Journal of Management, Economics, and Industrial Organization
Journal of Management, Economics, and Industrial Organization (JOMEINO) ISSN: 2521-7054 (Online) DOI: 10.31039/jomeino
All articles are published under the terms of the Creative Commons Attribution (CC BY 4.0) International License.
Stock price reaction to dividend announcement: An empirical study on Dhaka Stock Exchange (DSE)
The major objective of this study is to identify whether dividend announcement convey any information to the market that results a price reaction. With the objectives in mind, this paper used only secondary data from DSE. The study comprised a total of 21 companies these are listed by DSE. The research is only quantitative in nature. The empirical part of this study employs a standard ‘event study methodology’ to analyze the stock price reaction to dividend announcement. With the help of ‘event study methodology’ MAAR and CAAR to analyze the effect of dividend announcement on stock prices taking 21 listed companies of Dhaka Stock Exchange (DSE) in Bangladesh. The results were showed by using chart, table, descriptive statistics and t-statistics. The finding indicates that some companies are efficient, and some are inefficient. The results are statistically significant both before declaration date and after declaration date. In this paper, before declaration date of third and eight are efficient and after declaration date of five and eight are inefficient.
Copyright (c) 2020 Journal of Management, Economics, and Industrial Organization https://creativecommons.org/licenses/by-nc/4.0
Growth performance of broilers fed with vermi meal under free-range management
This study was conducted to evaluate the growth performance and profitability of broilers chicken fed with different level of vermi meal. Different treatments represent as T1- 100% Commercial Feeds (CF) or control, T2- 2% Vermi Meal (VM)+98% CF, T3- 3% VM+97% CF, T4- 5% VM+95% CF. The study showed particularly on weight gain, feed intake, feed consumption and dressing percentage of broiler chicken did not influenced with vermi meal supplementation. However, numerically, final weight and weight gain in T4 contains 5% VM was higher than T1 with commercial feeds a difference of 66. 66 grams and 67.60 grams respectively. The different levels of vermi meal, though they didn’t have significant difference to each other, the 5% level of vermi meal was higher in numerical value compared to commercial feeds in terms of final weight, weight gain, feed conversion ratio, feed consumption, live weight and carcass weight. Consequently, 5% level of vermi meal had an optimum result in final weight, gain weight, feed conversion ratio, feed consumption, live weight and carcass weight. The higher concentration of vermi meal supplementation has the higher cost in production, due to expensive imported vermi meal.
The effect of trade liberalization on exports, imports and balance of payment: The case of Sub-Saharan Africa
We explore dynamic non-stationarity panel data estimators namely, mean group (MG) and pooled mean group (PMG) for investigating the extent to which trade policies such as trade liberalisation and tariff rates matter to trade performance using the case of Sub-Saharan Africa (SSA). We found that increasing tariffs has the potential of particularly worsening export growth in SSA but increasing openness via liberalisation policy is likely to spur decline in the import dependence of the SSA economy. Thus, we concluded that while trade liberalisation seems to exhibit no significant impact on export growth in SSA, the same policy may yet be explored to encourage decline in the region’s import activities, particularly those import activities that might threaten the growth of domestic industries.
The factors affecting local brand perfume packaging on consumers purchase decision in Bangkok
The purpose of this research is to study the factors affecting the packaging of local brand perfume towards consumers’ purchase decision. The questionnaires were distributed to 414 respondents who are interested in purchasing local brand perfume and have used perfume in Bangkok. Multiple Linear Regression and One- Way ANOVA were used to analyze the data. There is an effect between visual packaging design, verbal packaging design, and packaging benefits and consumers’ purchase decision. Moreover, educational level is a demographic factor that has an effect on consumers purchase decision; however, age-range and income level do not relate to consumers purchase decision for this sample in Bangkok. The limitation of this research is to find the respondents who are interested in buying local brand perfume and have used perfume, and the research cannot represent all of the Thais. Moreover, the findings of this research reveal how local brand perfume improve its packaging to create awareness and attract more customers.
Effect of bank internal control system on non-financial performance of selected quoted deposit money bank in Nigeria
The increasing trend of declined in bank efficiency and operational performance in recent years raised unquestionable concerned and pose serious threats to the stability and survival of deposit money banks across the globe. Studies have shown that most deposit money banks in Nigeria have experienced declined in bank efficiency and operational performance due to weak internal control system thus caused financial losses to banks and loss of public confidence in the banking sector. The study employed a survey research design and the population was 568 staff and the sample size used was 292 using Cochran sample size determination. The reliability coefficient ranged from 0.71 to 0.94. The study found out that internal control system has positive and significant effect on bank efficiency and operational performance of the selected quoted deposit money banks with (P<5%). The study concluded that internal control system has effect on bank operational performance and efficiency. The study recommended that the management should ensure that their banks have strong internal control environment and embrace inform policies and procedures that are adequate in order to achieve operational performance and bank efficiency.
Does corruption cause economic growth in Nigeria?
Corruption has been widespread in Nigeria and it has been identified as one main impediment militating against its rapid growth and development. The consequences of corruption in Nigeria have been extensive and all-embracing and this includes both direct and indirect effects such as economic distortions in tax collection, public expenditure level and composition of government spending as well as inefficiencies and waste. This obliquely scares away foreign and local investors with significant adverse effect on the economy. This study thus, using secondary data, error correction model and granger causality test, investigated the relationship between corruption and economic growth in Nigeria. The findings indicated that there is long-run relationship between the level of corruption and economic growth in Nigeria. Both the Corruption Perception Index (CPI) and Relative Corruption Rank (RCR) has positive but not statistically significant effect on economic growth in the short-run. The Granger Causality test showed that corruption in Nigeria does not granger cause economic growth however economic growth granger causes relative corruption. In contrast, there is the presence of causal relationship from economic growth to Corruption Perception Index.
Fiscal policy and her roles in stimulating output growth in Cambodia: Bayesian inference based on BMA and MCMC simulation
This research paper aims to examine the impact of fiscal policy on Cambodia’s economic growth. More than that, this research also figures out fiscal stance on whether fiscal policy in Cambodia is contractionary or expansionary to stimulate the economy over the past two decades. Due to the limited observation, from 1994 through 2019, a totally of 26 years, this study employs Bayesian inference based on Bayesian Model Averaging (BMA) and Markov Chain Monte Carlo (MCMC) which uses Gibb Sampling to approximate posterior mean. By comparing these two approaches, the empirical results are identical. The empirical result revealed that Def, Debt, Faids, Er and Ex which represent government deficit, public debt, foreign aid, nominal exchange rate (KHR/USD) and export, respectively, are positive correlation with output growth in Cambodia. The increase in the deficit, public debt and foreign aid, means the government utilizes the fiscal policy to fine-tune the economy. Furthermore, this study also confirms that fiscal policy in Cambodia is conducted as a consolidated and stabilized policy. It can be concluded that the increase in the deficit, public debt, and foreign debt could stimulate the economy during the recession period where fiscal policy is acted as expansionary policy. During a post-recession, on the other hand, Royal Government of Cambodia (RGC) will conduct a contractionary fiscal policy to cool down the economy especially when the economy is overheating.
Gig economy and freelancing work in Algeria: A descriptive survey study
In Algeria, gig economy emergence was fueled by local telecommunications infrastructure’ and internet connectivity improvement, and labor market deteriorating conditions. This study aims to describe Algerian freelancers' experience in the gig economy, the precarities, and inequalities freelancers experience with platforms. This research is an exploratory descriptive study. It uses an online questionnaire to conduct a descriptive survey on 60 Algerian freelancer active on freelancing platforms. Respondents were reached via LinkedIn. The collected data were analyzed using Excel. The study finds that freelancing in Algeria is driven by the growing availability of digital platforms like Upwork and Fiverr. Local demand for freelancers remains limited. The gig economy in Algeria is youth-driven; gig workers are young people aged between 20-29 years old (65%), majoring in IT and Communication, active in the field of creative design, and mainly male (80%), indicating a gender gap similar to the existing one in the traditional labor market. Most freelancers are part-time workers, and in general, freelancing is a second choice in most cases. Algerian freelancers are highly educated, they use their professional network, work experience and client ratings and feedback to get new projects without needing for university degrees as signals in the online gig labor. They usually rely on ongoing self-study to develop and preserve pertinent skills. We contribute to the discourse into the gig economy by concentrating on the Algerian context as a growing labor market contrasting with countries in the global north. We provide insights into the relationships’ dynamics and the asymmetries the gig economy market reproduces.
Copyright (c) 2025 Journal of Management, Economics, and Industrial Organization https://creativecommons.org/licenses/by-nc/4.0
The role of influencers' credibility in shaping female students’ skincare purchase intentions
This study examined the influence of social media influencers’ credibility (attractiveness, trustworthiness, expertise, and attitude toward the brand) on shaping female students' intentions to purchase endorsed skincare products. A descriptive-correlational study was employed to determine the degree of agreement between the parameters of social media influencers’ credibility and purchasing intention, and to explore the interplay of these variables. Responses from 385 female students were randomly selected using the Cochran sampling technique and gathered using an adapted survey questionnaire. The collected data were subsequently tallied, tabulated, and evaluated using a weighted mean and a Pearson correlation coefficient (r). The study illustrated that the female students agreed on all aspects of social media influencers’ credibility. Additionally, the interplay of variables revealed that trustworthiness (r = 0.169) and attitude towards the brand (r = 0.347) are correlated with purchasing intention; however, attractiveness and expertise are not correlated. This implies that social media influencers are perceived as trustworthy and have positive attitudes towards the brand, influencing female students' purchase decisions for endorsed skincare products. These findings have practical implications for brand owners who are actively present on social media platforms, suggesting that partnering with trusted and reliable social media influencers can serve as a valuable marketing leverage in their business. However, these findings are limited to female senior high school students in Cebu City, Philippines.
The function of food prices in management information systems on public trust
From this paper, we highlight the management information system (MIS) and its role in food prices and public confidence. The case study focuses on nine traditional markets that have existed for a long time until now. To find out the extent of the benefits of MIS developed by the government, we put some questions in a questionnaire distributed to 250 respondents. We focused multiple linear regression analysis on processing data that has collected based on interviews. The results of this important work divided into two categories (direct impact and indirect effect). Regarding food prices, MIS has played a significant role. From other findings, public trust, MIS, and food prices also influence significantly. In the next scenario, by involving food prices as a mediation effect, the contribution will also have a real impact because food prices can have a significant effect on both relationships (MIS and public trust). The price of food is an indicator that plays an important role in this finding. This is because these variables can maintain economic stability in a region through good MIS management in expanding public trust, especially for civilians who want accurate data related to their daily needs. This study's theoretical contribution integrates the MIS framework, food price dynamics, and public trust to develop a more comprehensive approach to digital transformation governance.
Interest rate risk management in public sector bank of Bangladesh: With special reference to Sonali Bank Limited
Asset liability mismatch in balance sheet of Sonali Bank Limited, Bangladesh posed serious challenges as the bank was following the traditional methods of recording assets and liabilities at the book value. The liberalization process in the economy coupled with multifaceted global developments exposed banks for various kinds of risks viz. interest rate risk, liquidity risk, exchange risk, operational risk etc. which have direct impact on their operations, profitability and efficiency to compete with. The volatility in interest rate during the last decade has witnessed risk in earnings or capital due to movement of interest rates which has affected the overall profitability of banks. Hence, there is a need for accurate measurement and control of Interest Rate Risk associated with a bank’s entire portfolio. This research paper makes an attempt to measure the Interest Rate Risk in Sonali Bank Limited by using Asset- Liability Mismatch, Relative Interest Sensitive Gap, Interest Sensitivity Ratio and Gap Analysis Technique. The findings revealed that Sonali Bank Limited, Bangladesh is greatly exposed to interest rate risk.
Building a culture of continuous innovation: How Pixar and Google address this challenge?
The most successful companies in the global market embrace the challenge of creating a culture of continuous innovation that enables them to increase their competitiveness. In this sense, this study intends to understand and describe how two of the most successful Silicon Valley companies (Google and Pixar) embrace this challenge. The findings have identified a set of elements that serve as a reference for companies that want to be innovative. Within these elements stand out the involvement of all employees in the innovation process, support the emergence of new ideas using both top-down and bottom-up approaches, time allocation to innovation activity, the ability to accept an deal with failure and the adoption of tools that promote communication and collaboration.
The dynamic relationship between stock market returns and macroeconomic variables: An empirical study from Bangladesh
In this research paper, attempt has been made to explore the dynamic relationship between stock market and macroeconomic variables i.e. DSE index and three key macro-economic variables (Exchange rate, Industrial production in and Reserve), by using unit root stationary tests and Johansen co-integration test. Monthly data has been used from June, 2003 to June, 2015 for all the variables, like, DSE index, Exchange rate, Industrial production in and Reserve. Results showed that the variables contained a unit root and were integrated of order one. The vector error correction model (VECM) (Johansen (1991)) is utilized to determine the impact of selected macroeconomic variables on stock market. Empirical results show that the stock market and macroeconomics variables have no long-term equilibrium relationship.
Exploring the decisions of employees to stay in an organization
This study explored the experiences of teaching and non-teaching personnel of a private school in Metro Manila, Philippines. One of the challenges faced by the private schools in the country is the high turnover of teachers. After gaining experience from a private school, employees, especially teachers leave the institution and transfer to government-funded schools. Usually, financial reason is the number one consideration for transferring to government schools. Government teaching and non-teaching personnel receive a relatively higher salary. However, there are employees who remain loyal and committed as they choose to stay. The researchers used qualitative case study design through interview to capture the personal experiences of the teaching and non-teaching personnel purposively chosen to participate in the study. The findings and discussion of the results of the study offer inspiration and motivation for fixed term and regular teaching and non-teaching personnel to remain loyal and committed to the academic organization. The study will also serve as direction and guide for the school administrators to sustain the benefits and programs that motivate employees. Likewise, the study also provides opportunities for the school administrators to advance on some aspects in order to entice employees to stay in the organization.
Competitive intelligence and competitive advantage in pharmaceutical firms in developing economies: A review of Lagos State, Nigeria
Competitive intelligence has remained a significant intervening variable on competitive advantage in the business world as part of survival and expansion. This reality exists in both the advanced and developing economies of the world. This study therefore examines the influence of competitive intelligence on competitive advantage of pharmaceutical firms in Lagos State, Nigeria. To achieve this objective, four hypotheses were formulated to establish whether a relationship existed between the two variables i.e. competitive intelligence and competitive advantage. The study adopted survey research design; data were obtained from structured questionnaire and analyzed using the one sample T-Test statistic. The result of the analysis revealed that a significant relationship existed between competitive intelligence and competitive advantage in pharmaceutical firms. Based on the findings, it was concluded that the role of competitive Intelligence on competitive advantage is to provide strategic information that will guide pharmaceutical firms in the task of improved marketing innovations to meet the need of the customers. Among other things the study recommended that for pharmaceutical firms to gain competitive advantage and increase their performance, they should leverage on useful information gathered in their environment to engage not only in product development but also in constantly making relevant innovations/modifications to their existing marketing strategies.
Effects of North American free trade agreement on the US labor market: An ARDL bounds testing approach
One of the political debates on negative effects of the economic integration between the USA and the other members of the North American Free Trade Agreement (NAFTA) Canada and Mexico is the rise of unemployment. This study aims to identify whether this thesis is true or not. For that the relations between the statistical variables employment, export, import, wages and gross domestic product were estimated through Autoregressive Distributive Lag model (ARDL). Empirical findings show that the import from the NAFTA countries has negative effect on the employment in the long run while its effect on the employment is positive in the short run. However, both the short run and the long run effects are so small that the negative effect is negligible comparing to the benefits of the economic integration.
Marketing strategies for subdivision housing projects in Phnom Penh
The tremendous transformation across market sectors in Cambodia is the result of the country’s rapid economic growth over the past decades. Subsequently, the market demand and consumer behavior, in real estate industry especially, has also become more complex and diverse. The research aimed to explore a different variety of marketing strategies used by real estate developers in Cambodia that respond most effectively toward the changing and demanding market spectrum with a focus on middle-class households. This study involved three in-depth interviews with practitioners in real estate marketing who engaged in main-class subdivision housing development projects in Phnom Penh. Afterward, Content Analysis Technique was used to examine the outcome and generate the results of the interviews. The analysis of the interview’s outcome demonstrated that each developer shows different interests in Segmentation, Targeting, and Positioning (STP), while some components of the marketing mix (4Ps) such as product and price played a significant role in the success of the project. The result of this study will be beneficial to those subdivision real estate businesses who look to improve their marketing strategies to better meet the demands of the consumers.
Copyright (c) 2019 Journal of Management, Economics, and Industrial Organization https://creativecommons.org/licenses/by-nc/4.0
Stock market development and economic performance of West-African countries: A dynamic panel data analysis
The nexus between development of stock market and the performance of economic activities have been a critical issue around the globe. The issue as to whether a well-developed stock market influences the performance of economic activities and the relevant of developmental policy strategies have been a concern for the developing economies especially the West Africa economies. Literatures have shown that most of the West Africa economies were faced with sharp swings and wide fluctuations in the stock market indices, which had negative effect on the performance of economic activities of these economies. This study examined the effect of stock market development on the economic performance among West Africa economies. The study employed secondary data subjected to panel regression method of analysis within the period of seven years across selected West-Africa countries. Findings revealed that stock market development indicators; ratio of market capitalization to gross domestic product, All Share Index, and Stock Turnover have positive effect on economic performance while corruption perception index have negative effect on economic performance, all at 5% level of significance. The study concludes that stock market development indicators and corruption index affect economic performance in West Africa. Therefore, the study recommends that the stock market regulatory authorities should initiate strategic policies that would boost market liquidity and encourage easy access of companies to the market and also be more proactive in surveillance role in order to check unethical practices which undermine stock market integrity, erode investors’ confidence and patronage.
An interpretive structural modelling (ISM) approach for institutional analysis of gadung yam (dioscorea hispida dennst) chips supply chain in SMEs Tulungagung, East Java, Indonesia
UKM Indah Lestari is one of SMEs in Tulungagung, East Java, which produces gadung yam chips. Having good institutional structure is one of the supporting success of this SMEs development. All this time, this SMEs has no inter-party relationship and institutional structure in integrated supply chain. The aim of this study were to determine the institutional structure of the supply chain and to show the relationship between elements on the institutional supply chain. Interpretive Structural Modeling (ISM) approach was a term used to analysis it. The results indicated that the institutional of gadung yam chips consists of suppliers, SMEs, retailers and government who are directly involved in the supply chain of gadung yam chips. The relationship among agents in the institutional structure of gadung yam chips supply chains has influence and linkage with each other that will move the business progress of that SMEs. Relation to the needs element and all sub-elements are key elements. In constraint element, sub-element consistency of quality and quantity of gadung yam tubers as well as lack of capital become sub-key elements. In the objective element, the availability of guaranteed raw materials becomes the key sub-element. It shows that government becomes the key sub-elements. Meanwhile within the element of improvement which is possible for all sub-elements has key sub-element.
Consumer preference analysis of organic products in giant express retail store Malang city Indonesia
Organic products demand is increasing since more consumers are already aware of their health, but in Malang City the amount of retail stores which sell organic products is considered small. Giant Express Pulosari which was established in 2009 is one retail store that sells organic products. One of the ways to maintain its customers based on consumer buying decisions is to find out the factors that influence consumer preferences for organic products. The purpose of this study is to determine the effect of product attributes towards consumer preferences and buying decisions on organic products. Data collection was executed by distributing questionnaires and interviewing 100 respondents who had bought and consumed organic products sold at this retail store. Data gained then were analyzed by using SPSS 17.0 and Smart PLS 3.2.0 software. The results of this study indicate that the variables of product attributes significantly influence consumer preferences and buying decisions. Consumer preference is able to mediate the relationship between product attributes and buying decisions. The most influential indicator of product attributes variables is packaging design. The most influential indicator on consumer preference variables is price. Meanwhile, the most influential indicator on buying decision variables is consumer needs.
The impact of globalization on manufacturing output: The case of Nigeria
Nigerian government has put in considerable effort at improve bilateral relation in the economy; its net effect is yet unclear. This raises concerns about the tradeoff benefit between trade openness as a proxy to globalization and contributions to the manufacturing output in Nigeria. This study examines the impact of globalization on manufacturing output in Nigeria. Using structural vector autoregressive (SVAR) approaches, from 2010Q1 to 2018Q4, the findings reveal that manufacturing output and transportation responded significantly to the foreign shocks emanating from globalization. The study established that the manufacturing output reacted negatively to exchange rate fluctuations, implying that exchange rate is very important to manufacturing sector in Nigeria. On the same vein, transportation, financial integration and globalization respectively were affected positively and significantly by exchange rate fluctuations to manufacturing sector.
Can ICT help Cambodian students become the solution for improving education in the country?
We are entering the fourth industrial revolution and Cambodia needs to be ready. Technologies are changing not only the way we do things but our entire life. One of the spheres affected by this revolution is Education. “Education is the movement from darkness to light”, said Professor Allan Bloom, and Cambodia is still in the shadow. The low percentage of its Gross Domestic Product (GDP) doesn’t provide enough resources to all the schools and the young generations are affected by this. But, can Cambodia try to resolve this problem beginning from the resources it already has? Recognized theories and researches proofed the effectiveness of learning by teaching, so why Cambodia doesn’t use this as a resource and an opportunity? ICT can change and it is already changing education, and with the help of students, it can make the difference in the country. In this paper, we provide an overview of the education within the country, and we analyze the possibilities and issues that Cambodia can have and would face along the way of preparing itself for the fourth industrial revolution.
The impact of monetary policy on economic growth in Cambodia: Bayesian approach
This research paper aims to study the significance of monetary policy in the contribution to the economic growth of Cambodia. This study employs the data in the period of 2000-2018 consisting in total 19 years. Once the GDP of Cambodia is characterized as the limited dependent variable, the Tobit model is an appropriate model to be used. However, due to the limited data which only consists of 19 observations, this study uses Bayesian inference. The combination between Tobit model and Bayesian inference is known as Bayesian Tobit Model. The Bayesian Tobit Model with Markov chain Monte Carlo simulation uses Gibbs sampling to sample all conditional posterior distributions. The empirical results illustrate that money supply which represents the monetary policy tool is statistically indicated a positive correlation with GDP in Cambodia. Moreover, the inflation rate and exchange also revealed a positive relationship with GDP. The interest rate, on the other hand, is confirmed negatively insignificant with GDP which represents economic growth in Cambodia. Based on statistical results, the National Bank of Cambodia plays a vital role in authorizing the monetary policy in Cambodia.
Theoretical reviews of international trade: Malaysia and China exporting goods in Asia
International business is explained by many international trade theories. In this study, four important theories (i.e. Adam Smith’s Absolute Advantage Theory, Steffan Linder’s country similarity theory, Dunning’s Eclectic Theory and New Trade Theory) are applied on Malaysia and China on their exporting activities in Asian market to explain trends in business adequately. Malaysia is well-known as the world’s largest electrical and electronic exporters while China is the top hub for manufacturing exporting. Both countries are playing significant role in Asia trading activities. They are also contributing to the world economic through their exporting.
Consumer satisfaction analysis towards chocolate-based product using importance performance analysis and customer satisfaction index method: Case study at Kampung Coklat Blitar Indonesia
Chocolate is a base product made from cacao-bean and cacao-fat. Chocolate industry in Indonesia has much improved. Indonesia has many cacao producer that produce many kinds of chocolate-based products, whether in industrial or home-industry scale. One of the chocolate-based product is Kampung Coklat Blitar. There are several chocolate-based products produced by Kampung Coklat Blitar. The aim of this research is about to find out all of the attributes that should be improved towards chocolate-based products in Kampung Coklat Blitar, using Importance Performance Analysis (IPA) and Customer Satisfaction Index (CSI) method. The data was collected from 120 respondents, who were customers of Kampung Coklat Blitar. 16 attributes were analyzed in this research. Calculation result using IPA method showed that attributes categorized into quadrant I (concentrate here) or main priority for improvement are size and volume, and also price. Attributes that are categorized into quadrant II (keep up the good work) or attributes that need to be maintained are taste, condition of raw material, expiration date information, and product durability. Attributes that are categorized into quadrant III (low priority) or second priority for improvement are nutrition facts, form, convenience to complaint, advertisement and promotion, product packaging, brand popularity, and product information. Lastly, attributes that are categorized into quadrant IV are variation, benefit, and content of preservative. Calculation result using CSI method showed that the CSI value or consumer satisfaction level is 75%. This value is in the range of 0,66 – 0,80, which means that consumers are satisfied with chocolate-based products produced by Kampung Coklat Blitar.
Does budget deficit impede economic growth? Evidence from Bangladesh
The purpose of this study is to investigate the impacts of budget deficit on economic growth in Bangladesh over the period of 1981-2017. This study employed the autoregressive distributed lag (ARDL) model to capture long-run cointegration along with long-run and short-run elasticity of the explanatory variables. Moreover, directional causalities between the variables used in this study have been checked using vector error correction model (VECM). The results of the analysis under ARDL model revealed that in case of Bangladesh, budget deficit positively affects economic growth both in long-run and short-run while government total expenditures lead to increase GDP only in long-run. These findings support the Keynesian proposition that budget deficits crowd-in private investments resulting economic growth. Furthermore, directional causality tests conducted using VECM explored unidirectional causality running from budget deficit to economic growth while feedback causality has been found between governments total expenditures and economic growth. For policy implications, this research provides evidence that in an emerging economy like Bangladesh, government spending through deficit financing can drive positively in the level of economic growth. Bangladesh, however, should not have the luxury of forgetting about the bad consequences of consistent and gradually increasing budget deficit at all.
An empirical analysis of effects of foreign direct investment, exchange rate and energy infrastructure on domestic investment in Nigeria
Domestic investment is a significant component of economic activities affecting Nigerian economy for decades. Sequel to this, this paper examines the effect of Foreign Direct Investment (FDI), exchange rate and energy infrastructure on domestic investment in Nigeria. Time series data obtained from Central Bank of Nigeria (CBN) Statistical Bulletin and World Development Indicator were employed using Autoregressive Distributive Lag (ARDL) Model. Empirical findings show that FDI has positive and significant effect on domestic investment while exchange rate and energy infrastructure have a positive effect on domestic investment but non significant. The policy implications of this finding is that government should adopt more stringent supervision on exchange rate, and policy to regulate execution of energy infrastructure project; and more funds needed to emancipate energy infrastructure in order to obtain desired level of domestic investment in Nigeria.
Current practice of coal discharging operation in Malaysian port
Operation delay causes a financial impact to port operation in overall since is a chain process activity. The losses of time during operation was translated to penalty to port operator team. Therefore, this paper comes out with an objective to investigate current practice of coal discharging operation in Malaysian port. This to ensure that any factors led to delay can be detected to avoid subsequent problem especially industrial sectors and Malaysian economics in general. A systematic literature review (SLR) has been conducted to identified the current practice of port from previous research. Data collected from this SLR used in the development of questionnaire. A set of Questionnaire than been distributed to all port handling coal discharge activities in Malaysia. This study managed to collect 82 respondents randomly working in coal discharge team. Based on the SLR and data analysis, this paper found that, focus in coal discharge activities should be on: (1) the good owner, receiving from and delivering good to port; (2) good transmission between ship and coast vice versa; (3) transporting good to port and transmission of good from port; and (4) other criteria. To sum up, the current practice of coal discharging operation in Malaysian port experiencing delay which is not serious yet still affects the cost of operation in overall.
Assessing the optimal capital structure: A case study of Afren public limited company - a small exploration and production oil and gas company
This study assessed the optimal financing mix for Afren Public Limited Company based on the trade-off theory and evaluated the cost to the firm from deviating from that position. In doing this, we derived a firm-specific optimal capital structure using the cost of capital approach, which involved the use spreadsheet modelling through an iterative process to determine series of discount rates based on different combinations of debt and equity under the assumption of constant earnings to the firm. The base result shows that as the debt intensity increases, the equity Beta has a multiplier effect such that the cost of equity increases more than proportionately to the increase in leverage. As more debt is introduced, the risk of loan default increases, thus increasing the credit spread over the riskless rate and effectively the pre-tax cost of debt. The result from the firm’s weighted average cost of capital (WACC) and value as a function of leverage, implied optimal debt ratio is 40% and yields a WACC of 8.63% which is effectively the minimum cost of capital that maximizes the value of the firm. Between 40% and 45% leverage, the debt servicing capacity of the firm measured by the interest coverage ratio drops significantly from 4.6 to 1.4 due to high interest burden. This increased credit risk has a direct impact on the firm’s credit quality rating.
Threshold effects of inflation on economic growth: Evidence from dynamic panel threshold regression analysis for 18 developed economies
Inflation and growth nexus still a main focus in many studies as the existence of trade-off issue in inflation-growth relationship. The objective of this study is to estimate inflation threshold and its impact on inflation-growth relationship. This panel data study involves 18 developed countries over the period 1980–2016 with Consumer price index (CPI) and Gross domestic product (GDP) as variables associated with other determinants such as producer price, exchange rate, trade-openness, interest rate and population growth rate. Dynamic Panel Threshold Regression (DPTR) model that suggested by Kremer et al. (2013) is employed to estimate the threshold of inflation and its effects on economic growth. Our study extended the non-dynamic panel threshold model of Hansen (1999). Our results confirmed that the targeted inflation rate 2% by many central banks is a wise decision if compare to 4% as the impact of inflation on growth in lower inflation regimes is positive and statistically significant at the 5% level. For higher inflation regime, we estimate that inflation rates exceeding 1.44% are associated with lower economic growth, inflation and growth is negatively correlated and statistically significant at 1%. Trade-off relationship only exists at lower regime. By using GMM and Pooled OLS estimation, DPTR model results are proven robust where there is a U-shaped exist.