Finance

Recent research is to recognize and rank the critical factors of success to execute customer oriented strategy management by using AHP in three levels human, process and technology. Required information of this research is gathered through two questionnaires in three individual groups, and then extracted information has been analyzed by EC software and A.H.P technology then is prioritized. What is considered as a research problem in the study is to recognize and rank the critical factors of success to execute customer oriented strategy management by using A.H.P. This research has been discussed by using the problem CSFs and the perspective of analysis of system, first by determining and prioritizing organizational CSF in the firm. Recognizing recent position of current performance of CSFs and determining the success that put human priority for the research would be studied.

The purpose of this paper is to examine the risk management behaviour of selected commercial banks in Malaysia based on their stock performance in term of Average Daily Return (ADR) and Value at Risk (VaR). VaR is measured using Historical Simulation Model. We present results of ADR and VaR at 99% confidence interval, on one-day horizon from year 2003-2010, for the following stock index of eight commercial banks in Malaysia: RHB; Maybank; CIMB; Affin; Alliance; Ambank; Hong Leong and Public Bank. The ADR and VaR of each commercial bank in Malaysia are measured and compared to identify their risk behaviours. The risk management behaviour of commercial banks in Malaysia can be categorised into three categories: conservative; moderate; and aggressive. Our results show that the risk management behaviour of one bank is considered conservative, three banks are considered moderate and four banks are considered aggressive. This may give suggestions to the investors which bank/banks to invest in.

An organized Banking sector of any country act as a catalyst for the economic development of the country, Indian Banking sector is the most important component of Indian financial system which work on many dimensions for the economic development of the country including mobilization of savings to the Indian financial system through wide network of Branch Banking that leads to availability of funds to investment purposes and capital formation for the developing country like India, where as the performance of Indian banking sector is not up to the mark from more than five years, so the present study aim is to examined the effect of bank’s specific ratios and selected parameters of corporate governance mechanism on Earning per Share (EPS) of selected eight Indian banks. Earnings per share (EPS) has taken as dependent variables to know financial performance of eight selected Indian Banks. Whereas gross nonperforming assets (GNPA) and Dividend Payout Ratio (DPR) were taken as bank specific independent variables, On the other hand board independency (BIND), Frequency of board meeting (FBM) and capital adequacy ratio (CAR) were considered as parameters of corporate governance. The present research using Panel multiple regression techniques to analyze the factors affecting the earning per share (EPS) during the period 2010 – 2019, On the basis of Hausman test the null hypothesis - random effect model is appropriate is rejected due to (p<0.05)and alt hypothesis-fixed effect model was accepted and found appropriate for the model applied for the study. The study revealed the following result¬- Board independency (BIND) is positively related with the earning per share but statistically insignificant but frequency of bard meetings (FBM) and dividend payout ratio (DPR) are positively related with the EPS as well as statistically significant, capital adequacy ratio (CAR) and gross non-performing assets (GNPA) are negatively related with EPS but CAR is insignificant and GNPA is statistically significant. 

The role of corporate board of directors in aligning the interest of diverse groups, ensuring discipline and effectiveness among board members cannot be over emphasised, although there are limited empirical investigations on African firms and Nigeria in particular about the nature of the relationship between board variables and firms financial performances. This study apply Pearson correlation and regression analyses to examined the relationship between board composition (proportion of; non-executive directors, executive directors and women directors) and corporate financial performance for a sample of commercial banks in Nigeria. Using two financial performance indicators; return on asset and return on equity from 2008-2012, the study find out that board composition as defined above is not related to corporate financial performance.

Economic effects of human beings have been always focused on how to obtain the best results b using the least possibilities and factors available, such tendency can be called "attainment of higher efficiency and productivity". Productivity is a comprehensive concept encompassing efficiency an increase in which is taken into account by politic and economic authorities continuously in order to promote standard of living of, welfare of, and relaxation and peace of people. Some consider survival and persistence of a politico-economic system dependent on productivity. One way to increase productivity is privatization and free trade. Present research focuses on effects of these 2 variables on each other. Subject of this research is to study effects of privatization on total productivity of production factors in in Mellat Bank and its aim is to analyze productivity after Mellat Bank was privatized in order for resulting outcomes to create clearer outlook and wider perspective in front of managers. Considering research aim and subject, this research used descriptive-analytical method. In present research, inputs and outputs of 48 Mellat Bank of Kermanshah province were studied in 2 time intervals: one related to pre-privatization time (2005-2007) and other to post-privatization time (2009-2011) of Mellat Bank. This research inputs include personnel, administrative, and operational costs while outputs include volumes of deposits, facilities, and services provided. Data was analyzed by using MalmQuist index and data coverage analysis with EMS and GAMS software. Then, hypotheses were tested by SPSS software. Research results indicate that, following privatization, total productivity index and human force productivity increased significantly and it was found that technological changes relate directly to the level of productivity so that enhanced technology level can increase productivity level.

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.

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.

This paper is an attempt to examine the empirical evidence of International Fisher Effect (IFE) between Bangladesh and its two other major trading partners, China and India. The IFE uses interest rate differentials to explain why exchange rates change over time. A time series approach is considered to trace the relationship between nominal interest rates and exchange rates in these countries. The estimated value, by applying OLS, is used to determine the casual relationship between interest rates and exchange rates for quarterly data from 4th Quarter, 1995 to the 2nd Quarter, 2008. The empirical results suggest that there is a little correlation between exchange rates and interest rates differential for Bangladesh with China and Bangladesh with India, and the relationship between the variables is also not noteworthy for Bangladesh. Further, the trends advocate that the forecasting of exchange rates with the hypothesis of IFE is not realistic for these countries.

The role of growing financial sectors is already marked with good attention of the policy makers, investors, academicians and researchers in Bangladesh. To accelerate and sustain the economic growth, the dimension of finance research is very critical which subsequently results diversified types of researches being conducted continuously in this area. At the same time, assessing the directions of researches is also very important to find out the gap in the research vicinity and to explore uncovered issues keeping in mind that the world of finance is vast and there is little success in Bangladesh in terms of area wise research conducted. Moreover, the financial crisis of the world allows us to think further and look back on the finance researches being conducted and its evolution. This paper is an attempt to analyze the dimensions of financial researches that published in Bangladesh from 1973 to 2006. This study analyzes 549 papers covering from available issues (612 issues out of 750) of 18 journals published by well reputed academic institutions in Bangladesh. This paper categorizes the existing finance publications into different major areas and sub-areas. The category of finance researches is also segmented in three time periods based on the research trend in three decades. Finally the paper highlights the most focused areas and its outcomes, where most of the researches have been conducted but still need to do further study, and unexplored areas, where research works is highly required. This paper will be helpful for the financial institutions, researchers and policy makers.

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.