This paper analyzes the net trade credit and its determinants for a sample of 23 non-financial firms for the year 2011. The sample is derived from Macedonian Stock Exchange. The net trade credit is the dependent variable. Dependent variable is defined as the difference between trade receivables and liabilities, and then this difference is divided by total assets. Maturity structure of assets, size, profitability, inventory investment, and cash to assets ratio, long-term financing, total debt financing, and converting sales into cash are the independent variables. Both types of variables, dependent and independent are quantitative variables. Both are expressed on their book values. Variables are transformed and necessary post-selection adjustments will be done. Data and results are checked using Shapiro-Wilk W test for normality, Kernel density estimation, Cameron & Trivedi’s decomposition of IM-test and Breusch-Pagan / Cook-Weisberg test for heteroscedasticity, Variance Inflation Factor for multicollinearity, the model specification link test for single-equation models, and the regression specification error test for omitted variables. Relevant conclusions are drawn based on Spearman and regression analysis. Obtained results show that firms with more net trade credit are more profitable. Firms with higher portion of current assets are bigger firms and invest more in inventory than counterparties. Bigger firms have more inventory than smaller firms. Firms with higher leverage ratios are less able to convert sales into cash. Net trade credit is negatively significant associated with inventory to assets ratio, leverage ratio, and net cash flows from operating activities to sales. Net trade credit is positively significant associated with current assets to total assets ratio. Profitability is found statistically significant determinant, but with beta and standard error equal zero. Results show that net trade credit ratio on average is slightly small, but positive. A positive net trade credit indicates that on average trade receivables are higher than trade payables. With other words, analyzed firms for the analyzed period have sell more than have bought on credit. Keywords: net trade credit, accounts receivable, accounts payable, financial ratios, regression.
{"title":"What Determines the Firm’s Net Trade Credit? Evidence from Macedonian Listed Firms","authors":"F. Deari","doi":"10.14706/JECOSS15521","DOIUrl":"https://doi.org/10.14706/JECOSS15521","url":null,"abstract":"This paper analyzes the net trade credit and its determinants for a sample of 23 non-financial firms for the year 2011. The sample is derived from Macedonian Stock Exchange. The net trade credit is the dependent variable. Dependent variable is defined as the difference between trade receivables and liabilities, and then this difference is divided by total assets. Maturity structure of assets, size, profitability, inventory investment, and cash to assets ratio, long-term financing, total debt financing, and converting sales into cash are the independent variables. Both types of variables, dependent and independent are quantitative variables. Both are expressed on their book values. \u0000Variables are transformed and necessary post-selection adjustments will be done. Data and results are checked using Shapiro-Wilk W test for normality, Kernel density estimation, Cameron & Trivedi’s decomposition of IM-test and Breusch-Pagan / Cook-Weisberg test for heteroscedasticity, Variance Inflation Factor for multicollinearity, the model specification link test for single-equation models, and the regression specification error test for omitted variables. Relevant conclusions are drawn based on Spearman and regression analysis. Obtained results show that firms with more net trade credit are more profitable. Firms with higher portion of current assets are bigger firms and invest more in inventory than counterparties. Bigger firms have more inventory than smaller firms. Firms with higher leverage ratios are less able to convert sales into cash. Net trade credit is negatively significant associated with inventory to assets ratio, leverage ratio, and net cash flows from operating activities to sales. Net trade credit is positively significant associated with current assets to total assets ratio. Profitability is found statistically significant determinant, but with beta and standard error equal zero. Results show that net trade credit ratio on average is slightly small, but positive. A positive net trade credit indicates that on average trade receivables are higher than trade payables. With other words, analyzed firms for the analyzed period have sell more than have bought on credit. \u0000Keywords: net trade credit, accounts receivable, accounts payable, financial ratios, regression.","PeriodicalId":52427,"journal":{"name":"Nigerian Journal of Economic and Social Studies","volume":"26 1","pages":"7"},"PeriodicalIF":0.0,"publicationDate":"2015-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80078753","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}
This study re-examines the long run relationship between the budget and current account deficits in an oil-dependent open economy like Nigeria using a multivariate Granger causality test within the VECM framework. This result confirmed the existence of a long run relationship between the budget and current account deficit in Nigeria, thus supporting the Mudell-Fleming theory and refuting the Ricardian Equivalence Hypothesis (REH). The causality result indicates no causality between budget deficit and current account while the current account deficit causes budget account deficit. This implies that reduction in the current account deficits will help reduce the “twin deficit” dilemma.
{"title":"Twin Deficit in Nigeria: A Re-Examination","authors":"L. Amaghionyeodiwe, Opeyemi Akinyemi","doi":"10.14706/JECOSS15528","DOIUrl":"https://doi.org/10.14706/JECOSS15528","url":null,"abstract":"This study re-examines the long run \u0000relationship between the budget and current \u0000account deficits in an oil-dependent open economy \u0000like Nigeria using a multivariate Granger causality \u0000test within the VECM framework. This result \u0000confirmed the existence of a long run relationship \u0000between the budget and current account deficit \u0000in Nigeria, thus supporting the Mudell-Fleming \u0000theory and refuting the Ricardian Equivalence \u0000Hypothesis (REH). The causality result indicates \u0000no causality between budget deficit and current \u0000account while the current account deficit causes \u0000budget account deficit. This implies that reduction \u0000in the current account deficits will help reduce the \u0000“twin deficit” dilemma.","PeriodicalId":52427,"journal":{"name":"Nigerian Journal of Economic and Social Studies","volume":"1 1","pages":"149"},"PeriodicalIF":0.0,"publicationDate":"2015-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76180731","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}
(ProQuest: ... denotes formulae omitted.)IntroductionA requisite component of economic growth and development is a well-functioning financial system characterised by a banking sub-sector that efficiently intermediates between surplus and deficit holders of funds. In a developing economy like Nigeria where the non-bank component of the financial sector is limited, problems in deposit money banks (DMBs) are instantly transmitted to the rest of the economy (Olofin and Afangideh, 2008). This is in view of the fact that commercial banks facilitate a bulk of financial transactions. Nevertheless, banking dominance of the Nigerian financial system has, however, dropped as controlled financial system assets fell from 90.5% in 2006 to 78.6% in 2011 (IMF, 2013).The main sources of the banking liquidity in Nigeria are public and private sector deposits which DMBs transmit to deficit holders of funds. However, growth rate of deposits have been lopsided in recent times as the rate fell from 65% in 2008 to -11.3% and -1.6% in 2010 and 2012, respectively (International Monetary Fund, 2013). It follows therefore that a negative shock to the depositary base will inhibit the flow of credit, constrain development of domestic industries and adversely affect economic growth. Therefore, factors influencing savings' decisions of households and firms become important determinants of a stable banking sector with particular reference to its intermediation role.iAn assessment of real deposits has gained ample attention in the literature (See Tvalodze and Tchaidze, 2011 for Georgia; Kibet, Mutai, Ouma, Ouma and Owuor, 2009 for Kenya; Dadkhah and Rajen, 1988 for India; Felmingham and Qing, 2001 for Australia; Hasan, 2001 for China; Mutluer and Yasemin, 2002 for Turkey; Lucas, 1988 for US; Vega, 1998 for Spain). Similarly, the behaviour of real deposits has been analysed within the context of currency deposit ratio. In this regard, Khaskeli, Ahmed and Hyder (2013) analysed the behaviour and determinants of the currency deposit ratio in Pakistan based on the notion that an increase in currency in circulation reduces deposits and invariably, loanable funds. This is because an increase in the volume of currency in circulation implies that deposits are being withdrawn from the banks, which restrict their ability to meet investors' credit demand.Research on the factors affecting real deposit creation in Nigeria is scanty, as inadequate attention has been given to the behaviour of real deposits with specific reference to the dynamic interaction of money supply and currency in circulation. The dominant strand of literature has focused on estimating the determinants and behaviour of real deposits (See Nwachukwu and Odigie, 2009; Odemero, 2012; Uneze, 2013; Nwachukwu and Egwaikhide, 2007, Nwachukwu, 2011) while some others have inferred real deposit behaviour on the basis of money demand models (See Aschani, 2010; Kumar, Webber and Fargher, 2010; Chukwu, Agu and Onah, 2010; Omotor, 201
{"title":"An Empirical Analysis of Real Deposits in Nigeria","authors":"M. Shuaibu","doi":"10.14706/JECOSS15522","DOIUrl":"https://doi.org/10.14706/JECOSS15522","url":null,"abstract":"(ProQuest: ... denotes formulae omitted.)IntroductionA requisite component of economic growth and development is a well-functioning financial system characterised by a banking sub-sector that efficiently intermediates between surplus and deficit holders of funds. In a developing economy like Nigeria where the non-bank component of the financial sector is limited, problems in deposit money banks (DMBs) are instantly transmitted to the rest of the economy (Olofin and Afangideh, 2008). This is in view of the fact that commercial banks facilitate a bulk of financial transactions. Nevertheless, banking dominance of the Nigerian financial system has, however, dropped as controlled financial system assets fell from 90.5% in 2006 to 78.6% in 2011 (IMF, 2013).The main sources of the banking liquidity in Nigeria are public and private sector deposits which DMBs transmit to deficit holders of funds. However, growth rate of deposits have been lopsided in recent times as the rate fell from 65% in 2008 to -11.3% and -1.6% in 2010 and 2012, respectively (International Monetary Fund, 2013). It follows therefore that a negative shock to the depositary base will inhibit the flow of credit, constrain development of domestic industries and adversely affect economic growth. Therefore, factors influencing savings' decisions of households and firms become important determinants of a stable banking sector with particular reference to its intermediation role.iAn assessment of real deposits has gained ample attention in the literature (See Tvalodze and Tchaidze, 2011 for Georgia; Kibet, Mutai, Ouma, Ouma and Owuor, 2009 for Kenya; Dadkhah and Rajen, 1988 for India; Felmingham and Qing, 2001 for Australia; Hasan, 2001 for China; Mutluer and Yasemin, 2002 for Turkey; Lucas, 1988 for US; Vega, 1998 for Spain). Similarly, the behaviour of real deposits has been analysed within the context of currency deposit ratio. In this regard, Khaskeli, Ahmed and Hyder (2013) analysed the behaviour and determinants of the currency deposit ratio in Pakistan based on the notion that an increase in currency in circulation reduces deposits and invariably, loanable funds. This is because an increase in the volume of currency in circulation implies that deposits are being withdrawn from the banks, which restrict their ability to meet investors' credit demand.Research on the factors affecting real deposit creation in Nigeria is scanty, as inadequate attention has been given to the behaviour of real deposits with specific reference to the dynamic interaction of money supply and currency in circulation. The dominant strand of literature has focused on estimating the determinants and behaviour of real deposits (See Nwachukwu and Odigie, 2009; Odemero, 2012; Uneze, 2013; Nwachukwu and Egwaikhide, 2007, Nwachukwu, 2011) while some others have inferred real deposit behaviour on the basis of money demand models (See Aschani, 2010; Kumar, Webber and Fargher, 2010; Chukwu, Agu and Onah, 2010; Omotor, 201","PeriodicalId":52427,"journal":{"name":"Nigerian Journal of Economic and Social Studies","volume":"23 1","pages":"127"},"PeriodicalIF":0.0,"publicationDate":"2015-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76582277","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}
(ProQuest: ... denotes formula omitted.)IntroductionFollowing the painful 90s, stabilized economic growth becomes the predominant objective for most of the Balkans. In this direction, some of the Balkan countries such as Croatia and Bulgaria have managed to get aboard to the European Union (EU) train. But for many others, the train has not arrived yet. Moreover, being a transition economy in the Balkans creates additional burdens to these counties. Having experienced the harsh Bosnian War and the lagged effects of it, those countries are still struggling to find their way into the long road of development.As an international political instrument Foreign Direct Investments (FDIs) are playing an increasingly important role in economic development. By means of FDIs, the host countries may be affected positively through externality effects and capital enhancement (Alfaro, Chanda, Kalemli-Ozcan, and Sayek, 2006; Sun, 2002). However, FDIs can also create adverse effects such as external-dependency and imbalances in local markets. The outcome on the host economies basically depends on the level of absorptive capacities in these countriesi. Thus, the effects of FDIs in host countries with solid administrative, financial and economical infrastructures differ from the effects in countries lack such structures. These structural differences create a long range of effects on the host countries.In this paper, the effects of FDIs on economic growth of transition economies in the Balkans are investigated through an absorptive capacity perspective. The distinction between EU member Balkan countries and non-EU member Balkan countries has been made in the paper with "transition" concept taken into account; since EU members would be expected to have a better absorptive capacity due to EU obligations has to be fulfilled in order to reach EU standards. Thus, this paper concentrates only on non-EU member transition economies in the Balkansii. Accordingly, the FDIs in the host countries that have some level of absorptive capacities may have some effects that accelerate the growth, while, the FDIs in countries that lack such absorptive capacities, may not promote the growth. Moreover, there is a mutual relationship between absorptive capacities and FDIs. On one hand, absorptive capacities can stimulate the effects of FDIs to both positive and negative sides; on the other hand, FDI flows to a country are in line with the absorptive capacity of that country; as the capacity increases the possibility of increased FDI flows arises (Alfaro et al., 2004; Alfaro et al., 2006). Therefore, the absorptive capacities of the host countries are of vital importance when it comes down to FDIs. Through the absorptive capacity perspective the aim of this paper is to empirically reveal to what extent transition economies in the Balkans can utilize FDIs. Given the potential significance of FDIs on economic development, this paper not only offers an overall guideline on the matter for the t
(ProQuest:……表示公式省略。)在痛苦的90年代之后，稳定的经济增长成为大多数巴尔干国家的主要目标。在这个方向上，一些巴尔干国家，如克罗地亚和保加利亚，已经成功登上了欧盟的列车。但对其他许多人来说，火车还没有到达。此外，作为巴尔干地区的转型经济体，给这些国家带来了额外的负担。在经历了残酷的波斯尼亚战争及其滞后影响之后，这些国家仍在努力寻找进入长期发展道路的道路。外国直接投资作为一种国际政治手段，在经济发展中发挥着越来越重要的作用。通过外国直接投资，东道国可能通过外部性效应和资本增值而受到积极影响(Alfaro, Chanda, Kalemli-Ozcan, and Sayek, 2006;太阳,2002)。然而，外国直接投资也会产生不利影响，如对外部的依赖和当地市场的失衡。对东道国经济的影响基本上取决于这些国家的吸收能力水平。因此，外国直接投资在具有坚实行政、财政和经济基础设施的东道国的影响不同于在缺乏这种结构的国家的影响。这些结构性差异对东道国产生了长期影响。本文从吸收能力的角度研究了巴尔干地区转型经济体的外商直接投资对经济增长的影响。本文对欧盟巴尔干成员国和非欧盟巴尔干成员国进行了区分，并考虑了“过渡”概念;因为欧盟成员国应该有更好的吸收能力，因为为了达到欧盟的标准，必须履行欧盟的义务。因此，本文只关注巴尔干半岛非欧盟成员国的转型经济体。因此，具有一定吸收能力的东道国的外国直接投资可能具有一定的促进增长的作用，而缺乏吸收能力的国家的外国直接投资可能没有促进增长的作用。此外，吸收能力与外国直接投资之间存在相互关系。一方面，吸收能力可以刺激外商直接投资的正面和负面效应;另一方面，流入一国的外国直接投资与该国的吸收能力是一致的;随着产能的增加，FDI流量增加的可能性也随之增加(Alfaro et al.， 2004;Alfaro et al.， 2006)。因此，东道国的吸收能力对于外国直接投资来说是至关重要的。通过吸收能力视角，本文旨在实证揭示巴尔干地区转型经济体利用外国直接投资的程度。鉴于外国直接投资对经济发展的潜在意义，本文不仅为巴尔干地区的转型经济体提供了关于这一问题的总体指导方针，而且提出了一种衡量吸收能力的新技术。通过采用新的技术来测量吸收能力，本研究旨在为文献做出贡献。在引言之后，第二部分将处理巴尔干地区的外国直接投资动向。在第三部分中，对吸收能力的概念及其与外商直接投资的关系进行了全面的推理，并对样本进行了实证分析。这一部分也给出了分析的结果。在最后的结论部分，对分析结果进行了研究，并对全文进行了总结。国际货币基金组织(IMF)在2000年列出了转型经济体(国际货币基金组织，2000)。根据这个列表;克罗地亚、保加利亚、阿尔巴尼亚和马其顿被列为转型经济体。后来，世界银行在2002年将波斯尼亚和黑塞哥维那以及塞尔维亚和黑山列为转型经济体(the World Bank, 2002)。…
{"title":"The Effects of Foreign Direct Investments on Transition Economies: The Balkans Case","authors":"Mehmet Görgülü","doi":"10.14706/JECOSS15523","DOIUrl":"https://doi.org/10.14706/JECOSS15523","url":null,"abstract":"(ProQuest: ... denotes formula omitted.)IntroductionFollowing the painful 90s, stabilized economic growth becomes the predominant objective for most of the Balkans. In this direction, some of the Balkan countries such as Croatia and Bulgaria have managed to get aboard to the European Union (EU) train. But for many others, the train has not arrived yet. Moreover, being a transition economy in the Balkans creates additional burdens to these counties. Having experienced the harsh Bosnian War and the lagged effects of it, those countries are still struggling to find their way into the long road of development.As an international political instrument Foreign Direct Investments (FDIs) are playing an increasingly important role in economic development. By means of FDIs, the host countries may be affected positively through externality effects and capital enhancement (Alfaro, Chanda, Kalemli-Ozcan, and Sayek, 2006; Sun, 2002). However, FDIs can also create adverse effects such as external-dependency and imbalances in local markets. The outcome on the host economies basically depends on the level of absorptive capacities in these countriesi. Thus, the effects of FDIs in host countries with solid administrative, financial and economical infrastructures differ from the effects in countries lack such structures. These structural differences create a long range of effects on the host countries.In this paper, the effects of FDIs on economic growth of transition economies in the Balkans are investigated through an absorptive capacity perspective. The distinction between EU member Balkan countries and non-EU member Balkan countries has been made in the paper with \"transition\" concept taken into account; since EU members would be expected to have a better absorptive capacity due to EU obligations has to be fulfilled in order to reach EU standards. Thus, this paper concentrates only on non-EU member transition economies in the Balkansii. Accordingly, the FDIs in the host countries that have some level of absorptive capacities may have some effects that accelerate the growth, while, the FDIs in countries that lack such absorptive capacities, may not promote the growth. Moreover, there is a mutual relationship between absorptive capacities and FDIs. On one hand, absorptive capacities can stimulate the effects of FDIs to both positive and negative sides; on the other hand, FDI flows to a country are in line with the absorptive capacity of that country; as the capacity increases the possibility of increased FDI flows arises (Alfaro et al., 2004; Alfaro et al., 2006). Therefore, the absorptive capacities of the host countries are of vital importance when it comes down to FDIs. Through the absorptive capacity perspective the aim of this paper is to empirically reveal to what extent transition economies in the Balkans can utilize FDIs. Given the potential significance of FDIs on economic development, this paper not only offers an overall guideline on the matter for the t","PeriodicalId":52427,"journal":{"name":"Nigerian Journal of Economic and Social Studies","volume":"90 1","pages":"23"},"PeriodicalIF":0.0,"publicationDate":"2015-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78455438","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}
Abstract: The purpose of this study is to examine two leverage ratios using a sample of non-financial companies in Bosnia and Herzegovina (BiH). It was done by taking into account the joint effect of traditional capital structure determinants and managers' personal values and aspirations. We applied hierarchical regression analysis to determine the contribution of profitability indicators, firm size indicators, assets, growth, networking, managerial strategies, managerial psychology, managerial human capital and earnings volatility to explain the variance in capital structure. The results suggest that companies with less experienced owners/managers and higher firm growth have higher financial leverage ratios. In the analysis of the balance sheet leverage, financial proxies of capital structure seem to be significant in explaining capital structure variance. Therefore, companies with lower profitability, a lower level of fixed assets and higher growth opportunities have higher balance sheet leverage ratios. The findings provide better understanding of theoretical perspectives that can best explain how companies choose their capital structure in the transition economy context. Furthermore, empirical findings should help corporate managers to make optimal capital structure decisions.
{"title":"How Micro-Level Determinants Affect the Capital Structure Choice: Evidence from Bosnia and Herzegovina","authors":"Jasmina Mangafic, Danijela Martinović","doi":"10.14706/JECOSS15529","DOIUrl":"https://doi.org/10.14706/JECOSS15529","url":null,"abstract":"Abstract: The purpose of this study is to examine two leverage ratios using a sample of non-financial companies in Bosnia and Herzegovina (BiH). It was done by taking into account the joint effect of traditional capital structure determinants and managers' personal values and aspirations. We applied hierarchical regression analysis to determine the contribution of profitability indicators, firm size indicators, assets, growth, networking, managerial strategies, managerial psychology, managerial human capital and earnings volatility to explain the variance in capital structure. The results suggest that companies with less experienced owners/managers and higher firm growth have higher financial leverage ratios. In the analysis of the balance sheet leverage, financial proxies of capital structure seem to be significant in explaining capital structure variance. Therefore, companies with lower profitability, a lower level of fixed assets and higher growth opportunities have higher balance sheet leverage ratios. The findings provide better understanding of theoretical perspectives that can best explain how companies choose their capital structure in the transition economy context. Furthermore, empirical findings should help corporate managers to make optimal capital structure decisions.","PeriodicalId":52427,"journal":{"name":"Nigerian Journal of Economic and Social Studies","volume":"68 1","pages":"181"},"PeriodicalIF":0.0,"publicationDate":"2015-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74010812","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}
Abstract: This paper analyzes the relationship between risks to which banks are exposed, rate of non-performing loans as well as capital adequacy. The analysis was conducted among the banking sector of Bosnia and Herzegovina. For the purpose of the analysis, the International Monetary Fund data - Core Financial Indicators for the period 2008 – 2013 were used. This study differs from previous researches primarily in the fact that the case study is Bosnia and Herzegovina, where there haven't been similar studies. To analyze and evaluate the model, correlation and regression analysis were used. The paper points to those aspects which deserve further attention in order to achieve better and more efficient management of them. Results indicate the increase in risk-weighted assets and rising rates of non-performing loans as one of the component assets. At the same time the growth rate of non-performing loans leads to the growth in risk-weighted assets and therefore the bank is exposed to major risks. Higher return on assets, as an indicator of business performance and management resources and profitability, leads to capital adequacy improvement. There is a strong correlation between the rate of capital adequacy and non-performing loans and that requires further research. Results indicate that better liquidity control leads to a reduction in the rate of non-performing loans and consequently better liquidity position of banks, and thus reduction in liquidity risk. During the analysis it was found that a large proportion of non-performing loans to total loans leads to deterioration in the financial result which is further reflected in the banks' capital. When we talk about capital adequacy we come to the conclusion that the banking system in Bosnia and Herzegovina, despite all the shortcomings and problems is adequately capitalized.
{"title":"Causes and Consequences of NPLs in Bosnia and Herzegovina Banking Sector","authors":"Kemal Kozaric, Emina Žunić","doi":"10.14706/JECOSS115111","DOIUrl":"https://doi.org/10.14706/JECOSS115111","url":null,"abstract":"Abstract: This paper analyzes the relationship between risks to which banks are exposed, rate of non-performing loans as well as capital adequacy. The analysis was conducted among the banking sector of Bosnia and Herzegovina. For the purpose of the analysis, the International Monetary Fund data - Core Financial Indicators for the period 2008 – 2013 were used. This study differs from previous researches primarily in the fact that the case study is Bosnia and Herzegovina, where there haven't been similar studies. To analyze and evaluate the model, correlation and regression analysis were used. The paper points to those aspects which deserve further attention in order to achieve better and more efficient management of them. Results indicate the increase in risk-weighted assets and rising rates of non-performing loans as one of the component assets. At the same time the growth rate of non-performing loans leads to the growth in risk-weighted assets and therefore the bank is exposed to major risks. Higher return on assets, as an indicator of business performance and management resources and profitability, leads to capital adequacy improvement. There is a strong correlation between the rate of capital adequacy and non-performing loans and that requires further research. Results indicate that better liquidity control leads to a reduction in the rate of non-performing loans and consequently better liquidity position of banks, and thus reduction in liquidity risk. During the analysis it was found that a large proportion of non-performing loans to total loans leads to deterioration in the financial result which is further reflected in the banks' capital. When we talk about capital adequacy we come to the conclusion that the banking system in Bosnia and Herzegovina, despite all the shortcomings and problems is adequately capitalized.","PeriodicalId":52427,"journal":{"name":"Nigerian Journal of Economic and Social Studies","volume":"5 1","pages":"127"},"PeriodicalIF":0.0,"publicationDate":"2015-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79194879","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}
E. Kozarević, Meldina Kokorović Jukan, Amra Softic
Abstract: The purpose of this paper is to investigate the level of SME banking development in Bosnia and Herzegovina (BH). By using a structured questionnaire, the authors discuss perceptions of the banking sector representatives in BH regarding SME banking and their future plans for the management of credit risk associated with financing the SME sector. One of the main findings of this research is that the SME sector is becoming a strategic sector for BH banks and banks are willing to increase their involvement with SME clients. Authors also present results on current level of banks’ exposure to SMEs, types of financial services offered to SME’s clients by BH banks, drivers of banks’ involvement with SMEs, obstacles to further development of banks’ involvement with SMEs. Based on the banks’ responses and results of research conducted, suggestions to policy makers are given, such as tax reforms, interest rate subventions to SMEs, improvement of judiciary, simplifying administrative procedures. Also, some recommendations are given to banks, such as the need for better understanding the requirements of SME clients providing them more personal approach and creating a partnership, as well as lobbying the government bodies to change regulations governing SME sector. Keywords: Financial system; Small and medium-sized enterprises (SMEs); SME banking; Comparative experiences; Bosnia and Herzegovina (BH)
{"title":"An Overview of Small and Medium-Sized Banking Development in Bosnia and Herzegovina","authors":"E. Kozarević, Meldina Kokorović Jukan, Amra Softic","doi":"10.14706/JECOSS11519","DOIUrl":"https://doi.org/10.14706/JECOSS11519","url":null,"abstract":"Abstract: The purpose of this paper is to investigate the level of SME banking development in Bosnia and Herzegovina (BH). By using a structured questionnaire, the authors discuss perceptions of the banking sector representatives in BH regarding SME banking and their future plans for the management of credit risk associated with financing the SME sector. One of the main findings of this research is that the SME sector is becoming a strategic sector for BH banks and banks are willing to increase their involvement with SME clients. Authors also present results on current level of banks’ exposure to SMEs, types of financial services offered to SME’s clients by BH banks, drivers of banks’ involvement with SMEs, obstacles to further development of banks’ involvement with SMEs. Based on the banks’ responses and results of research conducted, suggestions to policy makers are given, such as tax reforms, interest rate subventions to SMEs, improvement of judiciary, simplifying administrative procedures. Also, some recommendations are given to banks, such as the need for better understanding the requirements of SME clients providing them more personal approach and creating a partnership, as well as lobbying the government bodies to change regulations governing SME sector. \u0000 \u0000Keywords: Financial system; Small and medium-sized enterprises (SMEs); SME banking; Comparative experiences; Bosnia and Herzegovina (BH)","PeriodicalId":52427,"journal":{"name":"Nigerian Journal of Economic and Social Studies","volume":"32 1","pages":"107"},"PeriodicalIF":0.0,"publicationDate":"2015-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87972084","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}
Abstract: The purpose of this study is to show the requirement of industry-specific national service quality indices for measuring quality in both traditional and electronic services in various industries in a country. In this study, the literature about service and e-service quality measurements was reviewed, and a three-dimensional framework was developed. It was found out that the dimensions of each service quality measurement were all different from each other due to the different characteristics of the industries that each study has been conducted in. The study showed that there is a need for an industry-specific national service quality index and suggested that national customer satisfaction indices which have existed in the literature can be a model for industry-specific national service quality indices. An industry-specific national service quality index enables national companies to understand their unique industrial characteristics that needed to be improved continuously in order to increase service quality and gain competitive advantage. The index which was proposed to develop in the future was suggested for the first time in this study. Keywords: Service quality; E-service quality; Service quality dimensions; National customer satisfaction indices; Turkish Customer Satisfaction Index (TCSI).
{"title":"A Review of Service and E-Service Quality Measurements: Previous Literature and Extension","authors":"Emel Yarimoglu","doi":"10.14706/JECOSS115110","DOIUrl":"https://doi.org/10.14706/JECOSS115110","url":null,"abstract":"Abstract: The purpose of this study is to show the requirement of industry-specific national service quality indices for measuring quality in both traditional and electronic services in various industries in a country. In this study, the literature about service and e-service quality measurements was reviewed, and a three-dimensional framework was developed. It was found out that the dimensions of each service quality measurement were all different from each other due to the different characteristics of the industries that each study has been conducted in. The study showed that there is a need for an industry-specific national service quality index and suggested that national customer satisfaction indices which have existed in the literature can be a model for industry-specific national service quality indices. An industry-specific national service quality index enables national companies to understand their unique industrial characteristics that needed to be improved continuously in order to increase service quality and gain competitive advantage. The index which was proposed to develop in the future was suggested for the first time in this study. \u0000 \u0000Keywords: Service quality; E-service quality; Service quality dimensions; National customer satisfaction indices; Turkish Customer Satisfaction Index (TCSI).","PeriodicalId":52427,"journal":{"name":"Nigerian Journal of Economic and Social Studies","volume":"50 1","pages":"169"},"PeriodicalIF":0.0,"publicationDate":"2015-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73615891","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}
Abstract: This paper analyses the inflationary process in Croatia during the period 1992-2011, using a cointegration with structural break approach. Our results indicate that there is a long-run relationship between inflation, exchange rate, unit labour costs and money growth. Currency depreciation and unit labour costs are found to influence inflation positively, and money supply negatively. We argue that the latter occurs because exchange rate targeting policy in Croatia results in a situation where endogenous money moves in the direction opposite to the exchange rate, so as to keep the exchange rate fixed. We, furthermore provide some evidence that money supply need not mean risks to inflation in the presence of declining money velocity.
{"title":"Investigating Croatian Inflation through the Cointegration with Structural Break Approach","authors":"Lena Malešević Perović","doi":"10.14706/JECOSS11517","DOIUrl":"https://doi.org/10.14706/JECOSS11517","url":null,"abstract":"Abstract: This paper analyses the inflationary process in Croatia during the period 1992-2011, using a cointegration with structural break approach. Our results indicate that there is a long-run relationship between inflation, exchange rate, unit labour costs and money growth. Currency depreciation and unit labour costs are found to influence inflation positively, and money supply negatively. We argue that the latter occurs because exchange rate targeting policy in Croatia results in a situation where endogenous money moves in the direction opposite to the exchange rate, so as to keep the exchange rate fixed. We, furthermore provide some evidence that money supply need not mean risks to inflation in the presence of declining money velocity.","PeriodicalId":52427,"journal":{"name":"Nigerian Journal of Economic and Social Studies","volume":"24 1","pages":"5-32"},"PeriodicalIF":0.0,"publicationDate":"2015-02-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80801216","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}
T. Yeboah, Lucy Owusu, Albert Arhin, Emmanuel Kumi
Over the last three decades or so, complex factors including the implementation of neoliberal economic reforms has led to a decline in formal sector employment in the Ghanaian economy. This together with increasing feminization of poverty has driven many, especially young women, to seek livelihoods in the informal sector mainly as hawkers and head porters. Drawing on qualitative interviews with approximately 40 urban poor women (aged 6-25 years), this paper reports the gendered aspects of poverty and the surviving strategies of young women on urban streets. The cameos presented herein highlight the experiences of poverty among street workers and how their livelihood portfolios contribute to overcoming the poor socio-economic conditions facing them. The paper shows that hawking and head portering significantly provides income for upkeep of young women and their families through meeting consumption and other needs. However, vulnerabilities manifested in unfavourable weather conditions, vehicular dangers, exploitation from employers and customers often due to lack of written work contracts are the major risks sturdily connected with these surviving strategies. The paper concludes by arguing for policy interventions such as subsidized credit schemes and organization of formal and informal forms of capacity building for the urban street workers to enhance their livelihoods.
{"title":"Fighting poverty from the street:Perspectives of some female informal sector workers on gendered poverty and livelihood portfolios in Southern Ghana","authors":"T. Yeboah, Lucy Owusu, Albert Arhin, Emmanuel Kumi","doi":"10.14706/JECOSS11511","DOIUrl":"https://doi.org/10.14706/JECOSS11511","url":null,"abstract":"Over the last three decades or so, complex factors including the implementation of neoliberal economic reforms has led to a decline in formal sector employment in the Ghanaian economy. This together with increasing feminization of poverty has driven many, especially young women, to seek livelihoods in the informal sector mainly as hawkers and head porters. Drawing on qualitative interviews with approximately 40 urban poor women (aged 6-25 years), this paper reports the gendered aspects of poverty and the surviving strategies of young women on urban streets. The cameos presented herein highlight the experiences of poverty among street workers and how their livelihood portfolios contribute to overcoming the poor socio-economic conditions facing them. The paper shows that hawking and head portering significantly provides income for upkeep of young women and their families through meeting consumption and other needs. However, vulnerabilities manifested in unfavourable weather conditions, vehicular dangers, exploitation from employers and customers often due to lack of written work contracts are the major risks sturdily connected with these surviving strategies. The paper concludes by arguing for policy interventions such as subsidized credit schemes and organization of formal and informal forms of capacity building for the urban street workers to enhance their livelihoods.","PeriodicalId":52427,"journal":{"name":"Nigerian Journal of Economic and Social Studies","volume":"33 1","pages":"239"},"PeriodicalIF":0.0,"publicationDate":"2015-01-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79008235","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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