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Volume 4 Number 9 September 2018

Influence of Firm Size on Financial Performance of Deposit Money Banks Quoted on the Nigeria Stock Exchange


Authors: Aza Ibrahim Eyigege
Pages: 297-302
Abstract
This research work investigated the influence of firm size on the financial performance of deposit money banks quoted on the Nigerian stock exchange. The research work is necessitated by the need to find the factors that respond positively or negatively to the financial performance of deposit money banks in Nigeria. Five deposit money banks were sampled with the aid of Taro Yemeni sampling technique to represent the entire banking industry in Nigeria. The firm size proxied by log of total assets represents the explanatory variable while the financial performance measured by profitability proxied by return on asset is the dependent variable. The analysis was conducted using the pooled OLS regression and fixed effect/random effect regression with the aid of STATA for panel regression. In addition, descriptive statistics and correlation analysis were computed. The finding of the study indicates that firm size insignificantly negatively influenced financial performance as a result of diseconomies of scale. The study therefore recommends that the industry should minimize the cost of expansion and enjoy maximum benefits of economies of scale in addition to other factors that may stimulate financial performance should be considered instead of the firm size that indicate insignificantly negative effect.



An Empirical Study on Inflation and Economic Growth in Qatar


Authors: Abdulla S. Al-Khulaifi
Pages: 292-296
Abstract
This paper studies the causal relationship between inflation and economic growth in Qatar for the period of 1980 to 2016. A time series analysis of unit roots tests, Johansen cointegration method and Granger causality tests were applied on data. The variables were found to be cointegrated, hence a long run-relationship between them exists. Granger causality test found causality runs from inflation to economic growth.



Investigating Relationship between Accruals, Cash Flow and Profitability with Stock Return in Firms Accepted in Tehran Stock Exchange


Authors: Dr. Alireza Momeni ; Amin Gholami ; Azam Pezhvan
Pages: 284-291
Abstract
Accruals are non-cash items of income and represent adjustments made for cash flows that do not create a benchmark for profits that are generally influenced by matuarity and cash payments, and increase expected returns of profitability and reduction of offsetting liabilities. The results indicate that operating profitability is based on liquidity of profitability factor, and, moreover, adjusted operating profit based on operating cash flow is predicted at current yield stage. An investor can increase a Sharp strategic ratio by adding an adjusted operating profit factor to a larger investment position.



Awareness and Challenges of Stock Market in Bhutan


Authors: Chimi Wangmo ; Phuntsho Choden ; Shelly Daly ; Rinchen Dorji
Pages: 274-283
Abstract
This paper investigates the awareness level and challenges confronting the Bhutanese Stock market and brokers to ascertain its development potential within this emerging economy. The study was carried out using both quantitative and qualitative techniques and is mainly based on primary sources of data where a semi-structured questionnaire was designed to collect data from the public, brokers and officials of Royal Securities Exchange of Bhutan Limited (RSEBL).  The findings have revealed that more than half of the public are aware of the existence of the RSEBL and they are not highly knowledgeable about trading on the Stock market or its benefits. The study also found that the respondents are interested in investing in the Stock market but lacked knowledge on investment avenues. Furthermore, the findings have revealed the challenges and limitations which hinder the development of a more robust stock market in Bhutan. The major challenges faced by RESBL and its brokers are lack of participation from public and companies, low frequency of trade and liquidity problem. The study suggests that the public should be educated on the benefits of investing in the stock market as well as on the procedures of investing in stocks. In addition, RSEBL should encourage more companies to be listed in the stock exchange.  This study draws awareness to the existence of the Bhutan stock market as a potential investment opportunity.  Furthermore, it sheds light on the challenges emerging markets face in establishing a viable and effective exchange.