Finance & Economics Review (FER) [ISSN 2690-4063] is an international, peer-reviewed, open-access journal that publishes original theoretical and empirical work in the interdisciplinary areas of international economics, macroeconomics, microeconomics, financial economics, and other allied areas of finance and economics. It publishes Original Research Articles, Reviews, Case Reports, Research Notes, and Short Communications. We encourage researchers to publish their experimental and theoretical results as much detail as possible. This journal covers all topics related to all aspects of finance and economics. Following are the indexing platforms of the Journal: Google Scholar: Each article will be visible in Google Scholar account within 2-5 days of publication Crossref: Each article is assigned with a Doi from Crossref CORE [UK] PKP Index [Canada] WorldCat [USA] BASE [Denmark] Directory of Research Journals Indexing [DRJI] ResearchBib Please register/login and submit your article. If you face any issues with online submission, you may send your article to riieditor1971@gmail.com
A Comparative Analysis of The Profitability of Pig Farming
Purpose: The main objective of this paper is to examine the profitability of pig farming in some selected chiefdoms in Muyamba District, Sierra Leone. Method: Data were obtained through a self-administered questionnaire from 150 pig farmers using a stratified sampling technique. Analyses were done using the Benefit-Cost Ratio and ordinary least squares (OLS) estimation technique. Results: The profitability analysis shows that pig farming is profitable in the three selected chiefdoms in Muyamba (Kori, Fakunya, and Kamajel), with an overall Benefit-Cost Ratio (BCR) of 2.73. This indicates that pig farming is profitable in the Muyamba District, as the BCR is greater than 1. The results also revealed that the Kori Chiefdom is the most profitable, followed by the Fakunya and Kamajel Chiefdoms. Meanwhile, age, gender, years of experience, and access to finance are the key determinants of profitability among pig farmers in Muamba District. Implication: The study recommends that the government increase access to finance for pig farmers through grants and microfinance programs.
Copyright (c) 2026 Sonkey Louis Ntu http://creativecommons.org/licenses/by-nc-nd/4.0
Exploring the Determinants of Crypto Currencies Price
Purpose: This study examines the factors influencing the prices of major cryptocurrencies (Bitcoin, Litecoin, and Ethereum) in both the short and long term. The analyzed variables include the attractiveness of cryptocurrencies, stock market indices, commodity markets, and interactions among cryptocurrencies. Method: We exploited daily data from August 13, 2015, to March 29, 2020. The analysis used a Vector Error Correction Model (VECM) to determine the dynamic relationships among the variables. Results: The findings reveal that in the short term, the value of each cryptocurrency is mainly explained by the value of the two competing cryptocurrencies and the overall cryptocurrency growth index, while the price of gold does not significantly affect any of them. In the long term, the value of all three cryptocurrencies is negatively influenced by their own attractiveness and by the commodity markets. Implications: The results suggest that investors and policymakers should consider both the competitive dynamics among cryptocurrencies and factors from the commodity market when evaluating cryptocurrency prices. This has implications for investment strategies and market regulation. Originality: This research contributes to the existing literature by integrating a comparative analysis of major cryptocurrencies and exploring the influences of competition and commodity markets on their values. By employing a VECM, the study provides an innovative perspective on the short- and long-term interactions among these digital assets.
Copyright (c) 2026 Chiraz Karamti, Aïda Kammoun Abdelmoula, Ahmed Trabelsi http://creativecommons.org/licenses/by-nc-nd/4.0
Assessing the Deterrents to Quality Financial Reporting in Corporate Organizations
Purpose: The study aims to assess the deterrents to quality financial reporting in corporate organizations and provide an acceptable solution to address the identified challenges. Methodology: The data were collected using self-administered questionnaires; the unit of analysis was corporate organizations based in Lira, Uganda, and the unit of inquiry was employees. The study assessed discriminant validity among the latent variables using the Heterotrait-Monotrait Ratio, and correlations among the latent variables were computed. To enhance validity and reliability, the study addressed common method bias. A structural equation model was also developed to assess its predictive value and the strength of relationships among the latent variables. Results: The study found that high-quality reporting is associated with good accounting standards. A positive change in financial reporting strategies improves the quality of financial reporting. It is also noted that the use of qualified staff and ICT would enhance the quality of financial reporting. Implications: Corporate organizations that apply sound accounting standards, integrate ICT, and empower boards to perform oversight roles in accordance with established policies will always grow faster. Originality: This study examined the often overlooked, yet significant aspects of quality financial reporting in most corporate organizations, whereas the existing literature focuses primarily on regulatory issues and compliance. The study focused on specificities and hindrances to accuracy and transparency in financial reporting.
Information and communication technology
Copyright (c) 2026 Marus Eton, Fabian Mwosi, Simon Peter Olupot, Patrick Bernard Ogwel, Sam Aitaa Kilimvi http://creativecommons.org/licenses/by-nc-nd/4.0
Determinants of Mobile Apps Adoption in SMEs of Bangladesh
Purpose: The objective of this study is to examine the key determinants influencing the adoption of mobile apps among SMEs in Bangladesh, with a particular focus on the role of digital financial literacy. Methods: The research gathered data using a structured questionnaire and probability-stratified random sampling methods. A total of 302 data were collected and analyzed with PLS-SEM. Two urban cities, Chattogram and Cumilla, along with their semi-urban areas, have been selected as the study areas. Results: The study found that relative advantages, competitive pressure, and organizational readiness are significantly correlated with behavioral intentions to adopt mobile payment systems. Nonetheless, compatibility and perceived security do not substantially influence the adoption of mobile apps in SMEs. Simultaneously, digital financial literacy moderates the interaction among competitive pressure, compatibility, and the adoption of mobile apps by SMEs in Bangladesh. Originality: This study contributes to the field by extending the TOE framework with digital financial literacy as a moderating factor, providing new theoretical and practical insights into how TOE dimensions influence the adoption of mobile payment systems by SMEs in Bangladesh.
Copyright (c) 2025 Md. Amdadul Hoque, Rosli Mahmood, Rosalan Ali, Nur Shazwani Rosli, Md. Mamun Hossain http://creativecommons.org/licenses/by-nc-nd/4.0
Purpose: This study investigates the effect of integrated reporting on the firm value of listed consumer goods firms in Nigeria. It seeks to determine how financial and non-financial capital disclosures contribute to value creation and investor confidence. Methods: A correlational research design was employed, using data from 15 listed consumer goods firms over 10 years (2014–2023). Firm value was measured using Tobin’s Q and market prices. Panel multiple regression analysis was applied, with firm size controlled to isolate the effect of integrated reporting practices. Results: The findings indicate that integrated reporting has a significant positive effect on firm value. Specifically, disclosures related to financial capital, manufacturing capital, and social and relational capital were positively linked to firm value. However, reporting on human and intellectual capital showed no significant effects, contradicting theoretical expectations. Implications: The results highlight the value-creating potential of comprehensive disclosure practices that integrate both financial and non-financial resources. Regulators such as the International Accounting Standards Board, the Financial Reporting Council of Nigeria, and the Securities and Exchange Commission should strengthen guidance on non-financial capital reporting. Additionally, training and capacity-building for listed firms will enhance the adoption of integrated reporting and align with global best practices. Originality: This study contributes to the literature by providing empirical evidence on the role of integrated reporting in enhancing firm value within the Nigerian consumer goods sector, emphasizing the varying effects of different capitals. Limitations: The study is limited to consumer goods firms listed on the Nigerian Exchange and covers 10 years. Future research could expand to other sectors, use longer timeframes, or adopt qualitative methods to yield more profound insights into integrated reporting practices.
Copyright (c) 2025 Udoh Eunice Sylvester, Musa Yelwa Abubakar, Modibbo Abubakar http://creativecommons.org/licenses/by-nc-nd/4.0
Forecasting for Survival: Empirical Evidence on Financial Planning and Early-Stage Startup Resilience in the USA
Purpose: This study examines the role of financial forecasting in enhancing the survival of early-stage startups in the United States, where failure rates are exceedingly high due to financial mismanagement and capital planning issues. Methodology: Using a dataset of 500 simulated startups designed to mirror real-world U.S. startup characteristics, we construct a proxy for forecasting behavior based on firm-level language and multi-round funding patterns. An Ordinary Least Squares (OLS) regression model is used to estimate the impact of forecasting on firm longevity, controlling for factors such as total funding raised and team size. Findings: The results indicate that startups engaging in financial forecasting survive, on average, 14 months longer than those that do not, even after controlling for key observable variables. This finding underscores the substantive effect of proactive financial planning on startup viability. Implications: The study suggests that financial forecasting should be regarded as a critical component of economic infrastructure. It recommends integrating forecasting literacy into federal entrepreneurship initiatives, incubator programs, and innovation policy frameworks. Originality: This paper represents one of the pioneering attempts to quantify the effect of financial forecasting on startup survival, utilizing a simulated dataset that captures real-world funding dynamics. It positions financial forecasting not only as a managerial tool but as a public good vital to national innovation and economic resilience.
Copyright (c) 2025 Faisal Ahmed Mashrur http://creativecommons.org/licenses/by-nc-nd/4.0
Determinants and Sustainability of Remittances in Bangladesh
Purpose: Remittances from overseas workers constitute a significant contribution to Bangladesh's foreign exchange earnings. This study aims to investigate the primary determinants of remittance, with a focus on the skill composition of labor migrants and the sustainability of remittance inflows in Bangladesh. Methods: This paper employed the ARDL Bound testing approach for estimation because of several advantages. To verify the consistency of the ARDL method's results, this study also employed the Dynamic OLS and Fully Modified OLS methods. This study used annual time series data from 1976 to 2021. Data are collected from the Bureau of Manpower Employment and Training, World Development Indicators, and International Financial Statistics. Results: This paper found that unskilled labor migrants are a significant determinant of remittance inflows in Bangladesh. This is a new finding, differing from previous empirical findings for Bangladesh. Moreover, a domestic country’s GDP, petroleum price, and exchange rate also significantly influence the inflows of remittances in Bangladesh. Besides, it was found that inflows of remittances followed an upward trajectory, with a sharp increase since 2001 and sustained over the period. By employing the ARIMA (12,1,11) forecasting model using monthly data, it is also found that, given the current policies and existing migration trends, remittance flows are expected to increase in the years to come. Implications: The findings of this study suggest that the inflow of remittances can be influenced by implementing proper policies in Bangladesh. As unskilled labor migrants are one of the significant determinants of remittances inflow in Bangladesh, it is necessary to explore new countries, except the GCC, based on those countries' needs and willingness to hire migrant workers from Bangladesh. Moreover, allowing the depreciation of exchange rates consistent with economic fundamentals will increase the inflow of remittances in Bangladesh. Originality: This paper focuses on skill composition of labor migrants as a determinant of remittance inflows and analyzes the sustainability and near-term outlook of remittance inflows in Bangladesh. Limitations: This paper utilizes annual data from 1976 to 2021 and can’t expand the sample period beyond 2021 due to the unavailability of GDP data for certain GCC countries.
Copyright (c) 2025 Md. Omor Faruq http://creativecommons.org/licenses/by-nc-nd/4.0
How Do External Sector Dynamics Induce Domestic Inflation?
Purpose: The Bangladeshi economy has recently experienced elevated inflationary pressures, which have significant implications for economic stability and growth. The purpose of this study is to identify the dynamics of the spillover effects of the external sector on domestic inflation in Bangladesh. Methods: The Autoregressive Distributed Lag (ARDL) approach is deployed for the estimation process, utilizing monthly secondary data from January 2015 to October 2024, available from various sources such as the Bangladesh Bureau of Statistics (BBS), Bangladesh Bank (BB), Food and Agriculture Organization (FAO), and the World Bank (WB). In this analysis, the Consumer Price Index (CPI) is treated as the dependent variable. In contrast, the key explanatory variables include the world oil price, the world food price, exports, imports, and inward remittances. Additionally, industrial production and broad money (M2) are included as control variables, and ‘crisis’ as a dummy variable. Results: The empirical findings confirm that external factors, particularly global oil prices, food prices, and trade dynamics, have a significant influence on Bangladesh's inflation. A 1 percent rise in past CPI leads to a 0.7 percent rise in the current CPI, revealing strong inflationary inertia. Additionally, global oil price fluctuations have a statistically significant effect on inflation, while the impact of world food prices is delayed, suggesting a lagged transmission into domestic inflation. Trade variables also play a crucial role—exports contribute to inflationary pressures over time mainly due to inequitable growth, whereas imports exert a deflationary effect by reducing supply-side constraints. Additionally, higher domestic industrial production helps mitigate inflation, supporting the supply-side argument, whereas the broad money supply (M2) influences inflation with a lag, reflecting the delayed transmission of monetary policy. Interestingly, remittances have an insignificant direct effect on CPI, implying that while they boost household purchasing power, their inflationary impact is minimal. Furthermore, economic crises, including the COVID-19 pandemic, do not exert a statistically significant independent effect on inflation, reinforcing the dominance of structural economic conditions over short-term shocks. Implications: Basically, the excessive dynamic forces of inflation need to be discounted to zero (thrust level), considering the static force. According to this empirical analysis, external economic factors have a significant impact on creating inflationary pressures in Bangladesh. Originality: This paper provides a unique investigation into the impact of external sector dynamics, including world oil and food prices, exports, imports, and remittances, on domestic inflation in Bangladesh, utilizing the ARDL approach with monthly data from 2015 to 2024. Unlike prior studies, it incorporates both immediate and lagged effects of external variables and accounts for inflationary inertia in a comprehensive empirical framework. Limitations: Although the study provides valuable insights into the external drivers of inflation, it is limited by the exclusion of key fiscal variables, such as the fiscal deficit, due to the unavailability of monthly data. Additionally, the model does not account for nonlinear or asymmetric effects, and structural breaks, such as significant policy shifts, are not explicitly considered in the analysis.
Copyright (c) 2025 Imam Abu Sayed, Rifat Ara Bindu, Romana Ferdoush http://creativecommons.org/licenses/by-nc-nd/4.0
Impact of the COVID-19 Pandemic on the Efficiency of the Banking Sector
Purpose: The banking sector plays a significant role in strengthening a nation's economic growth. However, it faced special challenges during the COVID-19 pandemic, which affected banks' efficiency. Thus, this study aims to measure the effects of COVID-19 on banks' efficiency during and after the pandemic in Bangladesh. Methods: The banking sector's technical efficiency was evaluated using the meta frontier Data Envelopment Analysis approach, based on secondary data from 23 commercial banks listed on the Dhaka Stock Exchange (DSE). Banks were selected based on the percentage of market share in the Banking industry. The data covering 2020-2024 were obtained from publicly available annual reports and financial statements. Results: Findings indicate that banks in Bangladesh were significantly more efficient after COVID-19 and that their performance has recovered. They have an average technical efficiency score of 0.63, compared to 0.51 during the pandemic. Implications: These findings have the potential to help policymakers find opportunities for profit increase and help develop early preventive measures during crises. Originality: This pioneering study in Bangladesh assessed banking efficiency after COVID-19.
Copyright (c) 2025 Mohammad Sabbir Hossain http://creativecommons.org/licenses/by-nc-nd/4.0
Moderating Effect of Environmental Quality on the Relationship Between Trade Openness and Health Expenditure in Sub-Saharan African Countries
Purpose: The main objective of this study is to investigate the moderating effect of environmental quality on the relationship between trade openness and health expenditure in sub-Saharan African countries. Methods: This research utilizes panel data from 41 member countries of sub-Saharan Africa, covering the period from 1996 to 2020. Data was sourced from the World Development Indicators (WDI). The econometric analysis employs the Generalized Method of Moments (GMM) technique to address endogeneity issues in panel data. Results: The findings reveal a significant positive relationship between trade openness and health expenditure in sub-Saharan African countries. Specifically, a 1% increase in trade openness corresponds to a 582.4-point increase in health expenditures. However, the study also indicates that trade openness negatively impacts environmental quality, as a unit increase in trade openness leads to a decline in environmental quality. This degradation has adverse health outcomes, contributing to increased health spending due to increased incidences of cardiovascular diseases, eye defects, and respiratory tract infections. The study finds that Gross Domestic Product (GDP) per capita negatively affects health expenditure, with a 1% increase resulting in a 0.1843-point decrease. Conversely, population growth positively influences health expenditure, where a 1% increase leads to a 0.1099-point rise in health spending. Industrialization has also been found to have a positive and statistically significant effect on health expenditure at the 5% level, although it contributes to environmental degradation, further impacting human health. Implications: This study's theoretical implications enhance our understanding of the interconnections between trade, health expenditures, and environmental quality.
Copyright (c) 2025 Awa'oma Abaimbi Ekwebe, Efeutlancha Forji Angelus http://creativecommons.org/licenses/by-nc-nd/4.0
Post-COVID-19 Inflation Dynamics in Bangladesh
Purpose: Bangladesh's economy has recently experienced elevated inflationary pressures, which significantly affect economic stability and growth. This study analyzes the factors driving inflation in Bangladesh and determines whether supply-side factors or demand-side pressures primarily influence it. Methods: The ARDL approach is used in this study's estimating process to use monthly secondary data from January 2015 to September 2024, available from different sources like Bangladesh Bank (BB) and Bangladesh Bureau of Statistics (BBS). This study utilized three separate models for scenario analysis to determine whether inflation dynamics are the same for the pre-COVID and post-COVID periods or over the entire period and whether supply-side or demand-side phenomena drive inflation. The rate of inflation is the dependent variable in the model; industrial production, import, inward remittance, exchange rate, and central bank policy rates (repo, reverse repo) are our independent variables, and the broad money supply is included as a control variable. A correlation matrix is also used to observe the connection among the variables. Results: This study's findings reveal a long-run relationship among industrial production, lag value of inflation, import, lag values of exchange rate, and broad money supply, but the central bank policy rates have no statistical significance for Bangladesh. This revealed that the channels through which monetary policy influences inflation may be weak or ineffective, or inflation may be driven more by supply-side factors than demand-side ones, reducing the effectiveness of monetary policy. Implications: The finding informs policymakers or experts that the recent inflationary trend is a supply-side phenomenon and will be adjusted over time. Originality: This study offers a story contribution by systematically analyzing the post-COVID-19 inflation dynamics in Bangladesh, distinguishing between supply-side and demand-side drivers. Unlike previous studies, which primarily focus on pre-pandemic inflation trends or general macroeconomic conditions, this paper examines explicitly the structural shifts in inflationary pressures caused by the pandemic’s aftermath. Limitations: Inflation is a multivariate variable, and while fiscal deficits may directly influence inflation, their data are only available annually. Therefore, we cannot include this variable in our article.
Copyright (c) 2025 Imam Abu Sayed, Ripon Roy, Rifat Ara Bindu, Romana Ferdoush http://creativecommons.org/licenses/by-nc-nd/4.0
Exploring the Determinants of Liquidity of Private Commercial Banks in Bangladesh
Purpose: The main objective of this study is to explore the critical bank-specific determinants of the liquidity of private commercial banks in Bangladesh. Methods: This research examined the financial statements of twenty private commercial banks in Bangladesh over thirteen years (2010–2022). Various statistical tests and analyses, including the F-test, Breusch and Pagan LM Test, Modified Wald Test, Pesaran CD Test, Wooldridge Test, and Feasible GLS Model, were employed to evaluate the panel data. Results: The regression results showed that the net interest margin, capital adequacy, financial leverage, credit quality, operating efficiency, and bank age are statistically significant variables influencing the liquidity of private commercial banks in Bangladesh. The study also indicates that a bank`s age moderates the impact of financial leverage, credit quality, and operating efficiency on liquidity. Implications: The study's theoretical implications deepen understanding of factors influencing bank liquidity, integrating bank age as a moderating variable. As far as the practice is concerned, it assists policymakers and bank managers in enhancing liquidity management techniques, guaranteeing financial stability, and promoting resilience within the banking industry. Originality: This study distinguishes itself by examining the moderating effect of bank age on liquidity determinants in private commercial banks in Bangladesh, a facet seldom explored in prior studies.
Copyright (c) 2025 Md. Amdadul Hoque, Ripa Akter, Fahmida Begum http://creativecommons.org/licenses/by-nc-nd/4.0
Fintech Services and Entrepreneurship in Africa
Purpose: This paper examines the effect of fintech on entrepreneurship to ascertain the role of financial technology services on individual entrepreneurial intention in five sub-Saharan African countries. Methods: The analysis was based on an extended probit model to determine the country-specific effect of mobile money account ownership (Fin) on individuals who used fintech services to start a business (Ent) as a measure of entrepreneurship. The impact of other control variables (X) such as credit access, education, and labor force participation on entrepreneurship (Ent) was also considered. Results: The findings show that fintech services through mobile money are significantly associated with an increased likelihood of entrepreneurship in The Republic of Congo, Kenya, Mauritius, Nigeria, and South Africa. Credit access, higher levels of education, and labor force participation are other drivers of entrepreneurship in Kenya, Nigeria, and South Africa. Implications: Country-specific characteristics play a significant role in engendering entrepreneurship; thus, the government should intensify efforts to diffuse and adopt fintech for optimal livelihood and economic transformation. Originality: Overall, this paper accounts for the role of technology penetration in financial services and contributes to the literature on entrepreneurship development in the African context. The research utilizes the World Bank Global Findex data, which is nationally representative, to provide insight into the subject matter. Limitations: This paper's analysis relied on the 2017 World Bank Global Findex Database, the most recent data available. Although this may be perceived as insufficient, the findings were valid due to their alignment with similar outcomes in the literature
Copyright (c) 2025 Iyabo Olanrele http://creativecommons.org/licenses/by-nc-nd/4.0
Financial Ratios and Stock Price Predictability
Purpose: This paper aims to investigate the applicability of financial ratios derived from financial statements to predict the stock prices of mobile telecommunication companies in Kuwait. Methods: The pooled OLS regression method is used to examine the relationship between share prices (SP), as a dependent variable, against earnings per share (EPS), liquidity ratio (Liq), price to earnings (P/E) ratio, debt to equity (D/E) ratio, dividend yield (DY), and market to book value (M/B) ratio as independent variables. Results: Pooled OLS regression revealed that EPS and Liq have a statistically significant positive relationship with share prices, while the debt-to-equity (D/E) ratio shows a significant inverse relationship with share prices. Other factors under study did not show any significant relationship with share prices. Implications: The research results would help both investors and companies' top management identify the ratios that affect share price most. The results would help investors detect the factors that they should consider when making their investment decisions to improve their investment profitability and for the company's management to focus their efforts on improving these ratios to enhance shareholders' wealth. Originality: This study is a pioneering attempt to address the effect of financial ratios on the share prices of mobile telecommunication companies in Kuwait. Limitations: The relationship between financial ratios and share prices has been extensively researched and the results were very inconsistent which indicates that the effect of financial ratios on share price may vary from market to market.
Copyright (c) 2024 Musaed AlAli, Ibraheem T. AlAskar, Husain S. Aboualhasan http://creativecommons.org/licenses/by-nc-nd/4.0
Efficiency of Insurance Companies in Cameroon
Purpose: The main objective of this study is to assess the level of efficiency of insurance companies in Cameroon and to examine the role of corporate governance in explaining this level of efficiency. Method: Using data extracted from the audited financial statements and reports of 15 insurance companies from 2010 to 2020, the study employs the output-oriented Malmquist index to measure the efficiency scores of non-life insurance companies in Cameroon. To examine the effect of corporate governance on the firms' efficiency levels, we used the panel Tobit model. Result: Since insurance companies’ main mission is to protect against future risk occurrence while remaining financially viable, findings from data analysis revealed that the average efficiency level of sampled firms over the period of the study stands at 76.8%. Furthermore, results from the panel tobit analysis indicate that board gender diversity significantly enhances efficiency as well as board composition in terms of the number of foreigners on the board and ownership concentration measured by the number of shareholders compromise it. However, board size, presence of foreign executives, and foreign ownership were found to exert no significant effect on insurance companies in Cameroon. Implications: The study therefore recommends that corporate governance and regulatory oversight be strengthened by implementing measures that will go a long way to enhance corporate governance practices and ensure compliance with best practices and standards within insurance companies in Cameroon. A performance analysis commission should be created within the regulatory organ to assess, rank, and recommend best practices to the insurance firms.
Copyright (c) 2024 Tita Shipuh Victor Mbanya, Jumbo Urie Eleazar, Tayong Desmond Mimba http://creativecommons.org/licenses/by-nc-nd/4.0
Supplier Optimization Strategy, Risk Strategy and Enterprise Supply Chain Performance of SMEs
Purpose: Small and Medium Enterprises (SMEs) in Bamenda City are integral to the region's economic development, contributing significantly to employment, innovation, and economic growth. Supply chain management involves the coordination and optimization of activities related to sourcing, production, and delivery of products and services. The main objective of this study was to investigate the effects of supplier optimization strategy and risk strategy on the enterprise supply chain performance of SMES in Bamenda City. Methods: Data for this study was obtained with the help of a structured questionnaire. By combining both designs, the study can first describe the existing situation or relationships (descriptive), and then explore or test potential causes and effects (causal). The partial least square regression model was used to analyze the paper. Results: Results from partial least squares structural equation models (PLS-SEM) revealed a positive insignificant effect of supplier optimization strategy on supply chain performance. Risk strategy was also found to exert a positive effect on supply chain performance everything being equal. Implications: Although supplier optimization has a positive impact on supply chain performance, the effect is insignificant. This suggests that while the strategy is directionally sound, it may need to be enhanced or refined. Also, given the positive significant effect of the risk strategy on supply chain performance, organizations should continue to focus on and invest in risk management.
Copyright (c) 2024 Jude Bonglav Nsawir, Urie Eleazar Jumbo, Elizabeth Ankiambom Chiatii http://creativecommons.org/licenses/by-nc-nd/4.0
Determinants of Islamic Banks' Profitability in an Emerging Economy
Purpose: This study investigates the factors influencing the profitability of Sharia-based Islamic banks operating in Bangladesh. Methods: Using panel data from 2017 to 2023, the current analysis shows how factors particular to individual banks have impacted the profitability of Bangladeshi banks. To complete this analysis, only Islamic banks are taken into consideration. In this paper, the factors that affect Bangladesh's Islamic banking industry's profitability are clarified. 10 Islamic banks operating in Bangladesh are included in the sample. The study investigates internal factors such as size, liquidity risk, operational effectiveness, credit risk, financial risk, and capital adequacy. The analysis is conducted using panel data regression with fixed effect. Results: The result shows that operating efficiency, financial risk, and liquidity risk are the most relevant bank-specific characteristics in determining the Islamic banks’ profitability in Bangladesh. Implications: The study suggests that bankers should keep a close observation of credit and liquidity risk indicators, diversify their revenue streams, and minimize expenses. Moreover from the regulatory perspective, the performance of the banks should be evaluated based on their operational efficiency and ability to generate profit. The policy direction will be directed towards enhancing resilience by reducing the risk internally and increasing the efficiency of the Islamic banks to intensify the robustness and stability of this sector. Originality: While numerous previous studies have provided various explanations of the factors influencing bank profitability, this research specifically examines the internal factors affecting the profitability of Islamic Banks in Bangladesh, an emerging market.
Copyright (c) 2024 Mohammad Azhar Hossain http://creativecommons.org/licenses/by-nc-nd/4.0
Nexus between Economic Policy Uncertainty and Bank Liquidity Creation
Purpose: This paper analyzes the effects of economic policy uncertainty (EPU), bank regulations, and credit risk on the asset and liability sides of liquidity creation in developed and developing countries. Methods: The sample comprises 100 companies in developed and developing countries from 2015 to 2021. We used a dynamic Generalized Method of Moments (GMM) estimator to test the hypothesis. We also performed the Sargan test of over-identification or J-statistics to check the validity of instruments in the GMM model. Additionally, we conducted a robustness test on our analysis based on average assets and average capital. Results: We find that Economic Policy Uncertainty (EPU) significantly negatively impacts asset-side liquidity creation in developed and developing countries. However, EPU significantly positively impacts liability-side liquidity creation only in developed countries. Interestingly, higher credit risk can effectively counteract the adverse effects of EPU on asset-side liquidity creation and encourage a positive impact on liability-side liquidity creation in developed and developing countries. Moreover, stricter bank regulations, including activity restriction and capital stringency, can weaken the negative effects of EPU on asset-side liquidity creation in developed and developing countries. However, we do not find any significant effect of higher bank regulations on the relationship between liability-side liquidity creation and EPU. Implications: Since financial institutions can make riskier decisions to keep their businesses going in an uncertain economy, regulators need to act in advance to restore confidence in credit growth and financial resilience. The government should assess the short-term and long-term consequences of any policy implications. Originality: While most studies concentrate on total liquidity creation from a cross-country perspective, our study provides new evidence by breaking down liquidity creation into asset-side and liability-side liquidity creation and examining the research separately in developed and developing countries.
Copyright (c) 2024 Sabuj Saha, Kanon Kumar Sen, Prodip Chandra Bishwas http://creativecommons.org/licenses/by-nc-nd/4.0
Cross Country Study of Human Capital Formation and USFDI Inflows
Purpose: The neo-classical theory of economic growth features the positive impact of the human capital of an economy on its growth. The inflow of foreign direct investment is one of the main components to carry forward the growth effect, this study investigates the impact of country-specific institutional quality and human capital on the cross-country variations of US-Foreign Direct Investment (FDI) inflows. Our core hypothesis is that Countries with better Human capital will attract more FDI if they have good quality institutions in terms of less risk in investment opportunities. Method: Using a set of panel data of US-Foreign Direct Investment (FDI) inflows for both developed and developing countries over the period 1984-2021. Result: The country-specific quality of institutions reinforces the impact of human capital on the inflow of US foreign direct investment in this study. Using two-dimensional panel data we find strong support for our hypothesis using a two-way fixed effects model. Our results are robust to the alternative measures of institutional quality. Implications: The strength of our approach is that in contrast to the previous works (1) we have used the USFDI inflow across countries that have been widely neglected in the related literature and (2) emphasis has been given to the conditional or joint impact of human capital and country-specific institutional quality in determining the cross-country variations in USFDI inflows.
Copyright (c) 2024 Barnana Bhattacharya, Chaitali Sinha http://creativecommons.org/licenses/by-nc-nd/4.0
The Impact of Financial Repression on the Economy of Bangladesh
Purpose: The study's objective is to examine the impact of financial repression on Bangladesh's economy. Moreover, the impact of individual policy tools such as real deposit rate, interest rate restriction, capital account control, share of state-owned commercial bank in total advances, and statutory liquidity ratio will be investigated to find the specific policy that hampers economic activities. Method: The autoregressive distributed lag (ARDL) method, originated by Pesaran and Shin (1999) and expanded by Pesaran, Shin, and Smith (2001), will be used to look at the long-term relationship. The study uses time series data for Bangladesh's economy from 1973 to 2022. Results: The findings of the ARDL approach confirm that repressive policies reduce economic growth over the sample period, and the effect becomes weaker after liberalizing the foreign exchange market. However, among the repressive policies, interest rate restrictions, statutory liquidity ratio, and the share of the state-owned bank in the commercial banks have significant adverse effects on economic growth. Implication: Policymakers should take proper measures to liberalize the financial sector to boost economic activity. The interest rate restrictions, which are already in effect and hamper the fair functioning of the loan market, should be withdrawn.
Copyright (c) 2024 Md. Yousuf http://creativecommons.org/licenses/by-nc-nd/4.0
A Comparative Study of the Equal-Weight Method and Hierarchical Risk Parity in Portfolio Construction
Purpose: Portfolio optimization is a process in which the capital is allocated among the portfolio assets such that the return is maximized while the risk is minimized. Portfolio construction and optimization has long been an active research area in finance. For the portfolios with highly correlated assets, the performance of traditional risk-based asset allocation methods such as, the mean-variance (MV) method is limited because quadratic optimizers require an inversion of the covariance matrix of the portfolio to distribute weight among the portfolio assets. Methods: A possible solution to the limitations of traditional risk-based asset allocation methods can be provided by a hierarchical clustering-based Machine Learning method because it uses hierarchical relationships between the covariance of assets in the portfolio to distribute the weight, and inversion of the covariance matrix is not required. A comparison of the performance of a simple non-optimization technique called the Equal-weight (EW) method to the two optimization methods, the Mean-variance method and the HRP method, which is a machine learning method, was conducted in this research. Results: It was found that in terms of cumulative returns, the equal-weight method has outperformed several more sophisticated optimization techniques, the mean-variance method, and the HRP method. For most of the period, the Sharpe ratio of the HRP method was observed to be similar to the mean-variance method and equal-weight method. Implications: This research supports the idea that HRP is a feasible method to construct portfolios with correlated assets because the performance of HRP is comparable to the performances of the traditional optimization method and the non-optimization method.
Copyright (c) 2024 Debjani Palit, Victor R. Prybutok http://creativecommons.org/licenses/by-nc-nd/4.0
Factors Affecting the Intention to Use Digital Banking
Purpose: Banks are adopting digital banking to attract clients by providing more useful services, and creating safe, dependable, and easy-to-use online tools. The purpose of this research is to examine the factors influencing the overall adoption of digital banking by retail banking customers. Methods: An expanded technology acceptance model (TAM) serves as the basis for the theoretical framework of the study. A structured survey of 200 consumers is used to gather primary data, and multiple regression analysis is used to examine the correlations between six independent components. Results: The research indicates that web capabilities, perceived utility, and awareness all have a positive and significant impact on the adoption of digital banking. Implications: This study offers guidelines for creating service models and boosting the use of digital banking. The findings can help policymakers and financial organizations devise strategies for constructing the infrastructure and methods for offering digital banking services. Originality: It is a pioneering effort to explore the combined effects of Perceived usefulness, usability, Privacy, safety, trust Cost of transactions Awareness and Web features on Bangladeshi users’ intention to use digital banking. Limitations: This study is based on quantitative data analysis with limited sample size and period. In future, qualitative research may be conducted for deeper understanding of the issue.
Copyright (c) 2023 Mohammad Azhar Hossain http://creativecommons.org/licenses/by-nc-nd/4.0
Significance of Transformational Leadership on Project Portfolio Success within the Micro Financial Sector in Cameroon
Purpose: This research investigates the effect of transformational leadership on project portfolio success in the micro-financial sector in Cameroon. Method: A quantitative research approach was used for this study. Data were collected from 205 managers of Microfinance institutions in Cameroon and analyzed with the help of the SPSS, version 25. AMOS 23 was used to conduct Confirmatory Factor Analyses to examine convergent and discriminant validity. Results: The result showed that less than 60% of current microfinance institutions have adopted key aspects of transformational leadership (idealized influence; intellectual stimulation; inspirational motivation; and individualized consideration). It was observed that transformational leadership has a significant and positive effect on project portfolio success. The effect of such leadership is mediated by team building practices and teamwork quality. Implication: Transformational leadership is not well recognized in the micro-financial sector of Cameroon irrespective of its effect on project portfolio success. Microfinance institution managers should adopt and apply such leadership for higher performance of their project portfolios.
Copyright (c) 2023 Gaston Gwemelang Ngochembo, Honest Kfetua Ful , Vera Bekebang Mbouh http://creativecommons.org/licenses/by-nc-nd/4.0
Contribution of Agricultural Productivity to Industrialization in Africa
Purpose: The objective of this study is to investigate the direct and indirect effects of agricultural productivity on industrialization. It also looks for the mediating role of infrastructural development on the effects of agricultural productivity on industrialization. Method: The system Generalized Method of Moments (GMM) methodology for 45 African countries is applied. It covers the period from 2005 to 2022. Results: The results show that agricultural productivity has a positive significant role on industrialization in Africa. This result is robust when industrialization is measured by employment in industry (EMIND). Infrastructural development has an enhancing role on the agricultural productivity-industrialization nexus. These results are robust for the two different measures of industrialization but are more enhancing on Employment in Industry than on Manufacturing Value Added (MVA). The study also observes that agricultural productivity interacts with the Water and Sanitation Index (WSS) on MVA to yield a positive net effect. Moreover, agricultural productivity interacts with ICT (Information and Communication Technology) and ECI (Electricity composite index) on both MVA and EMIND to yield positive synergy effects. Implications: The Electricity Composite Index is still not sufficient in Africa. Equally, there is a need for some countries like Chad, Ethiopia, Mozambique, and Niger to boost WSS above this threshold of 32.96 since this threshold is below the mean value for Africa as a whole. Policy-wise, it could be recommended that both agricultural productivity and infrastructural development should be strengthened, with emphasis on electricity, so as to achieve the much-needed level of industrialization for Africa.
Copyright (c) 2023 Evina Ofeh Anchi, Ndzembanteh Aboubakary, Ofeh Marilyn Edoh http://creativecommons.org/licenses/by-nc-nd/4.0
Purpose: The purpose of this study was to investigate the determinants of self-employment in the Ndop Central sub-division in the North West Region of Cameroon. Specifically, the study aimed to examine the usefulness of technical education and finance in the creation of self-employment in the sub-division. Methods: Using a survey research design, data were collected from primary sources with the help of a questionnaire. The convenience sampling technique was used to collect the needed data from a sample of 384 people from three villages of the sub-division. Binary logistics was used to analyze the data. Results: Results revealed that the coefficient of technical education was significant and negative (-2.6581). This finding signifies that graduates from the technical system of education are less likely to join self-employment as compared to graduates of general education background. Also, the availability of finance was seen to have a negative effect on the probability of being self-employed (-0.0632). It implies that individuals who have easy access to loans are less likely to be self-employed. Implication: The study is expected to guide the government to revisit the curriculum and focus of technical education in the country, as regards its contribution to the unemployment problem of the country. The study also points to the fact that those who have access to loans are not those who deserve it.
Copyright (c) 2023 Marcel Sewoyehbaa, Pekiaka Zebedee Nyounibe, Mboka Nyamsi Georges Bienvenue http://creativecommons.org/licenses/by-nc-nd/4.0
Economic Development and Renewable Energy Nexus in Morocco
Purpose The present study explores the causal relationships between economic development, renewable energy consumption, nonrenewable energy consumption, and CO2 emissions in the context of Morocco. Methods The panel unit root test, Auto Regressive Distributed Lag (ARDL), and bounds test were used to assess the co-integration of the variables in the study and the long-run relationship between them. It employs the Granger causality test using a vector error correction model to determine the existence and direction of causality among the variables. It uses Morocco's annual statistical data from 1990 through 2019. Results The co-integration of the variables in the study was confirmed, implying that a long-run relationship exists between them. The causality test results suggest that a bidirectional causality exists between renewable energy consumption and economic development, which validates the feedback hypothesis of the mutual link between renewable energy consumption and economic development. Implications These findings suggest that Morocco's economic development is critical in providing the required resources for sustainable development. It also implies that boosting renewable energy utilization would enhance Morocco's economic development and limit environmental degradation.
Copyright (c) 2023 Yousra Benyetho, Abdelilah El Attar http://creativecommons.org/licenses/by-nc-nd/4.0
Internally Generated Revenue (IGR) and the Economic Viability of States in Nigeria
Purpose: The purpose of this study is to investigate Internally Generated Revenue (IGR) and the Economic Viability of States in Nigeria using State Government Debt Stock. Specifically, the study seeks to determine the effect of IGR on State government expenditure. Methods: Secondary data were used for this study. It used an annual panel data set spanning from 1986 to 2021 for six states each from Nigeria's six geopolitical zones. A Panel Vector Error Correction Model (PVECM) was used as the method of analysis. Results: Results showed that the IGR of States in Nigeria had a positive effect on State government expenditure. The Impulse Response Function of expenditure to shocks from IGR indicates that IGR for the periods under analysis positively affected State government expenditure, increasing their expenditure profile for the majority of the period under analysis. The result of the variance decomposition test of State government total debt stock (TDS) shows that IGR had the greatest shock on the total debt stock of State governments in the country after its own shock. The findings also revealed a mixed and varied outcome, demonstrating both a positive and negative influence of IGR on the overall debt stock of the state government. Implications: The study is expected to contribute to good economic management, such as managing the debt load at reasonable levels, as well as adequate economic planning backed by cost-effective expenditure. It will also contribute to the economic sustainability of Nigerian states. The uniqueness of this research is obvious in its ability to address the statewide problem of over-dependence on the federal government’s allocation.
Copyright (c) 2023 Jacob Sesugh Angahar, Victor Dotun Olalere http://creativecommons.org/licenses/by-nc-nd/4.0
Purpose: The purpose of the study is to investigate how entrepreneurship in the agriculture sector could help alleviate poverty in the Tubah region of Cameroon. Specifically, the study seeks to explore the potential of agripreneurship in creating job opportunities, increasing income levels, and improving the living standards of people in the region. Methods: Mixed-method design was employed for the study. Data was gathered with the help of a structured questionnaire from 384 households in Tubah-Cameroon and analyzed using the partial least square. Results: Results revealed that attitudes towards agripreneurship, innovative behavior, and the need for achievement had a positive effect on poverty reduction in Tubah Sub-Division. Inheritance of family ventures and start-up motives were found to exert negative effect on poverty reduction. Implications: The study is expected to contribute to the understanding of how entrepreneurship in the agriculture sector can be leveraged to promote economic opportunities and promote sustainable development in rural areas.
Copyright (c) 2023 Paul Akumbom, Mary Juliet Bime Egwu, Peter NGEK SHILLIE http://creativecommons.org/licenses/by-nc-nd/4.0
Drivers of Financial Inclusion among Cocoa Producers in the Southwest Region of Cameroon
Purpose: Financial inclusion can considerably promote cocoa production and provide a buffer for the escape from poverty traps for cocoa-growing economies like Cameroon. However, the Southwest region of Cameroon still experiences a low level of cocoa production and poverty primarily due to financial exclusion. This article explores the drivers of financial inclusion in the region. Method: A stratified multistage sampling technique was used to survey 380 cocoa producers in the main cocoa-producing areas in the region through semi-structured questionnaires. Descriptive statistics were used to analyze the socio-economic variables and the probit model to analyze the drivers of financial inclusion, subject to the three major dimensions of financial inclusion; access to, use, and quality of financial services. Results: On average, the long distance of financial institutions (9.3 km), intermediate farm sizes (2.6 ha), and low annual income (1,125,863 FCFA) negatively influenced financial inclusion resulting in just 16.6% of farmers being financially included. The findings also revealed that financial inclusion is significantly enhanced by an increase in income, farm training, the closeness of formal financial institutions (FFIs), larger household size, and small-scale production at a 1% significance level, and more years of farming experience at 5%. Moreover, 51.3% of the major constraints to financial inclusion were accounted for by lack of collateral security, distant FFIs, and low income. Implications: Reducing the distance of FFIs by establishing more institutions with considerations on collateral, increasing income through extension services like farm training, and sound agronomic practices will enhance financial inclusion. Originality: The uniqueness of this study lies in the context of the socio-political crisis during which cocoa producers were interviewed and exploring how the crisis influenced financial inclusion through a host of factors. Moreover, besides just access to credit as considered by most studies in Cameroon, the current study considers the use and quality of formal financial services as well.
Copyright (c) 2023 Norbert Ngoongeh Ngwang, Mary-Juliet Egwu Bime http://creativecommons.org/licenses/by-nc-nd/4.0
Tax Compliance in Indonesia: A Meta-Analysis
Purpose: This study aims to summarize existing research ﬁndings regarding the determinants of tax compliance in Indonesia by using Meta-analysis. Methods International databases (Scopus) and Indonesian-accredited journals (Sinta 2) are employed to collect data. A targeted search is conducted using the keyword “compliance” in connection with tax compliance, tax avoidance, tax evasion, and related terms. We used Harzing’s Publish application in searching for related papers. We begin with an initial sample of 71 meta-analyses and finally have 39 studies as the final sample of our literature review. Results: We found that a penalty is not the best way to solve compliance issues. In contrast to the traditional (enforcement) paradigm, our investigation revealed that sanctions could not fully explain compliance. Taxpayers should not feel heavily penalized when there is a delay in reporting. Sanctions that are low and less tangible make taxpayers underestimate existing sanctions. Furthermore, tax reform policies such as the Sunset policy (SP), are not regular provisions that are used consistently. SP is a particular tax policy that eliminates tax penalties for individual taxpayers who have recently registered and amended their tax returns. Implications: This study has substantial implications for the Directorate General of Taxes (GDT) concerning the policy approaches in dealing with tax non-compliance. The Indonesian tax authority needs to shift from sanction to voluntary compliance by framing a friendly approach in dealings with taxpayers. Originality: To our knowledge, this is the first study to review the determinants that influence tax compliance specifically in Indonesia using a meta-analysis lens. Limitations: Some important studies are not accessed because of budget limitations.
Copyright (c) 2022 Verta Arbaath Titaailla, Fidiana Fidiana http://creativecommons.org/licenses/by-nc-nd/4.0