scholarly journals Determinants of Liquidity Management: Evidence from Nigerian Banking Sector

2021 ◽  
pp. 96-111
Author(s):  
Sunday Kajola ◽  
Wasiu Sanyaolu ◽  
Abdul-Azeez Alao ◽  
Ayorinde Babatolu
Keyword(s):  
Growth Rate ◽  
Significant Relationship ◽  
Fixed Effects ◽  
Inflation Rate ◽  
Business Environment ◽  
Sustainable Growth ◽  
Capital Adequacy ◽  
Gdp Growth ◽  
Liquidity Management ◽  
Gdp Growth Rate

The study examined the determinants of liquidity management in twelve Nigerian banks during 2009–2018. Liquidity ratio (LQR) and deposit to asset ratio (DAR) were used as surrogates for liquidity management. As the potential liquidity management determinant indicators, five bank-specific variables (capital adequacy, size, asset quality, profitability and deposit growth) and three macroeconomic variables (GDP growth rate, inflation rate and interest rate) were used as proxies. Results from balanced fixed effects least square regression analytical technique show that size, profitability, GDP growth rate and inflation rate are important liquidity determinants in Nigerian banks. Specifically, bank size has a positive and significant influence on LQR, while GDP growth rate and inflation rate exhibit a negative and significant relationship with LQR. It further reveals a positive and significant relationship between profitability (ROA) and DAR. It is recommended that banks’ management should focus attention on both bank-specific (size and profitability) and macroeconomic (GDP growth and inflation rate) factors when deciding appropriate liquidity management strategy to be adopted. These four variables have the capacity to influence the profitability, sustainable growth and survival of banks operating in a volatile business environment such as Nigeria.

scholarly journals Impact of Foreign Exchange Rate and Inflation Rate on the Economic Growth of India

2019 ◽  
Vol 8 (4) ◽  
pp. 4333-4335
Keyword(s):  
Growth Rate ◽  
Exchange Rate ◽  
Foreign Exchange ◽  
Inflation Rate ◽  
Linear Regression Analysis ◽  
Foreign Exchange Rate ◽  
Gdp Growth ◽  
Economic Progress ◽  
Gdp Growth Rate ◽  
The Impact

This paper tries to investigate the impact of foreign exchange rate and inflation rate on the economic progress of India. In this study the economic progress has been measured by annual GDP ( Gross Domestic Product ) growth in India. Correlation analysis and multiple regression model have been designed to explore the relationship among the mentioned three variables. The annual GDP growth of India has been considered as the dependent variable and the other two macroeconomic variables ( Foreign exchange rate and inflation rate ) have been considered as the independent variables. Secondary sources of data have been gathered to arrive at a logical conclusion. The results show a positive correlation between GDP growth rate and the foreign exchange rate and a negative correlation between the GDP growth rate and the inflation rate. Results from the linear regression analysis show that inflation rate has a strong influence or impact on the GDP growth rate than the foreign exchange rate. It is expected that the present study will help the policy makers and the researchers to understand the impact of foreign exchange rate and inflation rate on the GDP growth in India

scholarly journals The Impact of Government Size on Inflation in selected Developing Countries (2006-2014)

2018 ◽  
pp. 71-90
Keyword(s):  
Growth Rate ◽  
Developing Countries ◽  
Panel Data ◽  
Interest Rate ◽  
Inflation Rate ◽  
Government Size ◽  
Gdp Growth ◽  
Money Growth ◽  
Gdp Growth Rate ◽  
The Impact

One of the serious challenges facing developing countries that are facing is the issue of inflation. Inflation creates serious challenges for economic agents as a result of the greatly damaging effects of economic and economic growth. Despite the general understanding of the concept of inflation, there is still no agreement between economists on the causes of its creation. The present study examines the impact of government size on inflation in 16 selected developing countries (Afghanistan, India, Iran, Malaysia, Mexico, Argentina, Qatar, Singapore, Kuwait, Pakistan, Uruguay, Benon, Nepal, Mali, Vietnam and Bhutan) will be tested during the period from 2006 to 2014. The pattern examined for this purpose, using the combination (panel) data in the least squared method completely, for the investigated pattern for this purpose, using generalized least squares panel data, toinvestigate the effect of each of the variables of government size, the index of import value, interest rate, Money and quasi money growth rate and GDP growth rate used on the Inflation rate. The results of this research indicate that the Money and quasi money growth rate, interest rate and growth rate of the import value index had a positive and significant effect on the inflation rate, and the GDP growth rate had a negative and significant effect on the inflation rate. Also, the main independent variable of government size model has had a negative and significant impact on inflation in the studied countries.

scholarly journals Impacts of Macroeconomic Variables on the Stock Market Returns of South Asian Region

2020 ◽  
pp. 24-34 ◽  
Keyword(s):  
Growth Rate ◽  
Exchange Rate ◽  
Stock Market ◽  
Inflation Rate ◽  
Foreign Currency ◽  
Currency Reserve ◽  
Gdp Growth ◽  
Market Returns ◽  
Stock Market Returns ◽  
Gdp Growth Rate

This paper is intended to find out whether macroeconomic variables may impact on the stock market as well as whether such impact has any country specific pattern. The stock market return was taken as the dependent variable and real interest rate, inflation rate, GDP growth rate, foreign currency reserve growth rate, fiscal deficit, FDI to GDP ratio, exchange rate were taken as independent variables. Data-set was covered from 1993 to 2019 for five South Asian countries which were Bangladesh, India, Pakistan, Sri Lanka, and Nepal. The pattern of the stock market, as well as macro conditions of these countries, was observed and it was found that some relationships exist between the stock market returns and these chosen independent variables. Unit root test, Heteroscedasticty test, autocorrelation test, Hausman test is conducted to authenticate and clarified data to investigate relationship nature. Granger Casualty test indicated that there exist cause and effect relationship between GDP growth rate, exchange rate, and stock market returns. Finally, the regression test reveals that the inflation rate and foreign currency reserve growth rate have a significant impact on the stock market returns. It was expected to have the unique nature of different countries having versatile impact on dependent, so additionally fixed effects model and random effects model were run and it was found that the random effects model is statistically appropriate through conducting the Hausman test. The test reveals that GDP growth rate, foreign currency reserve growth rate, and fiscal deficit positively impact the stock market returns and these also support the literature review. Interest rates, inflation rate, FDI to GDP ratio, and exchange rate have negatively impacted the stock market return where only interest rate, inflation rate & exchange rate.

scholarly journals DETERMINANT FACTORS OF NON-PERFORMING LOANS IN CHINESE COMMERCIAL BANKS

2021 ◽  
Vol 8 (02) ◽  
pp. 125-135
Author(s):  
Purwanto Purwanto ◽  
Mei Ling Sun
Keyword(s):  
Growth Rate ◽  
Hypothesis Testing ◽  
Commercial Banks ◽  
Stock Exchange ◽  
Capital Adequacy ◽  
Gdp Growth ◽  
Observation Data ◽  
Financial Reports ◽  
Gdp Growth Rate ◽  
Capital Adequacy Ratio

The purpose of this research is to identify the influence of GDP growth rate, bank interest rate, inflation rate, capital adequacy ratio, and return on asset towards non-performing loans in Chinese commercial banks partially and simultaneously. This study has applied descriptive statistical analysis, classical hypothesis testing, multiple linear regression, and hypothesis testing. When selecting the observation data, this research adopts the intentional sampling method and panel data, 70 units of observational data in total, one part of the data was taken from the financial reports of seven selected sample companies on the Shanghai Stock Exchange in China, and another part of the data was taken from the kyle website. The method used in a quantitative approach with the instrument is EViews 10. The result indicates that BIR and IFR have a partially negative significant influence on NPL. However, GDP growth rate, CAR, and ROA have a negative insignificant effect on NPL. Simultaneously, all of the independent variables have a significant effect on NPL which is described by the value of 63.9% and the left 36.1% is explained by another factor that is excluded in this study. Furthermore, IFR was chosen as the most significant factor which influences NPL.

Estimating Barro misery index in democratic states with application in Albania: 2005 – 2014

2016 ◽  
Vol 4 (2) ◽  
pp. 142
Author(s):  
Fejzi Kolaneci ◽  
Juxhen Duzha ◽  
Enxhi Lika
Keyword(s):  
Growth Rate ◽  
Central Limit Theorem ◽  
Limit Theorem ◽  
Central Limit ◽  
Unemployment Rate ◽  
Inflation Rate ◽  
Gdp Growth ◽  
Gdp Growth Rate ◽  
Misery Index ◽  
Fair Game

In the present study we develop a statistical analysis of the Barro misery index and its components in contemporary democratic states with application in Republic of Albania during the period January 2005- December 2014. BMI is calculated by the formula: BMI = ? + u – GPD + i, where BMI denotes quarterly Barro misery index, ? denotes quarterly inflation rate, u denotes quarterly unemployment rate, GDP denotes quarterly real GDP growth rate, i denotes nominal long-term interest rate. Kolmogorov’s Central Limit Theorem is a fundamental theorem of Modern Probability Theory “Fair game” and “Effective market in week sense” are important concepts of Macroeconomics. Some results of the study include : Kolmogorov’s Central Limit Theorem is not valid for quarterly inflation rates in Albania during the period January 2005- December 2014 at the confidence 99. 9%. The inflation process in Albania during the specified period, related to the quarterly inflation rate, is an unfair game at the confidence 98. 8%. The inflation process in Albania during the specified period, related to the quarterly inflation rate, is not effective at the confidence 97. 5% Kolmogorov’s Central Limit Theorem is not valid for quarterly unemployment rates in Albania during the specified period at the confidence 99. 9%. The unemployment process in Albania during the specified period, related to the quarterly unemployment rate, is an unfair game at the confidence 99. 9%. The unemployment process in Albania during the specified period, related to the quarterly unemployment rate, is not effective at the confidence 99. 9% The official data of the quarterly GDP growth rate for Albania during the specified period contradict Kolmogorov’s Central Limit Theorem at the confidence 77. 1%. The GDP growth rate process for Albania during the specified period is a fair game at the confidence 86. 4%. The GDP growth rate process for Albania during the specified period is not effective at the confidence 99. 9%. The official data of the quarterly Barro misery index for Albania during the specified period contradict Kolmogorov’s Central Limit Theorem at the confidence 96. 1%. The Barro misery index for Albania during the specified period is a fair game at the confidence 84. 8%. The Barro misery index process for Albania during the specified period is not effective at the confidence 63. 7%.

scholarly journals Macroeconomic factors, firm characteristics and financial performance

2018 ◽  
Vol 3 (2) ◽  
pp. 142-168 ◽  
Author(s):  
Chinedu Francis Egbunike ◽  
Chinedu Uchenna Okerekeoti
Keyword(s):  
Growth Rate ◽  
Exchange Rate ◽  
Financial Performance ◽  
Inflation Rate ◽  
Manufacturing Firms ◽  
Gdp Growth ◽  
Firm Characteristics ◽  
Macroeconomic Factors ◽  
Content Type ◽  
Gdp Growth Rate

Purpose The purpose of this paper is to explore the interrelationship between macroeconomic factors, firm characteristics and financial performance of quoted manufacturing firms in Nigeria. Specifically, the study investigates the effect of interest rate, inflation rate, exchange rate and the gross domestic product (GDP) growth rate, while the firm characteristics were size, leverage and liquidity. The dependent variable financial performance is measured as return on assets (ROA). Design/methodology/approach The study used the ex post facto research design. The population comprised all quoted manufacturing firms on the Nigerian Stock Exchange. The sample was restricted to companies in the consumer goods sector, selected using non-probability sampling method. The study used multiple linear regression as the method of validating the hypotheses. Findings The study finds no significant effect for interest rate and exchange rate, but a significant effect for inflation rate and GDP growth rate on ROA. Second, the firm characteristics showed that firm size, leverage and liquidity were significant. Practical implications The study has implications for regulators and policy makers in formulating policy decisions. In addition, managers may better understand the interplay between macroeconomic factors, firm characteristics and profitability of firms. Originality/value Few studies have addressed the interplay of macroeconomic factors and firm characteristics in determining the profitability of manufacturing firms in the country and developing countries in general.

scholarly journals The debate that forces Vietnam social sciences and humanities to change

2020 ◽  
Author(s):  
Nguyen Thanh Thanh Huyen
Keyword(s):  
Social Sciences ◽  
Economic Growth ◽  
Growth Rate ◽  
Global Scale ◽  
Poverty Rate ◽  
Sustainable Growth ◽  
Gdp Growth ◽  
Social Sciences And Humanities ◽  
Gdp Growth Rate ◽  
Openness To Trade

On the way to achieve sustainable and strong development, the Vietnamese government gained great accomplishments in 2018: nominal GDP growth rate was 7.08%; GDP was $240.5 billion; the poverty rate was reduced to 5.8%. These achievements are remarkable for a country with only $36 billion of GDP in 1993 and attributable to the openness to trade and globalization. However, Vietnam’s academics have yet been internationalized and grown at the same speed as its economic growth, which raised a question on the possibility to reach sustainable growth and Vietnam’s competency at a global scale.

scholarly journals Impact of Non-Performing Loans on Credit Growth in the Banking Industry in Tanzania: 2009 – 2018

2021 ◽  
pp. 10-18
Author(s):  
John P. Lihawa ◽  
Deus D. Ngaruko
Keyword(s):  
Growth Rate ◽  
Regression Analysis ◽  
Private Sector ◽  
Interest Rates ◽  
Inflation Rate ◽  
Negative Impact ◽  
Gdp Growth ◽  
Credit Growth ◽  
Gdp Growth Rate ◽  
The Impact

This study adopted descriptive statistics and multiple regression analysis in investigating the impact of Non-Performing Loans (NPL) on credit growth to private sector in Tanzania, apart from NPL. The study also investigated the influence of interest rates, inflation rates and GDP on credit advancement to private sector in Tanzania. Using multiple linear regression analysis the study found that both NPL and interest rates have negative impact on the credit growth to private sector in Tanzania, with coefficient values of -0.323 and -0.263 for NPL and interest rate respectively. Furthermore, the study also found that Inflation rate and GDP growth rate have positive impact on the credit growth to private sector in Tanzania with coefficients of 0.247and 0.156 for inflation rate and GDP growth rate respectively. The study found that NPL has a significant negative impact on the credit growth by commercial bank to private sector in Tanzania. These results suggest that the central bank should continue to closely monitor and control the level of NPL in the economy and confine it below the threshold of 5% as stipulated by the BOT and IMF. The study also recommends that commercial banks should ensure that a thorough credit risk assessment is conducted when advancing loans to private sector.

Estimating Barro misery index in democratic states with application in Albania: 2005 – 2014

2016 ◽  
Vol 2 (2) ◽  
pp. 142
Author(s):  
Fejzi Kolaneci ◽  
Juxhen Duzha ◽  
Enxhi Lika
Keyword(s):  
Growth Rate ◽  
Central Limit Theorem ◽  
Limit Theorem ◽  
Central Limit ◽  
Unemployment Rate ◽  
Inflation Rate ◽  
Gdp Growth ◽  
Gdp Growth Rate ◽  
Misery Index ◽  
Fair Game

In the present study we develop a statistical analysis of the Barro misery index and its components in contemporary democratic states with application in Republic of Albania during the period January 2005- December 2014. BMI is calculated by the formula: BMI = ? + u – GPD + i, where BMI denotes quarterly Barro misery index, ? denotes quarterly inflation rate, u denotes quarterly unemployment rate, GDP denotes quarterly real GDP growth rate, i denotes nominal long-term interest rate. Kolmogorov’s Central Limit Theorem is a fundamental theorem of Modern Probability Theory “Fair game” and “Effective market in week sense” are important concepts of Macroeconomics. Some results of the study include : Kolmogorov’s Central Limit Theorem is not valid for quarterly inflation rates in Albania during the period January 2005- December 2014 at the confidence 99. 9%. The inflation process in Albania during the specified period, related to the quarterly inflation rate, is an unfair game at the confidence 98. 8%. The inflation process in Albania during the specified period, related to the quarterly inflation rate, is not effective at the confidence 97. 5% Kolmogorov’s Central Limit Theorem is not valid for quarterly unemployment rates in Albania during the specified period at the confidence 99. 9%. The unemployment process in Albania during the specified period, related to the quarterly unemployment rate, is an unfair game at the confidence 99. 9%. The unemployment process in Albania during the specified period, related to the quarterly unemployment rate, is not effective at the confidence 99. 9% The official data of the quarterly GDP growth rate for Albania during the specified period contradict Kolmogorov’s Central Limit Theorem at the confidence 77. 1%. The GDP growth rate process for Albania during the specified period is a fair game at the confidence 86. 4%. The GDP growth rate process for Albania during the specified period is not effective at the confidence 99. 9%. The official data of the quarterly Barro misery index for Albania during the specified period contradict Kolmogorov’s Central Limit Theorem at the confidence 96. 1%. The Barro misery index for Albania during the specified period is a fair game at the confidence 84. 8%. The Barro misery index process for Albania during the specified period is not effective at the confidence 63. 7%.

scholarly journals Revisiting inflation and growth nexus: an asymmetric cointegration based on Non-linear ARDL approach in case of Bangladesh

2021 ◽  
Vol 13 (2) ◽  
pp. 105-136
Author(s):  
Zobayer Ahmed
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Economic Development ◽  
Inflation Rate ◽  
Gdp Growth ◽  
Long Run ◽  
Gdp Growth Rate ◽  
Ardl Approach ◽  
Short Run ◽  
Asymmetric Cointegration

Sustainable high economic growth is the major objective of a country. Whereas inflation is one of the critical factors that affect economic development. Growth-inflation nexus is one of the most controversial topics in this present world. This study re-investigates the link between inflation and the economic development of Bangladesh by employing a non-linear autoregressive distributed lagged (NARDL) approach. For this study, we use annual time series data set on the growth rate of per capita gross domestic product, and the inflation rate for the time range from 1986 to 2017. The asymmetric cointegration result based on the NARDL approach shows the confirmation of long-run integration between the GDP growth rate and inflation rate (CPI). The study finds a positive and robust nexus between growth rate and inflation rate. The relationship exists both in the long-run as well as in the short-run. The results also have statistically significant. This study further explores that there is an asymmetric relationship between the rate of inflation and the rate of economic growth. The nonlinear ARDL approach shows that the GDP growth rate responds more with an upward change in inflation than that of a downward change. Furthermore, in the short-run, the positive change in inflations has a significant and positive influence on the growth rate. Still, the influence of an adverse change in inflations has statistically insignificant. Both the policymakers of Bangladesh (Bangladesh Bank) and development partners working in the country can be benefited from these results in the context of policy implementation. This study recommends that to boosting up the economic growth in the context of Bangladesh, the inflation rate can be treated as a significant determination.

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