Finance

The study aimed to examine financial factors affecting lending portfolio in commercial banks in Kenya. The specific objectives of this study were: to determine the effects of interest rates on the lending portfolio of commercial banks in Kenya; to establish the effect of deposit mobilization on the lending portfolio of commercial banks in Kenya; to assess the effect of collateral on the lending portfolio of commercial banks in Kenya; and finally determine the effect of loan repayment on the lending portfolio of commercial banks in Kenya. The study was based on Liquidity Preference Theory (LPT), Loanable Funds Theory and The Theory of Interest. The study used a cross sectional survey research design administered through questionnaires. The heads of credit related departments who are concerned with policies implementation in 43 commercial banks in Kenya formed the target population. The sample population of the study was 64 respondents. The mean, standard deviation, correlation and regression were the main statistical analysis used. It was found that interest rate had a negative correlation with lending portfolio. Deposit mobilization, which is the source of funds for the banks, had a positive effect on the lending portfolio. Emphasis on collateral requirements had a negative effect on amount of loans but increased the quality of the loans lent out (low risk of default). Finally it was found that loan repayment policies had a positive significant effect on the lending portfolio. It was concluded that unfavourable (high) interest rate reduces lending portfolio. Effective deposit mobilization strategies increases lending portfolio. Loan repayment policies increase the lending portfolio. Finally, collateral requirement increased the chance of loan repayment thus increasing the quality of lending portfolio. Consequently it was recommended that the stakeholders, especially the government to implement economic strategies that spars economic growth. The economic growth as multiplier effect in that it does not only empowers the citizens financially, it also reduces the interest rate of bank loans. There should be effective assessment mechanisms of potential borrowers so as to have appropriate collateral requirement for an individual borrower. Finally it was recommended that a complementary study that examines the causes of non-repayment in commercial banks will be ideal. This study also proposed another study be carried out that investigates the direct role of lending portfolio on bank’s financial performance.

Participatory Notes are offshore derivative instruments (ODIs) issued, by SEBI-registered Foreign Institutional Investors (FIIs) in India, against an underlying security, which entitles the holder to a share in the income, either dividend or capital gain, from the underlying security. These are issued to foreign investors, which may be hedge funds, foreign pension and mutual funds, or other High Net worth Individuals abroad. They are issued outside of India to people outside of India. The underlying securities, shares of listed companies in India, are held in the custody of FIIs on behalf of the P-Note holders.There are several issues associated with P.Notes. The anonymity of investors-difficulty in fulfilling KYC (Know Your Client) and FTAF (Financial Action Task Force) norms for P-Notes, the Anti-Money Laundering issues and difficulty in tracing the identity of the funds, Lack of transparency and anonymity worries the government authorities. There are fears that P-Notes are ideal money-laundering vehicles. Some reports suggest that some FIIs created their own separate and parallel offshore market for Indian securities in derivative form-which will develop and this will take volumes and revenues from our markets. About 50% of the portfolio inflows into India come in the form of P-Note There are some apprehensions, and some evidence, that the P-Note route was being used for “round-tripping” resident Indians’ money-going out by questionable means and coming back through the P-Note route. It is in light of these features the paper analysis the various issues related with P. Notes.

According to traditional financial theory, the world and its participants are, for the most part, rational "wealth maximizers". However, there are many instances where emotion and psychology persuade our decisions, causing us to act in irregular or irrational ways. Behavioral finance is a rather new area that seeks to combine behavioral and cognitive psychological theory with conventional economics and finance to provide explanations for why people make irrational financial decisions. There are some irregularities that conventional financial theories have failed to explain. And what are the original reasons and biases that cause some people to behave irrationally and often in opposition to their top benefits. When using the labels "conventional" or "modern" to describe finance, we are talking about the type of finance that is based on rational and logical theories, such as the capital asset pricing model (CAPM) and the efficient market hypothesis (EMH). These theories assume that people, for the most part, behave rationally and predictable in making decisions.

This study investigated the relationship between inventory management and the financial performance of quoted manufacturing firms in Nigeria. The study employed longitudinal research design. Longitudinal design involves repeated observations of the same variables over long periods of time which helps the researcher to be able to detect changes in the variables of interest. The population of the study covers all quoted manufacturing companies listed on the Nigerian Stock Exchange from 2011- 2015. However, a sample of 23 manufacturing companies was drawn from the companies listed in the Stock Exchange for the period 2011-2015. The study utilizes the Pooled Ordinary Least squares (OLS) and the Generalized Least squares (GLS) regression estimation. The use of the Pooled OLS is based on the fact that it is a simple way to examine the sensitivity of the results to alternative specifications and allows for greater flexibility in modelling differences in sample specific behaviour. Findings revealed that finished goods inventory, inventory turnover, inventory conversion period and ram material inventory all have a positive effect and also statistically significant at 5% level while work-in- progress cost is not significant. The Inventory turnover is positive (0.6634) and statistically significant at 5% level (p=0.0014) which implies that the higher the inventory turnover, the higher the level of profitability. Specifically, a 1% increase in inventory turnover results in about 66.3% increase in profitability and vice-versa. While the inventory conversion period (ICP) is negative (-0.3962) and statistically significant at 5% level (p=0.0014) implying that delays in inventory conversion affects profitability negatively. Specifically, a 1% delay in inventory conversion will result in 39% decrease in profitability. The study therefore, recommends that; manufacturing companies should improve their inventory turnover ratio as this has been observed to have a positive impact on profitability. Companies can do this by using sales discounts, marketing campaigns and total product improvements. There is also the need to improve the rate of inventory conversion by eliminating delays in the conversion process as delays have been found to adversely affect profitability.

The Purpose of this research study is to measure the comparative financial performance of Islamic banking sector and conventional banking sector of Pakistan in terms of profitability, liquidity and risk & solvency. This research work also facilitate to all the stakeholders of Islamic banking sector and conventional banking sector including country heads of banks, branch managers, shareholders, creditors, investors, religious segment of population and regulatory bodies of Pakistan. Sample size consist of ten banks selected by using the conveyance sampling techniques including five leading Islamic banks (Meezan Bank, Bank Islami, Burj Bank, Dubai Islami Bank and Albarka Bank) and five conventional banks (MCB Bank Ltd, United Bank Ltd, Allied Bank Ltd, Habib Bank Ltd & Bank of the Punjab). The findings of the study indicated that conventional banking stream dominating on Islamic banking sector with respect to profitability at the cost of worst liquidity and high risk. Islamic banking sector dominated on conventional banking stream with reference to liquidity and risk & solvency at the cost of low profitability.

During the recent years, the efficiency factor has been focused by many institutions, organizations and companies as one of the key factors affecting on the manufacture; and therefore, manpower efficiency has been taken into much consideration as one of the components of whole efficiency. The improvement of efficiency, as a principle for developing the industry and consequently for increasing the employment level and the effect on many enormous variables, has found the special position in the economic literature and the improvement of efficiency as one of the best and the most suitable ways is considered for improving the situation of that unit and establishing and guaranteeing the profitability continuation of the company. This Article follows the examination of effective factors on manpower efficiency of vehicle-manufacturing companies and the rate of their effectiveness. Based on the arisen results, the manufacture variables, the rate of capital, salary, wages, bonuses and exports have the direct meaningful effect on manpower efficiency and the performed investment for development, researches and management changes arisen from the privatization have the negative relationship in proportion to the manpower efficiency.

Poor strategy execution has been blamed for strategy failure in many organizations. Strategy maps, a tool developed by Kaplan and Norton of the Balanced Scorecard Collaboration, have been hailed in both theory and practice as a robust tool in aligning strategy execution. This paper investigates strategy deployment at a firm that has not yet embraced strategy maps with the intention to demonstrate from a theoretical point of view the potential benefits of deploying the company’s strategy using strategy maps. This is achieved through a thorough study of the company’s current performance measurement system. The study identifies the operational weaknesses inherent in the current performance measurement system. In the context of the identified weaknesses, the paper projects how strategy maps can lever and align strategy execution in the attainment of the company’s mission. Keywords: Align; Balanced scorecard; Money transfer agency; Strategy execution; Strategy maps

SHG is the best-root for triggering IGPs in rural and tribal areas and especially areas not properly connected to mainstream living. Coined with the multi-pronged objectives of development and empowerment of weaker section of the society, the strategy and methodology adopted to address the issues are taking care of the need of the marginalized at different economic strata’s through creating enabling environment for addressing the issues. The study is broadly measuring the level and impact of micro credit interventions, functionality and viability of institutions to management the credit, Micro Credit Plans for Self-help Groups as well as the sustainability of the initiatives following a peoples approach.

Put your money in trust, not trust in money’ attracts the small investors who are risk neutral or risk averse. Small investors prefer some kind of collective investment vehicle which can pool their managerial resources, invest it in securities and distribute returns among them on cooperative principles. This led to the growth of mutual fund industry in developed and developing capital market. The mutual fund industry in India, which is a little over three decades old, has undergone a sea change since the introduction of mutual fund regulations in 1993.This research paper covers various aspects of mutual funds industry in India, Starting with the basic concept of mutual fund, it throws light on the growth of Indian mutual fund industry and its present status, the different types of mutual funds based on structure, investment and special schemes, performance, problems and future of mutual funds industry in India.

This paper analyzes and investigates decision making process of equity investors for trading in stock exchanges of Pakistan. Survey research technique has been used to analyze the investors’ attitude about the market’s efficiency and to test different theories of traditional finance like efficient market hypotheses (EMH), rational investors and random walk hypothesis (RWH). The survey questionnaire forms were sent to 510 individuals identified as equity investors in stock exchanges of Pakistan, out of which 248 survey questionnaire forms have been received back. The results of descriptive statistics have indicated that investors are not completely rational individuals as supposed by theories of traditional finance.