Stock price volatility is an indicator which often used by traders to find changes in market trends. The volatility of stock price plays an essential role in portfolio management, capital budgeting, decision making and policy-making. This research will examine the evidence on stock price volatility and identify the causal relationship between four stock markets in ASEAN by analysing the daily data of the stock index market of Indonesia (JKSE), Malaysia (KLCI), Thailand (SET), and Singapore (S...
ABSTRACT Domestic savings play a critical role in augmenting capital accumulation and contributing toachieve and sustain high economic growth. The aim of this study is to examine the effect ofmacroeconomic fundamentals on domestic saving mobilisation in the SADC region. Paneldata analysis was used for 10 SADC member countries during the period of 2008-2017.Document analysis wasused to collect data from World bankdatabase. Multiple linearregression was used and regress...
This study is carried out with the objective of determining the impact of fundamental factors on stock price of Nepalese commercial banks. The fundamental factor in this study includes Return on Assets (ROA), Return on Equity (ROE), Earnings per Share (EPS), Non-performing Loan to Total Loan (NPL) and Credit Deposit Ratio (CD). The fundamental data and stock price data of past 4 years i.e. (2013-14 to 2016-17) of 14 banks selected on the basis of judgement sampling has been taken for the purp...
Commercial banks’ role of intermediation between borrowers and lenders plays a critical role in money creation process. The taking of deposits and lending it to borrowers makes banking industry a special business. However, this unique banking characteristic exposes banks to risk-taking. Lending may lead to accumulation of risky loan portfolio that may eventually affect the stability of the whole banking industry. Banks performance can be measured using different key performance indicators t...
Since the global financial turmoil in 2008, which led to the fall down of financial institutions, there is an increased focus on risk management practices in financial institutions globally. Being an essential tool for risk management and investment reasons, the usage of derivatives has grown speedily lately. Interest rate and currency risks represent the key forms of risks faced by the banks due to their volatility. While several empirical studies have been conducted in the developed financi...
External reserves are recognized as key ingredients for financing international trade. The fall in Nigeria's external reserves has been of great concern as this has caused panic in both the economic and political environment. This is because Nigeria greatly depends on its external reserves for import cover, exchange rate stability and for international ranking. In 2014, external reserves for Nigeria went below three months import cover, which is the International Monetary Fund, stipulated opt...
In the recent past there has been failure of some of the largest commercial banks in the Kenya. This trend puts into question the ability of the internal control systems and the Central Bank of Kenya prudential guidelines to steer the commercial banks stability and performance. However, the recent failures have put pressure on the industry regulators and players to rethink how best the institutions can align their internal control systems and compliance as tools of ensuring stability and...
ABSTRACT There has been a declining trend in the performance of companies in Nairobi Securities Exchange in the recent past with seventeen companies issuing profit warnings to investors in the year 2019, fifteen in 2018, while eighteen firms issued in 2015. Most of the firms reporting inadequate profits were listed in the Commercial and Services sector of the Nairobi Securities Exchange. It raises concern whether companies listed in this sector were more exposed to financial risks in the bus...
ABSTRACT Financial performance of commercial banks dwells entirely on generated returns of assets from operations whereas loan portfolio falls as a critically valuable asset that unfortunately exposes the institution to financial risks. Business Process Reengineering is a management practice that aims to improve the efficiency in the business processes. Commercial banks seem to have slowed down in Re-engineering making business processes still to be costly and slow. Commercial banks across t...
ABSTRACT A stable banking sector is significant in ensuring economic growth as well as sound, efficient and stable financial system. However, the banking sector has been considered fragile and this is evident from the increasing trend of non-performing loans, fluctuating deposit trend of some commercial banks and increasing trend of foreign liabilities held by commercial banks in Kenya which is associated with financial stability. Furthermore the collapsing of commercial banks and some being...
ABSTRACT To minimize the total loan portfolio risk, it is important for commercial banks to consider diversifying their corporate loan portfolio. Yet, research indicates that the effect of such diversification has conflicting findings by various scholars. This study therefore sought to establish the association between corporate loan portfolio diversification and credit risk management among commercial banks in Kenya. The specific objectives of the study included: to determine the relations...
ABSTRACT Financial leverage decisions are critical since they significantly explain firm financial performance. There is lack of consensus (from empirical literature) in respect to the nature and strength of relationship between firm financial leverage and financial performance. Moreover, the impact of financial leverage on different measures of financial performance is varied. Most agricultural co-operative societies in Kenya have not achieved their potential due to poor financial performan...
ABSTRACT Financial distress prediction is a global challenge. The study on financial distress has become more relevant and important because even large firms are failing under unforeseen circumstances causing economic and social problems. Managerial decisions determine firm’s direction, during business cycle process. Many companies have gone into bankruptcy despite using different prediction models. Despite their good rating, they are still prone to financial distress problems. In addition...
ABSTRACT Dividend policy is a widely researched topic in the field of corporate finance; however, it still remains a mystery as to whether dividend policy affects the share prices of quoted firms. During the period under review (2001-2011), share prices of listed firms in the Nairobi Securities Exchange severely fluctuated making it difficult for investors to make informed investment decisions. The general objective of this study was to investigate the effect of dividend policy (cash and sha...
ABSTRACT Agriculture has been a major source of the country’s food security and a stimulant to offfarm employment but agricultural production is on decline. Most firms in the agricultural sector have not lived to their expectations and have led to shareholder apathy thereby contributing to the decline of the rural economy due essentially to unstable and low dividend payout. The dividend policy is one of the most debated topics in finance literature. One of the different lines of resear...