originated in the last decades of the 18th century. After the nationalization of banks, the major concern was the productivity and profitability of public sector banks. It was believed that the new direction given to the banks since their nationalization in 1969, and the slacking productivity, has led to declining trends in the profits and profitability. This study is conducted to know the profitability of selected Nationalised Indian banks. In order to access and evaluate the profitability of selected nationalized banks of India, financial ratios of the different banks have been studied and correlation analysis and multiple regression techniques are used. The study shows the explanatory power of some variables such as NII, C/D ratio, Business per employee, Profit per employee are significantly high and Interest spread, OE, P&C are found with low explanatory power. To strengthen the position further, the public sector banks must strive to greatly enhance efficiency through a control over increasing non-interest income, and maximizing business per employee and per branch, etc.

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.

The research paper seeks to identify challenges of mobile deposit in Ghana. The study used stratified, convenience and purposeful techniques to arrive at the sample size and descriptive statistics for the presentation and analysis of findings. The mobile deposit solution is 24 hours a day 7 days a week service which makes it convenient for clients of First Capital Plus Bank to deposit money anytime anywhere through mobile banking has proven to be very effective means of mobilizing deposit apart from the traditional usual walk in deposit (Banson et al, 2013). The findings shows that mobile deposit as a way of deposit mobilization through mobile banking has some challenges with the major ones being Accessibility to Speed Banking Cards (SBC’s), Network failure, Deposit not credited to clients account, Delay in crediting clients account and Clients going to the bank before some challenges can be resolved. Accessibility to SBC’s is the key challenge among all.

Market interactions among stock market of the world have necessitated the relationship among different financial markets driven by market liberalization and international pressure to lower trade barriers, which have enhanced international linkages between capital markets. This study examines the dynamic causal linkage among the selected equity market in Africa using the generalized Vector autoregressive (VAR) framework that produces forecast error variance decompositions and also accounts for correlated shocks using historically observed distribution of the errors. The time series data from investing.com over 01/02/2004-01/07/2016 are employ for the study. The findings on dynamic return linkages is that there is no strong significant returns linkages among the African selected markets. Controlling for the influence of advance market (UK and US). The results show that the South African market has more link with international markets than the Nigerian market. A crucial finding is the lowest spillover index recorded through variance decomposition and impulse response among the African markets. This is an indication of possible gain in African market and in line the portfolio theory. The finding of this study have important implications for policymakers.

Kenya’s economic growth and development agenda depends on donor funding. The recent world wide recession and the stringent measures of awarding credit by the major banks to the low- income earners need not to over emphasize the importance and crucial role of micro-finance institutions in Kenya to the growth of small business enterprises. The reduction of the donor funding to MFI’s has drastically affected its operations and expansions and thus it’s continuous involvement with small business enterprise operations and activities in Uasin-Gishu County. The study sought to evaluate the effects of MFI’s as a microfinance institution on small scale enterprise’s growth in Uasin-Gishu County. The study adopted a survey research design and targeted a population of 285, while simple random sampling was used to select 50 respondents. Questionnaires were administered by the researcher to the selected client groups while an interview schedule was used to collect information from the MFI’s management. The data collected was analyzed using descriptive and inferential statistics. The study findings showed that MFI’s plays a very crucial role in the growth of small business enterprise in the division and to further ascertain this claim a modified Evans Growth Model was conducted to examine the effects of MFI’s on small business growth. Level of education, training, gender, monitoring and evaluation, meeting with client groups were found to significantly influence small business enterprises growth. The result has implications for the role microfinance institutions in economics development, small business growth and poverty alleviation in Kenya.

The internal controls had been an important part if business operations ever since economic activities became large scale to prevent company losses through errors, theft and embezzlement. Internal control are designed to detect fraud before its too late. The general objective of this study would be to determine the effects of internal control systems on fraud detection in Somali commercial banks. Also this study would use a sample of five commercial banks in Mogadishu, namely, Salaam Somali Bank, Dahabshil Bank, Trust African Bank, International Bank of Somalia and premier Bank. Specifically, this study would be evaluating the effects of establishment of responsibilities, segregation of duties, documentation procedures and physical controls on fraud detection in Somali commercial banks. Also this study would use the framework established by the Committee of Sponsoring Organisations of the Treadway Commision known shortly as COSO Framework. The study would adopt a descriptive study design in data collection. The target population of this study would be 240 people located at headquarters of the commercial banks. This study would use the stratified random sampling technique. The data collection procedure of this study was through hand picking. The study would use quantitative data collection method whereby data will be gathering by the use of close ended questionnaires which were self administrated. The study would make use of the statistical Package for Social Science (version 20) with hand printed worksheets and Microsoft Excel 2007. To analyse the data regression model would be applied and statistical inference would be made from the output of this procedure. The major findings of this study was that there was a positive relationship between establishment of responsibilities, segregation of duties, documentation process and physical controls and fraud detection of the Commercial Banks in Somalia. The study further recommend the need for the Commercial Banks in Somalia to increase their establishment of responsibility, segregation of duties, documentation procedures, physical controls as it was founded that those variables had positively affects the fraud detection of Commercial Banks in Somalia.

In developing countries, 60% of project management professionals appear to lack knowledge that timely completion, budget fidelity, and high quality are critical success factors for completion of construction initiatives. The purpose of this correlational study was to examine the relationship between project budget and the independent variables of safety, environmental impact, and site disputes in the Greater Accra Region of Ghana, using the underpinning of the theories of accident causation, scientific management, and strategic management. One hundred and sixteen project managers, randomly selected from the population of construction professionals in the Greater Accra Region of Ghana, completed the survey entitled the Six Key Performance Indicators developed by Ngacho and Das (2014). The application of multiple linear regression for the analysis of data, indicated a weak positive correlation between the independent variables (safety, environmental impact, and site disputes) and project budget, F(1, 114) = 37.08, p < 0.001. Site dispute recorded the highest beta (? = .29) followed by environment (? = .22), quality (? = .06), and safety (? = .04). Attention to key performance indicators associated with dispute and environmental impact could improve project outcomes in the Ghanaian construction sector. The study findings could be useful to improve the quality of projects and may benefit the lives of professionals and community members in the area.

This study examines the short and long run causal relationship between financial sector development and economic growth in Nigeria using the Autoregressive Distributed Lag (ARDL) approach to cointegration analysis, Vector Error Correction Model (VECM), on yearly data over the period 1981 to 2017. Two factors from Cobb Douglas production function (labor and capital), and oil prices are used including an index of financial intermediary development constructed from six indicators of financial intermediary development using principal component analysis. The results show that financial sector development index; both capital market and banking sector development are insignificant in influencing economic growth in Nigeria. In general, the results highlight the weakness of the Nigerian financial sector in stimulating economic growth through resource mobilisation and allocation and presents oil sector as the dominant factor driving economic activities in Nigeria. The study recommends the need to establish financial institutions that would strengthen and resolve the institutional and structural problems in the economy and create structures that would sustain other causal factors that mediates growth and financial intermediation where appropriate.