Open Access Original Research Article

Heuristics Bias and Investment Performance: Does Age Matter? Evidence from Colombo Stock Exchange

M. Siraji

Asian Journal of Economics, Business and Accounting, Page 1-14
DOI: 10.9734/ajeba/2019/v12i430156

This study investigates the existence of heuristics biases in Colombo Stock Exchange and their effect on investment performance from individual investor’s point of view. In specific, the effects of anchoring, availability bias, gamblers fallacy, overconfidence and representativeness are investigated. Further, the study inspects whether the heuristics biases differ between younger and older investors. The primary data were collected by survey from 425 individual investors. The data were analyzed using multivariate analysis such as Confirmatory Factor Analysis (CFA) and Structure Equation Modeling (SEM). The results show that there is a statistically significant effect of anchoring, availability bias, overconfidence and representativeness bias on investment performance. However, gamblers fallacy not significantly affects investment performance. Furthermore, statistically significant differences are found between the answers of younger and older investors. This study, hopefully, will help investors to be aware of the impact of their own heuristics bias on their decision making in the stock market, thus increasing the rationality of investment decisions for enhanced market efficiency.

Open Access Original Research Article

The Impact of Working Capital Management on Profitability of Global Haulage Company, Ghana

Joseph Kwasi Agyemang, Joseph Yensu, Marian Ivy Oppong Otchere

Asian Journal of Economics, Business and Accounting, Page 1-17
DOI: 10.9734/ajeba/2019/v12i430155

The study examines the impact of working capital management on profitability of Global Haulage Company Limited in Ghana. The service sector, which Global Haulage Company Limited forms part accounts for about 51% of national output and this show how vital the service sector has become in terms of job creation and gross domestic product growth in the Ghanaian economy. This study therefore employed the autoregressive distributed lag (ARDL) technique to examine the relationship between working capital management and profitability of firms in Ghana using Global Haulage Company Ltd as a case study with a period range of 1995 to 2013. The regression results showed that debt ratio, firm size and current assets to total assets ratio are negatively related to firm profitability whilst current liabilities to total assets ratio is positively related to firm profitability. The study therefore recommends that, management should use less of debt in financing their activities to be able to increase profit since high debt ratio adversely impact on profitability. Also, aggressive working capital policies should be pursued if management’s goal is to increase profit. In addition, policy makers should check and work on the managerial inefficiencies which are making the firm experience diseconomies of scale.

Open Access Original Research Article

Analysis Relative Strength Index and Earning Per Share on Stock Price

Jajang Badruzaman

Asian Journal of Economics, Business and Accounting, Page 1-9
DOI: 10.9734/ajeba/2019/v12i430157

This study aims to determine the effect of the Relative Strength Index and Earnig Per Share on Stock Prices. The research design used is a quantitative approach with a population of all companies in the Jakarta Islamic Index (JII) category listed on the Indonesia Stock Exchange for the 2013-2016 periods. The sampling technique used was purposive sampling. Based on the criteria set, 13 companies were obtained. The results showed that the Relative Strength Index and Earnig Per Share had a significant positive effect on Stock Prices in the Jakarta Islamic Index (JII) company on the Indonesia Stock Exchange for the Period 2013-2016.

Open Access Original Research Article

The Effect of Healthcare Expenditure on the Health Outcomes in Sub-Saharan African Countries

Xing Weibo, Birhanu Yimer

Asian Journal of Economics, Business and Accounting, Page 1-22
DOI: 10.9734/ajeba/2019/v12i430158

Health is a major component for a fulfilled life that everyone in the world desires to acquire. Governments are expected to play a vital role in providing quality health service to their people. Even though an increased health care expenditure is mostly considered as a primary contributor for an improved health outcome, empirical studies however indicate controversial results. The primary objective of this paper is to examine the effect of health expenditure on the selected health outcomes (Life Expectancy, Infant Mortality, Under-Five Mortality and Crude death) in Sub Saharan Africa. The linear dynamic generalized method of moments instrumental variable (GMM-IV) was used on a panel of 39 Sub-Saharan African Countries for the years 1995-2014. Results of this study showed that health expenditure significantly improves life expectancy and lowers infant mortality, under-five mortality & crude death in Sub Saharan Africa. The separate effects of Public and private health expenditures have also shown a significant positive relationship on life expectancy and negative on infant mortality, under-five mortality & crude death. The one period lag of health expenditure was estimated and the regression results indicated statistically significant relationship with health outcomes. In addition to health expenditure, other determinants like Gross Domestic Product (GDP) per capita, urbanization, immunization and basic drinking water brought improvement on life expectancy, infant mortality, under-five mortality & crude death. In contrast, HIV prevalence and unemployment are factors that reduce life expectancy and increase infant mortality, under-five mortality & crude death. This study indicated that health expenditure is an important element in attaining improved health outcome in Sub-Saharan African Countries. Therefore, increasing the amount of health expenditure allocated to the health sector yields a better health status. More on, revising policies to improve GDP per capita, immunization, urbanization and basic drinking water service, and strategies intended to reduce HIV prevalence and unemployment assure a better health outcome.

Open Access Original Research Article

Growth of Tourism and Hospitality Industry: Impact on Environment and Demographic Trend of Chittagong Hill Tracts

Saptarshi Chakma, Gourab Chakma, Neingmraching Chowdhury Nani

Asian Journal of Economics, Business and Accounting, Page 1-8
DOI: 10.9734/ajeba/2019/v12i430159

This paper tries to focus on environmental impact and the demographic phenomenon of tourism. Bangladesh is now on the highway to achieve the Sustainable development goals by 2030 after fulfilling significant achievement of Millennium Development Goals. The government has made some ambitious targets to achieve Sustainable Development Goals. It is important to note that sustainable development comprises several criteria. There is a significant need for environmental protection which is one of the three pillars of sustainable development. The other two are economic growth and social progress. Tourism and hospitality sector is seen to have emerged as a new area of sustainable development in recent time to contribute to social development. The scope of the positive contribution of tourism and hospitality is ample and relates to several dimensions such as earning of foreign exchange, employment generation, increasing productivity, hotel accommodation and transportation etc. However, the recent studies reveal that tourism has dramatically affected social, cultural, economic and environmental aspects of hospitality. Especially in Chittagong Hill Tract area; which is a great tourist attraction of the country; experiencing the impacts of unfair practice of tourism. The lack of proper policy and lack of awareness about sustainable growth of tourism activities is profoundly effecting the environment and life of the local ethnic groups of that area. Nevertheless, with proper planning and implementation of rules & regulations, the scenario can be shifted to the positive side. The paper attempts to analyze the contribution of tourism and hospitality as a weapon of sustainable development agenda and to assess how it effects on the environment and demographic pattern or local communities of Chittagong Hill Tracts.