Open Access Original Research Article

Determinants of Personal Financial Literacy in Sri Lanka: With Special Reference to University Students

Sudarma Priyadarshani, J. A. Prasansha Kumari

Asian Journal of Economics, Business and Accounting, Page 1-12
DOI: 10.9734/ajeba/2021/v21i1130437

The objective of the study is to determine the factors for the personal financial literacy of university students. The study aims at the determinants that reasoning on personal financial literacy. The sample was selected from a final year student at the University of Kelaniya, Sri Lanka. Pearson Chi-Square was used to test the hypotheses. The study found that faculty, relevant course, work experience, monthly money receiving are the main determinants for the personal financial literacy of undergraduates. On the other hand, gender, education of parents, race, financial management skills, and personal financial literacy are not the significant factors for determinants to personal financial literacy. The outcomes of the study will be useful to academics, policymakers to understand the main determinants for personal financial literacy

Open Access Original Research Article

An Empirical Analysis of Consumers’ Perceptions of Privacy Protection

Jagdish N. Sambada, Sanjay Bhayani

Asian Journal of Economics, Business and Accounting, Page 13-33
DOI: 10.9734/ajeba/2021/v21i1130438

This study explores how consumers perceive privacy protection and how their perceptions differ by different demographic factors like gender, profession, education and marital status. The study focuses on one of the dimensions of privacy which is privacy protection. In India studies have been done to understand consumer attitudes and concern towards privacy issues but relationship between demographic variables and consumers’ perception of privacy issues have not been researched. The descriptive research design is being used to study the formulated problem. Non-Probability convenient Random sampling technique has been used for research. Chi-square test has been used to test the relationship as the variables under study are categorical. Findings of the study revealed that when it comes to safety of personal information on smartphones profession as a demographic variable has significant effect on consumers’ perception of privacy protection. Marital status as a demographic variable also has effect on consumers’ perception of privacy protection on social networking websites. Married respondents are seen to be more apprehensive of their privacy protection on social networking websites. As most of the customers do not hesitate in sharing their personal information with service providers it has positive implications for the companies.

Open Access Original Research Article

Using Logistic Regression of Machine Learning Method to Evaluate American Options

Yung Hsin Lee

Asian Journal of Economics, Business and Accounting, Page 34-39
DOI: 10.9734/ajeba/2021/v21i1130439

Aims: The main purpose of this study is to understand whether Logistic regression has certain benefits in the evaluation of American options. As far as the Monte Carlo method is concerned, the least square method is traditionally used to evaluate American options, but in fact, Logistic regression is generally quite good in classification performance. Therefore, this study wants to know if Logistic regression can improve the accuracy of evaluation in American options.

Study Design: The selection of options parameters required in the simulation process mainly considers the average level of actual market conditions in the past few years in terms of dividend yield and risk-free interest rate. The part of the stock price and the strike price mainly considers three different situations: in-the-money, out-of-the-money and at the money.

Methodology: This study applied the Logistic regression in Monte Carlo method for the pricing of American. Uses the ability of logistic regression to help determine whether the American option should be exercised early for each stock price path. The validity of the proposed method is supported by some vanilla put cases testing. The parameters used in all cases tested are considered the current state of the market.

Conclusion: This study demonstrates the effectiveness of the proposed approach using numerical examples, revealing significant improvements in numerical efficiency and accuracy. Several test cases showed that the relative error of all tests are below 1%.

Open Access Original Research Article

Investigating the Impact of Firm Specific Determinants of Non-Pension Fund on Property Investment Decisions: An Evidence from Zanzibar Social Security Fund in Tanzania

Daud Mkali Fadhil

Asian Journal of Economics, Business and Accounting, Page 40-58
DOI: 10.9734/ajeba/2021/v21i1130440

The aim of this study was to look at the impact of firm specific determinants of non-pension fund on property investment decisions, a case study of Zanzibar Social Security Fund (ZSSF) in Tanzania. The unit root test, co-integration, and vector error correction model (VECM) were used for estimation in the linear econometric model equation, which looked at the impact of three firm specific determinants of non-pension fund on property investment decisions: urbanization (URB), inflation rate (INF) and interest rate (IR). The estimated result showed that, there was presence of long-run relationship at equilibrium between property investment decisions (PID) in ZSSF and all tested determinants of property investment decisions. The results revealed that urbanization (URB) had positive significant long run relationship with property investment decisions in ZSSF. But it was further revealed that the inflation rate (INF) and interest rate (IR) had negative relationship with PID at ZSSF, though they were statistically significant. The results also revealed unidirectional causality relationship whereby PID causes IR. Furthermore, the results revealed unidirectional causal relationship from URB to PID at 5% level of significant. However, the result revealed that PID and INF were not granger cause each other in a short run. The study then recommends among others, that management of ZSSF has to consider these determinants when they make property investment decisions, this including, the need for management of Zanzibar Social Security Fund to work together with financial institutions like banks to develop a working formula on how they can facilitate mortgage facility at reasonable rate for residential and commercial properties, this will help to increase demand for real estate to society.

Open Access Original Research Article

The Influence of Leadership Style and Employee Competence with Organizational Climate as an Intervening Variable on Employee Performance in Educational Institutions

Muhammad Yusuf, Zainal Arifin, Iqbal Firdausi

Asian Journal of Economics, Business and Accounting, Page 59-69
DOI: 10.9734/ajeba/2021/v21i1130441

Aims: Let's find out and analyze the influence of leadership style and employee competence with organizational climate as an intervening variable

Study design:descriptive analysis method with correlational type

Place and Duration of Study: at an Educational Institution in Banjarmasin Indonesia, between June 2020 and July 2021.

Methodology: using descriptive analysis method with correlational type. The sample of this study were 53 educators and teaching staff in educational institutions as respondents. With the sampling technique using the Probability Sampling technique. This research is analyzed with Multiple Linear Regression using SPSS for Windows program.

Results: 1) leadership style has a positive influence on organizational climate, 2) employee competence has a positive influence on organizational climate, 3) leadership style has a positive influence on employee performance, 4) employee competence has a positive influence on employee performance, 5) Organizational climate has a positive influence on employee performance, 6) leadership style has a positive influence on employee performance through organizational climate as an intervening variable and 7) employee competence has a positive influence on employee performance through organizational climate as an intervening variable.

Conclusion: Leadership style and employee competence have an effect on employee performance, but the influence is higher if the organizational climate is created well.

Open Access Original Research Article

The Implementation and Impact of Blockchain Technology in the Finance and Trade Sector of Economy of the Developing World

Faizan Naseer Abbasi, Shazaf Masood Sidhu

Asian Journal of Economics, Business and Accounting, Page 70-73
DOI: 10.9734/ajeba/2021/v21i1130442

Blockchain technology is a diverse technology and one of the most advanced in the field of finance and trade sector and with each passing day it is showing magnanimous outcomes in developed countries, while we in our article have focused more on its implementation and impact in the developing part of the world and on the basis of evaluation via online format we concluded our findings.

Open Access Original Research Article

Intangible Assets and Economic Growth in Nigeria: An Empirical Investigation

Okumoko Tubo Pearce, Cookey Ibeinmo Friday, Question Emomotimi Mcdonald

Asian Journal of Economics, Business and Accounting, Page 74-84
DOI: 10.9734/ajeba/2021/v21i1130443

This work examines the impact of intangible assets on economic growth in Nigeria, using time series data from 1990 to 2019. Relevant theoretical and empirical literatures were reviewed. Government expenditure on research and development, intellectual capital proxied by human capital stock, intellectual property and service sector employment were regressed as independent variables against the real GDP (proxy for economic growth) as the dependent variable. Secondary data were used for this work. The ARDL bound test was adopted in estimating the model. We discovered that government expenditure on R&D, intellectual capital and intellectual property do not have significant relationship with economic growth proxied by RGDP; meanwhile service sector employment had a significant relationship with economic growth in Nigeria. Also, government expenditure on R&D; and service sector employment were rightly signed; while intellectual capital and intellectual property were not rightly signed. This implies that when government increases its expenditure on R&D, it will result to economic growth, so also service sector employment in the long-run. Meanwhile, an increase in intellectual capital and intellectual property will reduce RGDP. We therefore propose that government should upgrade its spending on R&D so as to boost intellectual capital and property. The government should also create employment for the stock of human capital. Finally, government institutions such as producers’ protection agencies should be empowered to protect intellectual properties in Nigeria.

Open Access Original Research Article

The Impact of Capital Flight on Economic Growth and Financial Stability in Palestine

Nemer Badwan

Asian Journal of Economics, Business and Accounting, Page 85-101
DOI: 10.9734/ajeba/2021/v21i1130446

This study examined the impact of Capital Flight on Economic Growth and Financial Stability in Palestine from the period (2000-2020). The time series data of Capital Flight, Foreign Exchange Reserves, Foreign Debt, and Real GDP used in the study, and the use of ordinary least squares estimation technology to analyze the research data. Carried out Johansen co-integration and error correction mechanism. The evidence of the research results shows that there is a co-integration relationship between the research variables, and Capital Flight has harmed the Economic Growth of the Palestinian case. Based on these findings, the study recommends that the government should provide a favorable investment environment to encourage investment and prevent Capital Flight from Palestine. In addition, the Palestinian Government should also prevent Capital Flight because these Infrastructure Projects/Programs will reduce the country’s production costs. The government should create a suitable investment environment for foreign investment and encourage entrepreneurs and equity owners to invest these funds domestically. In addition, the government should use all Foreign Aid funds in appropriate places to increase the Economic Growth Rate and create job opportunities for the unemployed, thereby increasing the National Economic Growth Rate.