Risk and Financial Management

Infant and Under Five Mortality Rates in Nigeria: An Impact Analysis of Macroeconomic Conditions

Rahman Olanrewaju Raji — Thu, 26 Mar 2020 00:00:00 +0800

Over the years, the rising unfriendly macroeconomic environment is a contributing factor to the infant and under-five mortality rate in Nigeria. The study investigated the role of macroeconomic conditions on infant and under-five mortality rates in Nigeria for the period 1986–2017 using the fully modified OLS technique. The results show that the unfriendly macroeconomic policy environment such as the instability of inflation rate, unemployment and exchange rate enhanced the increased level of infant and under-five mortality rate in Nigeria. The study recommends that the authority should adopt more pro-growth policies that can ensure and maintain sound domestic macroeconomic policies to stem child mortality rate and promote economic growth through investment in food production and related investment in health. Most importantly, macroeconomic policies and institutions are highly needed to be strengthened in order to have a friendly macroeconomic environment which will in turn improve the population health of the country which can enhance sustainable and long term dietary as well as nutritional pattern of young age children and adult.

Dose the FDI Flow into Arab Region Influenced by the Global Financial Crisis?

Omar Ghazy Aziz — Wed, 01 Apr 2020 00:00:00 +0800

This study provides an overall view of the Foreign Direct Investment (FDI) inflows for the Arab region during the global financial crisis (GFC) in 2008. There a little attention has given to the FDI flows in Arab region as the main focus was on the countries where the GFC started. The objective of this study is to compare and analyses the global FDI inflows with Arab region during the GFC. It attempts to answer the question whether the FDI flow into Arab region was impacted immediately by the GFC? It provides a case analysis of FDI inflows in the Arab countries to test what is the reduction in these inflows? Are FDI inflows hold due to the assumption of that the region is considered as preferable distention to FDI? The study gives better understanding to the share of each individual Arab country over the period. It also introduces a case analysis of FDI inflow for Arab countries then compare it with other global regions.

Foreign Direct Investment in the West African Region: Analyses on the Values of Inflow and Outflow

Yeboah Evans, Yu Jing — Fri, 08 May 2020 00:00:00 +0800

With regards to the ongoing development in investment activities in the Economic Community of West African States(ECOWAS) and the entire African continent is because of institutional reforms and initiation of sound investment policies. Foreign direct investment(FDI) inflow and outflow severs as a source of capital formation for most developing and least developed countries. This paper provides an overview and analyses of the flow of FDI to the ECOWAS region by considering 16 nations under this region in determining their performance towards FDI attraction and their contribution to outward FDI across the globe by the use of the quantitative method. The outcome shows that there is a continuous decline in FDI inflow to the ECOWAS region over the past 10 years. The result also proves that Ghana and Nigeria are the major recipients of foreign direct investment inflows in the West African region. The result further indicates that Nigeria is the major contributor of outward FDI from the ECOWAS region. It is recommended that the region should increase its outward FDI.

The Impact of Corporate Strategy on the Capital Structure of Pakistani Companies (Diversification and Capital Structure)

Muhammad Uzair ali, Gong zhimin, Muhammad Rizwanullah, Xiong Wu, Itbar khan — Tue, 19 May 2020 00:00:00 +0800

Research into the capital structure of firms has been the subject of extensive empirical investigation. This study seeks to extend the debate by examining the endogenous influence of corporate strategy on financing decisions made by firms. Diversification is one of the corporate strategies that allow a company to enter business lines that are same or different from current operations as well as operate in several economic markets. Financial choices need to be evaluated because of their close interaction with management choices. Optimal capital structure plays a key role in achieving the overriding goal of financial management. The study sought to discover the impact of corporate diversification strategies on financial choices because study main focus is diversification strategy (A type of corporate strategy). For purposes of comparison, the current study used four of the nine Rumelt categories which correspond to Wrigley's original four, which were single product strategy, dominant strategy, related firm strategy and unrelated firm strategy. Panel data model was constructed and using a sample of 120 companies listed on the Pakistan Stock Exchange and data was obtained for companies with seven years’ quarterly data annually from 2010 to 2017. Using empirical tests, we found no relationship between diversification and leverage. Our analysis suggests that Diversifications strategy impact on capital structure indicate that this focus of enquiry has considerable potential for further resolution of the capital structure puzzle.

A Survey of “Knowledge, Attitudes & Practices” of Islamic Banking Clients: An Evidence from FATA and PATA, Pakistan

Muhammad Uzair Ali, Gong zhimin, Muhammad Rizwanullah, Xiong Wu, Itbar khan — Fri, 29 May 2020 00:00:00 +0800

Islamic banking & Finance and conventional banking are described as having the "same purpose but the essence and operations of Islamic banking are in accordance with Shariah law and have same "basic objectives" as other business and financial entities, i.e. "maximization of shareholder wealth". The speedy development of an Islamic banking system may improve financial insertion by providing an alternative to faith sensitive Muslims who are willingly excluded themselves from the system of conventional finance due to the nature of interest based. In Pakistan, the Islamic banking system eroding the growth of conventional banking so it’s worthy to explore the effect of religious belief the occurrence of a financial exclusion. The target population is from FATA and PATA maintain accounts at Islamic banks and conventional banks and a sample size of one hundred and fifty customers were picked up. The methodology focuses on the KAP Model (knowledge, attitude, practices), which indicates if attitude influences the association among “knowledge and practice” of an “Islamic banking”. Looking into KAP Analysis survey, through study result we find out that knowledge about Islamic banking and practices of Islamic banking are closely related. People having information about Islamic Banking and Products are more inclined towards Islamic Banking and people who don’t have much information are less interested in Islamic banking and Islamic products. KAP survey suggested that customers of conventional and Islamic banks are driven by the same motivating factors that have impact on their attitude. However, there have some likable factors that could be valued by “Islamic bank account holders only such as “variety of products & services, reliability, confidence in bank’s management, reputation and most important compliance with the Shariah rules in finance & investment.”. Low-cost services are some factors result in non-Muslims prefer Islamic Banking over the conventional banking.

Impact of Corporate Social Performance on Financial Performance: Case of Firms Listed on the Stock Exchange of Casablanca

Lamia Jamel, Monia Ben Ltaifa, Ahmed K Elnagar, Abdelkader Derbali — Wed, 17 Jun 2020 00:00:00 +0800

This paper examines empirically the impact of corporate social performance (CSP) on financial performance (FP). The study relates to a panel of 32 firms listed on the Stock Exchange of Casablanca during the period of study from 2011 to 2017. The empirical findings obtained, by linear regressions on panel data, clearly find the lack of impact of the corporate social performance on the financial performance measured by the Return on Investment (ROI), Return on Equity (ROE) and Earnings Per Share (EPS) ratios. The influence of corporate social performance on financial performance is statistically insignificant. The financial performance of firms classified or not socially efficient are almost identical. Finally, the results obtained clearly show the absence of this causal link between corporate social performance (CSP) on financial performance (FP), which confirms the research hypothesis. Finally, since the relationship between these two performances could be non-linear, we can deepen this article using econometric methods that can analyze the non-linear effect such as quantile regression and the regime-change model.

Leading in Crisis & Corporate Reputation

Evangelia Fragouli — Tue, 23 Jun 2020 00:00:00 +0800

Most of the existing business models cannot meet the requirement for high instability or consider potential crises underlying the business environment. As a result, many traditional business models have been changed partially or even completely in face of a crisis. Especially, the crisis of credibility may pose an impact on the business activities of the enterprise and even cause a devastating consequence. However, effective leadership can reduce this impact and help the enterprise gain consumer acceptance. This paper, through a critical literature review methodology, explores ‘how’ leadership underpins corporate reputation in a crisis situation reviewing also the key factors influencing leadership effectiveness in such stressful situations. The study concludes that the leadership role is important in supporting the corporate reputation in a crisis situation, a good reputation helps corporations to gain the trust of consumers and reduce the losses caused by the crisis, enterprises in crisis should choose appropriate leadership style so that leaders to create a culture that could predict threats and risks, to incorporate crisis management practices into operations, and to integrate potential risk and vulnerability assessments into the process of strategic debate and planning to prevent reputational damage.

Which is Determining in the Fluctuation of Stock Market Risk of Entertainment Compagnies in Viet Nam: Financial and Economic Crisis or Low Inflation Rate?

Monia Ben Ltaifa, Lamia Jamel, Ahmed K Elnagar, Abdelkader Derbali — Thu, 25 Jun 2020 00:00:00 +0800

Our paper aims to investigate empirically how much rise or reduce in the market risk of entertainment companies in Viet Nam. We use a sample composed of 8 companies listed in the stock exchange market in Viet Nam (Hanoi Stock Exchange and Ho Chi Minh Stock Exchange) during two periods; post-low inflation from 2015 to 2017 and financial and economic crisis during the period from 2007 to 2009. We utilize an analytic investigation technique based on a comparative assessment approach mixed through quantifiable data assessment. From the empirical findings, we show that the risk point assessed by the used measure suggest in the entertainment business is appropriate, i.e. it is small inferior than one. Next, one of its most important conclusions is the divergence among risk rank of hotel manufacturing through the financial and economic recession from 2007 to 2009 matched to those in the period of post-low inflation level from 2015 to 2017. Furthermore, the investigation conclusions demonstrate us market risk volatility, assessed by asset and equity beta risk, through the period of post-low inflation level has reduced marginally. Also, this study gives several suggestions that might support firms and authority other indication in instituting their strategies concerning control and governance. It is the complicated assignment; however, the study findings indicate us cautioning that the marketplace risk fluctuation may be greater through the period of post-low inflation level from 2015 to 2017. Finally, we can find that discovering new prospective markets and credit and funding strategies are amongst instructions for leisure firms.