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Research Article
Impact of Interest Rate, Exchange Rate and Inflation on Stock Market Dynamics in Nigeria
Adekunle Peter,
Olorunfemi Olutope,
Rabi'a Muhammad,
Francisca Ogbuehi*
,
Igweze Amechi
Issue:
Volume 12, Issue 6, December 2024
Pages:
352-362
Received:
12 February 2024
Accepted:
27 August 2024
Published:
20 November 2024
DOI:
10.11648/j.ijefm.20241206.11
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Abstract: This study aimed to assess the impact of inflation, exchange rate, and interest rate on stock market returns and volatility in Nigeria using data from 2000M1 to 2022M9. The Autoregressive Distributed Lag (ARDL) model was employed to investigate the relationship between stock market returns and the independent variables, while the Generalized Auto-Regressive Conditional Heteroskedasticity (GARCH) model was used to examine the impact on stock market volatility. Preliminary tests indicated no serial correlation but heteroskedasticity among the independent variables, which was addressed using the ARDL model with a HAC (Newey-West) covariance matrix adjustment. The results revealed significant stock return effects at a 10% level of significance with a lag of 4, suggesting a link to past performance up to four months. Additionally, the prime lending rate exhibited significance at a lag of 1, indicating the stock market's response to changes in the prime lending rate after one month. However, no significant response was found for changes in the exchange rate and inflation during the study period. The GARCH model showed that all variables, except inflation, significantly impacted stock market volatility. Notably, the maximum lending rate, prime lending rate, interbank rate, and Treasury bill rate had substantial effects on stock market volatility. The study suggests that the monetary authority should focus on interest rate mechanisms for more effective and responsive monetary policy decisions, particularly regarding the stock market.
Abstract: This study aimed to assess the impact of inflation, exchange rate, and interest rate on stock market returns and volatility in Nigeria using data from 2000M1 to 2022M9. The Autoregressive Distributed Lag (ARDL) model was employed to investigate the relationship between stock market returns and the independent variables, while the Generalized Auto-R...
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Research Article
The Influence of Liquidity, Solvency, Activity on Profitability in the Cement Sub-Sector Manufacturing Industry Listed on the Indonesian Stock Exchange (Bei) for the Period 2018-2022
Eka Sutisna*
Issue:
Volume 12, Issue 6, December 2024
Pages:
363-371
Received:
16 September 2024
Accepted:
11 November 2024
Published:
21 November 2024
DOI:
10.11648/j.ijefm.20241206.12
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Abstract: This study aims to determine the effect of Liquidity (Current Ratio), Solvency (Debt to Equity Ratio), and Activity (Total Assets Turnover) on profitability with measuring instruments (Return on Assets) in the cement sub-sector manufacturing industry in 2018- 2022. The data used in this study are annual financial report data on 6 cement companies listed on the Indonesia Stock Exchange for the period 2018-2022. The research method is quantitative with descriptive analysis. The classical assumption test performed includes multicollinearity test, autocorrelation test, and heteroscedasticity test. The results of the analysis use and hypothesis testing which includes determination analysis, partial test (t test), simultaneous test (F test) and uses multiple linear regression models. The results of this study indicate that, simultaneously Current Ratio, Debt to Equity Ratio, Total Assets Turnover affect Return on Assets sig value 0.000, with an Adjusted R-square value of 51.6%. Partially, Current Ratio has a positive but insignificant effect on ROA, Debt to Equity Ratio has a positive and significant effect on ROA, and Total Assets Turnover has a positive and significant effect on ROA.
Abstract: This study aims to determine the effect of Liquidity (Current Ratio), Solvency (Debt to Equity Ratio), and Activity (Total Assets Turnover) on profitability with measuring instruments (Return on Assets) in the cement sub-sector manufacturing industry in 2018- 2022. The data used in this study are annual financial report data on 6 cement companies l...
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Research Article
Organisation Advocacy While Experiencing a Career Plateau: The Mediating Moderating Role of Emotional Exhaustion and Organisation Embeddedness
Vivek Jain*
Issue:
Volume 12, Issue 6, December 2024
Pages:
372-380
Received:
25 September 2024
Accepted:
11 November 2024
Published:
21 November 2024
DOI:
10.11648/j.ijefm.20241206.13
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Abstract: Board members often focus on improving the company’s net promoter score. An excellent net promoter score reflects customers’ and employees’ engagement with the company and their readiness to engage in organisational advocacy. Companies often measure organisation advocacy to measure the extent of employee engagement. This research evaluates factors that could influence organisation advocacy. It studies the negative impact of career plateau and emotional exhaustion on organisation advocacy. It further evaluates the positive moderating impact of organisation embeddedness on organisation advocacy. The social identity theory lens evaluates the model and posits that organisation advocacy could be compromised if the employee’s identity gets threatened. The research findings support a significant negative impact of emotional exhaustion on organisation advocacy. Further results prove a significant positive impact of career plateau on emotional exhaustion and a negative impact on Organisation advocacy, mediated through emotional exhaustion. Organisation embeddedness is further seen to positively moderate the combined mediated negative impact of career plateau and emotional exhaustion on organisation advocacy. Employees who are embedded in the organisation try to maintain their social identity and avoid speaking negatively about their organisation. For management, this paper brings forth the point that the supervisor occupying their position for a long time may often be the reason for the subordinate not getting a promotion and experiencing a career plateau. Strategies to maintain subordinate social identity, reduce career plateau, reduce emotional exhaustion and improve organisation embeddedness are further deliberated.
Abstract: Board members often focus on improving the company’s net promoter score. An excellent net promoter score reflects customers’ and employees’ engagement with the company and their readiness to engage in organisational advocacy. Companies often measure organisation advocacy to measure the extent of employee engagement. This research evaluates factors ...
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Review Article
A Study on Portfolio Management Strategies Adopted by Asset Management Companies Across the Globe
Rao Mvks*,
Arttu Einari
Issue:
Volume 12, Issue 6, December 2024
Pages:
381-391
Received:
29 June 2024
Accepted:
14 October 2024
Published:
22 November 2024
DOI:
10.11648/j.ijefm.20241206.14
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Abstract: The asset management industry has been growing drastically over the last 15 years. It grew from 45,6 trillion USD to 103,1 trillion USD from 2009 to 2020, In Asia, it has grown 483% over the 11 years. Similarly, Latin America, the Middle East, and Africa saw the most minor growth and were valued at trillions of USD. Retail investors now comprise 41% of the asset management industry in China and India and above 55% of the asset management investors in the country. Since the Healthy Growth of AMC is the same as Millions of Retailers in the respective Financial Sectors, It is necessary to study the Portfolio Management Strategies adopted by Asset Management Companies across the Globe in general and In India in Particular. Hence, an attempt is made to study the performance and strategies of global AMCs and also observe the opportunities and challenges the same across the globe with the main objective of understanding the concept of Portfolio Management Strategies and Asset Management Companies; to review the existing literature on the topic concerned; to analyze the opportunities and challenges of the same across the globe. The study is an observatory in nature and revealed that the main opportunity is to get support from the respective economies of the countries to get desired growth in AMC investments and exploit the developments in various sectors via making Portfolio investments by direct buying of financial instruments or through mutual funds. Similarly, this study seeks to shed light on how emerging markets like India would be helpful with its key govt initiatives by ease of doing business, tax concessions for Foreign Domestic Investments (FDIs) and Foreign Institutional Investors (FIIs) etc. The main suggestion is to diversify their assets based on risk tolerance which can reduce the costs of the operations by using economies of scale to minimize the costs. The survival of any AMC across the globe is mainly on the feasibility of their services which could be affordable to retail investors by the end of the day. Similarly, Technology is evolving fast, and asset management companies need to implement new tools as soon as they are released to use them to create more accurate models to predict market movements.
Abstract: The asset management industry has been growing drastically over the last 15 years. It grew from 45,6 trillion USD to 103,1 trillion USD from 2009 to 2020, In Asia, it has grown 483% over the 11 years. Similarly, Latin America, the Middle East, and Africa saw the most minor growth and were valued at trillions of USD. Retail investors now comprise 41...
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