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Verbal Qualitative Information from Social Networks and Stock Performance of Tunisian Financial Companies
Hana Marzouk,
Wyème Ben Mrad Douagi
Issue:
Volume 11, Issue 3, May 2023
Pages:
61-66
Received:
9 April 2023
Accepted:
28 April 2023
Published:
18 May 2023
Abstract: Social networks have invaded our world and changed the way we communicate. Even the financial world has turned to social media, with Twitter leading the way. As a result, social media is becoming an undeniable tool that affects the stock market. In this study, we consulted the articles published on the facebook page ilboursa of Tunis. The published articles contain an announcement of the news of the movements of the shares of the listed companies by using negative and positive words. Our database is composed by a manual counting of these qualitative verbal information. We used the list of words of the psychological dictionary "Harvard-IV-4". Our research focuses on 26 Tunisian financial companies listed on the Tunis Stock Exchange, over a one-year horizon, from 01 January 2015 until 31 December 2015. We used the GMM (Generalized Method of Moment) on dynamic panel. The generalized method of moments analyzes two models in which five days of delay of the dependent variable appear as explanatory variable. The results of the study are twofold. First, the Tunis stock exchange seems to react positively to positive qualitative information. Second, it reacts negatively to negative qualitative information. Among other things, the impact of stock returns on information is quite important. It is always necessary to master the tool of social networks to disseminate good and relevant qualitative financial information on the financial market.
Abstract: Social networks have invaded our world and changed the way we communicate. Even the financial world has turned to social media, with Twitter leading the way. As a result, social media is becoming an undeniable tool that affects the stock market. In this study, we consulted the articles published on the facebook page ilboursa of Tunis. The published...
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Effect of Internationalization on Earnings Per Share in Deposit Money Banks in Selected African Countries
Cletus Oluwadare Ebe,
Folajimi Festus Adegbie,
Ayodeji Temitope Ajibade
Issue:
Volume 11, Issue 3, May 2023
Pages:
67-78
Received:
25 April 2023
Accepted:
11 May 2023
Published:
18 May 2023
Abstract: Performance expectation and shareholders’ wealth creation have made banks to take their banking operations beyond their immediate local environments. Research has shown that banks take advantage of crossboarder activities to improve and increase their earnings and ultimately increase shareholders’ wealth maximization motive of the banks. There have been divergent results and opinions on the impact of banks’ foreign operations on the total performance of the banks. Consequently, in contributing to knowledge, this study examined the effect of internationalization on earnings per share in Deposit Money Banks in slected African countries. This research examined the impact of internationalization on earnings per share in deposit money banks in Nigeria, South Africa and Kenya between 2007 and 2021 using expo facto research design. Purposive sampling technique was employed to select seventeen deposit money banks out of a population of seventy-one banks that had international operations authorization licences in the selected countries. Secondary dat were extracted from the published annual financial statements of the selected banks. The data were considered valid and reliable because of the independent opinions expressed on them by the various external auditors. The data were ananlysed using descriptive and inferential statistics. The result obtained from the multiple regression analysis suggested that internationalization exhibited a significant effect on earnings per share, (Ad jR2 = 0.0145; F(5, 249) = 23.54; p<0.05). In addition, exchange rate significantly controlled the effect of internationalization on earnings per share (Adj. R2 = 0.0285; F(6, 248) = 13.14; p<0.05. The study concluded that internationalization affected earnings per share in DMBs in selected African countries. The study therefore recommended that investors should be concerned and carefully evaluate the reasons for the banks going international. Also, policymakers, financial regulators and the government should not be in a haste approving internationalization banking authorizations to banks, when huge opportunities still subsist in the domestic level.
Abstract: Performance expectation and shareholders’ wealth creation have made banks to take their banking operations beyond their immediate local environments. Research has shown that banks take advantage of crossboarder activities to improve and increase their earnings and ultimately increase shareholders’ wealth maximization motive of the banks. There have...
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Effects of Working Capital Management on Profitability of NBFIs in Rwanda
Issue:
Volume 11, Issue 3, May 2023
Pages:
79-86
Received:
1 November 2022
Accepted:
9 January 2023
Published:
29 May 2023
Abstract: Working capital management is a key factor in determining a company's financial management. Inefficient or inefficient management of working capital impacts profitability and liquidity. To achieve optimal working capital management, company management must carefully manage the trade-off between profitability and liquidity. The general objective of this study was to determine the Effects of Working Capital Management on Profitability of NBFI in Rwanda. The study adopted Credit theory and Transaction Cost Theory. The study adopted a descriptive research design using both quantitative and qualitative approaches. The study assumed a target population of 96 individuals, a multistage random sample of 38 executives from various categories. Survey data were collected using a structured questionnaire. To test whether there is an impact on the profitability of the NBFIs in Rwanda, the correlation between inventory management policy and profitability and the correlation analysis between lending policy and profitability were used. Working capital has been found to have a significant relationship with profitability. Based on the research findings, it can be concluded that working capital is a positive, significant predictor of profitability. The findings of the study suggested that there is a positive and significant relationship between credit policy and profitability. A positive significant linear relationship between inventory control policies and profitability of NBFI in Rwanda was observed. The NBFI financial managers should regularly review their credit policies to ensure they are optimal. NBFI's finance managers should take precautions to help them maintain optimal inventory levels for both raw materials and finished goods.
Abstract: Working capital management is a key factor in determining a company's financial management. Inefficient or inefficient management of working capital impacts profitability and liquidity. To achieve optimal working capital management, company management must carefully manage the trade-off between profitability and liquidity. The general objective of ...
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Empirical Investigation into the Effect of Enterprise Risk Management on Financial Performance of Banks: Evidence from Deposit Money Banks in Nigeria
Chukwu Alexander Okoro,
Akintoye Ishola Rufus,
Ajibade Ayodeji Temitope
Issue:
Volume 11, Issue 3, May 2023
Pages:
87-94
Received:
13 May 2023
Accepted:
1 June 2023
Published:
9 June 2023
Abstract: Deposit money banks are the bedrock of Nigerian economy through provision of financial intermediary services to the various sectors, thereby supporting the economic development and growth of the nation. Globalization and the unpredictable business environment have increased the risks facing banks in Nigeria leading to dwindling financial performance. Evidence from literature showed that not many banks have integrated enterprise risk management into their operations. The study adopted ex-post facto research design. The population of the study was all the 12 deposit money banks in Nigeria for the period 2007 – 2021. Total enumeration sampling techniques was used. Data were sourced from the annual reports of the deposit money banks selected for the study. Data were analyzed using descriptive and inferential statistics. Enterprise risk management has significant effect on Net profit margin, Adj.R2 = 0.1791, F (7, 172) = 142.80, P < 0.05). Enterprise risk management has significant effect on Net Interest Income, Adj.R2 = 0.3702, F (7, 172) = 142.80, < 0.05). The study concluded that enterprise risk management affect the financial performance of deposit money banks in Nigeria. The study recommended that the policy makers should implement robust enterprise risk management frameworks with special focus on combination of leadership control variables with traditional risk management strategies as its effective implementation enhances the overall financial performance of banks.
Abstract: Deposit money banks are the bedrock of Nigerian economy through provision of financial intermediary services to the various sectors, thereby supporting the economic development and growth of the nation. Globalization and the unpredictable business environment have increased the risks facing banks in Nigeria leading to dwindling financial performanc...
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Board Dynamics and Corporate Performance: The Moderating Effects of CEO Power A Study of Listed Non-Financial Firms in Sub-Sahara Africa
Dheseviano Emiaso,
Gloria Ogochukwu Okafor
Issue:
Volume 11, Issue 3, May 2023
Pages:
107-112
Received:
2 May 2023
Accepted:
14 June 2023
Published:
27 June 2023
Abstract: The Board of Directors (BoD) is a company's highest executive body and the entity responsible for strategic decision-making and representation. The board of directors of a company can have an impact on the formulation of business and investment strategies, policies, and performance. In addition to examining the CEO power's moderating impact on the association between board independence and financial performance of listed non-financial companies in Sub-Saharan Africa, this study also investigated the relationship between board dynamics and corporate performance. Since the study used an ex post facto research design, secondary sources were used to collect the data. All listed non-financial firms in Sub-Saharan Africa made up the study's population. The study found a positive but non-significant link between board size, board independence, and CEO power and firm financial performance utilising financial statement statistics and exploratory factors in a regression model. The study's findings also suggest that the CEO's influence reduces the association between board independence and corporate financial performance. Therefore, the study draws the conclusion that board dynamics affects the corporate financial performance of listed non-financial corporations in Sub-Saharan Africa. It also makes several recommendations, such that companies adopt a manageable board size in order to enhance corporate financial performance.
Abstract: The Board of Directors (BoD) is a company's highest executive body and the entity responsible for strategic decision-making and representation. The board of directors of a company can have an impact on the formulation of business and investment strategies, policies, and performance. In addition to examining the CEO power's moderating impact on the ...
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Factors Determining Banks’ Loan and Advance: A Case Study on Commercial Banks in Ethiopia
Hussen Abdulkadir Roba,
Habtamu Alebachew Legass
Issue:
Volume 11, Issue 3, May 2023
Pages:
113-123
Received:
13 May 2023
Accepted:
12 June 2023
Published:
27 June 2023
Abstract: Commercial banks are the most important depository organizations that provide loan and advance in developing country. The objective of this study was to provide empirical evidence on determinants of banks’ loan and advances in Ethiopia. Fixed effect balanced panel regression was used for the data of ten purposively chosen commercial banks over the period of 12 years (2010 to 2021). To realize the stated objective quantitative approach and explanatory design were employed using secondary data sources from the audited financial statement. Consequently bank specific, industry specific and macro-economic variable that affect banks’ loan were selected and analyzed by using E-view 10 econometrics software. According to the findings, capital adequacy, liquidity ratio, bank size, and foreign exchange rate all have a positive and statistically significant impact on bank loans. Profitability ratios, cash reserve ratios, and broad money supply, on the other hand, has a negative and statistically significant impact on bank lending. While fixed asset ratio, asset quality ratio, and GDP were found to have statistically insignificant effects on the bank’s loans and advances. The regression result indicated that Profitability, cash reserve requirements, and broad money supplies all have negative effects. Therefore Ethiopian commercial banks and NBE must pay close attention and control for those variables to be able advancing banks’ loan.
Abstract: Commercial banks are the most important depository organizations that provide loan and advance in developing country. The objective of this study was to provide empirical evidence on determinants of banks’ loan and advances in Ethiopia. Fixed effect balanced panel regression was used for the data of ten purposively chosen commercial banks over the ...
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