Expert Journal of Finance

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Simona VINEREAN

Editor’s Introduction to a New Finance Journal: Expert Journal of Finance

Expert Journal of Finance, 1 (1), pp. 1-3, 2013, ISSN: 2359-7712

Editor’s Introduction

@article{23597712-101,
title = {Editor’s Introduction to a New Finance Journal: Expert Journal of Finance},
author = {Simona VINEREAN},
url = {http://finance.expertjournals.com/wp-content/uploads/EJF_101vinerean2013pp1-3.pdf},
issn = {2359-7712},
year  = {2013},
date = {2013-12-04},
journal = {Expert Journal of Finance},
volume = {1},
number = {1},
pages = {1-3},
abstract = {Editor’s Introduction},
keywords = {,},
tppubtype = {article},
tpstatus = {published},
}

Claudiu Ilie OPREANA

Estimation of Value-at-Risk on Romanian Stock Exchange Using Volatility Forecasting Models

Expert Journal of Finance, 1 (1), pp. 4-18, 2013, ISSN: 2359-7712

This paper aims to analyse the market risk (estimated by Value-at-Risk) on the Romanian capital market using modern econometric tools to estimate volatility, such as EWMA, GARCH models. In this respect, I want to identify the most appropriate volatility forecasting model to estimate the Value-at-Risk (VaR) of a portofolio of representative indices (BET, BET-FI and RASDAQ-C). VaR depends on the volatility, time horizon and confidence interval for the continuous returns under analysis. Volatility tends to happen in clusters. The assumption that volatility remains constant at all times can be fatal. It is determined that the most recent data have asserted more influence on future volatility than past data. To emphasize this fact, recently, EWMA and GARCH models have become critical tools in financial applications. The outcome of this study is that GARCH provides more accurate analysis than EWMA.This approach is useful for traders and risk managers to be able to forecast the future volatility on a certain market.

@article{23597712-102,
title = {Estimation of Value-at-Risk on Romanian Stock Exchange Using Volatility Forecasting Models},
author = {Claudiu Ilie OPREANA},
url = {http://finance.expertjournals.com/23597712-102/},
issn = {2359-7712},
year  = {2013},
date = {2013-12-27},
journal = {Expert Journal of Finance},
volume = {1},
number = {1},
pages = {4-18},
abstract = {This paper aims to analyse the market risk (estimated by Value-at-Risk) on the Romanian capital market using modern econometric tools to estimate volatility, such as EWMA, GARCH models. In this respect, I want to identify the most appropriate volatility forecasting model to estimate the Value-at-Risk (VaR) of a portofolio of representative indices (BET, BET-FI and RASDAQ-C). VaR depends on the volatility, time horizon and confidence interval for the continuous returns under analysis. Volatility tends to happen in clusters. The assumption that volatility remains constant at all times can be fatal. It is determined that the most recent data have asserted more influence on future volatility than past data. To emphasize this fact, recently, EWMA and GARCH models have become critical tools in financial applications. The outcome of this study is that GARCH provides more accurate analysis than EWMA.This approach is useful for traders and risk managers to be able to forecast the future volatility on a certain market.},
keywords = {Value-at-Risk, volatility forecasting, EWMA, GARCH models, autocorrelation,},
tppubtype = {article},
tpstatus = {published},
}

Simona VINEREAN

From Liquidity Crisis to Sovereign Debt Crisis

Expert Journal of Finance, 1 (1), pp. 19-27, 2013, ISSN: 2359-7712

This paper summarizes the results of empirical research on European Union s evolution in terms of macroeconomic stability in a period in which member countries crossed from a liquidity crisis to a sovereign debt crisis. So, the evolution of the EU member countries is analyzed as the sovereign debt crisis has worsened and has become increasingly dangerous for the stability of the European economy. The research that is the subject of this paper aims to segment the EU member countries according to the degree of macroeconomic stability. Also, this segmentation process is performed according to two indicators that are highly important for macroeconomic stability, namely the sovereign debt, expressed as public debt to GDP, and fiscal and budgetary discipline, expressed by the ratio of budget balance to GDP.

@article{23597712-103,
title = {From Liquidity Crisis to Sovereign Debt Crisis},
author = {Simona VINEREAN},
url = {http://finance.expertjournals.com/23597712-103/},
issn = {2359-7712},
year  = {2013},
date = {2013-12-27},
journal = {Expert Journal of Finance},
volume = {1},
number = {1},
pages = {19-27},
abstract = {This paper summarizes the results of empirical research on European Union s evolution in terms of macroeconomic stability in a period in which member countries crossed from a liquidity crisis to a sovereign debt crisis. So, the evolution of the EU member countries is analyzed as the sovereign debt crisis has worsened and has become increasingly dangerous for the stability of the European economy. The research that is the subject of this paper aims to segment the EU member countries according to the degree of macroeconomic stability. Also, this segmentation process is performed according to two indicators that are highly important for macroeconomic stability, namely the sovereign debt, expressed as public debt to GDP, and fiscal and budgetary discipline, expressed by the ratio of budget balance to GDP.},
keywords = {macroeconomic stability, sovereign debt, budget deficit,},
tppubtype = {article},
tpstatus = {published},
}

Alin OPREANA

The National Income Between Monetary and Fiscal Actions

Expert Journal of Finance, 1 (1), pp. 28-32, 2013, ISSN: 2359-7712

Andersen and Jordan (1968) and Andersen (1971) argued that fiscal actions have a negligible effect on nominal income and can not sustain a stable and balanced economic growth. Also, they argued, along with other researchers who have embraced monetarism ideas from the Federal Reserve Bank of St. Louis, that the budget deficit presents negativeeffects in the economy that limit private investment. In this article, we analyzed the empirical relationship that is established between the tax actions and the long and short term national income in the U.S. economy and the economies of Eurozone.

@article{23597712-104,
title = {The National Income Between Monetary and Fiscal Actions},
author = {Alin OPREANA},
url = {http://finance.expertjournals.com/23597712-104/},
issn = {2359-7712},
year  = {2013},
date = {2013-12-28},
journal = {Expert Journal of Finance},
volume = {1},
number = {1},
pages = {28-32},
abstract = {Andersen and Jordan (1968) and Andersen (1971) argued that fiscal actions have a negligible effect on nominal income and can not sustain a stable and balanced economic growth. Also, they argued, along with other researchers who have embraced monetarism ideas from the Federal Reserve Bank of St. Louis, that the budget deficit presents negativeeffects in the economy that limit private investment. In this article, we analyzed the empirical relationship that is established between the tax actions and the long and short term national income in the U.S. economy and the economies of Eurozone.},
keywords = {fiscal actions, budget deficit, money supply, national income,},
tppubtype = {article},
tpstatus = {published},
}

Andreea TRIMBITAS, Andrei VECERDEA

Foreign Direct Investment Drivers in Romania

Expert Journal of Finance, 1 (1), pp. 33-42, 2013, ISSN: 2359-7712

Foreign Direct Investment (FDI) represents a condition sine qua non for a sustainable development of Romania, taking into consideration the fact that the domestic capital is not enough to assure a positive and significant growth. The present study uses the multiple linear regression to determine the main factors which influence FDI level in Romania. The international reserve and the capital market index BET have a direct and positive impact on the foreign investment flow, while the short, medium and long private and public external debt proved to influence direct, but in a negative way, the FDI.

@article{23597712-105,
title = {Foreign Direct Investment Drivers in Romania},
author = {Andreea TRIMBITAS and Andrei VECERDEA},
url = {http://finance.expertjournals.com/23597712-105/},
issn = {2359-7712},
year  = {2013},
date = {2013-12-29},
journal = {Expert Journal of Finance},
volume = {1},
number = {1},
pages = {33-42},
abstract = {Foreign Direct Investment (FDI) represents a condition sine qua non for a sustainable development of Romania, taking into consideration the fact that the domestic capital is not enough to assure a positive and significant growth. The present study uses the multiple linear regression to determine the main factors which influence FDI level in Romania. The international reserve and the capital market index BET have a direct and positive impact on the foreign investment flow, while the short, medium and long private and public external debt proved to influence direct, but in a negative way, the FDI.},
keywords = {Linear multiple regression, Foreign Direct Investment (FDI), International reserve, Capital market index BET, Short, medium and long term public and private external debt,},
tppubtype = {article},
tpstatus = {published},
}

Alexandra HOROBET, Lucian BELASCU, Roxana Georgiana OLARU

Integration of Capital Markets from Central and Eastern Europe: Implications for EU Investors

Expert Journal of Finance, 2 (1), pp. 1-9, 2014, ISSN: 2359-7712

Our paper investigates the extent of capital market co-movements between three emerging markets Czech Republic, Hungary and Poland and three developed markets from the European Union - Austria, France and Germany. We test whether an increase in correlations between the six markets took place in recent years, as revealing higher integration of capital markets in the region. We find a statistically significant positive trend in cross-market correlations between 1999 and 2008, before the emergence of the global financial crisis. Movements in national stock markets are not fully synchronized, but increases in market volatilities lead to increases in cross-country correlations. There is a long-term relationship between some of these countries capital markets, and information is transmitted from one market to the other. Our findings confirm previous studies and lead to the conclusion that stock markets from Central and Eastern Europe became more integrated with the developed markets in European Union.

@article{23597712-201,
title = {Integration of Capital Markets from Central and Eastern Europe: Implications for EU Investors},
author = {Alexandra HOROBET and Lucian BELASCU and Roxana Georgiana OLARU},
url = {http://finance.expertjournals.com/23597712-201/},
issn = {2359-7712},
year  = {2014},
date = {2014-04-07},
journal = {Expert Journal of Finance},
volume = {2},
number = {1},
pages = {1-9},
abstract = {Our paper investigates the extent of capital market co-movements between three emerging markets Czech Republic, Hungary and Poland and three developed markets from the European Union - Austria, France and Germany. We test whether an increase in correlations between the six markets took place in recent years, as revealing higher integration of capital markets in the region. We find a statistically significant positive trend in cross-market correlations between 1999 and 2008, before the emergence of the global financial crisis. Movements in national stock markets are not fully synchronized, but increases in market volatilities lead to increases in cross-country correlations. There is a long-term relationship between some of these countries capital markets, and information is transmitted from one market to the other. Our findings confirm previous studies and lead to the conclusion that stock markets from Central and Eastern Europe became more integrated with the developed markets in European Union.},
keywords = {capital markets, co-integration, European Union,},
tppubtype = {article},
tpstatus = {published},
}

Godwin Chigozie OKPARA, Eugine IHEANACHO

Banking Sector Performance and Corpoate Governance in Nigeria: A Discriminant Analytical Approach

Expert Journal of Finance, 2 (1), pp. 10-17, 2015, ISSN: 2359-7712

This paper sets out to investigate the impact of corporate governance on the banking sector performance. Precisely, it examined firstly, how each variant in the corporate governance structure discriminates against the performance of the banking sector and secondly whether the executive directors and non executive directors are associated negatively and significantly with non performing loans. To accomplish these objectives, the researchers employed discriminant analysis, correlation coefficient and the spearman rank correlation as an alternate method. The results of the analysis revealed that foreign ownership contributed about 187.77 percent of the total discriminant score for the function thereby propelling foreign ownership as the most discriminant ownership variable in banks performance and also implying that a bank s chance of belonging to the group of highly performing banks increases as its foreign ownership increases. The poor performance of the board ownership is not as severe as that of the institutional ownership and government ownership which made the poor and poorer contributions respectively. The results also show that both executive directors and non-executive directors are not significantly associated with non-performing loans. On the basis of these findings, the researchers recommend that the Central Bank of Nigeria in liaison with the Nigerian Deposit and Insurance Corporation should extend intensive surveillance on the role of the directors in the banking sector.

@article{23597712-202,
title = {Banking Sector Performance and Corpoate Governance in Nigeria: A Discriminant Analytical Approach},
author = {Godwin Chigozie OKPARA and Eugine IHEANACHO},
url = {http://finance.expertjournals.com/wp-content/uploads/EJF_202okpara2014pp10-17.pdf},
issn = {2359-7712},
year  = {2015},
date = {2015-01-29},
journal = {Expert Journal of Finance},
volume = {2},
number = {1},
pages = {10-17},
abstract = {This paper sets out to investigate the impact of corporate governance on the banking sector performance. Precisely, it examined firstly, how each variant in the corporate governance structure discriminates against the performance of the banking sector and secondly whether the executive directors and non executive directors are associated negatively and significantly with non performing loans. To accomplish these objectives, the researchers employed discriminant analysis, correlation coefficient and the spearman rank correlation as an alternate method. The results of the analysis revealed that foreign ownership contributed about 187.77 percent of the total discriminant score for the function thereby propelling foreign ownership as the most discriminant ownership variable in banks performance and also implying that a bank s chance of belonging to the group of highly performing banks increases as its foreign ownership increases. The poor performance of the board ownership is not as severe as that of the institutional ownership and government ownership which made the poor and poorer contributions respectively. The results also show that both executive directors and non-executive directors are not significantly associated with non-performing loans. On the basis of these findings, the researchers recommend that the Central Bank of Nigeria in liaison with the Nigerian Deposit and Insurance Corporation should extend intensive surveillance on the role of the directors in the banking sector.},
keywords = {Corporate Governance, Executive Directors, Non-Executive Directors, Return on Asset, non-Performing Loans, Discriminant Analysis,},
tppubtype = {article},
tpstatus = {published},
}

Mohd Yaziz MOHD ISA, Zabid Haji ABDUL RASHID

Islamic Deposits and Investment Accounts in Income Smoothing in Post-Reclassification of the Islamic Financial Service Act 2013

Expert Journal of Finance, 2 (1), pp. 18-25, 2014, ISSN: 2359-7712

This study attempts to determine the impact of the reclassification on income smoothing practices by Islamic banks in Malaysia through loss provisions. It is well acknowledged that Islamic banks set up an allowance for loss provisions in order to absorb any future losses. However, alternative mechanisms, such as Profit Equalization Reserve (PER) and Investment Risk Reserve (IRR) instead of loss provisions, are used to smooth income. This study determines whether the exercise by Islamic banks in Malaysia to reclassify Islamic deposits to investment accounts after the enacted Islamic Financial Service Act (2013), may have caused unintended consequences in less profit payout to investment account holders. The results do not indicate any unintended consequences of less profit payout to investment account holders from the present exercise by the Islamic banks in Malaysia to distinguish Islamic deposits from investment accounts.

@article{23597712-203,
title = {Islamic Deposits and Investment Accounts in Income Smoothing in Post-Reclassification of the Islamic Financial Service Act 2013},
author = {Mohd Yaziz MOHD ISA and Zabid Haji ABDUL RASHID},
url = {http://finance.expertjournals.com/23597712-203/},
issn = {2359-7712},
year  = {2014},
date = {2014-12-31},
journal = {Expert Journal of Finance},
volume = {2},
number = {1},
pages = {18-25},
abstract = {This study attempts to determine the impact of the reclassification on income smoothing practices by Islamic banks in Malaysia through loss provisions. It is well acknowledged that Islamic banks set up an allowance for loss provisions in order to absorb any future losses. However, alternative mechanisms, such as Profit Equalization Reserve (PER) and Investment Risk Reserve (IRR) instead of loss provisions, are used to smooth income. This study determines whether the exercise by Islamic banks in Malaysia to reclassify Islamic deposits to investment accounts after the enacted Islamic Financial Service Act (2013), may have caused unintended consequences in less profit payout to investment account holders. The results do not indicate any unintended consequences of less profit payout to investment account holders from the present exercise by the Islamic banks in Malaysia to distinguish Islamic deposits from investment accounts.},
keywords = {Islamic banks, Islamic deposits, investment accounts, Profit Equalization Reserves, Investment Risk Reserves,},
tppubtype = {article},
tpstatus = {published},
}

Alin OPREANA

Investment Modelling at the Euro Area Level

Expert Journal of Finance, 2 (1), pp. 26-30, 2014, ISSN: 2359-7712

The aim of this research is to model the investment function at the level of the Euro zone. To achieve this main objective, we use and implement the structural equation modeling procedure for empirical analysis. Using this technique, the causal relationships established between investment and influencing factors are estimated and tested. Also, in the process of modeling structural equations, we examine empirical data sets related to the Euro area’s Member States.

@article{23597712-204,
title = {Investment Modelling at the Euro Area Level},
author = {Alin OPREANA},
url = {http://finance.expertjournals.com/23597712-204/},
issn = {2359-7712},
year  = {2014},
date = {2014-12-30},
journal = {Expert Journal of Finance},
volume = {2},
number = {1},
pages = {26-30},
abstract = {The aim of this research is to model the investment function at the level of the Euro zone. To achieve this main objective, we use and implement the structural equation modeling procedure for empirical analysis. Using this technique, the causal relationships established between investment and influencing factors are estimated and tested. Also, in the process of modeling structural equations, we examine empirical data sets related to the Euro area’s Member States.},
keywords = {investment, interest rate, taxes, gross domestic product, Euro Area,},
tppubtype = {article},
tpstatus = {published},
}

Simona VINEREAN

Editor’s Introduction to Volume 3 of Expert Journal of Finance

Expert Journal of Finance, 3 (1), pp. 1-3, 2015, ISSN: 2359-7712

Editor’s Introduction

@article{23597712-301,
title = {Editor’s Introduction to Volume 3 of Expert Journal of Finance},
author = {Simona VINEREAN},
url = {http://finance.expertjournals.com/wp-content/uploads/EJF_301vinerean.pdf},
issn = {2359-7712},
year  = {2015},
date = {2015-12-31},
journal = {Expert Journal of Finance},
volume = {3},
number = {1},
pages = {1-3},
abstract = {Editor’s Introduction},
keywords = {,},
tppubtype = {article},
tpstatus = {published},
}

Raja HMILI, Taoufik BOURAOUI

Early Warning Indicators of Banking Crisis in Asian Countries

Expert Journal of Finance, 3 (1), pp. 1-8, 2015, ISSN: 2359-7712

This paper aims to test the relevance of the advanced warning indicators in the prediction of systemic banking crises in 6 Asian emerging countries over the period 1973-2012. Based on multivariate panel logit model, our empirical results suggest that among 6 determinants of banking crises ranged into macroeconomic, financial and external variables, inflation demonstrates the most significant predictive power on systemic banking crises.

@article{23597712-302,
title = {Early Warning Indicators of Banking Crisis in Asian Countries},
author = {Raja HMILI and Taoufik BOURAOUI},
url = {http://finance.expertjournals.com/23597712-302},
issn = {2359-7712},
year  = {2015},
date = {2015-02-26},
journal = {Expert Journal of Finance},
volume = {3},
number = {1},
pages = {1-8},
abstract = {This paper aims to test the relevance of the advanced warning indicators in the prediction of systemic banking crises in 6 Asian emerging countries over the period 1973-2012. Based on multivariate panel logit model, our empirical results suggest that among 6 determinants of banking crises ranged into macroeconomic, financial and external variables, inflation demonstrates the most significant predictive power on systemic banking crises.},
keywords = {banking crises, early warning system, panel logit regression,},
tppubtype = {article},
tpstatus = {published},
}

Engin ONER

Problems and Recommendations over Tax Policies

Expert Journal of Finance, 3 (1), pp. 9-20, 2015, ISSN: 2359-7712

Tax policy is a tool that state uses on economic, social and financial fields. Funding public expenditure is its financial goal, providing economic stability and development is its economic goal and contributing to fair distribution of income and wealth is its social goal. In result of high debt load, rupture between taxes and economic goals, being not established a document and registration order and lacking in management of administration and control functions, significantly increasing tax loss and evasion and factors such as unfair competition that it leads to show that our tax system is ineffective and have a negative influence in economic life. In order to succeed in tax policies, “taxes should be minimalistic, should consider the ability to pay with respect to income level, should prevent the luxurious consumption and waste, should decrease tax evasion and loss, should tax informal economy, should encourage export, employment and development, should be reformed in a permanent way and implementing tax consciousness into whole society” is inevitable.

@article{23597712-303,
title = {Problems and Recommendations over Tax Policies},
author = {Engin ONER},
url = {http://finance.expertjournals.com/23597712-303/},
issn = {2359-7712},
year  = {2015},
date = {2015-03-31},
journal = {Expert Journal of Finance},
volume = {3},
number = {1},
pages = {9-20},
abstract = {Tax policy is a tool that state uses on economic, social and financial fields. Funding public expenditure is its financial goal, providing economic stability and development is its economic goal and contributing to fair distribution of income and wealth is its social goal. In result of high debt load, rupture between taxes and economic goals, being not established a document and registration order and lacking in management of administration and control functions, significantly increasing tax loss and evasion and factors such as unfair competition that it leads to show that our tax system is ineffective and have a negative influence in economic life. In order to succeed in tax policies, “taxes should be minimalistic, should consider the ability to pay with respect to income level, should prevent the luxurious consumption and waste, should decrease tax evasion and loss, should tax informal economy, should encourage export, employment and development, should be reformed in a permanent way and implementing tax consciousness into whole society” is inevitable.},
keywords = {tax policy, tax reform, tax evasion,},
tppubtype = {article},
tpstatus = {published},
}

Muhammad Mehtab AZEEM, Ayub MOHAMMAD

Money and Physical Capital Relationship: McKinnon’s Complementarity Hypothesis on Turkey’s Economy

Expert Journal of Finance, 3 (1), pp. 21-30, 2015, ISSN: 2359-7712

A complementary relationship between money and physical capital, emphasis on liberalization, financial liberalization theory and increased real interest rates will lead to a surge in money demand and investment. In this research paper, the validity of this hypothesis, which is also known as McKinnon s complementarity hypothesis, in terms of financial liberalization policy has been tested empirically to examine the performance, money demand, interest rate and investment size in order to attempt to designate the respective relationship in Turkey. In this study, over the period of 1999Q1-2014Q4 in Turkey, the relationship between money and physical capital for available data is investigated through the BOUND and ARDL test methods. Empirical analysis of the findings suggests that Turkey s economy is based on a limited complementary relationship between money and physical capital.

@article{23597712-304,
title = {Money and Physical Capital Relationship: McKinnon’s Complementarity Hypothesis on Turkey’s Economy},
author = {Muhammad Mehtab AZEEM and Ayub MOHAMMAD},
url = {http://finance.expertjournals.com/23597712-304/},
issn = {2359-7712},
year  = {2015},
date = {2015-08-19},
journal = {Expert Journal of Finance},
volume = {3},
number = {1},
pages = {21-30},
abstract = {A complementary relationship between money and physical capital, emphasis on liberalization, financial liberalization theory and increased real interest rates will lead to a surge in money demand and investment. In this research paper, the validity of this hypothesis, which is also known as McKinnon s complementarity hypothesis, in terms of financial liberalization policy has been tested empirically to examine the performance, money demand, interest rate and investment size in order to attempt to designate the respective relationship in Turkey. In this study, over the period of 1999Q1-2014Q4 in Turkey, the relationship between money and physical capital for available data is investigated through the BOUND and ARDL test methods. Empirical analysis of the findings suggests that Turkey s economy is based on a limited complementary relationship between money and physical capital.},
keywords = {financial liberalization, McKinnon’s complementarity hypothesis, money and physical capital, Bound test and ARDL method,},
tppubtype = {article},
tpstatus = {published},
}

Rui QIN, Zhaoquan JIAN

The Simulation Study of the Change of Accounting Standards for Business Enterprises Based on Evolutionary Game

Expert Journal of Finance, 3 (1), pp. 31-39, 2015, ISSN: 2359-7712

This article tries to analyze the characteristics of the accounting standard for business enterprises, which is based on the idea of evolutionary game, in order to build a game model between stakeholders, and to conduct the simulation of the game model with NetLogo software. It shows the performance of all participants in the course of the game in a dynamic process, and the simulation results are analyzed, accordingly.

@article{23597712-305,
title = {The Simulation Study of the Change of Accounting Standards for Business Enterprises Based on Evolutionary Game},
author = {Rui QIN and Zhaoquan JIAN},
url = {http://finance.expertjournals.com/23597712-305/},
issn = {2359-7712},
year  = {2015},
date = {2015-10-17},
journal = {Expert Journal of Finance},
volume = {3},
number = {1},
pages = {31-39},
abstract = {This article tries to analyze the characteristics of the accounting standard for business enterprises, which is based on the idea of evolutionary game, in order to build a game model between stakeholders, and to conduct the simulation of the game model with NetLogo software. It shows the performance of all participants in the course of the game in a dynamic process, and the simulation results are analyzed, accordingly.},
keywords = {Accounting Standards for Business Enterprises, Evolutionary Game, Change, NetLogo,},
tppubtype = {article},
tpstatus = {published},
}

Shelly DALY, Javier ZARCO

The Global Economic Crisis: Spain’s Housing Bubble

Expert Journal of Finance, 3 (1), pp. 40-44, 2015, ISSN: 2359-7712

Housing bubbles have been discussed and closely linked to current world economics since 2008. This paper takes a case study approach to the situation in Spain in terms of its economy, the housing market and the ongoing economic crisis. Unique aspects of the Spanish culture and historical idiosyncrasies are included for the reader to compare and contrast various international settings and economic machinations. Micro and macro factors are incorporated in order to allow the reader to evaluate the complexity of the ongoing crisis, options and potential alternatives. The unique burden the Spanish housing bubble places on young adults, those most dramatically affected by Spanish unemployment levels, is also broached.

@article{23597712-306,
title = {The Global Economic Crisis: Spain’s Housing Bubble},
author = {Shelly DALY and Javier ZARCO},
url = {http://finance.expertjournals.com/23597712-306/},
issn = {2359-7712},
year  = {2015},
date = {2015-12-30},
journal = {Expert Journal of Finance},
volume = {3},
number = {1},
pages = {40-44},
abstract = {Housing bubbles have been discussed and closely linked to current world economics since 2008. This paper takes a case study approach to the situation in Spain in terms of its economy, the housing market and the ongoing economic crisis. Unique aspects of the Spanish culture and historical idiosyncrasies are included for the reader to compare and contrast various international settings and economic machinations. Micro and macro factors are incorporated in order to allow the reader to evaluate the complexity of the ongoing crisis, options and potential alternatives. The unique burden the Spanish housing bubble places on young adults, those most dramatically affected by Spanish unemployment levels, is also broached.},
keywords = {International Economics, Case Study, International Business, EU,},
tppubtype = {article},
tpstatus = {published},
}

Francesco COREA

What Finance Can Learn from Biopharma Industry: A Transfer of Innovation Models

Expert Journal of Finance, 3 (1), pp. 45-53, 2015, ISSN: 2359-7712

The financial sector is living a profound crisis in order to keep pace with the continuous technological breakthroughs that come out daily, while other sectors seem to be historically more growth-by-innovation-based (e.g., the pharma/biotech sector). This work focuses on an interdisciplinary approach to innovation, and on insights that the banking sector can draw from the pharmaceutical one. Hence, a unique dataset has been built, and it collects information on the most relevant players for both the fields. Different indicators have been created as well in order to empirically test whether the financial industry is actually less innovative with respect to the pharmaceutical one, and to understand the best growing strategy for the banking industry. The results confirm that there is an innovation gap between the two industries, as well as identify the corporate venture capital as the best mean to drive business growth through innovation.

@article{23597712-307,
title = {What Finance Can Learn from Biopharma Industry: A Transfer of Innovation Models},
author = {Francesco COREA},
url = {http://finance.expertjournals.com/23597712-307/},
issn = {2359-7712},
year  = {2015},
date = {2015-12-30},
journal = {Expert Journal of Finance},
volume = {3},
number = {1},
pages = {45-53},
abstract = {The financial sector is living a profound crisis in order to keep pace with the continuous technological breakthroughs that come out daily, while other sectors seem to be historically more growth-by-innovation-based (e.g., the pharma/biotech sector). This work focuses on an interdisciplinary approach to innovation, and on insights that the banking sector can draw from the pharmaceutical one. Hence, a unique dataset has been built, and it collects information on the most relevant players for both the fields. Different indicators have been created as well in order to empirically test whether the financial industry is actually less innovative with respect to the pharmaceutical one, and to understand the best growing strategy for the banking industry. The results confirm that there is an innovation gap between the two industries, as well as identify the corporate venture capital as the best mean to drive business growth through innovation.},
keywords = {Fintech, Biotech, R&D, venture capital, innovation, licensing, M&A,},
tppubtype = {article},
tpstatus = {published},
}

Joseph UGOCHUKWU MADUGBA, M.C. OKAFOR

Impact of Corporate Social Responsibility on Financial Performance: Evidence from Listed Banks in Nigeria

Expert Journal of Finance, 4 (1), pp. 1-9, 2016, ISSN: 2359-7712

The major purpose of the study is to examine the Impact of CSR on Earning Per Share (EPS), Return On Capital Employed (ROCE) and Dividend Per Share (DPS) of listed banks in Nigeria. It is believed by the researchers that this study will be of immense use to the government, financial institutions and the general public. The study covered the period 2010-2014. The Impact of EPS, ROCE and DPS was tested on CSR. Simple regression analysis was employed by the researchers in testing the data collected from the annual published financial statement of the selected banks. The regression result showed that EPS and DPS have negative significant relationship with CSR while ROCE has a positive significant relationship with CSR. The research recommends that the government should by way of legislation through regulatory authorities, compel financial institutions to embark actively in CSR, also CSR should be seen as an investment and reported as such in the financial statements of financial institutions.

@article{23597712-401,
title = {Impact of Corporate Social Responsibility on Financial Performance: Evidence from Listed Banks in Nigeria},
author = {Joseph UGOCHUKWU MADUGBA and M.C. OKAFOR},
url = {http://finance.expertjournals.com/23597712-401/},
issn = {2359-7712},
year  = {2016},
date = {2016-07-05},
journal = {Expert Journal of Finance},
volume = {4},
number = {1},
pages = {1-9},
abstract = {The major purpose of the study is to examine the Impact of CSR on Earning Per Share (EPS), Return On Capital Employed (ROCE) and Dividend Per Share (DPS) of listed banks in Nigeria. It is believed by the researchers that this study will be of immense use to the government, financial institutions and the general public. The study covered the period 2010-2014. The Impact of EPS, ROCE and DPS was tested on CSR. Simple regression analysis was employed by the researchers in testing the data collected from the annual published financial statement of the selected banks. The regression result showed that EPS and DPS have negative significant relationship with CSR while ROCE has a positive significant relationship with CSR. The research recommends that the government should by way of legislation through regulatory authorities, compel financial institutions to embark actively in CSR, also CSR should be seen as an investment and reported as such in the financial statements of financial institutions.},
keywords = {Corporate Social Responsibility, Dividend Per Share, Earnings Per Share, Return on Capital Employed},
tppubtype = {article},
tpstatus = {published},
}

Andrew A. AGBIOGWU, John U. IHENDINIHU, Joseph U.B. AZUBIKE

Effects of Human Resource Cost on Profitability of Banks in Nigeria

Expert Journal of Finance, 4 (1), pp. 10-18, 2016, ISSN: 2359-7712

This study aims at investigating the effects of human resources cost on the profitability of banks in Nigeria from 2010 – 2014 using First Bank Nigeria, Plc and Zenith bank Nig. Plc. The study adopted content method of analysis and linear regression model to test the stated hypotheses. Findings revealed that staff cost significantly affect Earnings per share, Net profit margin, and Return on capital employed of banks. The researcher recommended among other things that there should be a uniformed standard for identification and measurement of human capital assets.

@article{23597712-402,
title = {Effects of Human Resource Cost on Profitability of Banks in Nigeria},
author = {Andrew A. AGBIOGWU and John U. IHENDINIHU and Joseph U.B. AZUBIKE},
url = {http://finance.expertjournals.com/23597712-402/},
issn = {2359-7712},
year  = {2016},
date = {2016-08-03},
journal = {Expert Journal of Finance},
volume = {4},
number = {1},
pages = {10-18},
abstract = {This study aims at investigating the effects of human resources cost on the profitability of banks in Nigeria from 2010 – 2014 using First Bank Nigeria, Plc and Zenith bank Nig. Plc. The study adopted content method of analysis and linear regression model to test the stated hypotheses. Findings revealed that staff cost significantly affect Earnings per share, Net profit margin, and Return on capital employed of banks. The researcher recommended among other things that there should be a uniformed standard for identification and measurement of human capital assets.},
keywords = {Earnings Per Share, Net Profit, Profitability, Return On Capital Employed (ROCE), Staff Cost},
tppubtype = {article},
tpstatus = {published},
}

Louie DACOSTA, Charles ADUSEI

Five Year Retrospective Study of the Financial Situation of Northern Foods Plc., United Kingdom

Expert Journal of Finance, 4 (1), pp. 19-30, 2016, ISSN: 2359-7712

This study was conducted as a retrospective analysis of Northern Foods Plc., once a major player in FTSE 350 Food Sector, to evaluate its financial situation over a five year period. The ex post factor research design was used for this study. Annual reports and databases on Northern Foods Plc., and Associated British Foods Plc., were used to perform a series of ratio analyses. The results revealed that Northern Foods Plc.’s performance has been declining as evidenced in the profitability ratios calculated. Also, financial strength was weak and working capital has not been effectively managed, hence affecting its cash and profit generation potentials. The company was limited in its ability to grow and expand as it needed to regularly fund its pension deficit, and finance its high levels of debt. The study concludes that Northern Foods was not in a very strong financial position, yet it was not making the required investments to improve, hence its takeover though this paper will not rule out non-financial issues. Furthermore, the study prescribed five generic points to improve the financial health of any organisation.

@article{23597712-403,
title = {Five Year Retrospective Study of the Financial Situation of Northern Foods Plc., United Kingdom},
author = {Louie DACOSTA and Charles ADUSEI},
url = {http://finance.expertjournals.com/23597712-403/},
issn = {2359-7712},
year  = {2016},
date = {2016-09-24},
journal = {Expert Journal of Finance},
volume = {4},
number = {1},
pages = {19-30},
abstract = {This study was conducted as a retrospective analysis of Northern Foods Plc., once a major player in FTSE 350 Food Sector, to evaluate its financial situation over a five year period. The ex post factor research design was used for this study. Annual reports and databases on Northern Foods Plc., and Associated British Foods Plc., were used to perform a series of ratio analyses. The results revealed that Northern Foods Plc.’s performance has been declining as evidenced in the profitability ratios calculated. Also, financial strength was weak and working capital has not been effectively managed, hence affecting its cash and profit generation potentials. The company was limited in its ability to grow and expand as it needed to regularly fund its pension deficit, and finance its high levels of debt. The study concludes that Northern Foods was not in a very strong financial position, yet it was not making the required investments to improve, hence its takeover though this paper will not rule out non-financial issues. Furthermore, the study prescribed five generic points to improve the financial health of any organisation.},
keywords = {2003 -2007, financial situation, Northern Foods Plc., retrospective study},
tppubtype = {article},
tpstatus = {published},
}

Mary Nelima LYANI (SINDANI), Gregory S. NAMUSONGE, Maurice SAKWA

Accounts Receivable Risk Management Practices and Growth of SMEs in Kakamega County, Kenya

Expert Journal of Finance, 4 (1), pp. 31-43, 2016, ISSN: 2359-7712

Accounts receivable risk management is a structured approach to managing uncertainties through risk assessment, developing strategies to manage it, and mitigation of risk using managerial resources (Gakure et al., 2012) Although there has been a considerable interest by government to promote SMEs by encouraging owners to take up government tenders, in Kenya the number of SMEs capable of sustaining themselves is still low. Studies show credit risk as an important variable affecting firms. Nonetheless, these risks’ influence on SMEs has not received as much attention as it should. This study’s main objective was to examine the influence of credit risk assessment practices on growth of SMEs. The objective of the study was to evaluate the effect of credit risk assessment practices on growth of SMEs in Kakamega County, in Kenya. Causal research design was applied to show the influence of credit risk assessment practice on growth. Using the sampling technique of purposive stratified random, a sample size of 359 out of 5401 SMEs was used from Kakamega Central Sub-County that had been in operation between 2013 and 2015. Secondary data was acquired from the Kakamega County Revenue Department, for the period under study. The hypotheses that form the premises for a regression model using analysis techniques like homoscedasticity and autocorrelation. Ordinary Least Square method was utilized to establish the relationship of cause-effect between variables while hypothesis was tested at 5% significance level. The overall model was discovered to be significant considering the F14.918 and p-value (0.00 < 0.05). The findings revealed that good credit risk assessment practices when adopted by SMEs lead to growth. The study recommended that owners and managers should be trained and made to understand the various techniques risk management to well manage them so as to increase growth. The findings would form a basis for government and policy makers to formulate credit risk assessment strategies that would help minimize risk of bad and delinquent debt. The study also forms a basis for further research and adds to the existing body of knowledge.

@article{23597712-404,
title = {Accounts Receivable Risk Management Practices and Growth of SMEs in Kakamega County, Kenya},
author = {Mary Nelima LYANI (SINDANI) and Gregory S. NAMUSONGE and Maurice SAKWA},
url = {http://finance.expertjournals.com/23597712-404/},
issn = {2359-7712},
year  = {2016},
date = {2016-10-03},
journal = {Expert Journal of Finance},
volume = {4},
number = {1},
pages = {31-43},
abstract = {Accounts receivable risk management is a structured approach to managing uncertainties through risk assessment, developing strategies to manage it, and mitigation of risk using managerial resources (Gakure et al., 2012) Although there has been a considerable interest by government to promote SMEs by encouraging owners to take up government tenders, in Kenya the number of SMEs capable of sustaining themselves is still low. Studies show credit risk as an important variable affecting firms. Nonetheless, these risks’ influence on SMEs has not received as much attention as it should. This study’s main objective was to examine the influence of credit risk assessment practices on growth of SMEs. The objective of the study was to evaluate the effect of credit risk assessment practices on growth of SMEs in Kakamega County, in Kenya. Causal research design was applied to show the influence of credit risk assessment practice on growth. Using the sampling technique of purposive stratified random, a sample size of 359 out of 5401 SMEs was used from Kakamega Central Sub-County that had been in operation between 2013 and 2015. Secondary data was acquired from the Kakamega County Revenue Department, for the period under study. The hypotheses that form the premises for a regression model using analysis techniques like homoscedasticity and autocorrelation. Ordinary Least Square method was utilized to establish the relationship of cause-effect between variables while hypothesis was tested at 5% significance level. The overall model was discovered to be significant considering the F14.918 and p-value (0.00 < 0.05). The findings revealed that good credit risk assessment practices when adopted by SMEs lead to growth. The study recommended that owners and managers should be trained and made to understand the various techniques risk management to well manage them so as to increase growth. The findings would form a basis for government and policy makers to formulate credit risk assessment strategies that would help minimize risk of bad and delinquent debt. The study also forms a basis for further research and adds to the existing body of knowledge.},
keywords = {Accounts Receivable Management, Credit risk assessment, SME Growth},
tppubtype = {article},
tpstatus = {published},
}

Uduak B. UBOM, Emmanuel I. MICHAEL, Joseph Michael ESSIEN

Bank Portfolio Structure and Economic Absorption Theory of Economic Development: A Theoretical Proposition

Expert Journal of Finance, 4 (1), pp. 44-51, 2016, ISSN: 2359-7712

The focus of this article was on theoretical proposition of Bank Portfolio Structure and Economic Absorption Theory of economic development. Specifically, the work sought to establish the basis of bank portfolio rigidity and to identify the causes of economic absorption problems and their implications on economic development. The theoretical and conceptual research designs were used. Existing literatures were reviewed using archival retrieval approach, library search and internet exploration. The information obtained was judgmentally, logically and qualitatively analyzed. It was discovered among others, that, bank portfolio rigidity stems from regulatory policy defects using inconsistent monetary policy tools such as high liquidity ratio and cash ratio, etc. and compelling the banks to adhere to the regulatory requirement, as well as lack of adequate and quality stock of infrastructure and technology as the basic causes of economic absorption problems. Above all, low level of economic absorption has been discovered to hinder effective contributions of banks to economic development. Following from above, it was therefore recommended that regulatory tools used by Central Banks should be aligned with the development needs of the economy and the direction of governments. The monetary policy tools such as liquidity and cash ratios should also be moderated and stabilized for stable bank portfolio performance as well as aggressive improvement in the stock and quality of infrastructure and technology within an economy. With the new theory, it is expected that policy formulations and adjustments concerning bank portfolio structure and management would be designed with adequate flexibility and focus on long term loans and investments coupled with improved stock and quality of infrastructure to enhance economic development. This theory therefore provides another frontier of research on bank portfolio structure and contributions to economic development.

@article{23597712-405,
title = {Bank Portfolio Structure and Economic Absorption Theory of Economic Development: A Theoretical Proposition},
author = {Uduak B. UBOM and Emmanuel I. MICHAEL and Joseph Michael ESSIEN},
url = {http://finance.expertjournals.com/23597712-405/},
issn = {2359-7712},
year  = {2016},
date = {2016-11-29},
journal = {Expert Journal of Finance},
volume = {4},
number = {1},
pages = {44-51},
abstract = {The focus of this article was on theoretical proposition of Bank Portfolio Structure and Economic Absorption Theory of economic development. Specifically, the work sought to establish the basis of bank portfolio rigidity and to identify the causes of economic absorption problems and their implications on economic development. The theoretical and conceptual research designs were used. Existing literatures were reviewed using archival retrieval approach, library search and internet exploration. The information obtained was judgmentally, logically and qualitatively analyzed. It was discovered among others, that, bank portfolio rigidity stems from regulatory policy defects using inconsistent monetary policy tools such as high liquidity ratio and cash ratio, etc. and compelling the banks to adhere to the regulatory requirement, as well as lack of adequate and quality stock of infrastructure and technology as the basic causes of economic absorption problems. Above all, low level of economic absorption has been discovered to hinder effective contributions of banks to economic development. Following from above, it was therefore recommended that regulatory tools used by Central Banks should be aligned with the development needs of the economy and the direction of governments. The monetary policy tools such as liquidity and cash ratios should also be moderated and stabilized for stable bank portfolio performance as well as aggressive improvement in the stock and quality of infrastructure and technology within an economy. With the new theory, it is expected that policy formulations and adjustments concerning bank portfolio structure and management would be designed with adequate flexibility and focus on long term loans and investments coupled with improved stock and quality of infrastructure to enhance economic development. This theory therefore provides another frontier of research on bank portfolio structure and contributions to economic development.},
keywords = {Bank portfolio structure, Structural rigidity, Economic absorption, Economic development},
tppubtype = {article},
tpstatus = {published},
}

Solomon SAMANHYIA, Kofi MINTAH OWARE, Frederick ANISOM-YAANSAH

Financial Distress and Bankruptcy Prediction: Evidence from Ghana

Expert Journal of Finance, 4 (1), pp. 52-65, 2016, ISSN: 2359-7712

The frequent cases of corporate failures within the financial sector necessitates the need to employ models to predict forehand the financial distressed or bankruptcy state of the financial sector. This study aims at predicting financial distress and bankruptcy on selected listed banks on the stock exchange of a developing West African country, Ghana. Data used for the study spanned from 2008 to 2014. The Altman Z-Score and Boone Indicator were the main means of analysis. The study concluded that poor corporate governance contributes to financial distress and that smaller board size negatively affects corporate performance. The study also concludes that, in a high competitive industry, firms become more efficient and their performance enhanced and thus less likely to be financially distressed. Merging the listed banks indicates financial stability of listed banks albeit one distressed bank. Adoption of best corporate governance standards, enhancing competition through effective corporate strategies and the Central Bank ensuring that banks have enough deposit insurance funds in stock to mitigate the effect of bankruptcy are some of the policy suggestions from the study.

@article{23597712-406,
title = {Financial Distress and Bankruptcy Prediction: Evidence from Ghana},
author = {Solomon SAMANHYIA and Kofi MINTAH OWARE and Frederick ANISOM-YAANSAH},
url = {https://finance.expertjournals.com/23597712-406/},
issn = {2359-7712},
year  = {2016},
date = {2016-12-27},
journal = {Expert Journal of Finance},
volume = {4},
number = {1},
pages = {52-65},
abstract = {The frequent cases of corporate failures within the financial sector necessitates the need to employ models to predict forehand the financial distressed or bankruptcy state of the financial sector. This study aims at predicting financial distress and bankruptcy on selected listed banks on the stock exchange of a developing West African country, Ghana. Data used for the study spanned from 2008 to 2014. The Altman Z-Score and Boone Indicator were the main means of analysis. The study concluded that poor corporate governance contributes to financial distress and that smaller board size negatively affects corporate performance. The study also concludes that, in a high competitive industry, firms become more efficient and their performance enhanced and thus less likely to be financially distressed. Merging the listed banks indicates financial stability of listed banks albeit one distressed bank. Adoption of best corporate governance standards, enhancing competition through effective corporate strategies and the Central Bank ensuring that banks have enough deposit insurance funds in stock to mitigate the effect of bankruptcy are some of the policy suggestions from the study.},
keywords = {Financial Distress, Bankruptcy, Z-Score, Boone Indicator, Financial Sector},
tppubtype = {article},
tpstatus = {published},
}

Louie DACOSTA, Charles ADUSEI

Testing the Pecking Order Theory of Capital Structure in FTSE 350 Food Producers Firms in United Kingdom between 2001 and 2005

Expert Journal of Finance, 4 (1), pp. 66-91, 2016, ISSN: 2359-7712

This paper tests the Pecking Order Theory to see if it best explains the financing behaviour of FTSE 350 UK Food producer firms from the time period of 2001 to 2005. A multiple case study design was used. However, the study approach was retrospective in nature. The Pecking order model as proposed by Shyam-Sunder and Myers, Frank and Goyal; and Rajan and Zingales, was followed in this research. The empirical analysis of firm-year data was compared to a generalised view of the literature to enable an assessment of the commonalities and differences observed. The results suggest that although there is some form of Pecking order behaviour amongst FTSE 350 UK food producer firms, especially when it comes to managers’ preference for the different sources of finance, their financing behaviour is best explained by the trade-off theory of capital structure.

@article{23597712-407,
title = {Testing the Pecking Order Theory of Capital Structure in FTSE 350 Food Producers Firms in United Kingdom between 2001 and 2005},
author = {Louie DACOSTA and Charles ADUSEI},
url = {https://finance.expertjournals.com/23597712-407/},
issn = {2359-7712},
year  = {2016},
date = {2016-12-29},
journal = {Expert Journal of Finance},
volume = {4},
number = {1},
pages = {66-91},
abstract = {This paper tests the Pecking Order Theory to see if it best explains the financing behaviour of FTSE 350 UK Food producer firms from the time period of 2001 to 2005. A multiple case study design was used. However, the study approach was retrospective in nature. The Pecking order model as proposed by Shyam-Sunder and Myers, Frank and Goyal; and Rajan and Zingales, was followed in this research. The empirical analysis of firm-year data was compared to a generalised view of the literature to enable an assessment of the commonalities and differences observed. The results suggest that although there is some form of Pecking order behaviour amongst FTSE 350 UK food producer firms, especially when it comes to managers’ preference for the different sources of finance, their financing behaviour is best explained by the trade-off theory of capital structure.},
keywords = {Pecking Order Theory, Trade-Off Theory, FSTE 350 Food Sector, Capital Structure, United Kingdom},
tppubtype = {article},
tpstatus = {published},
}