How does liquidity influence bank profitability? A panel data approach

This study investigates the impact of liquidity on bank profitability. Particularly, bank profitability is measured by return on assets (ROA) while liquid assets to total assets (LATA) and total loans to total deposits (TLTD) are indicators of bank liquidity. A panel data of 26 Vietnamese commercial banks are obtained over the period 2013-2018. The GMM estimation is adopted to test the significant effect of liquidity on profitability of Vietnamese commercial banks. The results reveal that profitability (ROA) was negatively influenced by liquid asset ratio (LATA) and positively correlated to loan-to-deposit ratio (TLTD). Further, bank profitability was also affected by macroeconomic control variables like economic growth (EG) and inflation (INF). The results are not only essential for bank managers but also provide scholars a valuable reference.

A Descriptive Analysis on Automobile Sales

The automobile market are the fastest developing segment in the planet. India being one of the worthwhile centers for the vehicle advertise which attracts auto majors from everywhere throughout the world. The ongoing development in the passenger car market in India is substantially more than mere market dynamics in a specific vehicle segment. It is a impression of the changing lifestyle of the wealthy class in the nation. This study provides the establishment for government’s macroeconomic control and automobile manufacturer’s production.

RELATIONSHIP BETWEEN R&D INVESTMENT AND HIGH-TECH EXPORTS: EMPIRICAL STUDY FROM PAKISTAN

The aim of this study is to explore the impact of R&D investment on high tech exports in Pakistan - a developing and emerging economy. To testify such relationship, data are collected from firms’ financial statements, World Bank data base and State Bank of Pakistan data source. Time span of study is consisting of 20 years from 1995 to 2014. By using ordinary least square with robust standard error, along with several macroeconomic control variables, we found significantly positive relationship between R&D investment and high the exports. According to the product life cycle theory of international trade, innovative activities help to create competitive advantage which is essential for competing in worldwide markets. The empirical results show that R&D investment creates new products, which can attract foreign customers and creating export opportunities.

SPATIOTEMPORAL EVOLUTION OF THE IMBALANCED REGIONAL DEVELOPMENT IN MAINLAND CHINA USING DMSP-OLS DATA

The Defense Meteorological Satellite Programs Operational Linescan System (DMSP-OLS) nighttime lights imagery has been widely used to monitor economic activities and regional development in recent decades. In this paper, we firstly processed the nighttime light imageries of the Mainland China from 1992 to 2013 due to the radiation or geometric errors. Secondly, by dividing the Mainland China into seven regions, we found high correlation between the sum light values and GDP of each region. Thirdly, we extracted the economic centers of each region based on their nighttime light images. Through the analysis, we found the distribution of these economic centers was relatively concentrated and the migration of these economic centers showed certain directional trend or circuitous changes, which suggested the imbalanced socio-economic development of each region. Then, we calculated the Regional Development Gini of each region using the nighttime light data, which indicated that social-economic development in South China presents great imbalance while it is relatively balanced in Southwest China. This study would benefit the macroeconomic control to regional economic development and the introduction of appropriate economic policies from the national level.

Competitive Balance and Consumer Demand in the English Football League

Competitive balance in sports leagues is often used to justify revenue sharing agreements. The justification is that competitive balance leads to higher attendance and higher attendance generates more revenues. By sharing revenue, small market teams can afford to pay for high quality talent, assuring more equal distribution of that talent. Unlike US professional leagues, English football operates under a system of relegation and promotion so that at the end of each season the worst performing teams are "relegated" and the top performing teams in the next level down are "promoted". This may serve as an alternative to revenue sharing to maintain competitive balance.Using data from the top English football league (currently the Premiership) from 1888-89 through the 2014-15 season we calculate multiple measures of league competitive balance for each year using both 3-1-0 and 2-1-0 point systems. We then use these measures with available macroeconomic control variables to examine the relationship between competitive balance and match attendance.We find that, counter to related work in US sports leagues, competitive balance in English football is negatively associated with attendance. This is particularly true in the case of the Premiership era, wherein only five teams have won the championship and in the past 10 seasons, the top 4 places of the championship has been dominated by 7 clubs, yet attendance has steadily increased. This result raises questions about the utility of revenue sharing in increasing attendance in English football.

The Development Tendency of the Real Estate Industry under China’s Economic “New Normal”

Under the economic “new normal”, the real estate industry experiences a transition from seller’s market to buyer’s market; the construction of indemnificatory housing becomes the main approach of macroeconomic control; the source of real estate funds turns from single credit to diverse financing; the mechanism of macro control gradually becomes market-oriented and the development mode gradually turns pluralistic. At the same time, the real estate industry is facing challenges from local debt crisis, tax reformation, online businesses and transformation of production mode. However, this paper proposes that there’s no fundamental alternation in the basic aspects of macroeconomy that supports China’s real estate development, and the “new normal” of China’s real estate market should be led by reformation and innovation.

Does Public Debt Matter For Economic Growth?: Evidence From South Africa

This paper investigates the dynamic relationship between accumulated public debt ratio and real GDP growth in the South African economy over the period 1980-2014. Using two macroeconomic control variables – inflation rate and Openness trade – the link between public debt and real GDP growth is found to depend upon the level of indebtedness of the country. Indeed, public debt in South Africa becomes an impediment to economic growth if it crosses the limit of 31.37% of GDP. Our empirical results have therefore important implications for fiscal policymakers in South Africa to foster economic growth in a context of high public debt level.

Determinants of Firm Value in Kenya: Case of Commercial Banks Listed at the Nairobi Securities Exchange

This study analysed the determinants of firm value of commercial banks listed at the Nairobi Securities Exchange (NSE). The analysis was based on secondary panel data over the period 2002 to 2012. The estimation results of the random effects regression model showed that, though statistically significant (p<0.05), the joint effects of the determinants under the study was low, accounting for about 30 per cent of the variance of the firm value of the listed commercial banks in Kenya. At the individual determinant level, the estimation results were mixed. While we could not reject the null hypotheses that assets, capital structure, cash flows, dividend ratio and intangible had no statistically significant individual effects on the firm value of the listed commercial banks (p<0.05), we rejected the null hypotheses and concluded that market capitalization had statistically significant individual effects on the firm value of the listed commercial banks (p<0.05). Given the relatively low joint effects of the determinants under the study, we recommends that further studies should be undertaken to identify and include additional firm specific and both industry level and macroeconomic control variables. The studies should also evaluate the effects of alternative computation of firm value on the model estimation results. The studies may focus on firm value of the listed commercial banks and/or other listed firms in the NSE