Finance

This article analyses the market reaction to stock splits announcements, using a unique Indian sample over the period 2001 to 2010. Our event study finds a significantly positive Cumulative Average Abnormal Return (CAAR) around the announcement date. Liquidity increases lead to higher stock price changes, which supports the liquidity improvement hypothesis. Further, firm size and abnormal returns are inversely related, which is in line with the attention hypothesis.

The objective of this paper is to relate the practices of microfinancing with the practices of Islamic financing. It discusses the main concepts and underlying assumption behind both thesystems. It further explains the different practices of Islamic financing. Also finds out the link between conventional microfinancing and Islamic financing practices i.e. how Islamfinancing can be merged with the conventional financing.

The objective of this study was to analyze the country-specific attributes that either motivate or determines foreign direct investment (FDI) in a nation. A review of the literature on foreign direct investment revealed specific location attributes that tend to motivate direct investment in a particular location. In order to measure the impact of each of these attributes on foreign direct investment I created a database including each key attribute as a variable and measuring it across countries over a period of five years (2009-2013). The database contains all countries; the primary regions include USA, INDIA as well as a group of “Other” developed and developing nations. Analysis of the countries and variables and their affect on FDI flows. Unfortunately, I found GDP to be the only significant pull factor for U.S. foreign direct investment which indicates that large market size is a major investment determinant for multinational corporations. Other research on an industry-specific basis is necessary to gain a more in-depth analysis of specific variables. Foreign direct investment (FDI) in all over the world in general and in India in particular after the opening up of our market with the adoption of the policies namely globalization, privatization and liberalization has no doubt emerged as one of the most significant source and contributor of external inflow of resources and is one of the most crucial contributors to the capital formation despite their share in the world arena still catching up. When we talk about the term FDI we are talking about a bundle of resources that usually flow into a country including besides capital, production technology, global managerial skills, innovative marketing strategies and access to new markets. A cumulative and an exhaustive study of the overall scenario of FDI in India, FDI in USA in perspective of India investments of FDI in the country, share of top investing countries, sectors attracting highest FDI flows, sector wise technology transfer and approvals. We will also look at the determinants for attracting FDI in the country and also the causes for low flow of FDI and the mechanisms that can be undertaken to make our country attractive enough for investors and vice versa (for USA). This study entirely relies on secondary data collected after a thorough and exhaustive study of various websites, text books, journals, newspapers, magazines and great inputs form various professors and professionals specializing in this area.

This study examines the influence of fundamental factors on small equity investor behavior in the context of Pakistan. The fundamental factors considered in this study are social, political, environmental, regulatory, technological, economic and legal, known as SPERTEL factors. Primary data is collected from individual equity investors from all three stock exchanges of Pakistan. Confirmatory factor analysis (CFA) is used to test the validity of the survey instrument, and structural equation modeling (SEM) technique is used to test the hypotheses. The study documents that overall, small equity investor’s decision making is not influenced by fundamental factors. The study found significant influence of social and political factors on small equity investors’ behavior. However, economic, regulatory, technological, environmental and legal factors have no influence on individual equity investor’s decision making behavior in Pakistan.

The aim of this study is to determine the effect of statutory allocation on the development of Niger Delta area. Basically, the study examines the extent to which statutory allocation to different states has improved economic growth of the different states and Niger Delta at large. In particular, the study considered three hypotheses to ascertain the effect of statutory allocation on GDP which is the proxy for economic growth in the three Niger Delta states. The researchers collected data from Federal Ministry of Finance of Nigeria and Canback Global Income Distribution database (C-GIDD). The data collected were subjected to both OLS regression to determine the overall effect on Niger Delta and the three states respectively. Econometric-views software 7.0 is used for the study. The result of the study indicates that there is a significant relationship between statutory allocation and GDP of Niger Delta area. The study also shows that the three hypotheses formulated for the study were significant. The overall impact of the study concludes that statutory allocation to the region impacted the economic growth of Niger Delta positively. The study therefore recommends that statutory allocation to the different states should be channelled to economic friendly projects that will cause efficient growth of those states and the region at large. Keyword: Statutory allocations, GDP, Fiscal Policy, Niger Delta Development

In this paper, an investigation is made regarding the relationship between corporate social responsibility and financial performance of companies. Firstly, it examines the theories which support the relationship between corporate social responsibility and financial performance of companies. To prove this relationship a sample of ten companies listed on the Karachi stock exchange are selected which are making investment in corporate social responsibility. To measure corporate social responsibility, content analysis of annual reports and other corporate documents is used while financial performance is evaluated using accounting based measures i-e ROE (return on equity), ROCE (return on capital employed) and GPS (gross profit to sales ratio) for the periods between 2007 to 2009. There is one year lag between measure of corporate social responsibility and financial performance to analyze the relationship between the two. The company size and risk is used as a control variable. The analysis concludes that better financial performance (past) will lead to engaging in more socially responsible activities and similarly more investment in corporate social responsibility will result in increased subsequent financial performance. However the author failed to find significant relationship between corporate social responsibility and financial performance. This paper will help in improving the performance management system through understanding the relationship between corporate social responsibility and financial performance of companies although it has the limitation regarding the size of the sample.

The association between economic growth and financial development has been a wide-ranging subject of experiential research. The practical evidence suggests that there is a significant positive relationship between financial development and economic growth. The endogenous growth literature provides copious evidence that financial development is a key determinant of economic growth. Theory interconnects these two factors based on the logic that by reducing information, transaction, and monitoring costs, a well-developed financial system performs several critical functions to augment intermediation efficiency. The impact of financial development on economic growth is a controversial issue on both empirical and theoretical framework. Aegis et al (2007) classified this matter into four schools of thought. The first one is denoted as supply-leading view which was first analyzed by Schumpeter (1912) and John Hicks (1969). They noticed that the prosperity and evolution of the economies in certain countries were backed up by the capacity of financial systems to activate the productivity of the financial capital. Later on, Levine (1997) pointed out that the development of the financial sector, with its two components stock markets and institutions, plays a remarkable role in the economic growth. Cline (2010) argues that the improvement in the financial sector will lead to an enhancement of the various sectors of the economy. Besides, the endogenous growth literature is in line with this point of view and assumes that the government intervention in the financial system (such as high reserve requirement, interest rate ceilings, etc) has a negative impact on the economic growth. Financial market development is estimated by the effect of credit market development and stock market development on economic growth. The relationship between economic growth and financial development has been an Extensive subject of empirical research. The question is whether financial development Causes economic growth or reversely. The main objective of this study was to investigate the causal relationship between economic growth and financial development taking into Account the positive effect of industrial production index. This paper reviews, appraises, and critiques theoretical and empirical research on the connections between the operation of the financial system and economic growth. It describes the role of financial system development in economic growth at the macro level, both theoretically and empirically. It also describes briefly the relationship of corporate finance and firm performance. It finally concludes the review and presents some policy implications in view of the reviewed literature. Furthermore, theory and evidence imply that better developed financial systems ease external financing constraints facing firms, which illuminates one mechanism through which financial development influences economic growth. The paper highlights many areas needing additional research.

In today's heightened ethical awareness and increased competitive pressure, the implications of ethical behavior for financial institutions have become a vital determinant of customer loyalty. Ethics and management have long been viewed, if not as being incompatible, at least as being at odds with each other. This has often translated in the field of environmental policy and Management into radical opposition between supporters of economic performance and Environmental lists. It has seemed that the ethics of economics and that of environmental Preservation was themselves at odds. Ethical decisions are not made in isolation and situational factors such as job context, organizational culture, and characteristics of the work itself have been shown to impact the ethical decision making process 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. Whatever the financial impact (positive or negative) which may be involved by applying a particular ethical policy, it would be possible to reduce those effects by weakening the ethical criteria used or applying them in different ways. For example, by allowing companies into the portfolio which derive only small amounts of turnover from an activity of concern, or by achieving a market sector weighting for the portfolio by applying a best of sector approach? 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.

This study aimed to identify the role of CAIS’ components in reducing banking services costs in the Iranian financial institutions) the Iranian banks, financial & credit institutions and Islamic non-profit granting funds). The sample consisted of 67 employees including the financial directors and accountants working in the Iranian financial institutions in Khuzestan province. The study adopted the theoretical and field approaches and the descriptive analytical methodology. CAIS’ components consist of human resources, hardware and equipment, software, databases, networks and produces. Findings showed that the components of human resources, hardware and equipment, software, databases, networks and procedures play a significant role in reducing banking services costs. Findings illustrated a positive correlation between each component of CAIS and the reduction of banking services costs. Generally, Findings showed that CAIS relatively has a significant role in reducing banking services costs.

Purpose of the paper is to examine the presence of market anomalies and how stock prices are affected due to market anomalies which may affect investors’ returns. It is a conceptual paper and it will definitely helpful to know how market anomalies affect the concept of efficient market hypothesis and importance of anomalies for the investors while decision making. In literature there are contradictory views for negative Monday anomaly and Positive January anomaly and this paper put the attention of investors on the factors that cause financial anomalies. It is proposed that we can find more accurate results about negative Monday anomaly and Positive January anomaly if different sectors of the economy will be observed separately.