Economics
Saad Raad Faysal
Abstract
The primary purpose of this paper is to verify the basic assumptions according to the pecking order and Trade-off theory for the capital structure in listed firms on KSA, Iran, and the Iraq Stock Exchange of West Asian countries. The pooled ordinary least squares (OLS) were used to examine the relationships ...
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The primary purpose of this paper is to verify the basic assumptions according to the pecking order and Trade-off theory for the capital structure in listed firms on KSA, Iran, and the Iraq Stock Exchange of West Asian countries. The pooled ordinary least squares (OLS) were used to examine the relationships of the three countries for determinants of the capital structure from 2016 to 2020 for the data of non-financial companies. Finally, we obtained 116 Saudi, 82 Iranian, and 35 Iraqi companies. Our findings support capital structure theories of the pecking order theory better to describe the capital structure in KSA. This is a significant marker like these societies, yet we found some determinants of the capital structure consistent with trade-off theory in the context of Iran and Iraq. So, it can be said that the Islamic nature of these countries brings companies closer to issuing shares than using debt as a means of capital financing, as Muslims believe that the usury (Raba) comes from the interest of debt. Our results indicate that the growth opportunities have a positive relationship with LEV, but it is not significant for the three countries. This paper can give a unique picture of Islamic societies and how to get capital financing. We found a remarkable similarity in the choice of pecking order theory for the capital structure; naturally, this paper is of interest to owners and managers who are trying to obtain an ideal capital structure to improve the fixed performance of the company.
Economics
Seyed Valiallah Mirhoseyni; Mohammd Reza Montazeri; Marzeya ShahVali
Abstract
Investigation of budget deficit and government debt relationship with economic growth is one of the important topics in macroeconomic literature; Hence, the present study examined the role of budget deficit and government debt on financing the economic growth in 40 developing countries between 2010-2019. ...
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Investigation of budget deficit and government debt relationship with economic growth is one of the important topics in macroeconomic literature; Hence, the present study examined the role of budget deficit and government debt on financing the economic growth in 40 developing countries between 2010-2019. In this regard, the economic growth was defined as a function of financial development, budget deficit, government debt, government expenditure, human capital, inflation rate, trade freedom, and the interaction of budget deficit and government debt with financial development. To examine the relationships between variables, the panel data econometric model and the feasible generalized least squares method were used. The estimation results showed that in developing countries, financial development had a positive and budget deficit and government debt had a negative and significant effect on the economic growth. Also, the interaction effect of budget deficit and government debt with financial development on economic growth was negative and significant that showed budget deficit and government debt play a negative role in positive relationship between financial development and economic growth. In addition, government expenditure, human capital, and trade freedom had a positive and significant effect on economic growth, while the inflation rate effect on economic growth was not significant.
Management
Rina Nopianti; Andreas Tri Panudju; Angrian Permana
Abstract
This paper aims to predict stock prices using open, high, low, close variables using artificial neural networks, especially the adaptive fuzzy neural inference system (ANFIS). Each stock has a different pattern and can be predicted if you have complete data. This study is limited by stock data for 2012-2019. ...
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This paper aims to predict stock prices using open, high, low, close variables using artificial neural networks, especially the adaptive fuzzy neural inference system (ANFIS). Each stock has a different pattern and can be predicted if you have complete data. This study is limited by stock data for 2012-2019. The survey was conducted to collect stock data from the Yahoo Finance website. The stock data used is data from 2001-2018. Learning patterns of data patterns using the Adaptive Neural Fuzzy Inference System (ANFIS) were compared with regression analysis, Mean Square Error (MSE) and Mean Prediction Error. The results show that stock price predictions using the Adaptive Neural Fuzzy Inference System (ANFIS) have a small error rate (below 1 percent). The stock price at closing is determined by the open price and the volume of the stock. The value of the highest price of the stock and the lowest value of the stock follows the determined value of the opening price. This paper contributes to existing research in economics, especially stock investment and Financial Technology.
Economics
Gomolemo Gashiten; Paidamoyo Mutepfa
Abstract
The study followed up on the observations made by Bara et al., (2016) who observed that there was a deficit in analyzing the growth-finance nexus using data from SADC countries. The purpose of the study was therefore to ascertain the impact of foreign direct investment on economic growth through the ...
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The study followed up on the observations made by Bara et al., (2016) who observed that there was a deficit in analyzing the growth-finance nexus using data from SADC countries. The purpose of the study was therefore to ascertain the impact of foreign direct investment on economic growth through the domestic financial market channel of SADC countries. A sample of countries from the SADC region was employed with the data ranging from 1980 to 2018. The data was obtained from the IMF and the World Bank’s World Development Indicator data base. The regressors used in the study include foreign direct investment, financial sector development, interaction of financial development and foreign direct investment, trade openness, gross capital formation, inflation and government expenditure. Fixed Effects panel regression was used after the Hausman Test revealed that the FEM was the most appropriate model. The outcome of the study revealed that FDI does not have a statistically significant impact on GDP without the interaction with financial sector development. However, the effects were amplified when financial sector development is introduced in the model. With the presence of financial sector development, FDI had a positive and statistically significant impact on GDP and at the same time financial sector development had a positive impact on GDP. Recommendations emanating from the study encourage monetary authorities to strengthen their financial services sector so as to fully benefit from FDI.
Economics
Mollah Aminul Islam
Abstract
Financial development has recently been captured the attention of researchers as in important element of economic prosperity. As foreign direct investment can have an important role in the economic achievements, this study investigates the role of financial development in attracting FDIs. Unlike earlier ...
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Financial development has recently been captured the attention of researchers as in important element of economic prosperity. As foreign direct investment can have an important role in the economic achievements, this study investigates the role of financial development in attracting FDIs. Unlike earlier studies, it considers the most comprehensive proxy of financial development which overcomes the shortcomings due to ignorance of many economic components by earlier researchers. In this connection, this study uses panel of 39 countries from One Belt One Road (OBOR) economies. The empirical findings provide evidence in favor of financial sector reforms so as to benefit from foreign investment. The results are robust to the alternative measures of financial deepening under instrumental variable estimation. Therefore, the research specifically suggests countries to concentrate on developing their financial systems. Proper policy formulation can be done to reconstruct the weaker systems and to ensure wider and safer public access to the financial systems.
Accounting
Md. Tahidur Rahman; Syed Zabid Hossain; Md. Anwarul Haque; Md. Abu Hanif Ashik
Abstract
This study intended to explore the IPO motives and the factors that contributed to IPO oversubscription in Bangladesh. Based on hand-collected data from 101 sample IPO prospectus during 2010–19, the study found an average of 10 IPOs per year, mostly (90%) through the fixed-price method. Among the ...
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This study intended to explore the IPO motives and the factors that contributed to IPO oversubscription in Bangladesh. Based on hand-collected data from 101 sample IPO prospectus during 2010–19, the study found an average of 10 IPOs per year, mostly (90%) through the fixed-price method. Among the sample companies, 34.7% were in the textile sector, followed by 17.8% in the engineering sector and 12.9% in the pharmaceuticals & chemical sector. This study observed an average subscription times of 23.41, which was much lower than in some other South Asian countries. Regarding the use of IPO proceeds, loan settlement was the prime motive, followed by capital expenditure, and working capital financing. Companies expensed around 6% of the total IPO proceeds as flotation cost. Although the detailed disclosure of the use of IPO proceeds in the prospectus is a common and expected feature, it was found absent in around 12% of companies. The logistic regression model found a statistically significant influence of lot size (LOT), post-IPO capital (PIC), and flotation cost (FTC) on oversubscription times (OST). The contribution of FTC to OST was a novel finding of this study. The study also found the absence of large and reputed domestic and multinational conglomerates in the listing through IPOs. Thus, the current study recommends regulators should take proper drives to customize and familiarize the book-building method, which can entice good companies for listing in stock exchanges through IPO.
