Open Access Case study

Does the Day of the Week form Still Persistent on the Chinese Stock Market?

Mahmoud Elhag Mahgoub Kambal, Huang Ying Li, Angelina Letavina, Asaad Osman Khalid Mohamed

Asian Journal of Economics, Business and Accounting, Page 1-10
DOI: 10.9734/AJEBA/2018/40869

The study investigated both of the major Chinese markets, Shanghai and Shenzhen capital markets of China for both A&B share, for the period from 1995 to 2017. The analysis uses Linear-Regression model in order to test the day of the week effect for each market, valued in both local currency and dollars. First, the stability of the seasonal pattern was unusual. Since there are institutional differences within the Chinese stock market, the similarity between the different seasonal patterns of the Chinese stock market is unlikely. Ultimately, the study asserted an inefficient Chinese stock market. Whereas, the day of week form was revealed through the investigated period, hence, Thursday displayed statistically significant negative effect for both classes of share throughout the period; Monday was negative for B share only and Tuesday negative for A share only. On the other hand, Friday and Wednesday showed a significant positive effect for class B share.

Open Access Original Research Article

Real Effective Exchange Rate Volatility and Its Impact on Foreign Direct Investment in Kenya

Wanyama Silvester Mackton, Alphonce Odondo, Destaings Nyongesa

Asian Journal of Economics, Business and Accounting, Page 1-20
DOI: 10.9734/AJEBA/2018/38008

A country’s real effective exchange rate (REER) is an important determinant of the growth of cross-border trading and it serves as a measure of its international competitiveness. Studies that have focused on the relationship between REER volatility and FDI inflow have generated mixed results, thus, there is lack of clear-cut conclusion on the relationship. This study assessed the REER volatility and determined its impact on foreign direct investment in Kenya for the period 1972 – 2015. The study was guided by the Dornbusch over- shooting model and adopted correlation Research Design. It relied on secondary data. To overcome methodological deficiencies that could arise from using measures of unconditional volatility, the study focused on Generalized Autoregressive Conditional Heteroskedasticity (GARCH) technique which is a superior measure of uncertainty.  Vector Error Correction Model (VECM) was used to establish the relationship between REER volatility and foreign direct investment. Augmented Dickey-Fuller and Phillip-Perron approaches were used to test for the presence of unit roots. The test for volatility conducted using the GARCH model showed that there is persistent volatility in the Kenyan shilling real effective exchange rate with that of the trading partner currencies for the period under consideration and the results of the VAR and VECM indicate a negative and significant impact of real effective exchange rate volatility on foreign direct investment in Kenya. Findings of this study will add value to the Dornbusch over- shooting model, production flexibility and risk aversion theories and partial and general equilibrium theories and will further help in the formulation of fiscal and monetary policies to address macro-economic shocks associated with REER shocks in the Kenyan economy.

Open Access Original Research Article

User Satisfaction and Work Impact of Using Business Intelligence Systems

Shih-Ming Pi, Kuo-Chen Li, Chih-Yi Lu

Asian Journal of Economics, Business and Accounting, Page 1-8
DOI: 10.9734/AJEBA/2018/41072

With the maturity of the enterprise information environment and the complexity of the enterprise information application, the business intelligence becomes important in the corporate decision-making support context. The purpose of this paper is to explore the user's assessment of the business intelligence systems. In this paper, we adopt quantitative approaches and use the survey as the data collection method. We conducted a questionnaire survey through the Internet, and 115 valid respondents were collected and analyzed. The results show that satisfaction with data quality and user interface of business intelligence systems will affect the user decision support satisfaction. These factors will also affect the task support satisfaction, and thereby affecting the short-term and long-term cognitive outcome of the work.

Open Access Original Research Article

An Econometric Assessment of the Real Effective Exchange Rate Volatility in Kenya

Wanyama Silvester Mackton, Destaings Nyongesa, Alphonce Odondo

Asian Journal of Economics, Business and Accounting, Page 1-14
DOI: 10.9734/AJEBA/2018/38007

A country’s real effective exchange rate (REER) is an important determinant of the growth of cross-border trading and it serves as a measure of its international competitiveness. The REER is an active source of discussions in Kenya where questions have arisen revolving around persistent exchange rate shocks and possible interventions. Kenya’s vulnerability to the external shocks has increased and the real effective exchange rate has experienced episodes of appreciations. There is scanty information that has specifically focused on the Kenyan’s real effective exchange rate (REER). This study carried out an assessment of the real effective exchange rate (REER) volatility in Kenya. The study was guided by the Dornbusch overshooting model and adopted correlation Research Design.  It relied on secondary data for the period 1972 – 2015. To overcome the methodological deficiencies of using the measures of unconditional volatility, this study focused on the conditional volatility employing the GARCH technique that is a superior measure of uncertainty. The Augmented Dickey-Fuller and Phillip-Perron approaches were used to test for the presence of unit roots. It was found that real effective exchange rate in Kenya has been volatile within the period under consideration. These findings will add value to the Dornbusch overshooting model, production flexibility and risk aversion theories and partial and general equilibrium theories and will further help in the formulation of fiscal and monetary policies to address macroeconomic shocks associated with REER shocks in the Kenyan economy.

Open Access Original Research Article

Effect of Cashless Banking on Unemployment Rate in Nigeria

Amara Pricilia Okoye

Asian Journal of Economics, Business and Accounting, Page 1-18
DOI: 10.9734/AJEBA/2018/41455

This study examined the effect of cashless banking on the unemployment rate in Nigeria, with a focus on the aggregate data of all the banks operating in the country as at 2012-2016, as documented in the CBN annual report. An ex-post facto research design was adopted for the study; and secondary source of data collection was employed. Cashless banking system as the independent variable of this study was measured with TATM, TPOS, TMPS and TIB, whereas the dependent variable was the Nigeria’s unemployment rate (UR). Data gathered were presented in tables and analysed using multiple regression technique (ordinary least square regression) of model estimation. In order to determine the overall significance of the model, students’ T-significance test was observed in the model (t-transformation of regression coefficient) and was used to test the hypothesis formulated. Results show that there is a negative and insignificant effect of cashless banking system on unemployment rate in Nigeria (β= -0.790, R2 = 0.624, t-2.233, p = 0.112). This means that cashless banking system in Nigeria does not contribute to the increased rate of Nigeria's unemployment as perceived by many people. Instead, more jobs are created for people expertise in operating the machines (ATM, POS, Internet and Mobile Phone) used in the cashless banking system. Based on the findings, it was recommended that Government and CBN should create awareness on the benefits derivable from shifting to cashless (cash-light) banking system in Nigeria, more especially on the fact that machines are not used to replace the workforce in a cashless banking system.