Abstract: This paper is focused on the analysis and comparison of liquidity ratios and asset liability management practices in top three banks from public, private and foreign sector in India. The analysis is based upon the liquidity ratios calculation and the determination of maturity gap profiles for the banks under study. The paper also compares these banks maturity gap profiles with their corresponding group’s maturity gap profiles. This paper identifies the interest rate sensitivity of the balance sheet items of these banks to determine the gap between rate sensitive assets and rate sensitive liabilities. The results of this study suggest that overall banks in India have very good short term liquidity position and all banks are financing their short term liabilities by their long term assets.
Abstract: International market expansion involves a strategic process of market entry decision through which a firm expands its operation from domestic to the international domain. Hence, entry timing choices require the needs to balance the early entry risks and the problems in losing opportunities as a result of late entry into a new market. Questionnaire surveys administered to 115 Malaysian construction firms operating in 51 countries worldwide have resulted in 39.1 percent response rate. Factor analysis was used to determine the most significant factors affecting entry timing choices of the firms to penetrate the international market. A logistic regression analysis used to examine the firms’ entry timing choices, indicates that the model has correctly classified 89.5 per cent of cases as late movers. The findings reveal that the most significant factor influencing the construction firms’ choices as late movers was the firm factor related to the firm’s international experience, resources, competencies and financing capacity. The study also offers valuable information to construction firms with intention to internationalize their businesses.
Abstract: The banking sector poses a lot of problems in Nigeria in general and the non-oil export sector in particular. The banks' lack effectiveness in handling small, medium or long-term credit risk (lack of training of loan officers, lack of information on borrowers and absence of a reliable credit registry) results in non-oil exporters being burdened with high requirements, such as up to three years of financial statements, enough collateral to cover both the loan principal and interest (including a cash deposit that may be up to 30% of the loans' net present value), and to provide every detail of the international trade transaction in question. The stated problems triggered this research. Consequently, information on bank financing of non-oil exports was collected from 100 respondents from the 20 Deposit Money Banks (DMBs) in Nigeria. The data was analysed by the use of descriptive statistics correlation and regression. It is found that, Nigerian banks are participants in the financing of non-oil exports. Despite their participation, the rate of interest for credit extended to non-oil export is usually high, ranging between 15-20%. Small and medium sized non-oil export businesses lack the credit history for banks to judge them as reputable. Banks also consider the non-oil export sector very risky for investment. The banks actually do grant less credit than the exporters may require and therefore are not properly funded by banks. Banks grant very low volume of foreign currency loan in addition to, unfavorable exchange rate at which Naira is exchanged to the Dollar and other currencies in the country. This makes importation of inputs costly and negatively impacted on the non-oil export performance in Nigeria.
Abstract: Human society, there are many uncertainties, such as economic growth rate forecast of the financial crisis, many scholars have, since the the Song Chissom two scholars in 1993 the concept of the so-called fuzzy time series (Fuzzy Time Series)different mode to deal with these problems, a previous study, however, usually does not consider the relevant variables selected and fuzzy process based solely on subjective opinions the fuzzy semantic discrete, so can not objectively reflect the characteristics of the data set, in addition to carrying outforecasts are often fuzzy rules as equally important, failed to consider the importance of each fuzzy rule. For these reasons, the variable selection (Factor Selection) through self-organizing map (Self-Organizing Map, SOM) and proposed high-end weighted multivariate fuzzy time series model based on fuzzy neural network (Fuzzy-BPN), and using the the sequential weighted average operator (Ordered Weighted Averaging operator, OWA) weighted prediction. Therefore, in order to verify the proposed method, the Taiwan stock exchange (Taiwan Stock Exchange Corporation) Taiwan Weighted Stock Index (Taiwan Stock Exchange Capitalization Weighted Stock Index, TAIEX) as experimental forecast target, in order to filter the appropriate variables in the experiment Finally, included in other studies in recent years mode in conjunction with this study, the results showed that the predictive ability of this study further improve.
Abstract: The purpose of this paper is to examine the financing
practices of SMEs in Libya in two different phases of business life
cycle: start-up and matured stages. Moreover, SMEs- accessing bank
loan issues is also identified. The study was conducted by taking into
account the aspect of demand. The findings are based on a sample of
76 SMEs in Libya through the adoption of questionnaires. The results
have pinpointed several things- evidently, SMEs use informal
financing sources which prefer personal savings; SME owners are
willing to apply for bank loan, that the most pressing problem has
been identified, not to apply bank loan is loan with interest (religion
factor).
Abstract: Under the difficult access to finance of SMEs, they expect that its relationship with the banks shall constitute a real help to access appropriate financing, at reasonable costs and requirements, given the possibility of mutually beneficial and long lasting relation. The literature, but also the research we have carried on, is centered on such determinants as concentration and the length of the relationship, but at the same time, there is little certainty that banks are responding positively to them. Furthermore, although the trust is considered as being a fundamental element of bank relationship – see the case house bank – SMEs find that the banks finance them looking rather on collaterals and covenants than to trust. Moreover, a positive behavior, such as prompt or advance repayments of loans, doesn-t generate any positive feedback from the banks side. All these show a deep un-satisfaction of the SMEs concerning their relationship banking.
Abstract: The Malaysia Highway Authority (MHA) was
established by the Government in 1980 for the purpose of designing,
constructing and maintaining toll highways in Malaysia that include
the North-South Expressway and the Penang Bridge, which were
procured using the publicly-funded traditional procurement. However
following a recession in the mid 80-s, the operations of these tolledhighways
had been privatized to ensure that their operational services
continue through private financing as a result of long-term
concession agreement concurred between the Malaysian Government
and private operators. The change in the contract strategy for
highway projects in Malaysia would have a great tendency to dictate
a significant risk exposure towards the key parties involved,
particularly the Malaysian Government as project principal, unless
operational risks are clearly identified and managed via appropriate
mitigation measures prior to a contract signing.
This research identifies potential operational risks that have a
possibility to occur in highway projects in Malaysia from the
perspective of public sector clients. Since this research focuses on the
operational risks for highway projects in Malaysia, the initial results
acquired from literature review on the operational risks of highway
projects in some Asian countries are then justified by a number of
key individuals from the MHA through interviews. As a result,
among key operational risks that have possibility to occur in the
highway projects in Malaysia include initial toll-tariff decided by the
Government, traffic congestion, change of road network and overloaded
freight transportation, which could cause damage to the road
surface and hence affecting the operation of a particular highway.
Abstract: This paper explores the features of political economy in the dynamics of representative politics in India. Politics is seen as enhancing economic benefits through acquiring and maintenance of power in the realm of democratic set up. The system of representation is riddled with competitive populism. Emerging leaders and parties are forced to accommodate their ideologies in coping with competitive politics. Electoral politics and voting behaviour reflect series of influences mooted by the politicians. Voters are accustomed to expect benefits outs of state exchequer. The electoral competitors show a changing phase of investment and return policy. Every elector has to spend and realize his costs in his tenure. In the case of defeated electors, even the cost recovery is not possible directly; there are indirect means to recover their costs. The series of case studies show the method of party funding, campaign financing, electoral expenditure, and cost recovery. Regulations could not restrict the level of spending. Several cases of disproportionate accumulation of wealth by the politicians reveal that money played a major part in electoral process. The political economy of representative politics hitherto ignores how a politician spends and recovers his cost and multiples his wealth. To be sure, the acquiring and maintenance of power is to enhance the wealth of the electors.
Abstract: This study1 holds for the formation of international financial crisis and political factors for economic crisis in Turkey, are evaluated in chronological order. The international arena and relevant studies conducted in Turkey work in the literature are assessed. The main purpose of the study is to hold the linkage between the crises and political stability in Turkey in details, and to examine the position of Turkey in this regard. The introduction part follows the literature survey on the models explaining causes and results of the crises, the second part of the study. In the third part, the formations of the world financial crises are studied. The fourth part, financial crisis in Turkey in 1994, 2000, 2001 and 2008 are reviewed and their political reasons are analyzed. In the last part of the study the results and recommendations are held. Political administrations have laid the grounds for an economic crisis in Turkey. In this study, the emergence of an economic crisis in Turkey and the developments after the crisis are chronologically examined and an explanation is offered as to the cause and effect relationship between the political administration and economic equilibrium in the country. Economic crises can be characterized as follows: high prices of consumables, high interest rates, current account deficits, budget deficits, structural defects in government finance, rising inflation and fixed currency applications, rising government debt, declining savings rates and increased dependency on foreign capital stock. Entering into the conditions of crisis during a time when the exchange value of the country-s national currency was rising, speculative finance movements and shrinking of foreign currency reserves happened due to expectations for devaluation and because of foreign investors- resistance to financing national debt, and a financial risk occurs. During the February 2001 crisis and immediately following, devaluation and reduction of value occurred in Turkey-s stock market. While changing over to the system of floating exchange rates in the midst of this crisis, the effects of the crisis on the real economy are discussed in this study. Administered politics include financial reforms, such as the rearrangement of banking systems. These reforms followed with the provision of foreign financial support. There have been winners and losers in the imbalance of income distribution, which has recently become more evident in Turkey-s fragile economy.
Abstract: This paper contributes to the literature concerning burden sharing. We provide a quantitative expression of the burden sharing behaviour of 174 states in the case of combating terrorist financing and address specific burden sharing issues in this context (i.e., weakest link; no substitutability). We conclude that advanced states have shown more effort to control terrorist financing than developing states. In this particular case, there is an incentive for advanced states to support developing states. Failing to do so will make the total financial system worse off.
Abstract: Al-Murabahah is an Islamic financing facility used in
asset financing, the profit rate of the contract is determined by
components which are also being used in the conventional banking.
Such are cost of fund, overhead cost, risk premium cost and bank-s
profit margin. At the same time, the profit rate determined by Islamic
banking system also refers to Inter-Bank Offered Rate (LIBOR) in
London as a benchmark. This practice has risen arguments among
Muslim scholars in term of its validity of the contract; whether the
contract maintains the Shariah compliance or not. This paper aims to
explore the view of Shariah towards the above components practiced
by Islamic Banking in determining the profit rate of al-murabahah
asset financing in Malaysia. This is a comparative research which
applied the views of Muslim scholars from all major mazahibs in
Islamic jurisprudence and examined the practices by Islamic banks in
Malaysia for the above components. The study found that the shariah
accepts all the components with conditions. The cost of fund is
accepted as a portion of al-mudarabah-s profit, the overhead cost is
accepted as a cost of product, risk premium cost consist of business
risk and mitigation risk are accepted through the concept of alta-awun
and bank-s profit margin is accepted as a right of bank after
venturing in risky investment.
Abstract: Innovations, especially technological, are considered
key-drivers for sustainable economic growth and competitiveness in
the globalised world. As such they should also play an important role
in the process of economical convergence inside the EU.
Unfortunately, the problem of insufficient innovation performance
concerns around half of the EU countries. Poland shows that a lack of
a consistent high-tech financing system constitutes a serious obstacle
for the development of innovative firms. In this article we will
evaluate these questions referring to the example of Ammono S.A., a
Polish company established to develop and commercialise an original
technology for the production of bulk GaN crystals. We will focus on
its efforts to accumulate the financial resources necessary at different
stages of its development. The purpose of this article is to suggest
possible ways to improve the national innovative system, which
would make it more competent in generating high-tech leaders.
Abstract: Today, money laundering (ML) poses a serious threat
not only to financial institutions but also to the nation. This criminal
activity is becoming more and more sophisticated and seems to have
moved from the cliché of drug trafficking to financing terrorism and
surely not forgetting personal gain. Most international financial
institutions have been implementing anti-money laundering solutions
(AML) to fight investment fraud. However, traditional investigative
techniques consume numerous man-hours. Recently, data mining
approaches have been developed and are considered as well-suited
techniques for detecting ML activities. Within the scope of a
collaboration project for the purpose of developing a new solution for
the AML Units in an international investment bank, we proposed a
data mining-based solution for AML. In this paper, we present a
heuristics approach to improve the performance for this solution. We
also show some preliminary results associated with this method on
analysing transaction datasets.
Abstract: Development of knowledge based society carries multiple challenges to the higher education system. Some of the challenges laid before the higher education sector of countries which aspire to become knowledge based societies are: the entrepreneurial leadership of the higher education institutions, finding new sources of financing in order to minimize dependence on public resources, creating connections with the labor market, commercial utilization of R&D results, promotion of innovations as well as the overall promotion of science excellence relevant to the economic sector. Within a framework of this paper and its main subject of research, the challenge which is being put before the higher education institutions is an effort of establishing regional mission of higher education through the open collaboration with regional key factors, both private and public. Development of the mentioned collaboration and its contribution to the overall regional development in Croatia is the main subject of empirical research in this paper.
Abstract: Environmental investments, including ecological
projects, relating to the protection of atmosphere are today a need.
However, investing in the environment should be based on rational
management rules. This comes across a problem of selecting a
method to assess substances reduced during projects. Therefore, a
method allowing for the assessment of decision rationality has to be
found.
The purpose of this article is to present and systematise pollution
reduction assessment methods and illustrate theoretical analyses with
empirical data.
Empirical results confirm theoretical considerations, which proved
that the only method for judging pollution reduction, free of apparent
disadvantages, is the Eco 99-ratio method. To make decisions on
environmental projects, financing institutions should take into
account a rationality rule. Therefore the Eco 99-ratio method could
be applied to make decisions relating to environmental investments in
the area of air protection.
Abstract: One challenging direction of mobile commerce (mcommerce)
that is getting a great deal of attention globally is mobile
financing. The smart-phone and PDA users all around the world are
facing difficulties to become accustomed and trust in m-commerce.
The main rationale can be the slow variation and lack of trust in
mobile payment systems. Mobile payment systems that are in use
need to be more effective and efficient. This paper proposes: the
interface design is not the only factor affecting the m-commerce
adoption and lack of trust; in fact it is the combined effect of
interface usability and trustworthy mobile payment systems, because
it-s the money that the user has to spend at the end of the day, which
the user requires to get transferred securely. The purpose of this
research is to identify the problems regarding the trust and adaption
of m-commerce applications by mobile users and to provide the best
possible solution with respect to human computer interaction (HCI)
principles.
Abstract: Capital structure is one of the most important financial
decisions in corporate financing strategy. It involves the choice of
debt and equity level in financing a company-s operations. This study
aims to investigate whether the capital structure choice of Malaysian
electrical and electronic manufacturing companies that are listed in
the Bursa Malaysia can be explained by factors that have been found
by most studies as dominant determinants of capital structure
(company size, profitability, asset tangibility, liquidity and growth).
Using debt ratio as the proxy for capital structure and applying
pooled ordinary least square multiple regression estimation, the
results showed that on average, Malaysian electrical and electronic
manufacturing companies used less debt in funding their business
operations. The findings also showed that size and asset tangibility
has a significant positive relationship with debt level, while liquidity
has a negative significant relationship with leverage.
Abstract: Lack of resources for road infrastructure financing is a
problem that currently affects not only eastern European economies
but also many other countries especially in relation to the impact of
global financial crisis. In this context, we are talking about the socalled
short-investment problem as a result of long-term lack of
investment resources. Based on an analysis of road infrastructure
financing in the Czech Republic this article points out at weaknesses
of current system and proposes a long-term planning methodology
supported by system approach. Within this methodology and using
created system dynamic model the article predicts the development of
short-investment problem in the Country and in reaction on the
downward trend of certain sources the article presents various
scenarios resulting from the change of the structure of financial
sources. In the discussion the article focuses more closely on the
possibility of introduction of tax on vehicles instead of taxes with
declining revenue streams and estimates its approximate price in
relation to reaching various solutions of short-investment in time.
Abstract: Policies that support entrepreneurship are keys to the
generation of new business. In Brazil, seed capital, installation of
technology parks, programs and zero interest financing, economic
subsidy as Program First Innovative Company (PRIME) are
examples of incentive policies. For the implementation of PRIME, in
particular the Brazilian Innovation Agency (FINEP) decentralized
operationalization so that business incubators could select innovative
projects. This paper analyzes the program PRIME Business Incubator
Center of the State of Sergipe (CISE) after calculating the mean and
standard deviation of the grades obtained by companies in the factors
of innovation, market potential, financial return economic, market
strategy and staff and application of the Mann-Whitney test.
Abstract: Throughout the world, the Islamic way of banking and
financing is increasing. The same trend is also visible in Pakistan, where the Islamic banking sector is increasing in size and volume
each year. The question immediately arises as why the Pakistanis patronize the Islamic banking system? This study was carried out to
find whether following the Islamic rules in finance is the main factor for such selection or whether other factors such as customer service,
location, banking hour, physical facilities of the bank etc also have
importance. The study was carried by distributing questionnaire and
200 responses were collected from the clients of Islamic banks. The result showed that the service quality and other factors are as
important as following the Islamic rules for finance to retain old ustomers and catch new customers. The result is important and
Islamic banks can take actions accordingly to look after both the factors