Open Access Policy Article

Demonetization in India: An Evaluation

Md. Rasel, Md. Sajjad Hosain, Ayrin Sultana, Md. Humayun Kabir

Asian Journal of Economics, Business and Accounting, Page 1-12
DOI: 10.9734/ajeba/2019/v12i230145

The aim of this paper is to discuss the motives and after effects of demonetization decision taken by the Indian Government on November 10, 2016. In addition, it has tried to highlight the demonetization effects in some other countries. The opinions of economists, financial analysts and intellectuals have been highlighted on this paper based solely on published information collected from previous articles, newspapers and books related to the subject matter. The paper will hopefully come to the help of those academicians seeking to investigate more and the policy makers who want some academic references.    

Open Access Original Research Article

Macroeconomic Dynamics, Bank-specific Factors and Deposit Mobilization of the Nigerian Banking Sector

Azolibe, Chukwuebuka Bernard

Asian Journal of Economics, Business and Accounting, Page 1-16
DOI: 10.9734/ajeba/2019/v12i230146

This study critically examined the nexus between macroeconomic dynamics, bank-specific factors and deposit mobilization of the Nigerian banking sector. Macroeconomic dynamics was proxied by inflation rate, lending rate, exchange rate, government expenditure, unemployment rate and Gross domestic product (GDP) while bank-specific factors was proxied by deposit interest rate, branch network expansion and bank’s liquidity. The study which is ex-post facto, relied mostly on secondary data which were collected through the Central Bank of Nigeria (CBN) and National Bureau of Statistics (NBS) statistical bulletin from 1985-2018. Multiple regression Ordinary Least Square (OLS) statistical tool was applied to establish the like fit to the observed data and the degree of relationship that exist between variables. The granger causality test was employed to establish the causal relationship between the variables. Findings revealed among others that inflation rate measured by the consumer price index and deposit interest rate have negative and significant relationship with deposit mobilization in Nigeria. Exchange rate, unemployment rate and loan-to deposit ratio have negative and insignificant relationship. Lending rate and Government expenditure have insignificant positive relationship while it was only Gross domestic product and number of bank branches that have positive and significant relationship with deposit mobilization in Nigeria. It was recommended among others that deposit interest rate should be fixed based on the level of customer’s deposit so as to act as compensation against the rising trend in inflation rate and also, banks should be more socially responsive by partnering with the Government and other private sectors in sponsoring various entrepreneurship and skill acquisition training programmes in the country that are employment driven. This will ensure that a good number of the unemployed persons are into paid employment and are earning. This will in turn boost their deposit base.

Open Access Original Research Article

Evolution of Tax Receipts on Motorized Vehicles Recovered by the General Direction of the Receipts of the Tshopo Province from 2012 to 2016

Isetcha Tawiti Désiré, Assani Ramazani Raymond, Bokota Sola Hugues

Asian Journal of Economics, Business and Accounting, Page 1-11
DOI: 10.9734/ajeba/2019/v12i230147

Objectives: This study aims to determine over time how the tax levied on motor vehicles has behaved in relation to the investment incentives put in place; to determine the year in which these receipts performed well among those considered in our study and to determine the year in which revenues were low.

Methods: The sample consisted of revenues from the tax on motor vehicles recovered by the General Revenue Directorate of the Tshopo Province from 2012 to 2016 in Kisangani. We used the statistical method supported by the documentary analysis, the technique of observation and free interview for the collection of data.

Results: The study found that the real tax on motor vehicles had decreased in the Tshopo Province from 2012 to 2016. This invalidates our first hypothesis. The 2014 financial year remains the best performing year with a strong performance, confirming our second hypothesis.

Open Access Original Research Article

Effect of Capital Structure on Financial Performance of Listed Banks in Nigeria

Sunday David Adeoye, Samson Olusola Olojede

Asian Journal of Economics, Business and Accounting, Page 1-14
DOI: 10.9734/ajeba/2019/v12i230148

Corporate entities all over the world are faced with the problem of determining appropriate finance that will boost the value of the entity and maximize the wealth of shareholders. However, for overall wealth of shareholders to be met and consistent increase in value of Banks to be achievable, capital either debt in form of customers deposit or equity capital raised from investors is inevitable. This study therefore examined the effect of capital structure on the performance of some selected banks in Nigeria. The objectives were to examine the relationship that exists between capital structure and financial performance and to investigate the effect of capital structure on the financial performance of quoted deposit money banks in Nigeria.

To achieve these, a cross sectional time series secondary data covering the period of seven years (2012-2018) was extracted from the audited financial statement of ten (10) banks listed on the floor of stock exchange. The descriptive statistics, Pearson moment correlation and multiple linear regressions were used.

The correlation results showed that capital structure is negatively correlated with financial performance (ROA and ROE). Result from panel regression revealed that debt to equity though significant, impacted negatively on return on assets and return on equity , asset tangibility significantly impacted return on asset but insignificantly impacted return on shareholder’s equity  and also Age have a significant impact on return on asset and insignificant effect on return on equity .

This study therefore concluded that capital structure have a negative effect on the financial performance of deposit money banks in Nigeria and recommended that appropriate proportion of capital should be tailored towards viable investment opportunities for maximum return of shareholders wealth and increase in value of the firm. More so, while finance manager is alert to the movement in the stock market, banks should take precautionary measures for mitigating credit risk associated with lending and borrowing.

Open Access Original Research Article

Profitability Analysis of BRRI Dhan 29 in Some Selected Areas of Bangladesh

Md. Shahin Mia, Md. Imrul Kaysar, A. K. M. Golam Kausar, M. S. Islam

Asian Journal of Economics, Business and Accounting, Page 1-6
DOI: 10.9734/ajeba/2019/v12i230149

This study was conducted to analyse profitability of HYV Boro during the 2016 Boro season. BR-29 variety was selected for analysis as this variety is dominated among all Boro varieties in the study area. A total of 75 farmers were randomly selected from seven villages of Islampur Upazilla under Jamalpur district that produced BR-29 boro variety. Primary data collection was done from the randomly selected farmers. Functional analysis of cost and return were performed in this study. Cobb-Douglas production function was also used to determine the individual input effects on BR-29 production. Human labor, land cultivation, seed, fertilizer, manure, irrigation and pesticides were seven variables used. It was observed from the result that majority of the variables had shown significant impact on BR-29 Boro production value. This study also identified some problems faced by the farmers in producing BR-29 Boro rice. These were low price of output, scarcity and high wage rate of human labour, high irrigation cost, lack of credit facilities etc. Therefore, more research and extension are suggested to solve the farmers’ problems to increase production of Boro rice and to ensure food security in Bangladesh.