scholarly journals Analysis of the Variability of Interest Rate Structure on Corporate Financial Investment Decisions: The Nigerian Perspective

2020 ◽  
Vol 13 (9) ◽  
pp. 381-391
Author(s):  
Onuoha Ijeoma Perpetua ◽  
Uwakwe Theresa Nnenna ◽  
Oko Roseline Ali ◽  
Obi Chinazor Franca
Keyword(s):  
Interest Rate ◽  
Investment Decisions ◽  
Financial Investment ◽  
Rate Structure

scholarly journals Improving household livelihood associated with financial investment decisions during the COVID-19 pandemic: A case study in Vietnam

2021 ◽  
Author(s):  
Quy Van Khuc ◽  
Hong-Hai Ho ◽  
Thuy Nguyen
Keyword(s):  
Financial Literacy ◽  
Investment Decisions ◽  
Financial Investment ◽  
Household Livelihood

financial literacy, financial investment, household financial, livelihood, Vietnam

Austerity*

2020 ◽  
Author(s):  
Harris Dellas ◽  
Dirk Niepelt
Keyword(s):  
Interest Rate ◽  
Current Account ◽  
Private Information ◽  
Investment Decisions ◽  
Borrowing Constraints ◽  
Current Consumption ◽  
Separating Equilibrium ◽  
The Current Account

Abstract We study the optimal debt and investment decisions of a sovereign with private information. The separating equilibrium is characterized by a cap on the current account. A sovereign repays debt amount due that exceeds default costs in order to signal creditworthiness and smooth consumption. Accepting funding conditional on investment/reforms relaxes borrowing constraints, even when investment does not create collateral, but it depresses current consumption. The model contains the signalling elements emphasized by creditors in the Greek austerity programs and is consistent with the reduction in the loans issued by Greece and their interest rate following the 2015 election.

scholarly journals Portfolio management practices of investment practitioners active in the long-term insurance industry

2001 ◽  
Vol 4 (2) ◽  
pp. 344-358
Author(s):  
J. H. Mostert ◽  
S. J. Steel ◽  
F. J. Mostert
Keyword(s):  
Empirical Study ◽  
Portfolio Management ◽  
Management Practices ◽  
Insurance Industry ◽  
Investment Decisions ◽  
General Information ◽  
Financial Investment ◽  
Decisionmaking Process ◽  
Term Insurance

In the long-term insurance industry, sound financial investment decisions depend largely on the portfolio management practices of the investment practitioners concerned. The ability of the investment practitioners to make well-informed decisions, as well as the strategies and policies underlying portfolio management practices, are the main issues of this research. Important correlations amongst various aspects of the financial investment decisionmaking process, as well as their association with the general information pertaining to the long-term insurers (which were disclosed during the empirical study), emerge in the closing section of this paper. The conclusions should be of prime interest to long-term insurers as well as investment practitioners who are working in that industry.

2016 Poverty Reduction and Growth Trust - Review of Interest Rate Structure

Policy Papers ◽  
2016 ◽  
Vol 2016 (50) ◽  
Author(s):  
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Low Income ◽  
Poverty Reduction ◽  
Low Income Countries ◽  
Credit Facility ◽  
Rate Structure ◽  
Low Interest Rates ◽  
The Interest Rate ◽  
Rate Mechanism

This paper reviews the interest rate structure that would apply to the PRGT in 2017–18. Based on the interest rate setting mechanism agreed in 2009, the interest rate for the Extended Credit Facility (ECF) would be zero and the rate for the Standby Credit Facility (SCF) would be 0.25 percent. The interest rate for the Rapid Credit Facility (RCF) was set permanently at zero in July 2015. Since the current mechanism was agreed, the Executive Board has granted successive exceptional interest waivers on all outstanding Fund concessional credit, setting all interest rates charged at zero percent. These waivers have been extended three times, providing interest rate relief to many low-income countries at a time when they faced considerable headwinds from the global economic environment. A strong case remains for maintaining zero rates on Fund concessional credit at the current global economic juncture. The global outlook for LICs has not significantly improved since the last review and downside risks remain significant. At the same time, many Directors noted at the last review in 2014 that the possibility of a prolonged period of very low interest rates warrants an early re-examination of the mechanism, including an exit strategy from repeated application of the waiver, with the objective of safeguarding the self-sustaining capacity of the PRGT. The paper seeks to respond to this call. It proposes that the PRGT interest rate mechanism be amended to accommodate anomalies created by a prolonged period of very low interest rates. Specifically, a new threshold is proposed whereby both the ECF and the SCF rate would be set at zero when the 12-month average SDR rate is less than or equal to 0.75 percent. This proposal will likely keep all PRGT interest rates under the mechanism at zero through at least 2020 given current market expectations while incurring only minimal subsidy costs and eliminating the need for continual waivers. In addition, staff proposes to waive interest rate charges on outstanding legacy balances under the Exogenous Shocks Facility (ESF), which are not determined via the interest rate mechanism, until the next review.

The Interest-Rate Structure

1948 ◽  
Vol 30 (3) ◽  
pp. 223
Author(s):  
Edward Marcus
Keyword(s):  
Interest Rate ◽  
Rate Structure ◽  
The Interest Rate

scholarly journals Verbal Interventions of the Bank of Russia and the Interest Rate Structure

2019 ◽  
Vol 16 (4) ◽  
pp. 654-672
Author(s):  
O. V. Telegin ◽  
◽  
S. A. Merzlyakov ◽  
Keyword(s):  
Interest Rate ◽  
Rate Structure ◽  
The Interest Rate

scholarly journals The Effects of Market and Macroeconomic Uncertainties on Corporate Investment Decisions in Nigeria

2021 ◽  
Vol 10 (4) ◽  
pp. 104-113
Author(s):  
Jonathan Oniovosa OSOSUAKPOR
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Investment Decisions ◽  
Corporate Investment ◽  
Exchange Rate Policy ◽  
Stock Market Volatility ◽  
Market Uncertainty ◽  
Corporate Investments ◽  
Exchange Rate Uncertainty ◽  
Significant Difference

In this paper, the effect of market and macroeconomic uncertainties on corporate investment decisions was examined using the real option investment theory. Two types of uncertainties were investigated: macroeconomic uncertainties (exchange, interest and inflation rates) and market uncertainty (stock market volatility) while corporate investments were measured as the sum of the changes in capital stock and depreciation. Data were obtained for the period 2005-2019 and the Generalized Autoregressive Conditional Heteroskedasticity (GARCH) estimation technique was employed. The results showed a significant difference between the effects of macroeconomic and market uncertainties on corporate investment decisions. We found that macroeconomic uncertainty of inflation rate has positive relationship with corporate investments, with a coefficient of 0.35071, and interest rate uncertainty (0.15567) and exchange rate uncertainty (-0.07852) were also statistically significant, whereas the linear market uncertainty has a negative value of -0.00173 and the quadratic market uncertainty (0.00520) was statistically insignificant. Therefore, interest rate volatility and inflation expectations are not factors constraining investment growth; however, exchange rate uncertainty exerts a substantial negative influence on corporate investment in Nigeria. Given the findings, the study recommends, among others, an appropriate and stable exchange rate policy that makes for easy business planning and forecasting by rational investors. To achieve a stable exchange rate that would bring about increased investment, the government should implement efficient macroeconomic policies, such as those that minimize the structural rigidities in the economy.

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