Open Access Original Research Article

Asian Stock Markets’ Efficiency: An Econophysics Approach

Paulo Ferreira

Asian Journal of Economics, Business and Accounting, Page 1-9
DOI: 10.9734/AJEBA/2016/28347

Studying the efficiency in stock markets remains of importance as it can provide information about the possibility to make predictions concerning those markets. This paper’s purpose is to study the behavior of 17 Asian stock markets, divided in three different groups: developed, emergent and frontier markets. The results point towards a deviation from the random walk of almost all indexes - the exceptions are the Japanese and the Korean markets. Surprisingly, developed markets show less efficiency than emerging markets. The fact that those markets suffered in the last years from severe economic problems (including contagion) could explain such results. Frontier markets, which are less developed and less liquid, have higher evidence of inefficiency.

Open Access Original Research Article

Assessment of Leadership from the Perspective of Accountability in the Nigerian Public Sector

Uba Halilu, Wasiu Bosede Lawal, Akeem Tunde Nafiu

Asian Journal of Economics, Business and Accounting, Page 1-11
DOI: 10.9734/AJEBA/2016/28124

This study focused on the assessment of leadership from the perspective of accountability in the Nigerian public sector. The study thus investigated the extent at which leaders in the Nigerian public sector are accountable for their actions and performances. The study used survey research design. The study adopted the test-retest process for reliability of instrument, and determined its validity through pilot test technique. Data and information were gathered through primary and secondary sources. Taro Yamane was used to determine the sample size of 377, and Bowler’s proportional allocation method for fair allocation of samples. The study adopted stratified sampling technique, and grouped respondents into strata on the basis of common characteristics. After grouping, the simple random sampling technique was applied to select the required sample size. This study analyzed the data collected with descriptive statistical tool and tested hypothesis with Likert statistical method. The study revealed that leaders in the Nigerian public sector are not often accountable for their actions and performances, and that employees are not often empowered towards accountability of leaders. The study concluded that accountability on the part of leadership is a far reaching concept, and it cannot be realistic when employees have low voice in the Nigerian public sector. The study therefore recommends that Leaders in the Nigerian public sectors should operate an action-questionable organizational culture; such that efficiency and growth can be realistic.

Open Access Original Research Article

The Contribution of the Nigerian Banks to the Promotion of Non-Oil Exports (1990-2013)

Jeff-Anyene Sarah Elechi, Ezu Gideon Kasie, Ananwude Amalachukwu Chijindu

Asian Journal of Economics, Business and Accounting, Page 1-13
DOI: 10.9734/AJEBA/2016/28754

This study examines the contribution of the Nigerian banks to the promotion of non-oil exports. This study adopted econometric time series analysis to examine the contribution of Nigerian banks credit in relation to non-oil exports performance, assess the presence of causal relationship between Nigerian banks credit and non-oil exports performance as well as the direction of the causal relationship. The empirical analyses that were carried out to achieve the objectives include unit root, co-integration and granger causality test, in which changes in non-oil exports performance was regressed against commercial banks credit to non-oil exports, interest rate and inflation using annual series data for the period 1990-2013. The data were sourced from the Central Bank of Nigeria statistical bulletin. The result of the analysis showed that Nigerian banks have not adequately contributed toward the promotion of non-oil exports. The study also found that there is a long run relationship between Nigerian banks credit to non-oil exports and the performance of non-oil exports and no causality between Nigerian banks credit to non-oil exports and non-oil exports performance. Based on the findings, the Central Bank of Nigeria should reduce the current monetary policy rate of 14% to a range of 5%-8% so that when commercial banks add up processing, transaction and other administrative fees, credit would be extended to non-oil exporters at a rate lower than 15%. Furthermore, the Central Bank of Nigeria should as an operational guideline, impose commercial banks to set aside a certain amount of money from their yearly profit for financing of non-oil export as it is the case for small and medium scale enterprises equity scheme.

Open Access Original Research Article

The Nexus between Downsizing and Financial Performance of Selected Commercial Banks in Nigeria: A Comparative and an Empirical Exploration

Nwakoby Clement Ndukaife Ikechukwu, Ananwude Amalachukwu Chijindu

Asian Journal of Economics, Business and Accounting, Page 1-14
DOI: 10.9734/AJEBA/2016/28925

Downsizing popularly is a situation in which a firm reduces its workforce tremendously as a measure to improve profit by cutting down operating and overhead costs. In this study, we explored the relationship between downsizing and financial performance of five selected commercial banks in Nigeria from 2010 to 2015. These banks over the years have rolled out computerized transaction channels leading to reduction in their workforce. The study applied the paired sampled T-Test to assess if there is any significant difference between financial performance expressed with return on assets and return on equity before and after downsizing. The panel data analysis was used to explored the relationship between the variables of interest. The result of our paired sample T-Test indicates that there is no significant difference between financial performance indices (return on assets and return on equity) before and after downsizing. The random effect estimation depicts that selected commercial banks failed to achieve their objectives of increasing overall assets level by way of downsizing its workforce. On the other hand, we found no evidence that downsizing is a good corporate strategy for improving the wealth of shareholders in Nigeria. Downsizing not effecting the return on assets and return on equity may be because of the global financial meltdown within the period covered by this study. In view of our finding and considering the level of economic growth and development in Nigeria, downsizing should be discouraged in view of its inability to spur expansion in assets base of banks and obvious economic and social problems. On downsizing insignificant positive relationship with return on equity, it should be noted that Nigeria do not have opportunities and enabling competing environment as their counterpart in developed economies.

Open Access Original Research Article

Assessing Profitability of Farming of Disadvantaged Smallholders inside and outside Polder 29 in Khulna District of Bangladesh

Afsana Zaman, Maksuda Mannaf

Asian Journal of Economics, Business and Accounting, Page 1-9
DOI: 10.9734/AJEBA/2016/28456

The present study is designed to compare profitability of growing crops by the selected disadvantaged smallholders living inside and outside the Polder No. 29 in Khulna district of Bangladesh.  Primary data were collected from 120 respondents, of which 65 from inside the Polder 29 and 55 from outside the Polder 29 were selected randomly.  The disadvantaged people outside Polder 29 (Latabunia) followed only one cropping pattern a year such as: (i) T. Aman paddy and Bagda. On the other hand, the disadvantaged people inside polder area followed two distinct cropping patterns a year such as: (i) T. Aman paddy and Bagda; and (ii) Boro paddy and T. Aman paddy.  No disadvantaged people outside Polder 29 were found to be involved in small trading and livestock keeping whereas it was common inside Polder 29. So, a wider variation in cropping patterns and profitability of the disadvantaged people was observed as the farm is located inside and outside the Polder 29 (Latabunia).  Profitability of disadvantaged people for Bagda cultivation within and outside Polder 29 was not much differs but profitability of disadvantaged people for T. Aman production inside Polder 29 was higher than the profitability for T. Aman production of Latabunia farmers and the difference was Tk 19142.00 per hectare. The concerned scientists should give top most priority to develop salt tolerance new variety of T. Aman paddy and MV Boro paddy for this area.  Necessary steps could be taken to protect the land of outside farmers from the salinity or other appropriate steps could be taken to decrease salinity problem of the area.