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Research Article
The U. S. Commercial and Investment Banks, the Eurocurrency Markets, and the International Economy: from the Late 1970s Through the Start of the 1980s
Issue:
Volume 12, Issue 2, April 2024
Pages:
44-53
Received:
2 May 2023
Accepted:
9 June 2023
Published:
20 March 2024
DOI:
10.11648/j.ijefm.20241202.11
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Abstract: This article, through the case study of Merrill Lynch and Lehman Brothers, investigates the role of U. S. commercial and investment banks in the development of the Eurocurrency markets from the 1970s to the start of the new decade, as well as the investment activities of U. S. financial institutions in the new financial environment of the 1980s based on the appearance of new financial actors and instruments. The first purpose is to frame the investment activities of American banking in the Eurodollar and other non resident markets against the backdrop of changing market pressures on the dollar from the first oil shock through to the monetary and financial consequences of combined second oil crisis and the historic decision by the newly appointed Chairman of the Board of Governors of the Federal Reserve System Paul A. Volcker to raise interest rates at unprecedented highs since 1980. Therefore, this article links the investment behaviour of American banks to the trajectory of U. S. dollar in the foreign exchange markets between the two oil crises of the 1970s. Secondly, this contribution pinpoints the variety of financial activities of American bankers during this period, which went way beyond the Eurodollar markets and involved, at least by the mid-1970s, a wide array of financial instruments both overseas and on domestic markets, from government securities to commercial paper assets. In the third instance, the aim is, as much as possible, to shed some preliminary lights on how the process of securitising, typical of the 1980s, was on the investment portfolios of American investors by the start of this decade. At the outset of this three-fold research target, the final objective is to make sense of the limited role of Eurodollar dealings and offerings in the context of trading and investment activities of U. S. financial institutions during the time frame considered, and particularly since the start of the new decade. In turn, this article suggests the multi-fold scope of financial activities of American banks in the context of macroeconomic and monetary transformations following the end of fixed exchange rates, the tottering of the dollar in the foreign exchange markets, and the meteoric rise of unregulated money markets since the 1970s, as well as the rise of securitisation since circa the year 1980.
Abstract: This article, through the case study of Merrill Lynch and Lehman Brothers, investigates the role of U. S. commercial and investment banks in the development of the Eurocurrency markets from the 1970s to the start of the new decade, as well as the investment activities of U. S. financial institutions in the new financial environment of the 1980s bas...
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Research Article
Earnings Per Share, Dividends Per Share, Dividend Yield and Firm Size on Share Price Behaviour of Manufacturing Firms in Nigeria: Causal Effect
Nduka Moses Moseri*,
Sunday Ikechukwu Owualah,
Peter Ifeanyi Ogbebor
Issue:
Volume 12, Issue 2, April 2024
Pages:
54-65
Received:
14 February 2024
Accepted:
4 March 2024
Published:
20 March 2024
DOI:
10.11648/j.ijefm.20241202.12
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Abstract: The manufacturing sector was favorable, contributing to Nigeria being perceived more as a state of consumption than production. Despite promoting Nigeria as having the largest market in Africa, the manufacturing sector faced economic slowdowns due to rising business costs, power supply issues, and weak infrastructure. The main issue arises from the low share prices of manufacturing firms in Nigeria compared to other sectors, potentially resulting from inadequate patronage or ineffective trading on the stock market. This lack of effective trading reflects on the firm's value, discouraging investors and highlighting a financial capacity gap hindering productivity. To address this, using earnings and dividends as incentives can attract investors, bolstering capital and driving manufacturing to full capacity. This study investigate the relationship between earnings per share, dividends per share, dividend yield and firm size on share price behaviour of manufacturing firms in Nigeria between 2013 and 2022. The study adopts an ex-post factor research design, while a granger causality test was used. Fifteen (15) manufacturing firms were selected while data were sourced from the selected manufacturing firms financial audited reported. The inferences were made at 5 percent significance. The causality effect of earnings per share, dividends per share, dividend yield and firm size on share price behaviour of manufacturing firms in Nigeria indicate a unidirectional causality from DPS to Lagged Share Prices (LSP). However, the reverse relationship (LSP to DPS) is not statistically significant, indicating that past share prices do not reliably predict future dividend payments. For Dividend Yield (DY) and LSP, a unidirectional causality from DY to LSP was observed, suggesting that changes in DY can predict future stock prices. The study recommended that manufacturing firms in Nigeria should prioritize enhancing the transparency of their earnings reporting. Clear communication and detailed disclosures regarding financial performance can build investor confidence and potentially strengthen the relationship between EPS and share prices.
Abstract: The manufacturing sector was favorable, contributing to Nigeria being perceived more as a state of consumption than production. Despite promoting Nigeria as having the largest market in Africa, the manufacturing sector faced economic slowdowns due to rising business costs, power supply issues, and weak infrastructure. The main issue arises from the...
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Research Article
Evaluating the Relationship Between Education Spending and Economic Growth in Egypt: An ARDL Model Analysis
Mohamed Fathy Abdelgany*
,
Sohair Rezk Mohamed,
Mohamed Ibrahim Rashed
Issue:
Volume 12, Issue 2, April 2024
Pages:
66-92
Received:
12 March 2024
Accepted:
1 April 2024
Published:
12 April 2024
Abstract: Education plays a pivotal role in driving economic growth, acting as a catalyst for human capital development and fostering innovation. Additionally, investing in education cultivates a skilled workforce, which not only attracts foreign investment but also enhances economic growth by bolstering competitiveness and market efficiency. Ultimately, these factors positively impact the standard of living, reflecting the interconnectedness between education, economic prosperity, and quality of life. This research comes to evaluate the impact of spending on education on the standard of living and then on economic growth in Egypt. The research is centered on employing a quantitative approach to assess the influence of education on economic growth. Additionally, it includes a descriptive analysis of variables and the presentation of results to provide a comprehensive understanding. The research functions the Auto Regressive Distributed Lag (ARDL) Bounds testing method in examining the cointegration from 1990 to 2021 based on annual time series data in Egypt. The research utilizes the numbers of classes in schools in the three educational stages (primary - preparatory - secondary) and the number of students enrolled in theoretical and practical colleges. The findings affirm that expenditure on education across all levels has a positive impact on economic growth in Egypt, albeit weak. This trend is attributed to the reduction in education spending relative to the growing number of students.
Abstract: Education plays a pivotal role in driving economic growth, acting as a catalyst for human capital development and fostering innovation. Additionally, investing in education cultivates a skilled workforce, which not only attracts foreign investment but also enhances economic growth by bolstering competitiveness and market efficiency. Ultimately, the...
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Research Article
Building Customer Loyalty in Online Business Models
Issue:
Volume 12, Issue 2, April 2024
Pages:
93-100
Received:
27 February 2024
Accepted:
1 April 2024
Published:
12 April 2024
Abstract: Online business models are developing rapidly and market competition is intensifying. Customer loyalty and consumer willingness are declining across many industries. Customer loyalty is a decisive factor affecting a company's long-term profits. Market share measured by customer loyalty is more meaningful than market share measured by the number of customers. At the same time, corporate managers have shifted the focus of marketing management to improving customer loyalty, allowing companies to gain advantages in fierce competition. To build customer loyalty, it is important to use the right customer loyalty tools, which means the significant question for companies is which tool to choose. Therefore, this paper aimed to address the issues that how to design customer loyalty in online business models. To achieve this goal, this paper first illustrated the basics of customer loyalty and online business models. Then, relevant customer loyalty tools were selected and evaluated from contracts, products, communication and distribution policies to better build customer loyalty in online business models. This paper found that customer analysis and competitive analysis can also be evaluated as customer loyalty-oriented theories. Finally, the case of Amazon was also studied in the paper specifically, combining theory with practice to build customer loyalty in an online business model.
Abstract: Online business models are developing rapidly and market competition is intensifying. Customer loyalty and consumer willingness are declining across many industries. Customer loyalty is a decisive factor affecting a company's long-term profits. Market share measured by customer loyalty is more meaningful than market share measured by the number of ...
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Research Article
Financial Development and Real Gross Domestic Product in Rwanda
Jean Claude Karekezi*,
Sunday Ajao Owolabi,
Peter Ifeanyi Ogbebor,
Moseri Moses Nduka
Issue:
Volume 12, Issue 2, April 2024
Pages:
101-112
Received:
19 March 2024
Accepted:
11 April 2024
Published:
29 April 2024
DOI:
10.11648/j.ijefm.20241202.15
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Abstract: Real gross domestic product as a macro-economic indicator measures the value of economic output after adjustment for price changes. In this regard, due to the role played by financial development in economic growth, financial intermediation has been regarded as an important factor in boosting gross domestic product in the both developed economies and developing economies. The study investigated the effect of financial development on Real Gross Domestic Product in Rwanda. The study adopted ex post facto design. Time series data were collected from 2011-2022 and Ordinary Least Squares (OLS) was deployed. Findings revealed that financial liberalization, domestic credit to private sector, monetary policy rate, market capitalization and all share index jointly and significantly influenced real gross domestic product (Adj. R2 = 78.65%, p = 0.009028 < 0.05, F-stat = 9.108778) in Rwanda. The study concluded that financial development enhanced real gross domestic product in Rwanda. It was recommended that the government of Rwanda should improve on real gross domestic product by improving financial development through more liberalization of the financial sector, expansion of domestic credit to the private sector, market capitalization, all share index and use of monetary policy rate as effective channel of monetary transmission mechanism in the economy.
Abstract: Real gross domestic product as a macro-economic indicator measures the value of economic output after adjustment for price changes. In this regard, due to the role played by financial development in economic growth, financial intermediation has been regarded as an important factor in boosting gross domestic product in the both developed economies a...
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Research Article
Exploring the Impact of Government Venture Capital (GVC) on Private Venture Capital (PVC) Investment Choices in China's Semiconductor Industry
Issue:
Volume 12, Issue 2, April 2024
Pages:
113-126
Received:
19 March 2024
Accepted:
27 April 2024
Published:
29 April 2024
DOI:
10.11648/j.ijefm.20241202.16
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Abstract: Can government venture capital (GVC) change the investment choice of private venture capital (PVC) to fulfill its political mission? Most of the previous literatures on GVC and PVC focus on the post venture capital (VC), while there are few studies on the impact of GVC on PVC before venture capital investment. This phenomenon is more obvious in previous studies with China as the research background. Based on the background of China's semiconductor industry, which is strongly supported by the Chinese government, this paper studies whether GVC can affect the investment niche and venture capital investment mode of PVC. Through empirical analysis of the VC data of semiconductor industry in Anhui, Beijing, Jiangsu and Guangdong provinces from 2012 to 2022, I found that in the semiconductor venture capital market of the above four provinces and cities, GVC effectively played a role of leverage and effectively attracted PVC to invest in the semiconductor industry. And as the number of semiconductor GVC data as a percentage of all semiconductor VC data continues to decline year after year, PVC is more inclined to invest in semiconductor R&D firms, and more inclined to invest the firms whose location has served as a target region for government semiconductor related guided funds, and the investment form of PVC is more inclined to syndicate investment with government venture capitalists. It can be said that GVC has effectively influenced the investment decisions of PVC and fulfilled its political mission of promoting the independence of technology and production in China's semiconductor industry.
Abstract: Can government venture capital (GVC) change the investment choice of private venture capital (PVC) to fulfill its political mission? Most of the previous literatures on GVC and PVC focus on the post venture capital (VC), while there are few studies on the impact of GVC on PVC before venture capital investment. This phenomenon is more obvious in pre...
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