Journal of Finance and Accounting Research

Role of Financial Remittances in Promoting Financial Development: Evidence from Nigeria

Lucas Okah Elumah, Taiwo Adewale Muritala — Fri, 15 Dec 2023 05:34:52 +0000

This research aims to investigate whether financial remittances contributed to financial development in Nigeria during the years 1981-2021. The study utilized a combination of descriptive and inferential statistical techniques to analyze the data. It employed Augmented-Dickey–Fuller unit root test, the ARDL bounds test, and subsequent post-estimation examinations. To evaluate the effect of financial remittances on financial development, the current research embraced both bank-related and capital market-oriented indices as indicators of financial development. Descriptive statistics revealed that Nigeria's economic structure leans towards a bank-centred model. Further, in comparison to Foreign Direct Investment (FDI), financial remittances take precedence. The empirical findings confirmed that financial remittances exert a significant influence on financial development over both short- and long-term.

Impact of the Yield Spread on Economic Contraction in Pakistan: An Adverse Relationship

Hafsa Hina, Henna Ahsan, Hania Afzal — Thu, 14 Dec 2023 00:00:00 +0000

The yield spread has a positive association with future economic expansion, up to a certain extent. An inverted yield curve is recognized as a potential indicator of economic contraction. This study aims to examine the impact of the yield spread, calculated as the difference between the weighted average rates of return on 5-year deposits and the 3-month rates of return, on the economy of Pakistan. To measure the contraction and expansion probabilities, Hamilton's (1989) Markov switching model is used. Afterwards, the impact of yield spread on economic contraction is analyzed by applying the ARDL bounds testing approach, based on 40 years of data ranging from 1980 to 2020. The findings indicate a positive association among the yield spread and the probability of contraction. Therefore, this study suggests that whenever there is an increase in yield spread, economic contraction rather than growth is expected. Whereas, control variables such as migration and foreign direct investment (FDI) reduce the chances of economic contraction. On the contrary, an increase in the price level increases its probability.

Unpacking Satisfaction Factors in Prime Minister’s Youth Business Loan (PMYBL) Scheme: A Beneficiary Impact Analysis

Afshan Iram, Neelam Kubra, Ahmad Jafar, Hira Mansoor, Umaira Zafar — Thu, 14 Dec 2023 00:00:00 +0000

Microcredit is a program that has gained widespread attention due to its potential to enhance the socioeconomic wellbeing of individuals. However, assessing the impact of microcredit on wellbeing requires the consideration of various welfare indicators and measurements. This study focuses on evaluating the impact of the Prime Minister’s Youth Business Loan (PMYBL) scheme on the socioeconomic wellbeing of the borrowers in Islamabad and Rawalpindi, Pakistan. For this purpose, it employs a questionnaire to collect responses from 120 microcredit beneficiaries using random sampling technique. Descriptive statistics and non-parametric tests are used for data analysis. The findings indicate that the PMYBL scheme has significantly increased the income of poor households and consequently improved their living standards. Moreover, the beneficiaries remain satisfied with the loan facilities provided by the scheme. The results support the notion that microcredit has a positive impact on wellbeing, as increased income leads to improvements in education, access to better health facilities, and the betterment of overall living standards. In addition, increased income enables households to enhance their consumption patterns, increase savings, and acquire assets. Overall, the study concludes that the PMYBL scheme has a significant impact on the socioeconomic conditions of the borrowers. Indeed, microcredit investments in enterprises have the potential to improve socioeconomic conditions and enable the poor to become entrepreneurs. This study adds to the existing literature on the positive effects of microcredit on the wellbeing of borrowers and provides insights into the potential of such programs for poverty reduction.

The Impact of Financial Soundness Indicators (FSIs) on the Market Value of Palestinian Public Shareholding Banks

Majdi Wael Alkababji, Sabri Maher Mushtaha — Tue, 26 Dec 2023 05:58:24 +0000

This study aimed to explore the financial soundness of the Palestinian banking sector. It also aimed to examine its impact on the market value of banks listed on the Palestine Stock Exchange (PEX) which lists six (6) banks. For this purpose, Financial Soundness Indicators (FSIs) were utilized including capital indicators, asset quality indicators, profitability indicators, and liquidity indicators. The study employed a descriptive-analytical approach, utilizing the published financial statements of these banks to calculate the necessary ratios for measuring FSIs. Additionally, publications from the PEX were used to measure market value for the period of 2012-2021. The study revealed several noteworthy findings, including the adherence of listed banks on PEX to the Basel III Committee's regulations regarding FSIs. The data also showed that the Palestinian banking sector ranks at intermediate to advance level in terms of banking safety. Furthermore, FSIs have a significant impact on the market-to-book value ratio.

Impact of Cashless Policy Measures on Financial Inclusion in Nigeria

Musa Zakari — Thu, 28 Dec 2023 00:00:00 +0000

The current study examines the impact of cashless policy measures (digital payment platforms, point-of-sale (POS) terminals, and debit and credit cards) on financial inclusion in Nigeria. For this purpose, it adopted a cross-sectional research design. The target population comprised Nigerians of various age groups, gender, income levels, and from different geographic locations in the country, who use digital banking services. Using Taro Yamane's sample size determination, a total of 400 customers (respondents) were drawn from the population comprising the customers of commercial banks in Nigeria, which stood at 122,231,000 as of 2021. The study employed simple random sampling technique. This was to ensure that the findings remained representative of the entire population. Both primary and secondary methods of data collection were used. Regression analysis was employed to assess the relationship between cashless policy and financial inclusion, while controlling for demographic variables. The study found that digital payment platforms, such as electronic funds transfer (EFT) and debit and credit cards have a significant positive influence on financial inclusion. Contrary to expectations, the study found that a point-of-sale (POS) terminal seemingly has no significant impact on financial inclusion. It is recommended that governmental entities and regulatory authorities should recognize and endorse the significance of digital payment platforms in augmenting financial inclusivity. The implementation of effective policies and regulations, the cultivation of an environment that supports innovation, and the provision of incentives to financial institutions are key strategies to facilitate the advancement of digital financial services.