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Research Article
Impact of Interest Rate, Exchange Rate and Inflation on Stock Market Dynamics in Nigeria
Adekunle Peter,
Olorunfemi Olutope,
Rabi'a Muhammad,
Francisca Ogbuehi*
,
Igweze Amechi
Issue:
Volume 12, Issue 6, December 2024
Pages:
352-362
Received:
12 February 2024
Accepted:
27 August 2024
Published:
20 November 2024
Abstract: This study aimed to assess the impact of inflation, exchange rate, and interest rate on stock market returns and volatility in Nigeria using data from 2000M1 to 2022M9. The Autoregressive Distributed Lag (ARDL) model was employed to investigate the relationship between stock market returns and the independent variables, while the Generalized Auto-Regressive Conditional Heteroskedasticity (GARCH) model was used to examine the impact on stock market volatility. Preliminary tests indicated no serial correlation but heteroskedasticity among the independent variables, which was addressed using the ARDL model with a HAC (Newey-West) covariance matrix adjustment. The results revealed significant stock return effects at a 10% level of significance with a lag of 4, suggesting a link to past performance up to four months. Additionally, the prime lending rate exhibited significance at a lag of 1, indicating the stock market's response to changes in the prime lending rate after one month. However, no significant response was found for changes in the exchange rate and inflation during the study period. The GARCH model showed that all variables, except inflation, significantly impacted stock market volatility. Notably, the maximum lending rate, prime lending rate, interbank rate, and Treasury bill rate had substantial effects on stock market volatility. The study suggests that the monetary authority should focus on interest rate mechanisms for more effective and responsive monetary policy decisions, particularly regarding the stock market.
Abstract: This study aimed to assess the impact of inflation, exchange rate, and interest rate on stock market returns and volatility in Nigeria using data from 2000M1 to 2022M9. The Autoregressive Distributed Lag (ARDL) model was employed to investigate the relationship between stock market returns and the independent variables, while the Generalized Auto-R...
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Research Article
The Influence of Liquidity, Solvency, Activity on Profitability in the Cement Sub-Sector Manufacturing Industry Listed on the Indonesian Stock Exchange (Bei) for the Period 2018-2022
Eka Sutisna*
Issue:
Volume 12, Issue 6, December 2024
Pages:
363-371
Received:
16 September 2024
Accepted:
11 November 2024
Published:
21 November 2024
Abstract: This study aims to determine the effect of Liquidity (Current Ratio), Solvency (Debt to Equity Ratio), and Activity (Total Assets Turnover) on profitability with measuring instruments (Return on Assets) in the cement sub-sector manufacturing industry in 2018- 2022. The data used in this study are annual financial report data on 6 cement companies listed on the Indonesia Stock Exchange for the period 2018-2022. The research method is quantitative with descriptive analysis. The classical assumption test performed includes multicollinearity test, autocorrelation test, and heteroscedasticity test. The results of the analysis use and hypothesis testing which includes determination analysis, partial test (t test), simultaneous test (F test) and uses multiple linear regression models. The results of this study indicate that, simultaneously Current Ratio, Debt to Equity Ratio, Total Assets Turnover affect Return on Assets sig value 0.000, with an Adjusted R-square value of 51.6%. Partially, Current Ratio has a positive but insignificant effect on ROA, Debt to Equity Ratio has a positive and significant effect on ROA, and Total Assets Turnover has a positive and significant effect on ROA.
Abstract: This study aims to determine the effect of Liquidity (Current Ratio), Solvency (Debt to Equity Ratio), and Activity (Total Assets Turnover) on profitability with measuring instruments (Return on Assets) in the cement sub-sector manufacturing industry in 2018- 2022. The data used in this study are annual financial report data on 6 cement companies l...
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Research Article
Organisation Advocacy While Experiencing a Career Plateau: The Mediating Moderating Role of Emotional Exhaustion and Organisation Embeddedness
Vivek Jain*
Issue:
Volume 12, Issue 6, December 2024
Pages:
372-380
Received:
25 September 2024
Accepted:
11 November 2024
Published:
21 November 2024
Abstract: Board members often focus on improving the company’s net promoter score. An excellent net promoter score reflects customers’ and employees’ engagement with the company and their readiness to engage in organisational advocacy. Companies often measure organisation advocacy to measure the extent of employee engagement. This research evaluates factors that could influence organisation advocacy. It studies the negative impact of career plateau and emotional exhaustion on organisation advocacy. It further evaluates the positive moderating impact of organisation embeddedness on organisation advocacy. The social identity theory lens evaluates the model and posits that organisation advocacy could be compromised if the employee’s identity gets threatened. The research findings support a significant negative impact of emotional exhaustion on organisation advocacy. Further results prove a significant positive impact of career plateau on emotional exhaustion and a negative impact on Organisation advocacy, mediated through emotional exhaustion. Organisation embeddedness is further seen to positively moderate the combined mediated negative impact of career plateau and emotional exhaustion on organisation advocacy. Employees who are embedded in the organisation try to maintain their social identity and avoid speaking negatively about their organisation. For management, this paper brings forth the point that the supervisor occupying their position for a long time may often be the reason for the subordinate not getting a promotion and experiencing a career plateau. Strategies to maintain subordinate social identity, reduce career plateau, reduce emotional exhaustion and improve organisation embeddedness are further deliberated.
Abstract: Board members often focus on improving the company’s net promoter score. An excellent net promoter score reflects customers’ and employees’ engagement with the company and their readiness to engage in organisational advocacy. Companies often measure organisation advocacy to measure the extent of employee engagement. This research evaluates factors ...
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Review Article
A Study on Portfolio Management Strategies Adopted by Asset Management Companies Across the Globe
Rao Mvks*,
Arttu Einari
Issue:
Volume 12, Issue 6, December 2024
Pages:
381-391
Received:
29 June 2024
Accepted:
14 October 2024
Published:
22 November 2024
Abstract: The asset management industry has been growing drastically over the last 15 years. It grew from 45,6 trillion USD to 103,1 trillion USD from 2009 to 2020, In Asia, it has grown 483% over the 11 years. Similarly, Latin America, the Middle East, and Africa saw the most minor growth and were valued at trillions of USD. Retail investors now comprise 41% of the asset management industry in China and India and above 55% of the asset management investors in the country. Since the Healthy Growth of AMC is the same as Millions of Retailers in the respective Financial Sectors, It is necessary to study the Portfolio Management Strategies adopted by Asset Management Companies across the Globe in general and In India in Particular. Hence, an attempt is made to study the performance and strategies of global AMCs and also observe the opportunities and challenges the same across the globe with the main objective of understanding the concept of Portfolio Management Strategies and Asset Management Companies; to review the existing literature on the topic concerned; to analyze the opportunities and challenges of the same across the globe. The study is an observatory in nature and revealed that the main opportunity is to get support from the respective economies of the countries to get desired growth in AMC investments and exploit the developments in various sectors via making Portfolio investments by direct buying of financial instruments or through mutual funds. Similarly, this study seeks to shed light on how emerging markets like India would be helpful with its key govt initiatives by ease of doing business, tax concessions for Foreign Domestic Investments (FDIs) and Foreign Institutional Investors (FIIs) etc. The main suggestion is to diversify their assets based on risk tolerance which can reduce the costs of the operations by using economies of scale to minimize the costs. The survival of any AMC across the globe is mainly on the feasibility of their services which could be affordable to retail investors by the end of the day. Similarly, Technology is evolving fast, and asset management companies need to implement new tools as soon as they are released to use them to create more accurate models to predict market movements.
Abstract: The asset management industry has been growing drastically over the last 15 years. It grew from 45,6 trillion USD to 103,1 trillion USD from 2009 to 2020, In Asia, it has grown 483% over the 11 years. Similarly, Latin America, the Middle East, and Africa saw the most minor growth and were valued at trillions of USD. Retail investors now comprise 41...
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Research Article
Developing Global Leadership Activities: Integrating Psychological and Spiritual Dimensions
Odashev Iqboljon Mashrabjonovich*
Issue:
Volume 12, Issue 6, December 2024
Pages:
392-402
Received:
10 October 2024
Accepted:
4 November 2024
Published:
28 November 2024
Abstract: This study aims to investigate the factors and mechanisms involved in creating psychological and spiritual images of global leaders, as well as their impact on leadership effectiveness. The research methodology involves a comprehensive review of existing literature and practical cases featuring real examples of global leadership. The study seeks to elucidate how psychological and spiritual dimensions contribute to the formation of leaders' identities and influence their decision-making and interactions in a global context. The expected findings of this research are anticipated to shed light on the complexities of leadership development and inform strategies for nurturing effective global leaders with a holistic understanding of human psychology and spirituality. By delving into the interplay of psychological and spiritual dimensions in developing global leadership activities, this study offers a novel perspective that contributes to the broader understanding of leadership effectiveness and paves the way for nurturing leaders with a more comprehensive worldview. By analyzing real examples from advanced economies of the world, such as Starbucks, Microsoft, Patagonia, and Unilever corporations, effective recommendations are drawn for Uzbek business owners, entrepreneurs, and global management practitioners from emerging economies in Central Asia. Leadership practices of these businesses are summarized by selected directions in a step-by-step manner.
Abstract: This study aims to investigate the factors and mechanisms involved in creating psychological and spiritual images of global leaders, as well as their impact on leadership effectiveness. The research methodology involves a comprehensive review of existing literature and practical cases featuring real examples of global leadership. The study seeks to...
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Research Article
In - Depth Research on User Profiles in Securities Companies Under the Digital Background
Huimin Li*
Issue:
Volume 12, Issue 6, December 2024
Pages:
403-432
Received:
14 October 2024
Accepted:
18 November 2024
Published:
29 November 2024
Abstract: Based on systematically grasping the development, integration, and application of relevant technologies such as the industrial value - chain model in the securities industry, the securitization of real - industry assets and their flow patterns, and regulatory and risk - prevention - and - control models, this paper conducts in - depth research on user profiles centering on the main path of securities business and product innovation. Aiming at the modeling problems of business - behavior - level homomorphism consistency and business - network - isomorphy consistency in business network systems, the concept of business - network profiles is originally proposed. That is, taking the description image of user profiles as an index, equivalent classification analysis of the description image of business - network profiles is carried out. According to the behavior equivalence class and behavior - homomorphism consistency, the user - network associations and interaction relationships are identified, and the user - association - action - and - influence - network profile is established, thereby obtaining more accurate and scientific data analysis and business applications. Finally, from the perspectives of algorithms and modeling, the structural model frameworks of the correlation relationships, interaction relationships, and influence relationships between user profiles and business - network profiles are discussed one by one, and the extended user profiles, business - network profiles, and their application results are presented.
Abstract: Based on systematically grasping the development, integration, and application of relevant technologies such as the industrial value - chain model in the securities industry, the securitization of real - industry assets and their flow patterns, and regulatory and risk - prevention - and - control models, this paper conducts in - depth research on u...
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Research Article
Analysis of Bank Financial Health During and After the COVID-19 Pandemic Using the Camel Method (Study at PT. Bank Rakyat Indonesia (Persero), tbk 2020-2023)
Issue:
Volume 12, Issue 6, December 2024
Pages:
433-438
Received:
16 September 2024
Accepted:
28 November 2024
Published:
7 December 2024
Abstract: Analysis of Bank Financial Health During and After the COVID-19 Pandemic Using the CAMEL Method (Study at PT. Bank Rakyat Indonesia (Persero), Tbk). This study aims to determine whether PT. Bank Rakyat Indonesia (Persero), Tbk experiences differences in financial health as measured by CAMEL (Capital, Assets, Earnings and Liquidity) between during and after the COVID-19 pandemic. The method used in this analysis is the Descriptive Method with a Quantitative Approach. The data used are the Financial Reports of PT. Bank Rakyat Indonesia (Persero), Tbk for the period 2020 - 2023. and the data analysis technique uses the CAMEL Method. The results of the study show that CAMEL PT. Bank Rakyat Indonesia (Persero), Tbk During and After the COVID-19 Pandemic is declared healthy. Average CAR BRI During COVID-19 23.60% and CAR BRI After COVID-19 23.60%, Average KAP During COVID-19 1.76% and After COVID-19 1.96%, Average NPM During COVID-19 72.45% and After COVID-19 78.64%, Average ROA During COVID-19 2.82% and After COVID-19 3.93% and Average LDR During COVID-19 82.76% and After COVID-19 84.73%. Bank BRI was able to face the economic crisis during COVID-19 and was consistently able to maintain its financial performance well.
Abstract: Analysis of Bank Financial Health During and After the COVID-19 Pandemic Using the CAMEL Method (Study at PT. Bank Rakyat Indonesia (Persero), Tbk). This study aims to determine whether PT. Bank Rakyat Indonesia (Persero), Tbk experiences differences in financial health as measured by CAMEL (Capital, Assets, Earnings and Liquidity) between during a...
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Research Article
The Effect of Climate Change on Agricultural Output in Ethiopia
Antehun Eshetu*
Issue:
Volume 12, Issue 6, December 2024
Pages:
439-450
Received:
2 September 2024
Accepted:
9 November 2024
Published:
7 December 2024
Abstract: Globally, the most pressing environmental issue at the moment is thought to be climate change. The resulting effect is a clear deterioration in both overall economic growth and agricultural output. The objective of the study was to look at how climate change might affect Ethiopian agricultural productivity in the short- and long-run between 1990 and 2023. An analysis of the short- and long-run effect of climate change on agricultural output was conducted using the ARDL cointegration approach. For the unit root test, the ADF test was employed. The results of the bound test exhibit that the real agricultural GDP, labour force, average annual rainfall, carbon dioxide emissions, average annual temperature, agricultural land and imports of fertilizer inputs have a stable long-run relationship. The estimated long-run model shows that the country's main component of GDP, agricultural output, is significantly impacted by climate change. The error correction term's coefficient is -0.783, indicating an annual adjustment of nearly 78.3% percent towards long-run equilibrium. The estimated coefficients of the short-run show that mean annual rainfall have a significant effect whereas the average temperature is an insignificant effect on output. Average temperature has a negative effect on agricultural output over the long run, whereas mean annual rainfall has positive effect. These are the two key variables of significance. According to the study, in order to lessen the effects of climate change, the government and other stakeholders should develop specific policies. They should also concentrate on technological innovation that prevents temperature increases from increasing output and the adoption of technology at both the macro and micro levels.
Abstract: Globally, the most pressing environmental issue at the moment is thought to be climate change. The resulting effect is a clear deterioration in both overall economic growth and agricultural output. The objective of the study was to look at how climate change might affect Ethiopian agricultural productivity in the short- and long-run between 1990 an...
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Research Article
Domestic Debt Exchange Program Impact on Financial Sector Performance in a Digital Technology Era
Issue:
Volume 12, Issue 6, December 2024
Pages:
451-465
Received:
3 September 2024
Accepted:
4 October 2024
Published:
7 December 2024
Abstract: Governments economic recovery policy such as domestic debt exchange program (DDEP) significantly influences the patronage of digital financial products, and services in developing economies. This often led to a weakening of financial institutions ' capital and overall performance. Using dual analysis, this study applies both qualitative and quantitative approaches to analyze the impacts of DDEP through the Lense of digital financial technology applications by financial institutions and conducted both regression and data envelopment analysis. Using the smartPLS model, paths were created to identify and analyze key impacting factors. A bootstrapping of 333 samples was carried out using selected financial institutions in a DDE implemented economy, weighing each case, where t = 1.96 significant value was taken and a p-value <0.05 was also considered to be statistically significant. The study assumed that an efficient DEA is achieved if the DMUO has an ideal solution of µ*, v* in model two and µ* > 0 and v* > 0 and includes a Ɵ*, ƛ*, ƛ* ideal solution. The study found that DDEP can have 15 negative impacts on financial institutions' performance. Also, most financial institutions were found to be inefficient in applying technology to mitigate the negative effects DDEP. Further, despite the introduction of advanced technology financial, the study results showed that nonperforming loans increased between 25% to 35% within twelve months of introducing the DDE, meaning financial institutions are unable to collect both principal and interest on loans by capitalizing technology on during the DDE program. Also, the sector collectively can suffer a sharp increase in impairment loss on financial assets by over 92% during DDE program. In addition, DDEP can caused between 48.5% to 5.68% sharp decline to return on assets.
Abstract: Governments economic recovery policy such as domestic debt exchange program (DDEP) significantly influences the patronage of digital financial products, and services in developing economies. This often led to a weakening of financial institutions ' capital and overall performance. Using dual analysis, this study applies both qualitative and quantit...
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Research Article
Status of Green Financing and Sustainable Financing: Bangladesh Context
Md. Ashraful Alam*
Issue:
Volume 12, Issue 6, December 2024
Pages:
466-483
Received:
27 September 2024
Accepted:
25 October 2024
Published:
9 December 2024
Abstract: Almost all banks established green banking units in time, though there is a lack of seriousness in implementing green banking guidelines set by Bangladesh Bank. In the present situation, climate change, sustainability, environment, etc., have become major global concerns. There is no other planet in the universe for human beings and other animal habitats with ecological harmony. This study aims to examine the green financing (GF) and sustainable financing (SF) status and role of central bank in Bangladesh. This study gathered mainly secondary data from Bangladesh Bank (BB) website in 2023 and 2024 and used MS-excel software for tabulating, analyzing and comparing results. This study finds 22 banks achieved GF target where UCB PLC stood in the top position at 36.21%, next to Jamuna Bank PLC at 29.85%, IBB PLC at 22.42%, and Bank Asia stood at the end at 5.47%. On the other hand, 17 commercial banks fulfill the SF target of the total term loan disbursement set by Bangladesh Bank. It is observed that in Q4, 2023, 17 banks out of 61 had exposure to green finance, where 16 banks were PCBs. Only Bangladesh Krishi Bank occupied the top position, accounting for 56.48% of sustainable finance next to NRB Bank PLC 42.86%, BRAC Bank PLC 41.32%, etc., and Jamuna Bank PLC stood last position at 21.57%. The study also found the total target achieved by banks was 9.09% in GF and 27.24% in SF, which exceeded the target set by the Bangladesh bank and it is a milestone to achieve SDGs set by the united nations (UN) by 2030.
Abstract: Almost all banks established green banking units in time, though there is a lack of seriousness in implementing green banking guidelines set by Bangladesh Bank. In the present situation, climate change, sustainability, environment, etc., have become major global concerns. There is no other planet in the universe for human beings and other animal ha...
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Research Article
Indian Festivals: A Booster Dose for the Indian Economy
Issue:
Volume 12, Issue 6, December 2024
Pages:
484-493
Received:
27 October 2024
Accepted:
12 November 2024
Published:
12 December 2024
Abstract: Festivals have great importance in India. People celebrate festivals with great pomp and show. During the festive season, this also gives a booster dose to the Indian economy. During the festival season, the Indian economy gets an opportunity to take off. In a year's festive season, India has an estimated turnover of about four lakh crores. Festivals have special significance in Indian culture. Indian citizens celebrate these festivals with devotion and enthusiasm. During these festivals, retail trade worth between Rs 1 to 2 lakh crore takes place in the country, which is a very large part of the retail trade done during the whole year. During the festive period, lakhs of new employment opportunities are created and there is a great deal of employment. The objective of this research article is to explain the contribution of Indian festivals in strengthening the Indian economy. Purpose: This paper examined how Indian festivals a booster dose for the Indian economy. Economic and non-economic factors are associated with people’s happiness in India. Methodology: This paper determined the significant factors that affected the average happiness of the Indian population by using a comparative analytical method and an ordinary least square regression analysis. These data are available by the Confederation of All India Traders (CAIT) Report on Diwali Sales, 2023, Retailers Association of India (RAI) – Festive Season E-Commerce Sales Report, 2023, Ministry of Tourism, India – “Cultural Tourism Statistics 2023.” The study examined the It is based on a detailed study of Indian festivals, wedding season and its relation with the Indian economy. Findings: The results indicated that Indian festivals are not just cultural celebrations; they are powerful engines that drive economic growth, create jobs and promote cultural tourism. Practical Implications: This paper offered crucial practical insights for policymakers in India. Promote eco-friendly products: Retailers and e-commerce platforms should highlight eco-friendly options during the festive season. Consumers can be encouraged to choose sustainable options through discounts or rewards. Digital payments and online shopping have already seen a boom during festivals. Collaborate with the global market: Originality/Value: This paper examined factors associated with people’s overall happiness in India. Data and Facts: The Economic Power of Indian Festivals In 2024, Indian festivals are expected to generate revenues of $75 billion, contributing significantly to sectors such as retail, e-commerce, hospitality, and tourism.
Abstract: Festivals have great importance in India. People celebrate festivals with great pomp and show. During the festive season, this also gives a booster dose to the Indian economy. During the festival season, the Indian economy gets an opportunity to take off. In a year's festive season, India has an estimated turnover of about four lakh crores. Festiva...
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