scholarly journals Firm’s Characteristics and Macro-Economic Variables on Expected Stock Returns

2019 ◽  
Vol 12 (1) ◽  
pp. 59-72
Author(s):  
Shiva Raj Paudel
Keyword(s):  
Growth Rate ◽  
Interest Rate ◽  
Cash Flow ◽  
Stock Return ◽  
Negative Impact ◽  
Gdp Growth ◽  
Common Stock ◽  
Macroeconomic Variables ◽  
Gdp Growth Rate ◽  
Significant Negative Impact

This study examines the effect of firm’s characteristics and macroeconomic variables on common stock return from the firms listed in Nepal Stock Exchange (NEPSE). The explained variable for the study is stock return which is calculated as the annual capital gain yield. The explanatory variables consist of firm size, book to market equity, earning yield, cash flow yield, GDP growth, rate of inflation, real interest rate, and money supply. The data are collected from the database of NEPSE, Nepal Rastra Bank (NRB), and the annual reports of the selected firms. The study is based on the 150 observations from the 10 sample firms for the period of 15 years (from 2003/4 to 2017/18). Fixed effect panel data analysis is used to examine the effect of firm characteristics and macroeconomic variables on common stock return in Nepalese firms. The findings confirms significant negative impact of firm size, book to market equity, earning yield, and cash flow yield on stock return in Nepalese context. Among the macroeconomic variables, GDP growth rate, and interest rate have significant negative impact on stock return. Contrarily, only the rate of inflation has significant positive impact on stock return in the context of Nepal. No significant effect of money supply is observed on common stock return in the context of Nepal.

scholarly journals An Inferential Study on the Profitability Determinants of the Cement Industry in Bangladesh

2020 ◽  
Vol 4 (2) ◽  
pp. 8-21
Author(s):  
Sonia Rezina ◽  
Aysha Ashraf ◽  
Md. Atiqullah Khan
Keyword(s):  
Growth Rate ◽  
Interest Rate ◽  
Firm Size ◽  
Real Interest Rate ◽  
Negative Impact ◽  
Positive Impact ◽  
Cement Industry ◽  
Gdp Growth ◽  
Macroeconomic Factors ◽  
Gdp Growth Rate

This paper examines the impacts of firm-specific and macroeconomic factors in determining the profitability of the cement industry in Bangladesh. This study took stock exchange listed all cement companies of Bangladesh as samples and covered the period of 2000–2018. Return on Assets (ROA) was chosen as the dependent variable and firm size, expense to revenue ratio, leverage, age, inflation rate, GDP growth rate, and real interest rate were chosen as independent variables where the first four are firm-specific and the other three are macroeconomic factors. This study considered ROA as the profitability measurement of the firms. The study found that leverage, GDP growth rate, and real interest rate have significant impacts on the profitability. Firm size, age, GDP growth rate, and real interest rate have a positive impact whereas expenses to revenue ratio, leverage, and inflation have a negative impact on the profitability of the firms under the cement industry.

scholarly journals Assessing the Fiscal Sustainability of Government Finances in European Countries

2013 ◽  
Vol 52 (1) ◽  
pp. 87-93
Author(s):  
Yuriy Melnykov
Keyword(s):  
Growth Rate ◽  
Time Series ◽  
Interest Rate ◽  
Unit Root ◽  
Statistical Approach ◽  
Fiscal Sustainability ◽  
European Countries ◽  
Gdp Growth ◽  
Gdp Growth Rate

This paper analyses the fiscal sustainability of government finances in the 27 EU countries and Norway using an empirical, statistical approach and ADF tests for a unit root in the time series of the differences between the GDP growth rate and the long-term interest rate, and the primary balance.

scholarly journals Determinants of Non-Performing Loans: Perception of Nepali Bankers

2016 ◽  
pp. 128-148
Author(s):  
Seema Bhattarai
Keyword(s):  
Commercial Banks ◽  
Inflation Rate ◽  
Negative Impact ◽  
Monitoring And Evaluation ◽  
Political Environment ◽  
Macroeconomic Variables ◽  
Gdp Growth Rate ◽  
Significant Negative Impact ◽  
The Government ◽  
Budgetary Expenditure

The paper discusses the perception of Nepalese bankers regarding the determinants of nonperforming loan in Nepalese commercial banks. The paper is based on primary information collected from 140 bankers working in large ten commercial banks of Nepal. The bankers of Nepalese commercial bank perceive that energy crisis; lack of timely budgetary expenditure by the government and instable political environment increases the non-performing loan. Similarly bankers also perceive that borrowers honesty in disclosing the information, better monitoring and evaluation of the loan, have significant negative impact on non-performing loan. However, the banker’s perception shows that the macroeconomic variables like unemployment rate, inflation rate, exchange rate and interest rate are not much important variables to influence non-performing loan of the commercial banks of Nepal. The bankers also perceive that the increase in GDP growth rate decrease the non-performing loan of commercial banks in Nepal.Economic Journal of Development Issues Vol. 17 & 18 No. 1-2 (2014) Combined Issue, Page: 128-148

scholarly journals FOREIGN DIRECT INVESTMENT AND EXPORT PERFORMANCE OF THE PAKISTAN COINTEGRATION AND CAUSALITY APPORACH

2015 ◽  
Vol 11 (1) ◽  
Author(s):  
Abdur Rahman Aleemi ◽  
Keyword(s):  
Growth Rate ◽  
Foreign Direct Investment ◽  
Interest Rate ◽  
Interest Rates ◽  
Direct Investment ◽  
Export Performance ◽  
Gdp Growth ◽  
Local Market ◽  
Long Run ◽  
Gdp Growth Rate

FDI is a bridge between the world markets and local market and works as a way to increase the capabilities of the host country through investments that help in transfer of technology and creation of employment opportunities. The aim of this paper was to investigate the nexus of Foreign Direct Investment and the Export performance in the economic settings of Pakistan along in the presence of explanatory variables, based on well-established economic theory and long standing relationships. Supplementing the variables into a linear regression model, tested under the OLS and checked for the assumptions of normally and identically distributed errors, it was found that exports are positively affected by FDI and CPI whereas negatively affected by the interest rates in the case of Pakistan. Furthermore the long run relationship between the variables has been tested under the Johensen Cointegration test, which suggest that a long run relationship exist between the variables. Finally the direction of causality has been investigated with the help of Granger Causality test, indicating a bidirectional causality between CPI and interest rate, exports and interest rate, unidirectional causality from exports to CPI, CPI to GDP growth rate, interest rate to GDP growth rate, exports to FDI and exports to GDP growth rate.

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 Factors Affecting Financial Performance of Tourism Destination Firms Listed on Stock Exchanges in China

2019 ◽  
Vol 2 (5) ◽  
Author(s):  
Dingchen Cui
Keyword(s):  
Growth Rate ◽  
Financial Performance ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Secondary Data ◽  
Total Asset ◽  
Gdp Growth ◽  
Tourism Destination ◽  
Gdp Growth Rate

Purpose: the aim of this research is to test the effect of financial ratio on the financial performance of tourism destination firms listed on stock exchange in China. The research selected ratios: current ratio (CR) as a dimension of liquidity, total asset turnover ratio (TATR) as a dimension of asset utilization, debt ratio (DE) as a dimension of leverage, natural logarithm of total asset (LNTA) as a dimension of firm size, GDP growth rate as a dimension of economic prosperity, and effective tax rate as a dimension of effective tax. This research will use return on asset (ROA), return on sales (ROS), return on equity (ROE) and sales growth (SG) to determine the financial performance. Since stock exchange founded in China, tourism destination firm developed very fast. However tourism destination listed firms have weakness financial performance. Design/methodology/approach: the research data collected from quarterly financial report, from 2012 Q1 to 2018 Q4. The secondary data has been analyzed by multiple regression. Finding: the result indicate that CR, TATR, GDP growth rate have positive impact on financial performance. While DE has negative impact on financial performance. And LNTA has a mix result with financial performance. Originality/value: This study led to the effect of financial ratios on tourism’s financial performance since past researches with this aim were difficult to identify and certain references were not specifically linked to the topic.

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.

scholarly journals Will Rising Debt in China Lead to a Hard Landing?

2017 ◽  
Vol 9 (9) ◽  
pp. 60
Author(s):  
Wang Man Cang ◽  
Zhou Ming Matt
Keyword(s):  
Growth Rate ◽  
Local Government ◽  
Negative Impact ◽  
Positive Impact ◽  
Government Debt ◽  
Published Data ◽  
Chinese Government ◽  
Gdp Growth ◽  
Causality Test ◽  
Gdp Growth Rate

Moody has recently downgraded China's sovereign debt, which's Moody's first downgrade for the country since 1989. The objective of this study is to get an insight into the local and regional government debt in China, analyze the key factors, and evaluate the economic risks. Based on the published data since 1996, the granger causality test is performed to find out the relationship between local government debt level, the fiscal income, GDP growth rate and CPI. Some major findings are: i) local government debt is accumulated through more spending on economic development and less funding obtained from the revenue sharing scheme between governments. ii) fiscal income and GDP growth rate have positive impact on the increase of local government debt. iii) CPI increase shows negative impact on the local government debt. It’s projected that in the coming years, slower growth and less income with a stable CPI could slow down debt accumulation. The Chinese government should monitor the risk factors closely and use risk mitigation tools to avoid a hard landing.

scholarly journals Impact of Macroeconomic Variables on Islamic Banks Profitability

2018 ◽  
Vol 1 (2) ◽  
pp. 20-35
Author(s):  
Qaisar Ali ◽  
Selamah Maamor ◽  
Hakimah Yaacob ◽  
Muhammad Usman Tariq Gill
Keyword(s):  
Growth Rate ◽  
Exchange Rate ◽  
Money Supply ◽  
Oil Prices ◽  
Gdp Growth ◽  
Islamic Banks ◽  
Macroeconomic Variables ◽  
Brunei Darussalam ◽  
Gdp Growth Rate ◽  
The Impact

The main objective of this study is to understand and determine the impact of macroeconomic variables on Islamic banks’ profitability in Brunei. The impact of GDP growth rate, inflation, interest rate, exchange rate, oil prices, competition and money supply on Bank Islam Brunei Darussalam (BIBD) profitability was determined from the year 2012 to the year 2016. The secondary data was obtained from DEPD, AMBD and IMF annual reports. The collected data was analysed using Stata 15. The fixed effects panel regression technique was adopted to measure the impact of each variable on Islamic banks’ profitability. The findings revealed that GDP growth rate, inflation, exchange rate, oil prices and money supply have a significant positive impact on profitability. The findings further revealed that oil prices, GDP and inflation were the most significant and exchange rate and money supply were the least significant determinants of profitability. The findings suggest the regulators and policy makers to discover alternative resources to rejuvenate economic and financial system. Islamic bankers may revamp its marketing strategies to reduce the intensity of macroeconomic variables. This study has vigorously contributed in the existing literature of single country analysis of Islamic banks particularly in the context of Brunei.

Sign in / Sign up

Export Citation Format

Share Document