Asian Economic and Financial Review

Asian Economic and Financial Review

Basic info

  • Publisher: Aess
  • Country of publisher: pakistan
  • Date added to EuroPub: 2017/May/11

Subject and more

  • LCC Subject Category: Finance and Financial Services, Economics
  • Publisher's keywords: Economic, Financial
  • Language of fulltext: english
  • Full-text formats available: PDF

Publication charges

  • Article Processing Charges (APCs): No
  • Submission charges: No
  • Waiver policy for charges? No

Editorial information

Open access & licensing

  • Type of License: CC BY
  • License terms
  • Open Access Statement: Yes
  • Year open access content began: 2011
  • Does the author retain unrestricted copyright? False
  • Does the author retain publishing rights? False

Best practice polices

  • Permanent article identifier: DOI
  • Content digitally archived in: LOCKSS, CLOCKSS
  • Deposit policy registered in: None

This journal has '574' articles

EXISTENCE AND NATURE OF AUDIT EXPECTATION GAP: NIGERIAN PERSPECTIVE

EXISTENCE AND NATURE OF AUDIT EXPECTATION GAP: NIGERIAN PERSPECTIVE

Authors: Oseni, Abubakar Idris| Department of Accountancy Auchi Polytechnic, Auchi, Edo State, Nigeria., Ehimi, Celestina Ojemen| Department of Accountancy Auc...
( 44 downloads)
Abstract

The audit expectation gap is critical to the auditing profession because the greater the unfulfilled expectation from the public, the lower the credibility earning potential and prestige associated with the work of auditors. The study examined the level and nature of expectation gap (performance gap) between auditors and users of financial statements. It sought to establish whether audit expectation gap exists in Nigeria and the perception of the users’ group on its existence. Respondents view was also sought on how the gap could be narrowed. Chi-square (χ2) was used to analyze the data obtained from the study. The data were obtained through questionnaire. One hundred and sixty (160) copies of the instrument were distributed using purposive sampling technique. In this study, a cross-sectional survey was conducted to capture the perceptions of users of financial statements in Nigeria. The tests of hypothesis were done using Microsoft Excel 2010 version. Tests were carried out at a significant level of 5% and three degree of freedom. The findings of the study indicated that there is a wide expectation gap in the areas of auditors’ responsibility for fraud prevention and detection. Audit expectation gap has negative impact on auditor’s credibility. The users of financial statements should be enlightened more on the responsibilities of auditors on the financial statements, the role of the auditor should be clarified and quality control measures should be observed in audit firms.

Keywords: Auditing, audit expectation gap, credibility, financial statements, perceptions
APPLICATION OF PROBIT ANALYSIS TO FACTORS AFFECTING SMALL SCALE ENTERPRISES’ DECISION TO TAKE CREDIT: A CASE STUDY OF OYO STATE, NIGERIA

APPLICATION OF PROBIT ANALYSIS TO FACTORS AFFECTING SMALL SCALE ENTERPRISES’ DECISION TO TAKE CREDIT: A CASE STUDY OF OYO STATE, NIGERIA

Authors: F. A. AJAGBE| Department of Management and Accounting Ladoke Akintola University of Technology, Ogbomoso Nigeria
( 39 downloads)
Abstract

The study assessed the application of porbit analysis to factors affecting small scale enterprises’ decision to take credit: case study of Oyo State, Nigeria. Both questionnaire and interviewed techniques were used for data collection from 35o respondents chosen through stratified sampling techniques. In analyzing the data probit regression was employed in addition to conventional descriptive statistics such as tables, frequency distribution and percentages. The results showed that demand for credit is strongly influenced by gender, age, education, location, value of assets owned and other dwelling characteristics at 1%, 5% and 10% level of significant. The percentage of correct predications which are choice of explanatory variable correctly predicted the household’s demand decisions are good at 70%, 72% and 99% for personal savings, Relatives/ friends and bank. While money lender and multiple sources were insignificant. A comparison of households and enterprise characteristics between those who had used credit and those who had not, as well as between those who used formal sources and those who used informal sources, showed that the differences were not significant in both cases. It is against this background that this recommendation was made that, the credit policy for rural and small-scale lending terms and conditions need to be formulated in order to mobilize savings and maximize the availability of credit to the population in rural and urban areas of Oyo State.

Keywords: Probit analysis, small scale enterprises, Decision, Credit, Nigeria
SOCIAL NETWORKING A SOURCE FOR DEVELOPING ENTREPRENEURIAL INTENTIONS AMONG ENTREPRENEURS: A CASE OF MULTAN

SOCIAL NETWORKING A SOURCE FOR DEVELOPING ENTREPRENEURIAL INTENTIONS AMONG ENTREPRENEURS: A CASE OF MULTAN

Authors: Mah Jabeen Zafar| M-Phil Scholar, Department of Sociology, Bahauddin Zakariya University, Multan, Pakistan, Ghulam Yasin| Professor/Chairman Departmen...
( 49 downloads)
Abstract

The present research aims at measuring how social networking is a source of developing entrepreneurial intentions among entrepreneurs. The study was designed with the intent to find the components of social networking which help in entrepreneurship. The universe for the present study consisted of all enterprises registered with Trade of Chamber and Commerce (Multan). A sample of 5 respondents was selected for interview through convenient sampling. Detailed interviews were conducted for data collection and analyzed by using critical analysis procedure. From the analysis it was found that social networking helps the entrepreneur in developing entrepreneurial intention through which peer group and family and educational institutions in general and universities in particular contribute a lot. Mass media found as a main source in providing the platform for entrepreneurship in the realm of networking. It is suggested that universities should create network nexus through old students (alumni) that might develop in to business. Government should facilitate the self-employed people while providing them opportunities of strengthen their social networks through its various means.

Keywords: Entrepreneur, Entrepreneurship, Social networking, Peer, Media, Family
THE DYNAMIC RELATIONSHIP BETWEEN STOCK VOLATILITY AND TRADING VOLUME

THE DYNAMIC RELATIONSHIP BETWEEN STOCK VOLATILITY AND TRADING VOLUME

Authors: Muhammad Irfan Javaid Attari| He holds M.Sc. Accounting & Finance and M.Phil. Finance degrees. He has been enrolled as a HEC-Funded-Ph.D. Scholar in S...
( 41 downloads)
Abstract

The objective of the study is to measure the relationship between trading volume and returns; and change in trading volume and returns of stocks in Pakistan.Various techniques such as Unit root tests and GARCH have been applied on the data to determine the relationship between aforesaid variables. For this purpose, weekly data of Karachi Stock Exchange (KSE-100 index) has been collected and analyzed from January 2000 to March 2012.The GARCH results indicate a significant positive relationship between trading volume and returns; and change in trading volume and returns.This relationship is of great importance to individuals from investment and policy making perspective as trading volume reflects information about market expectations, and its relationship with price can have important implications for trading, speculation, forecasting and hedging activities.

Keywords: Stock Returns, Trading Volume, Karachi Stock Exchange, ARCH/GARCH
THE LINKAGE OF EMPLOYEE SATISFACTION AND LOYALTY IN HOTEL INDUSTRIES OF PAKISTAN

THE LINKAGE OF EMPLOYEE SATISFACTION AND LOYALTY IN HOTEL INDUSTRIES OF PAKISTAN

Authors: Rai Imtiaz Hussain| Head/Senior Lecturer in Business Administration University of Education Lahore
( 38 downloads)
Abstract

Most of the hotel industries now a day facemany difficulties in making their employees satisfied. So they are failed to find out the reasons that made their workers satisfied and loyal. This study includes 13 variables of employee satisfaction and 3 variables of employee’sloyalty. Three variables of loyalty include employee service, future of employee in the company, employee recommendation in the company. The study also shows the loyalty of employees in hotel industry in Pakistan. Results of the study show a relationship between the said variables. The other variables as like relation of employee with boss, performance appraisal, the situation and place of working, group work, and coordination have a strong correlation with three variables of employees’ loyalty. The study will give the hotel industry a great help in lowering the cost and give much output as like increase in profit and then it will gives a higher satisfaction to the workers and their loyalty in hotel industry

Keywords: Employees‟ satisfaction, employees‟ loyalty, Hotel Industry, Employee Service
DETECTING THE CONVERGENCE CLUBS AND CATCH−UP IN GROWTH

DETECTING THE CONVERGENCE CLUBS AND CATCH−UP IN GROWTH

Authors: Poh Choo Song| School of Mathematical Sciences, Universiti Sains Malaysia, Penang, Malaysia, Siok Kun Sek| School of Mathematical Sciences, Universiti...
( 39 downloads)
Abstract

We conduct empirical panel data analysis to detect the catching- up effect in growth and the possibility to form different convergence clubs in selected Europe and Asian economies. In particular, we seek to investigate if the selected countries are able to catch- up to the growth level of developed economy of the United Kingdom (U.K.). The control variables used to test for conditional convergence include inflation, trade, net inflow of foreign direct investment, total population and government consumption expenditure. Our results reveal that all economies except Turkey and India are able to catch- up with U.K. economy. The economies in both regions of Europe and Asia are able to form their convergence clubs.

Keywords: Catch–up effect, convergence, panel data analysis
INTERDEPENDENCE OF SOUTH ASIAN & DEVELOPED STOCK MARKETS AND THEIR IMPACT ON KSE (PAKISTAN)

INTERDEPENDENCE OF SOUTH ASIAN & DEVELOPED STOCK MARKETS AND THEIR IMPACT ON KSE (PAKISTAN)

Authors: Safdar Hussain Tahir| Department of Banking & Finance, Government College University, Faisalabad (Pakistan), Hazoor Muhammad Sabir| Department of Econ...
( 36 downloads)
Abstract

The objective of this study was to investigate the interdependence among the South Asian and developed markets and their impact on Karachi Stock Exchange. The data were collected from eight worldly stock exchanges, four from each South Asia and developed countries for the period starting from July, 1999 to June, 2011. For analytical purposes, the techniques like Correlation Matrix, Unit root, Co integration test and Granger Causality were applied. The correlation results indicated that there was no significant relationship between the South Asian and developed equity markets. However the equity market of US and India found correlated with each other individually. A bidirectional casual relationship was found between CSE and KSE through Granger Casual test. The Equity Markets of South Asia and Developed countries are not co integrated with each other. The international portfolio managers are advised to include Karachi Stock Markets in the developed market portfolios, because the Karachi Stock Market is not linked with the Developed world.

Keywords: Stock Exchange, South Asian, Developed markets, Interdependence
RENMINBI AS NUMBER TWO IN EAST ASIA

RENMINBI AS NUMBER TWO IN EAST ASIA

Authors: Jyh-Dean Hwang| Department and Graduate Institute of International Business ,National Taiwan University, Taipei, Taiwan.
( 34 downloads)
Abstract

This paper investigates the emerging influence of the Chinese renminbi on the exchange rate movements of East Asian currencies. China stopped pegging her currency to the US dollar and moved into a managed floating exchange rate system on July 21, 2005. The change in China’s exchange rate regime opens a window of opportunity to investigate the influence of renminbi on the exchange rate movements of East Asian currencies. This paper uses daily exchange rate data from July 24, 2005 to October 31, 2011 for empirical analysis. Empirical results from this paper reaffirm the dominant position of the US dollar in East Asia. Our results indicate that the influence of the renminbi on the daily exchange rate movements of East Asian currencies is second only to that of the dollar. With the growing importance of the Chinese economy, the renminbi has begun to exert its influence on the exchange rate determinations in East Asia at least in the very short run. We have done extensive robustness checks to ensure the validity of our estimation results. In the 1990s and early 2000s, many studies document an increasing influence of the Japanese yen and suggest the emergence of a yen bloc in East Asia. While this issue is not the focus of the present paper, results of this paper do cast doubts on the making and prospect of a yen bloc in East Asia.

Keywords: Renminbi, East Asian Currencies, Exchange Rate Movements, Cointegrating Relations
FACTORS DETERMINING RESIDENTIAL RENTAL PRICES

FACTORS DETERMINING RESIDENTIAL RENTAL PRICES

Authors: Ivy Drafor Amenyah| Economics Department, Methodist University College Ghana, Ernest Afenyi Fletcher| Abt Associates Inc., Tamale Ghana
( 53 downloads)
Abstract

Due to the high demand for residential apartments, landlords take undue advantage of tenants and increase rent without adhering to rent regulations. A high proportion of the population in Ghana rents than own homes because many cannot afford to own. There is frequent movement of workers from one city to another, especially to urban areas, resulting in increases in demand and price of rented accommodation. This study explores the impact of location and apartment characteristics on rental prices, using a survey of the Accra Metropolitan Area. Data from three contrasting locations in Accra was analysed and the results show that location, number of bedrooms, availability of amenities and facilities, and sharing of facilities are significant in determining residential rental prices. The type of apartment people live in and the kinds of facilities they share with others have implications for health and the environment and require policy response with efforts to improve housing regulations in Ghana.

Keywords: Residential rental prices in Ghana, suitable accommodation, sharing of facilities and amenities, relationship between rent and public health, reasons for choice of apartment for rent
IMPACT OF FIRM'S CHARACTERISTICS ON STOCK RETURN: A CASE OF NON-FINANCIAL LISTED COMPANIES IN PAKISTAN

IMPACT OF FIRM'S CHARACTERISTICS ON STOCK RETURN: A CASE OF NON-FINANCIAL LISTED COMPANIES IN PAKISTAN

Authors: Safdar Hussain Tahir| Department of Banking & Finance, Government College University, (Pakistan), Hazoor Muhammad Sabir| Department of Economics, Gove...
( 58 downloads)
Abstract

The unique characteristics of the firms have some power to predict the expected returns. This study was conducted with an attempt to bridge the gap in the literature by offering empirical evidence about firm’s characteristics and their effect to stock returns. The secondary data of 307 Non-financial companies listed in Karachi Stock Exchange (KSE) were collected from the B-Recorder and Basic Balance Sheet Analysis (BBA) issued by the State Bank Of Pakistan for the period from 2000 to 2012. Market Capitalization (MC), sales Growth (SG), Earnings per Share (EPS) and Book to Market value (BMV) were taken as independent variables while Stock Market Returns as dependent variable. First two independent variables were used as proxies for size effect while later as value effect. Economic techniques like Correlation Matrix, Multiple regression analysis, Unit root test and Granger Causality were applied for empirical testing of the data. Results revealed that MC, EPS and BTM value had significant impact while sales growth had no effect on stock market returns.

Keywords: Stock Market Returns, Size effect, Value effect, Firm characteristics
OPERATIONAL PERFORMANCE OF FISCAL AND MONETARY POLICIES IN NIGERIAN FINANCIAL INSTITUTIONS

OPERATIONAL PERFORMANCE OF FISCAL AND MONETARY POLICIES IN NIGERIAN FINANCIAL INSTITUTIONS

Authors: John A. Enahoro| Department of Accounting, Babcock University, Ilishan, Nigeria, Olabisi Jayeola| Department of Accounting, Federal University of Agri...
( 42 downloads)
Abstract

The study assessed statutory functions of financial institutions as affected by fiscal and monetary policies in Nigeria. First bank, Access bank and Ecobank were Nigerian banks selected for the study. Questionnaires were administered on this survey and data analyzed using the Analysis of Variance and Regression. Results showed that fiscal and monetary policies had enhanced operational efficiency in the Nigerian financial institutions, by reducing financial indiscipline in the financial and fiscal systems. It was concluded that fiscal and monetary policies had galvanized government to committed budgetary management which would also address anomalies in the financial system.

Keywords: Economy Stabilization, Operational Performance, Financial Discipline
FINANCIAL MARKET STRUCTURE AND ECONOMIC GROWTH: EVIDENCE FROM NIGERIA DATA

FINANCIAL MARKET STRUCTURE AND ECONOMIC GROWTH: EVIDENCE FROM NIGERIA DATA

Authors: Anne C Maduka| Department of Economics, Anambra State University- Uli., Kevin O. Onwuka| Department of Economics, Nnamdi Azikiwe University, Awka.
( 54 downloads)
Abstract

In this paper, we investigate both the long run and short run relationships between financial structure and economic growth using time series data. The presence of a unit root in the time series data was tested using Augmented Dickey – Fuller and Philips – Perron tests. The long run relationship among the variables is estimated using Johansen and Juselius (1990) maximum likelihood procedure. While the vector error correction model is used to estimate short run the dynamic coefficients. The main results reveal that financial market structure has a negative and significant effect on economic growth based on Nigeria data. This suggests a low level of development of the country’s financial sector. The paper therefore recommends that there is a need to put appropriate financial policies in place that will encourage the growth per capita GDP.

Keywords: Financial market structure, Co integration test, ECM, Economic Growth, Nigeria
ECONOMETRICS ANALYSIS OF IMPACT OF CAPITAL MARKET ON ECONOMIC GROWTH IN NIGERIA (1971-2010)

ECONOMETRICS ANALYSIS OF IMPACT OF CAPITAL MARKET ON ECONOMIC GROWTH IN NIGERIA (1971-2010)

Authors: Owolabi A| Department of Banking and Finance, the Federal Polytechnic, Ado – Ekiti Nigeria, Ajayi N.O| Department of Business Administration and Manag...
( 37 downloads)
Abstract

The stock market is a common feature of a modern economy and it is reputed to perform some necessary functions, which promote the growth and development of the economy. This study examines whether or not stock market promotes economic growth in Nigeria. To achieve this objective, ordinary least square regression (OLS) was employed using the data from 1971-2010. The result indicated that there is a positive relationship between economic growth and all the stock market development variables used. With 97% R-squared and 95% adjusted R-squared, the result showed that economic growth in Nigeria is adequately explained by the model for the period between 1971 and 2010.By implication 95% of the variation in the growth of economic activities is explained by the independent variables. The result of the study, which established positive links between the stock market and economic growth, suggests the pursuit of policies geared towards rapid development of the stock market. Also, all sectors of the economy should act in a collaborative manner such that the optimum benefits of linkages between the stock market and economic growth can be realized in Nigeria.

Keywords: null
ESTIMATING GROWTH IN INVESTMENT OF MICRO AND SMALL SCALE ENTERPRISES IN NIGERIA

ESTIMATING GROWTH IN INVESTMENT OF MICRO AND SMALL SCALE ENTERPRISES IN NIGERIA

Authors: Ojenike Joseph Olusola| Obafemi Awolowo University, Ile-Ife, Osun State, Nigeria, Olowoniyi Adeyemi Olusola| Obafemi Awolowo University, Ile-Ife, Osun...
( 43 downloads)
Abstract

This study analyzed the growth in investment of Micro and Small Scale Enterprises Intermediated by the informal credit market in Nigeria. Primary data for this study were collected from 10 (ten) Local Government Areas of Oyo State, Nigeria using a multi-stage sampling technique. The result indicates that size of lending, experience in lending business have positive and significant impact on growth in investment of micro and small scale enterprises. Policy aimed at making fund increasingly available to small scale enterprises is recommend to boost growth in small and micro enterprises.

Keywords: Micro and small scale markets, financial market, Informal sources of finance
CAPITAL ADEQUACY STANDARDS, BASLE ACCORD AND BANK PERFORMANCE: THE NIGERIAN EXPERIENCE (A CASE STUDY OF SELECTED BANKS IN NIGERIA)

CAPITAL ADEQUACY STANDARDS, BASLE ACCORD AND BANK PERFORMANCE: THE NIGERIAN EXPERIENCE (A CASE STUDY OF SELECTED BANKS IN NIGERIA)

Authors: JOHN EMEKA EZIKE| Department of Finance, Faculty of Business Administration, University of Lagos, OKE M.O| Department of Finance, Faculty of Business...
( 100 downloads)
Abstract

Capital adequacy standards for banks that operates internationally is of major concern for bank regulators worldwide. In consequence, the Bank for International Settlements, (BIS) established a framework for measuring capital adequacy for banks in the group of ten (G10), industrialized nations of the world. The adoption of the standards in the city of Basle came to be referred as the Basle Capital Accord on Capital Adequacy Standard. The Capital adequacy Standard under the Basle accord has been widely accepted worldwide by bank regulators and was implemented by the Central Bank of Nigeria, effective December 2005. The objective of this study is to investigate the impact of the adoption of the Capital Adequacy Standards on the performance of Nigerian banks. The study involved the use of ordinary least squares (OLS) estimation technique to examine and determine the effect of the independent variables – loans and advances, shareholders funds, total assets and customer deposits – on the dependent variables – Earnings per share (EPS) and profit after tax. The results of the analysis showed that capital adequacy standards, exert a major influence on bank performance. In addition the impact of the Nigerian monetary authority on the new capital requirements was found to be complemented with the adoption of the Basle accord framework. The study concludes with the recommendation that the CBN should not rely soly on the capitalization of banks as a determinant of bank performance but also should concentrate on efficient and effective bank supervision and risk management.

Keywords: Basle accord, Capital adequacy standards, Risk-weighted assets

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