Regulatory reporting stands transformed by artificial intelligence's advent, offering numerous advantages in precision, efficacy, and compliance. AI enabled tools empower financial institutions to streamline compliance practices and mitigate risks through enhanced reporting accuracy. This article examines applications of AI in regulatory reporting and their benefits. The article also explores AI's transformative impact on financial institutions' adherence to regulatory mandates. Furthermore, it underscores human expertise's pivotal role in developing AI-driven regulatory reporting systems. As regulatory landscapes evolve, integrating AI technology into regulatory reporting processes becomes imperative for financial institutions.
{"title":"Use of AI to improve Regulatory Reporting Accuracy and Efficiency","authors":"Chintamani Bagwe","doi":"10.47941/ijf.1825","DOIUrl":"https://doi.org/10.47941/ijf.1825","url":null,"abstract":"Regulatory reporting stands transformed by artificial intelligence's advent, offering numerous advantages in precision, efficacy, and compliance. AI enabled tools empower financial institutions to streamline compliance practices and mitigate risks through enhanced reporting accuracy. This article examines applications of AI in regulatory reporting and their benefits. The article also explores AI's transformative impact on financial institutions' adherence to regulatory mandates. Furthermore, it underscores human expertise's pivotal role in developing AI-driven regulatory reporting systems. As regulatory landscapes evolve, integrating AI technology into regulatory reporting processes becomes imperative for financial institutions.","PeriodicalId":508423,"journal":{"name":"International Journal of Finance","volume":"119 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-04-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140659280","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose: This paper evaluates the impact of the Lusaka Securities Exchange (LUSE) on the financial performance of telecommunication companies in Zambia: a study of Airtel Zambia Limited (2012 – 2021). Methodology: Using time series quantitative data and a combination of primary and secondary data obtained through structured questionnaires to meet the following specific research objectives: i) to analyse the effect of Airtel Zambia’s stock price on the annual net revenue of Airtel Zambia, ii) to determine the correlation between Airtel Zambia’s stock price and the annual net revenue of Airtel Zambia, iii) to determine management’s level of knowledge of the Securities Exchange Market and how the knowledge is being applied to influence revenue performance, iv) to examine the perception of employees on the effect of stock price on the revenue performance of Airtel Zambia Limited and v) to identify and examine factors that affect revenue performance of Airtel Zambia Limited. Findings: The results of the study show that there exists a statistically significant relationship, there is a low effect of stock prices on Airtel Zambia’s revenue and that there is a correlation between the stock price and revenue performance. This study underscores the need for increased participation in the Lusaka Securities Exchange (LUSE), improved branding and reputation management for listed companies, and further scholarly research in this field. Unique contribution to theory, policy and practice: It advocates for strategic initiatives by financial market players to stimulate market participation, and for companies to enhance their shareholder relations to potentially boost share prices and revenue. The study also identifies significant gaps in the literature, highlighting the opportunity for further research in this area.
{"title":"Evaluation of the Impact of the Stock Price on the Financial Performance of Telecommunication Companies in Zambia: A Case Study of Airtel Zambia Limited (2012 – 2021)","authors":"Wabei Catherine Mutafu","doi":"10.47941/ijf.1826","DOIUrl":"https://doi.org/10.47941/ijf.1826","url":null,"abstract":"Purpose: This paper evaluates the impact of the Lusaka Securities Exchange (LUSE) on the financial performance of telecommunication companies in Zambia: a study of Airtel Zambia Limited (2012 – 2021). \u0000Methodology: Using time series quantitative data and a combination of primary and secondary data obtained through structured questionnaires to meet the following specific research objectives: i) to analyse the effect of Airtel Zambia’s stock price on the annual net revenue of Airtel Zambia, ii) to determine the correlation between Airtel Zambia’s stock price and the annual net revenue of Airtel Zambia, iii) to determine management’s level of knowledge of the Securities Exchange Market and how the knowledge is being applied to influence revenue performance, iv) to examine the perception of employees on the effect of stock price on the revenue performance of Airtel Zambia Limited and v) to identify and examine factors that affect revenue performance of Airtel Zambia Limited. \u0000Findings: The results of the study show that there exists a statistically significant relationship, there is a low effect of stock prices on Airtel Zambia’s revenue and that there is a correlation between the stock price and revenue performance. This study underscores the need for increased participation in the Lusaka Securities Exchange (LUSE), improved branding and reputation management for listed companies, and further scholarly research in this field. \u0000Unique contribution to theory, policy and practice: It advocates for strategic initiatives by financial market players to stimulate market participation, and for companies to enhance their shareholder relations to potentially boost share prices and revenue. The study also identifies significant gaps in the literature, highlighting the opportunity for further research in this area.","PeriodicalId":508423,"journal":{"name":"International Journal of Finance","volume":"41 19","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-04-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140662924","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Fatima Jebari, Obed Izaguirre Lozano, Sudha Krishnaswami, Matthew M. Lutey
Purpose: The purpose of this paper is to disentangle a unique way in which corporate social responsibility (CSR) affects firm value in the context of product recalls in the automotive industry. Methodology: Using a sample of product recall events in the automotive industry between 2002 and 2018 and controlling for the spread of product recalls across product lines, this study explores the underlying economic channels through which CSR improves investments in quality. For robustness check, self-selection bias is corrected for using a 2SLS approach and alternative measures for product failures and CSR. Findings: The authors find that firms with higher CSR scores are associated with a lower frequency of recalls. Moreover, higher CSR scores are associated with a higher likelihood of voluntary recalls, higher product quality, higher capital expenditures, and higher employee productivity. Unique Contribution to Theory, Practice, and Policy: This study offers insights to managers, investors, and board members, showing the potential benefits of engaging in CSR activities. This study contributes to the literature on the effect of CSR on different managerial decisions and the factors that affect product recalls. Additionally, the study reveals the connection between CSR and product recalls.
{"title":"Walking the Walk: Corporate Social Responsibility and Product Recalls in the Automotive Industry","authors":"Fatima Jebari, Obed Izaguirre Lozano, Sudha Krishnaswami, Matthew M. Lutey","doi":"10.47941/ijf.1733","DOIUrl":"https://doi.org/10.47941/ijf.1733","url":null,"abstract":"Purpose: The purpose of this paper is to disentangle a unique way in which corporate social responsibility (CSR) affects firm value in the context of product recalls in the automotive industry. \u0000Methodology: Using a sample of product recall events in the automotive industry between 2002 and 2018 and controlling for the spread of product recalls across product lines, this study explores the underlying economic channels through which CSR improves investments in quality. For robustness check, self-selection bias is corrected for using a 2SLS approach and alternative measures for product failures and CSR. \u0000Findings: The authors find that firms with higher CSR scores are associated with a lower frequency of recalls. Moreover, higher CSR scores are associated with a higher likelihood of voluntary recalls, higher product quality, higher capital expenditures, and higher employee productivity. \u0000Unique Contribution to Theory, Practice, and Policy: This study offers insights to managers, investors, and board members, showing the potential benefits of engaging in CSR activities. This study contributes to the literature on the effect of CSR on different managerial decisions and the factors that affect product recalls. Additionally, the study reveals the connection between CSR and product recalls.","PeriodicalId":508423,"journal":{"name":"International Journal of Finance","volume":"21 3","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-03-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140225687","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose: The primary goals of the study are to assess the level of awareness among small merchants in Sunyani Municipality regarding investment prospects, the sources of investment information, and the impact of demographic characteristics. Methodology: Questionnaires were employed in gathering data for the study, which was based on the quantitative research approach. Using Slovin's sample size computation, a sample size of 396 respondents was selected for the investigation. Findings: The results revealed that the majority of small traders were aware of prospective investment alternatives such as real estate, government bonds, bank deposits, life insurance, mutual funds, and stocks and shares. It was discovered that the traders had access to two information sources: the formal and informal sectors. The survey discovered that friends and family serve as the key informal sources of information. Regarding the formal sector, it is disclosed that radio and television served as their sources of investment-related information. Also, the degree of awareness regarding investment opportunities was influenced by gender, age, and household size. The findings indicate that among the investment avenues available to traders, gold and other minerals are not well-known by traders. Unique contributor to theory, policy and practice: Therefore, it is recommended that programs and talk shows are organized for people to be aware of these avenues. Policymakers should prioritize programs focused on enhancing the financial inclusion of petty traders by improving the accessibility of formal financial services such as savings accounts, credit facilities, and insurance products. The research findings could potentially aid in improving financial inclusion for small-scale traders, informing local government policies that support them, providing valuable market intelligence for businesses targeting this demographic, and contributing to academic knowledge in the fields of economics, finance, and development studies.
{"title":"Exploring the Investment Behaviour of Petty Traders in Sunyani Municipality","authors":"Ebenezer Kubi, Timothy Masuni Nagriwum","doi":"10.47941/ijf.1681","DOIUrl":"https://doi.org/10.47941/ijf.1681","url":null,"abstract":"Purpose: The primary goals of the study are to assess the level of awareness among small merchants in Sunyani Municipality regarding investment prospects, the sources of investment information, and the impact of demographic characteristics. \u0000Methodology: Questionnaires were employed in gathering data for the study, which was based on the quantitative research approach. Using Slovin's sample size computation, a sample size of 396 respondents was selected for the investigation. \u0000Findings: The results revealed that the majority of small traders were aware of prospective investment alternatives such as real estate, government bonds, bank deposits, life insurance, mutual funds, and stocks and shares. It was discovered that the traders had access to two information sources: the formal and informal sectors. The survey discovered that friends and family serve as the key informal sources of information. Regarding the formal sector, it is disclosed that radio and television served as their sources of investment-related information. Also, the degree of awareness regarding investment opportunities was influenced by gender, age, and household size. The findings indicate that among the investment avenues available to traders, gold and other minerals are not well-known by traders. \u0000Unique contributor to theory, policy and practice: Therefore, it is recommended that programs and talk shows are organized for people to be aware of these avenues. Policymakers should prioritize programs focused on enhancing the financial inclusion of petty traders by improving the accessibility of formal financial services such as savings accounts, credit facilities, and insurance products. The research findings could potentially aid in improving financial inclusion for small-scale traders, informing local government policies that support them, providing valuable market intelligence for businesses targeting this demographic, and contributing to academic knowledge in the fields of economics, finance, and development studies.","PeriodicalId":508423,"journal":{"name":"International Journal of Finance","volume":"1 5","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139773885","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose: This paper addresses the challenges faced by small businesses in accessing credit through Small Business Credit Initiatives (SBCI) in the United States. Despite the success of SBCI in creating jobs and fostering economic growth, there are limitations in the evaluation process. Methodology: The research design integrates advanced algorithmic decision-making, machine learning, and LLMs into existing credit evaluation process. Primary data is collected from various sources, including financial and business history, market sentiments, external factors, and utilization of sampling techniques if required. Document review, surveys and digital platforms are used for collecting data for LLMs to extract insightful information from complex sources. This comprehensive approach, combining with traditional and innovative methods, aims to establish a robust foundation for developing and evaluating a fair, efficient, and adaptive credit evaluation system for small business credit initiatives. Findings: The proposed framework integrates external market factors and use of LLMs for document review on top of primary data sources currently in adaption. Data processing could be amended by extracting features by using advanced natural language processing to enhance feature space by collecting valuable information which is expected to enhance predictive power, adjustment of thresholds and decision making along with a feedback loop. Unique Contribution to Theory, Policy, and Practice: Unique framework to accelerate small business credit initiatives by developing a new process of selecting and evaluating machine learning model centered on addressing associated risks, adapting to changes in government policy, improving current procedures, and incorporating feedback from stakeholders and applicants. This is done in an organized manner, with a focus on monitoring and maintaining algorithmic decision models.
{"title":"Integrating Algorithmic Decision Making into Small Business Credit Initiatives: a path to Enhanced Efficiency and Inclusive Economic Growth","authors":"Vikas Mendhe, Shantanu Neema, Shobhit Mittal","doi":"10.47941/ijf.1646","DOIUrl":"https://doi.org/10.47941/ijf.1646","url":null,"abstract":"Purpose: This paper addresses the challenges faced by small businesses in accessing credit through Small Business Credit Initiatives (SBCI) in the United States. Despite the success of SBCI in creating jobs and fostering economic growth, there are limitations in the evaluation process. \u0000Methodology: The research design integrates advanced algorithmic decision-making, machine learning, and LLMs into existing credit evaluation process. Primary data is collected from various sources, including financial and business history, market sentiments, external factors, and utilization of sampling techniques if required. Document review, surveys and digital platforms are used for collecting data for LLMs to extract insightful information from complex sources. This comprehensive approach, combining with traditional and innovative methods, aims to establish a robust foundation for developing and evaluating a fair, efficient, and adaptive credit evaluation system for small business credit initiatives. \u0000Findings: The proposed framework integrates external market factors and use of LLMs for document review on top of primary data sources currently in adaption. Data processing could be amended by extracting features by using advanced natural language processing to enhance feature space by collecting valuable information which is expected to enhance predictive power, adjustment of thresholds and decision making along with a feedback loop. \u0000Unique Contribution to Theory, Policy, and Practice: Unique framework to accelerate small business credit initiatives by developing a new process of selecting and evaluating machine learning model centered on addressing associated risks, adapting to changes in government policy, improving current procedures, and incorporating feedback from stakeholders and applicants. This is done in an organized manner, with a focus on monitoring and maintaining algorithmic decision models.","PeriodicalId":508423,"journal":{"name":"International Journal of Finance","volume":"3 11","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139592360","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Mohamed Adel, Jadallah Jadallah, Stacie Krupp, Joseph Ofori-Dankwa
Purpose: Bloomberg Certification is valuable for business students to include on their resumes when searching for jobs. This research note examines the impact of temporality on Saginaw Valley State University (SVSU) students’ Bloomberg Certification performance during COVID. Methodology: We use data from 2020 and 2021 SVSU students regarding performance on Bloomberg Certification tests. In order for a student to receive Bloomberg Certification, all four modules of the Core Concepts section of the test must be passed (Economic Indicators, Currencies, Fixed Income, and Equities). Controlling for gender, intrinsic motivation, and attempt, we compare 2020 and 2021 SVSU student performance on Bloomberg Certification exams. Findings: The study finds evidence that 2021 students were more successful in attaining Bloomberg Certification than 2020 students. COVID vaccines were available on SVSU’s campus starting in January of 2021. Unique Contribution to Theory, Policy and Practice: This research note provides evidence that SVSU finance students adjusted well to the COVID pandemic.
{"title":"The Effects of Temporality on Students’ Bloomberg Certification Performance during COVID","authors":"Mohamed Adel, Jadallah Jadallah, Stacie Krupp, Joseph Ofori-Dankwa","doi":"10.47941/ijf.1642","DOIUrl":"https://doi.org/10.47941/ijf.1642","url":null,"abstract":"Purpose: Bloomberg Certification is valuable for business students to include on their resumes when searching for jobs. This research note examines the impact of temporality on Saginaw Valley State University (SVSU) students’ Bloomberg Certification performance during COVID. \u0000Methodology: We use data from 2020 and 2021 SVSU students regarding performance on Bloomberg Certification tests. In order for a student to receive Bloomberg Certification, all four modules of the Core Concepts section of the test must be passed (Economic Indicators, Currencies, Fixed Income, and Equities). Controlling for gender, intrinsic motivation, and attempt, we compare 2020 and 2021 SVSU student performance on Bloomberg Certification exams. \u0000Findings: The study finds evidence that 2021 students were more successful in attaining Bloomberg Certification than 2020 students. COVID vaccines were available on SVSU’s campus starting in January of 2021. \u0000Unique Contribution to Theory, Policy and Practice: This research note provides evidence that SVSU finance students adjusted well to the COVID pandemic.","PeriodicalId":508423,"journal":{"name":"International Journal of Finance","volume":"33 21","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139595407","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose: This research aims to investigate the impact of internal controls on fraud detection in manufacturing firms in Garissa County, Kenya. The study assesses the influence of Internal Control, Risk Assessment, Control Activities, Information and Communication, and Monitoring on fraud detection in these companies. Methodology: Utilizing a quantitative cross-sectional survey design, data is collected from 75 manufacturing companies affiliated with the Kenya Association of Manufacturers (KAM) through purposive sampling. Internal Audit Managers (IAM) are key respondents, and primary data is collected using structured questionnaires distributed through drop-and-pick method. The collected data is analyzed descriptively using figures and tables, and inferentially using Microsoft Office spreadsheet program (Excel) and SPSS. The research instruments' validity and reliability are established through the test-retest method, and outcomes are presented using charts and tables. Findings: The study reveals that Internal Control, risk assessment, control activities, information and communication, and monitoring all positively and significantly influence fraud detection in manufacturing firms in Kenya. The study concludes that top management in manufacturing firms should establish clear lines of authority and allocate duties effectively, making each employee accountable for their actions. Additionally, the management should adopt effective fraud detection and prevention methods, motivate employees to report fraudulent activities by offering rewards, and formulate clear duties and responsibilities for all staff members. Unique Contribution to Theory, Practice and Policy: The study recommends proper communication channels within the organization, regular seminars for creating awareness on fraud detection methods, and punitive measures for employees engaged in fraudulent activities.
目的：本研究旨在调查内部控制对肯尼亚加里萨县制造业公司欺诈侦查的影响。研究评估了内部控制、风险评估、控制活动、信息与沟通以及监督对这些公司欺诈侦查的影响。研究方法：采用定量横截面调查设计，通过目的性抽样从隶属于肯尼亚制造商协会（KAM）的 75 家制造公司收集数据。内部审计经理（IAM）是主要受访者，主要数据是通过投选法发放结构化问卷收集的。收集到的数据使用图表进行描述性分析，并使用 Microsoft Office 电子表格程序（Excel）和 SPSS 进行推理分析。研究工具的有效性和可靠性通过重测法确定，研究结果通过图表呈现。研究结果研究结果表明，内部控制、风险评估、控制活动、信息与沟通以及监督都对肯尼亚制造业企业的欺诈侦查工作产生了积极而重要的影响。研究得出结论，制造企业的最高管理层应建立明确的权力界限，有效分配职责，使每个员工都对自己的行为负责。此外，管理层应采取有效的欺诈检测和预防方法，通过奖励激励员工举报欺诈活动，并为所有员工制定明确的职责和责任。对理论、实践和政策的独特贡献：本研究建议在组织内部建立适当的沟通渠道，定期举办研讨会以提高对欺诈侦查方法的认识，并对参与欺诈活动的员工采取惩罚措施。
{"title":"Effect of Internal Controls on Fraud Detection of Manufacturing Firms in Garissa County, Kenya","authors":"M. Dagane","doi":"10.47941/ijf.1632","DOIUrl":"https://doi.org/10.47941/ijf.1632","url":null,"abstract":"Purpose: This research aims to investigate the impact of internal controls on fraud detection in manufacturing firms in Garissa County, Kenya. The study assesses the influence of Internal Control, Risk Assessment, Control Activities, Information and Communication, and Monitoring on fraud detection in these companies. \u0000Methodology: Utilizing a quantitative cross-sectional survey design, data is collected from 75 manufacturing companies affiliated with the Kenya Association of Manufacturers (KAM) through purposive sampling. Internal Audit Managers (IAM) are key respondents, and primary data is collected using structured questionnaires distributed through drop-and-pick method. The collected data is analyzed descriptively using figures and tables, and inferentially using Microsoft Office spreadsheet program (Excel) and SPSS. The research instruments' validity and reliability are established through the test-retest method, and outcomes are presented using charts and tables. \u0000Findings: The study reveals that Internal Control, risk assessment, control activities, information and communication, and monitoring all positively and significantly influence fraud detection in manufacturing firms in Kenya. The study concludes that top management in manufacturing firms should establish clear lines of authority and allocate duties effectively, making each employee accountable for their actions. Additionally, the management should adopt effective fraud detection and prevention methods, motivate employees to report fraudulent activities by offering rewards, and formulate clear duties and responsibilities for all staff members. \u0000Unique Contribution to Theory, Practice and Policy: The study recommends proper communication channels within the organization, regular seminars for creating awareness on fraud detection methods, and punitive measures for employees engaged in fraudulent activities.","PeriodicalId":508423,"journal":{"name":"International Journal of Finance","volume":"123 38","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139613681","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose: Many corporate firms incorporating those in the tea sector are normally interested in their corporate financial performance. This is particularly in regard to the manner in which their activities pertaining financing, investing and operating assignments, not only aid in generating incomes but similarly on how to maintain and manage the expenditures and costs of all these activities to their very minimal, with an objective of optimizing on firm’s profitability. Notwithstanding the agitation for corporate financial performance generally and in particular profitability, still it is unclear on how the management of operating cash flow influence the corporate financial performance of firms in the tea industry in Kenya. The divergence in the management of operating cash flow policies across the tea industry is depicted in the discrepancy in the operating cash flow fluctuating from very high of these ratios to low current asset to total asset ratios. Methodology: Regardless of the fluctuation in the management of operating cash flow management policies, still there is inadequacy of theoretical and empirical explicitness on the manner in which management of operating cash flow influences profitability of these corporate firms. Findings: Empirically, numerous research studies arrives at varied findings on how operating cash flow is correlated with to the corporate financial performance. Theoretically, whereas the Miller- Orr model (1966) and Baumol model (1956) suggest optimal structuring of operating cash flow to enhance risk minimization and thus uplift financial performance. On the other hand, the Jensen and Meckling agency theory (1976) shortfall in pointing out an explicit relationship between the operating cash flow collection period and corporate financial performance. The stewardship theory of Gitman (1974), showcased an inverse association between operating cash flow collection period and profitability. The present research study is developed as a correlational research designed study employing the 40 multinationals and KTDA managed tea companies in tea sector in Kenya over a 6 year period covering 2014 to 2019. This forms 240 firm-year observations. Random-effects model regression model was employed after conducting specification tests for the model. The hypothesis testing was analyzed by employing the t-statistic at 95% confidence interval. Unique contributor to theory, policy and practice: Having the foundation on the philosophy of positivist research design, the research results established that operating cash flow as measured by the ratio of cash and cash equivalent to current liabilities showed that it does not mediate the relationship between working capital management decisions and financial performance as measured by earnings before interest and taxes to total assets. This research study was confined to the tea factories under multinational and KTDA managed tea firms in Kenya and recommendation thereof is an increased samp
{"title":"Mediating Effect of Operating Cash Flow on the Relationship between Working capital and Financial Performance of Tea Firms in Kenya.","authors":"C. Yegon, W. Muturi, O. Oluoch","doi":"10.47941/ijf.1617","DOIUrl":"https://doi.org/10.47941/ijf.1617","url":null,"abstract":"Purpose: Many corporate firms incorporating those in the tea sector are normally interested in their corporate financial performance. This is particularly in regard to the manner in which their activities pertaining financing, investing and operating assignments, not only aid in generating incomes but similarly on how to maintain and manage the expenditures and costs of all these activities to their very minimal, with an objective of optimizing on firm’s profitability. Notwithstanding the agitation for corporate financial performance generally and in particular profitability, still it is unclear on how the management of operating cash flow influence the corporate financial performance of firms in the tea industry in Kenya. The divergence in the management of operating cash flow policies across the tea industry is depicted in the discrepancy in the operating cash flow fluctuating from very high of these ratios to low current asset to total asset ratios. \u0000Methodology: Regardless of the fluctuation in the management of operating cash flow management policies, still there is inadequacy of theoretical and empirical explicitness on the manner in which management of operating cash flow influences profitability of these corporate firms. \u0000Findings: Empirically, numerous research studies arrives at varied findings on how operating cash flow is correlated with to the corporate financial performance. Theoretically, whereas the Miller- Orr model (1966) and Baumol model (1956) suggest optimal structuring of operating cash flow to enhance risk minimization and thus uplift financial performance. On the other hand, the Jensen and Meckling agency theory (1976) shortfall in pointing out an explicit relationship between the operating cash flow collection period and corporate financial performance. The stewardship theory of Gitman (1974), showcased an inverse association between operating cash flow collection period and profitability. The present research study is developed as a correlational research designed study employing the 40 multinationals and KTDA managed tea companies in tea sector in Kenya over a 6 year period covering 2014 to 2019. This forms 240 firm-year observations. Random-effects model regression model was employed after conducting specification tests for the model. The hypothesis testing was analyzed by employing the t-statistic at 95% confidence interval. \u0000Unique contributor to theory, policy and practice: Having the foundation on the philosophy of positivist research design, the research results established that operating cash flow as measured by the ratio of cash and cash equivalent to current liabilities showed that it does not mediate the relationship between working capital management decisions and financial performance as measured by earnings before interest and taxes to total assets. This research study was confined to the tea factories under multinational and KTDA managed tea firms in Kenya and recommendation thereof is an increased samp","PeriodicalId":508423,"journal":{"name":"International Journal of Finance","volume":"31 8","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139531567","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose: This paper investigates the intricate relationship between financial sector development (FSD), savings behavior (SB), and economic performance (EP). Motivated by the critical role of the financial sector in economic development, our research aims to understand the nature of this relationship, addressing existing gaps in the literature. Methodology: The methodology used involves a literature review, the development of a theoretical model with clearly stated assumptions, and the formulation of a mathematical model to represent the relationships between key variables. A deductive approach to theoretical analysis is employed for the discussion and interpretation of findings, along with implications for policy and future research directions. Findings: The proposed theoretical model assumes rational economic agents, efficient financial markets, perfect information, and other factors to analyze these relationships. Mathematically, FSD positively influences SB, subsequently enhancing EP indicators like GDP growth, income distribution, and employment. The discussion aligns findings with existing literature, emphasizing implications for policymakers to prioritize FSD, enhance financial literacy, and incentivize savings. Unique contributor to theory, policy and practice: Acknowledging model limitations, future research should validate findings empirically, considering diverse economic conditions. This model contributes to understanding dynamic economic interactions, guiding empirical investigations and policy formulation concisely.
目的：本文探讨了金融部门发展（FSD）、储蓄行为（SB）和经济表现（EP）之间错综复杂的关系。鉴于金融部门在经济发展中的关键作用，我们的研究旨在了解这种关系的本质，填补现有文献的空白。 研究方法：所采用的方法包括文献综述、建立一个具有明确假设的理论模型，以及制定一个数学模型来表示关键变量之间的关系。采用演绎法进行理论分析，讨论和解释研究结果以及对政策和未来研究方向的影响。 研究结果：所提出的理论模型假设了理性的经济行为主体、有效的金融市场、完美的信息和其他因素来分析这些关系。从数学角度看，可持续发展金融服务会对可持续发展银行产生积极影响，进而提高 GDP 增长、收入分配和就业等 EP 指标。讨论结果与现有文献一致，强调了政策制定者优先考虑可持续发展金融服务、加强金融知识普及和激励储蓄的意义。 对理论、政策和实践有独特的贡献： 认识到模型的局限性，未来的研究应考虑不同的经济条件，通过经验验证研究结果。该模型有助于理解动态的经济互动，简明扼要地指导实证调查和政策制定。
{"title":"Financial Sector Development, Savings and Economic Performance: A Theoretical Analysis","authors":"Mystere Nzanzu Luvako","doi":"10.47941/ijf.1583","DOIUrl":"https://doi.org/10.47941/ijf.1583","url":null,"abstract":"Purpose: This paper investigates the intricate relationship between financial sector development (FSD), savings behavior (SB), and economic performance (EP). Motivated by the critical role of the financial sector in economic development, our research aims to understand the nature of this relationship, addressing existing gaps in the literature. Methodology: The methodology used involves a literature review, the development of a theoretical model with clearly stated assumptions, and the formulation of a mathematical model to represent the relationships between key variables. A deductive approach to theoretical analysis is employed for the discussion and interpretation of findings, along with implications for policy and future research directions. Findings: The proposed theoretical model assumes rational economic agents, efficient financial markets, perfect information, and other factors to analyze these relationships. Mathematically, FSD positively influences SB, subsequently enhancing EP indicators like GDP growth, income distribution, and employment. The discussion aligns findings with existing literature, emphasizing implications for policymakers to prioritize FSD, enhance financial literacy, and incentivize savings. Unique contributor to theory, policy and practice: Acknowledging model limitations, future research should validate findings empirically, considering diverse economic conditions. This model contributes to understanding dynamic economic interactions, guiding empirical investigations and policy formulation concisely.","PeriodicalId":508423,"journal":{"name":"International Journal of Finance","volume":"29 3","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139167752","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose: This study, conducted in Isiolo County, Kenya, investigates the relationship between behavioral attributes and the performance of securities held by individual investors within the framework of behavioral finance. The research, focusing on attributes like risk tolerance, overconfidence, and loss aversion, employs a mixed-methods approach combining quantitative analysis and qualitative insights. Methodology: Data on individual investors' behavioral attributes were gathered through surveys and interviews, while the performance of securities was assessed using metrics such as returns, risk-adjusted performance, and portfolio volatility. Utilizing statistical techniques and Bartlett’s test of Sphericity. Findings: The study establishes that most behavioral attributes exert moderate impacts on security performance, with market factors displaying a pronounced influence. The significant relationship between market, prospect, and heuristic variables and the performance of securities is identified, with only one null hypothesis related to herding variables being rejected. Unique Contributor to Theory, Policy and Practice: This research contributes uniquely to behavioral finance by providing insights into the nuanced impact of behavioral attributes on investment performance, particularly in the distinctive context of Isiolo County, Kenya. By shedding light on the interplay between cognitive biases, emotional responses, and financial performance, the study offers valuable insights for investors and financial professionals alike. The implications of these findings are discussed, and recommendations are presented to enhance individual investors' financial decision-making, both in the region and beyond, potentially informing policy measures to improve the investment climate for individual investors in Isiolo County, Kenya.
{"title":"Behavioural Attributes and Performance of Securities Held By Individual Investor in Isiolo County, Kenya","authors":"Elizabeth Karimi, Joseph Theuri","doi":"10.47941/ijf.1577","DOIUrl":"https://doi.org/10.47941/ijf.1577","url":null,"abstract":"Purpose: This study, conducted in Isiolo County, Kenya, investigates the relationship between behavioral attributes and the performance of securities held by individual investors within the framework of behavioral finance. The research, focusing on attributes like risk tolerance, overconfidence, and loss aversion, employs a mixed-methods approach combining quantitative analysis and qualitative insights. Methodology: Data on individual investors' behavioral attributes were gathered through surveys and interviews, while the performance of securities was assessed using metrics such as returns, risk-adjusted performance, and portfolio volatility. Utilizing statistical techniques and Bartlett’s test of Sphericity. Findings: The study establishes that most behavioral attributes exert moderate impacts on security performance, with market factors displaying a pronounced influence. The significant relationship between market, prospect, and heuristic variables and the performance of securities is identified, with only one null hypothesis related to herding variables being rejected. Unique Contributor to Theory, Policy and Practice: This research contributes uniquely to behavioral finance by providing insights into the nuanced impact of behavioral attributes on investment performance, particularly in the distinctive context of Isiolo County, Kenya. By shedding light on the interplay between cognitive biases, emotional responses, and financial performance, the study offers valuable insights for investors and financial professionals alike. The implications of these findings are discussed, and recommendations are presented to enhance individual investors' financial decision-making, both in the region and beyond, potentially informing policy measures to improve the investment climate for individual investors in Isiolo County, Kenya.","PeriodicalId":508423,"journal":{"name":"International Journal of Finance","volume":"91 ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139176508","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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