Finance

The prolonged slump in crude oil prices and the exchange rate uncertainty can adversely impact global stock market. Malaysia also feel the pinch where in August 2015, its stock market index has plunged to its lowest level in more than three years since June 2012. Thus, this study is conducted to discover the relationship between crude oil prices and exchange rate to the Malaysia stock market index. Crude oil price, exchange rate and Dow Jones Industrial Average (DJIA) are chosen as independent variables while Malaysia stock market index as the dependent variable is proxy by FBMKLCI. This study used monthly time series data covering 74 observations from July 2009 to August 2015. Employing correlation matrix test, our result shows that all independent variables have significant relationship with FBMKLCI. On the other hand, regression analysis indicates that only exchange rate and DJIA is significant in determining the movement of FBMKLCI while crude oil price is not significant. The finding further indicates that changes in DJIA will positively affecting FBMKLCI while changes in exchange rate have negative influence on FBMKLCI.

This purpose of this paper is to study the impact of macroeconomics variables to Mudharabah Investment Deposits in Malaysia. It intends to examine the relationship and the significance influence between Gross Domestic Product (GDP), Rate of Return (ROR), Inflation Rate (INF) and Investment Deposits in Malaysia. Analysis was done using the Statistical Package for Social Science (SPSS). Pearson Correlation used in determining the relationship between the variables while three difference regression model (enter, forward, backward) used to determine the significance influence between the variables. The data gathered from Monthly Statistical Bulletin, Bank Negara Malaysia from 2003 until 2011. ROR showed there is significant strong positive relationship with Mudharabah Investment Deposit in Malaysia. It was found that by using three difference regression models, only one predictor namely Rate of Return (ROR) had significant influence with Mudharabah Investment Deposits while Gross Domestic Product (GDP) and Inflation Rate (INF) had no significant influence with Mudharabah Investment Deposits.

The General Concept: Higher Expected Returns Require Taking Higher Risk Most investors are comfortable with the notion that taking higher levels of risk is necessary to expect to earn higher returns. In this note, we explain Capital Asset Pricing Model (CAPM) that has been developed to make this relationship precise. By applying CAPM to Pharmaceutical sector at Karachi Stock Exchange we examined that Beta ( ), the measure of systematic risk in CAPM, has significant impact on returns of the securities.

SHG is the best-root for triggering IGPs in rural and tribal areas and especially areas not properly connected to mainstream living. Coined with the multi-pronged objectives of development and empowerment of weaker section of the society, the strategy and methodology adopted to address the issues are taking care of the need of the marginalized at different economic strata’s through creating enabling environment for addressing the issues. The study is broadly measuring the level and impact of micro credit interventions, functionality and viability of institutions to management the credit, Micro Credit Plans for Self-help Groups as well as the sustainability of the initiatives following a peoples approach.

Chairman’s Statement plays a significant role in communicating the corporate affair to the stakeholders and subsequently serves one of the tools to the stakeholders in making their economic decision. However, the usefulness of which will depends upon their readability and understandability (Courtis, 2004). Therefore, this study examines the readability of Chairman’s Statement for companies under Main Board of Bursa Malaysia, starting from 2004 until 2006. The study employs Readability formula developed by Rudolf Flesch in 1949, Microsoft Word’s Flesh Reading Ease (FRE) Score. The results show that all the chairman’s statements in Malaysia are difficult to read.

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.

The study investigates the significant determinants of stock returns of all non-financial listed companies in Karachi Stock Exchange (KSE), Pakistan from 1998-2011 by using panel data techniques. In addition, this study further categorized into Syariah and Non-Syariah compliant firms to examine the significant differences of stock determinants. All listed stocks in Karachi Meezan Index (KMI) are entitled as Syariah complaint firms, rest of the firms listed in KSE all index are identified as non-Syariah complaint firms. As Syariah complaint firms don’t use any unethical means to cater its stock prices, so, it was hypothesized that Syariah stocks follow the fundamental of the companies. Size, book to market, leverage, dividend yield, earning to price, cash flow to price and discretionary accrual represents the fundamentals while market premium, stock price volatility and trading volume indicates the stock market variables. Fixed effect model and Random effect model is applied for statistical estimations. Hausman test is further used to find the most significant model. Modified wald test find the heteroskedasticity, final results were robust to counter the heteroskedasticity issue. The results of all non-financial listed firms confirmed the significant positive market premium, size, stock price volatility and trading volume whereas significant negative book to market ratio. Market premium, leverage and stock price volatility are the only significant determinants of Syariah complaint firms. Insignificance of BM and TV confirms that Syariah stocks follow the fundamentals instead of noise trading. In a nutshell, Syariah complaint firms respond to fundamentals although non-Syariah complaint firms follow noise trading in Pakistani context.

This study set out to ascertain the nexus between Cost Accounting Information and Price Determination in Nigeria manufacturing companies. Specifically; it establishes the relationship between Information of Unit Cost, Information of Overhead cost, Information of Production cost and selling price of products in Nigeria Bottling Company Plc, Enugu. A survey research design approach was adopted and data collected using five point likert-scale questionnaire which was administered on sample of 293 out of 1100 staff and management of Nigeria Bottling Company Plc, 9th Mile Corner, Enugu. Three hypotheses were formulated and were tested using Karl Pearson’s product moment correlation coefficient. Findings unveil that there is significant relationship between Information of Unit Cost and Price determination in Nigeria manufacturing companies. The findings further revealed that there exists a significant relationship between Information of Overhead cost and Price determination in Nigeria manufacturing companies. Finally, the result established also that there significant relationship between Information of Production cost and Price determination in Nigeria Manufacturing companies. Consequent upon the findings, this study recommends among others; that Managers should consider improving their overhead costs apportionment system from the traditional method to the ABC method in order to have accurate calculation of the total costs per unit of their products. Again, that the management of Nigeria Manufacturing companies should pay more attention on reducing cost of productions without having any negative impact on product quality.

This paper has attempted to provide estimates of the size of the underground economy and estimated tax evasion in Ghana from 1990 to 2010 which have received little consideration. The Stock-Watson DOLS estimate for currency demand was employed. Our estimates suggest that underground economy is quite large accounting for about 48% of the official economy on the average. These results are consistent with the stylised fact about the Ghanaian economy, in particular the large number of persons employed in small business and trading versus the number of tax returns filed on an annual basis and also claiming to have incomes way below taxable levels. The estimated evaded tax ranges from 4% to about 14% of the official economy and higher budgetary supports and loans contracted in a year. The implication is that any success made in reducing such leakages may have positive effect on fiscal and monetary policy.

In the current paper, the fundamental principles of Canada stock exchange are firstly reviewed and then, the importance of stock exchange’s instruments in Canada, especially their role in development of money and capital market, is investigated. Finally, some basic recommendations are presented.