Economy

Fundamental factors and stock price volatility of listed banking firms in Nigeria

2023-03-09T11:17:43+00:00

The study examined the impact of fundamental factors on the stock prices of Nigeria's listed banking sector companies. Using panel data analysis, the effects of five fundamental variables on share prices of listed banks in Nigeria, which include return on assets (ROA), return on equity (ROE), earnings per share (EPS), dividend per share (DPS), and growth in net interest income (NII), as well as two control variables (firm size and firm age), were analyzed. Data were gathered from eleven sampled banks' annual reports from 2006 to 2020. Based on the Hausman test, fixed effect model was estimated and regression results indicated that the coefficients of ROE, EPS, DPS, NII and SIZE were positive but ROE and SIZE were statistically not significant. On the other hand, the coefficients of ROA and AGE were negative but statistically significant. The study recommended that; regulators should pay attention to earnings management by banks to monitor any attempts to smooth dividend; existing shareholders should pay more attention on high dividend paying banks for capital gain; and boards of directors of banks should strive to maintain adequate dividend payment, specifically by reducing the proportion of yearly retain earnings while minimizing cost.

Foreign exchange fluctuations on the performance of agricultural export in Nigeria

2023-05-30T06:07:17+00:00

The study examines the effect of foreign exchange fluctuation on the performance of agricultural export in Nigeria. Despite the emphasis place on foreign exchange, the agricultural export in Nigeria is still not performing well. Time frame was from 1986 to 2021 and the adopted research design was ex post facto, in which the tool of analysis employed was the ARDL, ECM method, co-integration and unit root test as finding revealed that foreign exchange fluctuation on the performance of agricultural volume and value added has negative and insignificant effect in Nigeria. While foreign exchange fluctuation on the performance of agricultural capacity utilization has a positive and significant impact. Giving this finding, recommendations are that Nigerian government should moderate and regulate the rate of exchange activities in order to make certain that it brings about better performance in the agricultural sector. Also, she should strongly attempt to make better the stand of the economy internationally with other nations of the world in order to expand the market for Nigerian agricultural exports. Finally, the government should change the focus of its policy in direction to the external agricultural sector and making sure that it adds in the most favourably way to output performance. As an intentional policy, the government should give support to rural area agriculture by which investors in distinct communities and commodities should be encourage to set up agricultural industries, which will be solely on local raw materials comprising equipment and machines.

The structural transformation of territories and the climate governance of an urban area: The mediating role of human capital in adaptation processes

2023-09-17T07:53:15+00:00

This article forms a crucial part of an economic essay exploring the dynamics of territorial climate governance and its potential impact on the structural transformation of Agadir, a vibrant city. In this context, the role of human capital is also examined while considering the theoretical nuances and empirical analysis tools. The central question drives this study: "to what extent can territorial climate governance contribute to the structural transformation of Agadir, and how does human capital mediate this process?". To tackle this question, we adopted an abductive reasoning approach and aligned our methodology with a post-positivist paradigm. By meticulously aligning theory with observed reality, we formulated a hypothetical model that interconnects the trio of climate governance, structural transformation, and human capital in the context of Agadir. This model was put to the test with data collected from 416 stakeholders involved in the management of territorial affairs in the city. The findings reveal compelling evidence of significant contributions and correlations among the concepts studied. However, our results also highlight the necessity of recognizing and involving new actors to strengthen Agadir's climate governance mechanisms. In conclusion, our research sheds light on the crucial role of territorial climate governance and human capital in driving the structural transformation of Agadir. By providing a novel perspective on this topic, our study underscores the need for inclusive and proactive engagement of various stakeholders to bolster climate governance measures in the city, paving the way for sustainable development and growth.

The fiscal theory of the price level: The case of Morocco

2023-11-08T05:57:56+00:00

In this paper, we will use the econometric model and the price-level fiscal theory (PLFT), which looks at how the government surplus, debt, and inflation interact to apply a vector autoregression (VAR) model to the Moroccan economy. We first want to figure out how fiscal and monetary policy shocks affect the economy. The second thing we want to do is study how fiscal and monetary policy affects each other. So, the theoretical limits we used to determine our model are based on an FTPL framework. The general price level budget and Keynesian theories are not entirely wrong because of what we found. Also, the fact that most of the variation in inflation can be explained by changes in the money supply suggests that monetary policy works well in the Moroccan economy to control inflation. However, debt policy has little effect on this control. The government is worried about the level of public debt in Morocco because it positively affects the economy. Also, the positive effects over time should give the government confidence that the debt policy is working. So, debt dynamics still need to be a reason to worry because they would help the economy overall. Because it has a negligible effect on the economy immediately and lowers inflation, the government should pay less attention to the amount of debt and how quickly it grows.

Does public debt disrupt economic growth in Nigeria? A two-stage least squares approach

2023-12-30T11:34:26+00:00

The impact of Nigeria's public debt on economic growth was investigated in this study. Additionally, it confirmed the validity of Nigeria's debt burden and crowding-out hypotheses. The time series data used ranged from 1981 to 2021. For analysis, the Two-Stage Least Squares and Toda Yamamoto Causality tests were employed. The findings contradicted the debt overhang effect hypothesis by showing that public debt had a positive and significant influence on economic growth. This proves that Nigeria's public debt has no adverse effects on the economic growth of the nation. Additionally, debt service has a detrimental effect on economic growth. This demonstrated that the crowding-out effect, often known as the crowding-out hypothesis, existed in Nigeria. Thus, servicing the national debt has a negative impact on Nigeria's economic expansion. The results of the public debt model, however, showed that trade openness and real gross domestic product had a favourable effect on public debt. A bidirectional relationship between public debt and economic growth was revealed by the findings of the causality test. The results also showed a one-way relationship between debt service and economic growth. As a result, the study implies that the government can simultaneously pursue its two policy goals of economic growth and public debt. Furthermore, decisions about debt repayment in Nigeria should be made in a way that promotes the growth of the economy. Nigeria should also improve institutional performance and boost its macroeconomic policy in the areas of inflation, foreign direct investment, trade, and exchange rates.