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Corporate Governance and the Performance of Nigerian Banks
John Emmanuel Isaac,
Ibenta Steve Nkemdilim
Issue:
Volume 4, Issue 2, April 2016
Pages:
39-45
Received:
30 December 2015
Accepted:
25 January 2016
Published:
2 March 2016
Abstract: Although the consolidation and regulatory reforms were initiated in the Nigerian banking industry in 2004, the expected improvement in the operational performance and efficiency in the banking system has not been reflected in the overall health of the economy. It is in the light of the above, that this research examined the relationships between corporate governance mechanisms and performance of banks in Nigeria. This study used secondary data derived from publications of Central Bank of Nigeria (CBN), Nigeria Deposit Insurance Corporation (NDIC) and Security and Exchange Commission (SEC) from 2006 to 2014. The Pearson Correlation was used to assess the relationships between the corporate governance variables and banks’ performance. Statistical Package for Social Sciences (SPSS) was used for the analysis. The study observed that a significant negative relationship exists between board size, board composition and the financial performance of banks, while a positive and significant relationship was observed between directors’ equity holding and banks’ performance. The study concludes that, the directors’ equity holding is paramount in boosting the performance of banks in Nigeria. Thus, this study recommends that the regulatory authorities should make sure that all directors own a reasonable amount of equity in the banks they oversee as this will move them to do their best to enhance the performance of these banks.
Abstract: Although the consolidation and regulatory reforms were initiated in the Nigerian banking industry in 2004, the expected improvement in the operational performance and efficiency in the banking system has not been reflected in the overall health of the economy. It is in the light of the above, that this research examined the relationships between co...
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Contribution of the Information Technology Audit in Achieving the Quality of the Electronic Accounting System: Evidence from the Algerian Banking Sector
Mostéfaoui Sofiane,
Hamimeche Nardjes,
Akacem Omar
Issue:
Volume 4, Issue 2, April 2016
Pages:
46-51
Received:
14 February 2016
Accepted:
23 February 2016
Published:
4 March 2016
Abstract: The banking sector occupies a central position in the economy. This consideration stems from the roles and the responsibilities assumed by this institution. Therefore, the consolidation of the system comprising the banking and other financial institutions by all kinds of technology and information becomes more than a necessity in an attempt to improve the quality of the services provided in one hand and to strengthen the banking organization per se at the other. The latter objective is ensured by different mechanisms. One of these is the auditing mechanism. The paper sheds light on the impact of the information technology audit in increasing the quality of the bank accounting system. The study shows that the acquisition of the modern technology is not based only on feasibility, but in response to the requirement of the competition and the customers' satisfaction.
Abstract: The banking sector occupies a central position in the economy. This consideration stems from the roles and the responsibilities assumed by this institution. Therefore, the consolidation of the system comprising the banking and other financial institutions by all kinds of technology and information becomes more than a necessity in an attempt to impr...
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Determinants of Private Investment: A Systematic Review
Muhdin Muhammedhussen Batu
Issue:
Volume 4, Issue 2, April 2016
Pages:
52-56
Received:
9 January 2016
Accepted:
19 January 2016
Published:
4 March 2016
Abstract: Investment is considered as a crucial element of economic growth and post 2015 development agendas. The main aim of this study is to assess the determinants of private investment. For this purpose, concentrated and careful literature review was done on 11 papers conducted in nine African countries. Eight variables were considered for analysis. The result shows that output/national income, public investment and exchange rate are the critical variables affecting the performance of private investment. The others variables: interest rate, credit, inflation rate, international trade, and money supply are also slightly important in explaining the performance of private investment. The study finally recommends that countries should seriously work in creating enabling environment for private investment.
Abstract: Investment is considered as a crucial element of economic growth and post 2015 development agendas. The main aim of this study is to assess the determinants of private investment. For this purpose, concentrated and careful literature review was done on 11 papers conducted in nine African countries. Eight variables were considered for analysis. The ...
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Measuring Efficiency of Using Currency Derivatives to Hedge Foreign Exchange Risk: A Study on Advanced Chemical Industries (ACI) in Bangladesh
Issue:
Volume 4, Issue 2, April 2016
Pages:
57-66
Received:
11 February 2016
Accepted:
24 February 2016
Published:
7 March 2016
Abstract: Firms with greater growth opportunities and tighter financial constraints are more likely to use currency derivatives. This suggests that firms might use derivatives to reduce cash flow variation that might otherwise preclude firms from investing in valuable growth opportunities. Although in Bangladesh, the use of currency derivatives to hedge foreign exchange risk is not popular among the existing firms engaged in foreign exchange transactions, there are a few firms such as ACI & General Motors etc with extensive foreign exchange-rate exposure and economies of scale in hedging activities are more likely to use currency derivatives. This is because, given the potential shifts in the supply of or demand for currency, firms and individuals who have assets denominated in foreign currencies can be affected favorably or unfavorably. These firms may want to alter their currency exposure in order to grab benefit or hedge risk from the expected movements of exchange rates. This study provides a detailed analysis along with a background on currency derivatives which are commonly used by some of large firms existing in Bangladesh in order to capitalize on or hedge against expected exchange rate exposures measured by these firms. In this paper, we have also divulged an analytical framework for measuring exchange rate exposures accelerating the use of currency derivatives in foreign exchange market of Bangladesh.
Abstract: Firms with greater growth opportunities and tighter financial constraints are more likely to use currency derivatives. This suggests that firms might use derivatives to reduce cash flow variation that might otherwise preclude firms from investing in valuable growth opportunities. Although in Bangladesh, the use of currency derivatives to hedge fore...
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Financial Stochastic Modeling and the Subprime Crisis
Aitoutouhen Latifa,
Hamza Faris
Issue:
Volume 4, Issue 2, April 2016
Pages:
67-77
Received:
17 February 2016
Accepted:
1 March 2016
Published:
12 March 2016
Abstract: This present paper proposes to study the limits of mathematical models and their assumptions through the subprime crisis initiated at the summer 2007. Indeed, the mathematical modeling is one of the causes that have contributed to the bursting and the propagation of this financial collapse at the planetary level. However, the valorization of complex products such as (CDO and CDS) was supported by the use of the function of the 'Gaussian Copula' combined with the adoption of restrictive and erroneous assumptions. More precisely, this article aims to provide answers to the following interrogations: Which are the risks related to stochastic models, and which are the tools to evaluate and control them as well as the axes of reflection to solve this crisis of modeling?
Abstract: This present paper proposes to study the limits of mathematical models and their assumptions through the subprime crisis initiated at the summer 2007. Indeed, the mathematical modeling is one of the causes that have contributed to the bursting and the propagation of this financial collapse at the planetary level. However, the valorization of comple...
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Human Capital as One of the Drivers of Reliable Value of Medical Entities on the Example of International Cardiac Hospital
Issue:
Volume 4, Issue 2, April 2016
Pages:
78-82
Received:
1 January 2016
Accepted:
20 January 2016
Published:
18 March 2016
Abstract: This paper constitutes a contribution to a new discussion on the adequacy of existing company valuation methods with regard to the specific nature of medical entities in Poland. The research method used to fulfil the given scientific aims are: monographic methods, literature research on theory of company valuation, research survey on particular medical entity and its business performance results, statistical quantitative and qualitative analysis, case study analysis. The author points out the shortcomings of existing theories. Calls for taking into account the quality of the activities performed by medical companies in the methodology used for their valuation. As the outcome it is underlined that the human capital at the hospital is one of the key indicators of quality of their activity, translating into the value the entity has for its owner. Thus the scientific conclusion will be that better quality the medical personnel was the better financial ratios were achieved but it doesn’t find it’s reflection in existing company valuation method. Specially in case of medical entities human capital value seems to be crucial according to the business. It is being shown on cardiac hospital example. It should be evaluated on existing theories and looked for more sophisticated valuation method adjustable for health care entities not only in Poland but worldwide.
Abstract: This paper constitutes a contribution to a new discussion on the adequacy of existing company valuation methods with regard to the specific nature of medical entities in Poland. The research method used to fulfil the given scientific aims are: monographic methods, literature research on theory of company valuation, research survey on particular med...
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The Risks of Commercial Banks on Interest Rate Marketization
Issue:
Volume 4, Issue 2, April 2016
Pages:
83-86
Received:
25 February 2016
Accepted:
8 March 2016
Published:
21 March 2016
Abstract: The interest rate of market reform and deepening of our country commercial bank stability and sustainable development of the important and far-reaching impact. Is the core of modern economy and financial interest rates, as the price of money, interest rate plays an important role in the allocation of resources. As the interest rate market advance, domestic commercial bank's overall risk level is lower than the optimal risk. In this paper, in combination with the practical situation of the market, on how the commercial Banks under the background of market-oriented interest rate risk prevention, risk aversion caused by excessive systemic risks are expounded.
Abstract: The interest rate of market reform and deepening of our country commercial bank stability and sustainable development of the important and far-reaching impact. Is the core of modern economy and financial interest rates, as the price of money, interest rate plays an important role in the allocation of resources. As the interest rate market advance, ...
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Innovation and Performance of Tunisian Banks
Issue:
Volume 4, Issue 2, April 2016
Pages:
87-92
Received:
1 March 2016
Accepted:
9 March 2016
Published:
24 March 2016
Abstract: Several studies in the economic field are interested to the factors that influence the performance bank (Mabrouk and Mamoghli, 2010; Gurhan, Gunduz, Kemal and Lutfihak, 2005). The purpose of our work is to check the compatibility of these results, the Tunisian context and this, through the analysis of the characteristics of the Tunisian banks and their impacts on the performance. For has this problem, of descriptive analysis and econometric techniques have been conducted on a sample of Tunisian banks either 110 observations. The result of the model shows that the sign of connection between the size, diversification and the dependent variable (ROE) are statically significant (with the exception of financial resources and level of competition).
Abstract: Several studies in the economic field are interested to the factors that influence the performance bank (Mabrouk and Mamoghli, 2010; Gurhan, Gunduz, Kemal and Lutfihak, 2005). The purpose of our work is to check the compatibility of these results, the Tunisian context and this, through the analysis of the characteristics of the Tunisian banks and t...
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