Competitive Return Research Articles

Assessment of satisfaction with contributory pension scheme among retired staff of the Abubakar Tafawa Balewa University and Federal Polytechnic Bauchi, Nigeria

The new contributory pension scheme (CPS) was introduced by the Pension Reform Act, 2004 reviewed in 2014.The reform became necessary in order alleviate the constraints of Defined Pension Scheme in Nigeria. Evidently the old pension scheme became operationally unsustainable due to deficit funding, weak administrative structure, frequent increase in salary etc. To this end the new contributory pension scheme was introduced in 2004 making it mandatory for both employees and employers to contribute a certain percentage into retirement savings account of individual prospective retiree. This is with a view to build in confidence among retirees of the safety and immediate payment of their benefit. The study intends to assess the satisfaction of contributory pension scheme among retired staff of Abubakar Tafawa Balewa University and Federal Polytechnic Bauchi. The data for the study were generated from primary and secondary sources. The instruments of the primary data collection used were questionnaire and interview, while secondary sources made use of reports, books, magazines, gazettes, journals, research theses and dissertations and the internet. Data were analyzed using descriptive and inferential statistical tools. Questionnaires were distributed on a sample of 107 respondents selected from the population of the study through simple random sampling techniques to test the hypotheses. Chi square analysis tests result revealed that, compliance with the contributory pension scheme significantly improved prompt payment of lump sum benefits and implementation of CPS has significantly improved easy and timely access to pension benefits in RSA by retirees in ATBU and FPTB. However, it was recommended among other things that, PENCOM should ensure the achievement of a competitive return on investment through strong policies that will bring good investment and sustained output growth required to guarantee higher RSA growth and pension payment of retirees to improve the living standard of retirees. PENCOM should ensure close supervision, monitoring and evaluation of the performance of PFA’s in order to achieve efficiency in pension system. This will ensure transparency and continue promptness in payments, which are major setback of the old scheme.

The Transmissive Effect of the Federal Reserve's Interest Rate Hike on China's Government Bond Yields in the Context of the COVID-19 Pandemic

The global economy underwent profound shifts due to the COVID-19 pandemic, bringing monetary policies of major economies, such as the U.S., to the forefront. As the U.S. Federal Reserve's decisions can resonate globally, understanding their ramifications on China's bond market post-COVID-19 becomes paramount. This research delves into the ripple effects of U.S. monetary policy on China's bond market dynamics. Utilizing a mixed methodology, the study incorporates both quantitative and qualitative analyses based on financial records and historical data. Preliminary findings highlight the U.S.'s aggressive monetary responses during the pandemic, and how China's bond market, with high yields, presents a competitive return. Additionally, China's swift economic recovery and robust export figures reinforce its financial resilience. The study further examines the transmission effect of the U.S. Federal Reserve's interest rate policies on China's government bond yields. Ultimately, the research aims to offer comprehensive insights to navigate future economic landscapes in light of global challenges and monetary policies.

A stochastic Asset Liability Management model for life insurance companies

We build a stochastic Asset Liability Management (ALM) model for a life insurance company. Therefore, we deal with both an asset portfolio, made up of bonds, equity and cash, and a liability portfolio, comprising with-profit life insurance policies. We define a mortality model and a surrender model, as well as a new production model. First, with the purpose of ensuring the solvency of the company and the achievement of a competitive return, in the interest of both shareholders and policyholders, the insurer’s portfolio is periodically rebalanced according to the solution of a nonlinearly constrained optimization problem that aims to match asset and liability durations, subject to the attainment of a target return. In addition, several real-world constraints are imposed. When computing the company balance sheet projections, we consider not only future maturity and death payments, but also future surrender payments and all the cash flows due to new production, in order to obtain estimates that are as reliable as possible. The estimation of the timing and of the numbers of future surrenders and of future new policyholders requires the approximation of conditional expectations: To this end, we employ the least squares Monte Carlo technique. Secondly, for each bonds asset class and for equity asset class we propose a sectorial optimization problem with the aim of maximizing the expected value of a chosen utility function, subject to the results obtained from the first stage of portfolio rebalancing. Finally, we analyze a case study.

THE EFFECT OF BANK CHARACTERISTICS AND GOVERNANCE ON THE RATE OF RETURN IN ISLAMIC RURAL BANK

The difference in profit sharing on investment funds placed by customers and shareholders can create agency problems. This study aims to analyze the effect of bank characteristics and governance on the rate of return on investment received by depositors and shareholders as the main investors in the operations of the Islamic Rural Bank. This study used panel data from 10 Islamic Rural Bank in the Special Region of Yogyakarta from 2013 to2020. The results showed that all bank characteristic proxies, namely financing growth, financing structure, efficiency, and financing quality significantly affected the rate of return received by depositors and shareholders, except for the efficiency variable which did not significantly affect the rate of return on investment for depositors. Islamic Rural Bank governance structure needs to pay attention to the ownership ratio, capital adequacy ratio, and the effectiveness of supervision by the Sharia Supervisory Board to maintain a competitive return on investment so that it is attractive to both depositors and shareholders.

Causal effects of macroeconomic predictors on real estate investment trust’s (REIT’s) performance in Nigeria

ABSTRACT The paper examined the causal effects of macroeconomic predictors on the dividend return performance of the Nigerian Real Estate Investment Trusts (N-REITs) the macroeconomic indicators considered was interest rate (INTR), an exchange rate (EXGR), inflation rate (INFR), market capitalisation (MKCP) and all share index (ASI). The study is quantitative based on secondary data collected from various government institutions and annual financial reports of the Nigeria REITs for the study period (2008–2017). Autoregressive-distributed lag (ARDL) and Bound test were used to analyse the data. The result of the Bound test indicated that N-REIT, INTR and ASI with F-statistic values of 11.07, 5.71 and 4.18, respectively, co-integrated with other macroeconomic predictors, especially for the variable vectors. ASI with t-stat and prob. value 2.9491 and 0.0065, respectively, implies statistically significant contribution of ASI to REIT performance in the long run (p < 0.05). Through ECM, the series was good at convergence and nonexplosive series ect (−1): −4.98 and p-value 0.0000, the macroeconomic predictors have significant explanatory power on N-REIT performance in the short run. The no capital gain nature of the N-REIT constitutes a limitation in this study, while the competitive dividend return is the driving force for the study.

The Customer Expectation and Satisfaction on Online Food Order From Restaurant in Chennai

Online service has evolved from being cyber world geek buzz to enormous platform for all the professionals that hunt for greater credit and recognition at a very inexpensive price. In today’s fast paced world we are giving more importance and advantage of this feature of online service that cannot be denied. In this changing world and life style of the customer, they are more exposed to set some benefits for selecting a restaurant for their excellent dining experience. The aim of this study is to analyzing the customer expectation and satisfaction on online food order from restaurant in Chennai. The study is based on descriptive research design and survey method using questionnaire with 114 social media users as sample for primary data on convinces sampling technique. The paper is mainly targeting the respondents who are using the online platform for restaurant services. By the way customer preferences, comfort and expectation on choosing the particular restaurant service with the help of online service. Since the online user rate is growing day by day so to know the applicability and usage of online food order from restaurant the findings can help the restaurants to improve the quality on current trend. Thus, restaurant people should be prepared to meet these challenges. One move towards in gaining competitive return and ensuring sustainable business performance is to focus on service quality.

What is a ‘competitive return’ to a landowner? Parkhurst Road and the new UK planning policy environment

ABSTRACTIn the UK, contributions from landowners towards the provision of affordable housing are obtained through a process of negotiation that centres on the financial viability of each development proposal. National Planning Practice Guidance, first published in 2014 and recently revised in 2018 and 2019, provides the Government framework for these negotiations and sets parameters for the financial viability appraisals. Failure to achieve levels of affordable housing set out in local plans has been attributed to ‘gaming’ strategies employed by landowners and developers within viability negotiations. This paper examines how planning guidance has influenced financial viability appraisals. A key issue within these appraisals is the determination of a suitable return to the landowner, known as Benchmark Land Value. Using a case study approach to investigate two planning appeals and a subsequent High Court decision concerning a residential development site in London, this paper demonstrates how planning policy and practice guidance on viability can lead to reduced planning obligations being delivered. It identifies the technical concerns that need to be addressed to enable appraisals to determine land prices that are fair to landowners, whilst delivering policy-compliant levels of affordable housing, and discusses whether the revised National Planning Guidance has made those changes.

(Invited) Advances in Prussian Blue Batteries for Behind-the-Meter Applications

There is an increasing demand for high power, long cycle life, inexpensive batteries for behind-the-meter (BTM) applications including uninterruptible power supplies (UPS), demand charge management, and electric vehicle (EV) fast support. For the past decade most battery manufacturers have focused on increasing energy density while decreasing the cost of cells optimized for EVs, which are not designed for BTM duty cycles. Innovations in materials and design to enable higher power and longer cycle life at a low cost have received little attention. This presentation introduces a new battery technology based on cells containing Prussian blue electrodes and an organic sodium-ion electrolyte. Prussian blue (ferric hexacyanoferrate) is a pigment found in a variety of consumer products. Prussian blue and its transition-metal substituted analogues have a unique open framework crystal structure containing channels and interstices larger than de-solvated sodium ions. This allows sodium ions to be inserted and removed from the Prussian blue structure rapidly and reversibly with near-zero strain to the structure.1 For device performance to benefit from these unusual characteristics, both of the two electrodes in the cell must have comparable rate capability and cycle life. For this reason, Natron Energy has developed a cell in which the cathode and anode active materials are both Prussian blue analogues. The cathode undergoes a single electron redox of FeIII/II(CN)6 at +0.9 V vs. S.H.E., while the anode undergoes a unique MnII/I(CN)6 redox at -0.7 V vs. S.H.E. in which a unique low-spin Mn(I) valence state forms during charging.2 The resulting cell has a nominal voltage of 1.6 V, can be fully discharged at rates of up to 50C, and fully recharged at rates of up to 16C. Because the cathode and anode each undergo low-strain single phase reactions, neither electrode limits the life of the cell. After over one year of 10C-10C cycling (60,000 cycles), just 2% capacity loss is observed. The high power and long cycle life of the Prussian blue cell lead to new opportunities for pack and system design optimization. This presentation will highlight two real-world examples of BTM applications that make use of these device properties: data center UPS, and EV fast charge support. The high rate capability of the Prussian blue cell allows rack-mounted UPS battery trays based on this chemistry to deliver nearly double the power density of conventional lead acid trays. In addition, a simulation of energy storage photovoltaic (PV) solar system sizing was performed for electricity cost minimization for a four-charger direct current fast charge (DCFC) station using one year of real-world operational load data. The dynamic rate capability and deep discharge cycle life of the Prussian blue battery allows a smaller, lower cost system to deliver a competitive return on investment. These two examples indicate the potential value of high rate capability and long cycle life for BTM applications.

THE EFFECT OF ECRI, NPF AND BI RATE UPON MARGIN REVENUE OF MURABAHAH AT BMT ALGHAZALY YEAR 2012 - 2016

The main task of finance institutions is to collect and distribute the financing and Baitul Mal Tamwil or BMT is one of the financing institutions that is collecting the financing from the clients’ capital and savings. Financing distribution is to give the debtors the loan. Most financing support given is Murabahah . Murabahah is a financial support given thru a trading principle where handing over the ownership has happened. The profit is calculated in advance and as a part of the price of the goods sold. Determining the profit rate of murabahah financing support has been influenced by many factors. But, the writer is going to pick three factors only, they are an Expected Competitive Return For Investor (ECRI), Non Performing Financing (NPF) and Bank of Indonesia (BI) rate. Logically, BMT board of directors should have to determine the amount of selling price of murabahah financing support which is based on ECRI and BMT should have given a certain amount which is the remaining of the business revenue to the investor. However, a risk cost has to be anticipated supposing the debtors cannot afford to pay their loans. And the third variable is BI rate as a considerate reference to evaluate whether the profit of murabahah financing support is competitive in the market or not. Ensuring whether ECRI, NPF and BI rate have been affecting murabahah revenue or not, the writer has applied quantitative method and primary data from the direct key persons. The result of the research has identified that simultaneously the Expected Competitive Customer Return for Investor (ECRI), Non Performing Financing (NPF)) and Bank Indonesia Rate (BI Rate) have not significantly affected the margin of murabahah revenue at BMT Al Ghazaly refers to its yearly financial report during the years of 2012 up to 2016. Partially ECRI has not significantly affected the margin of murabahah revenue. Nevertheless, at the same condition, partial NPF has not significantly affected the margin of murabahah revenue. As well as partial BI rate has not significantly affected the margin of murabahah revenue.

Return policies and O2O coordination in the e-tailing age

Return policy is a strategic tool widely used by firms to build long-term relationship with their consumers. We develop a novel O2O (online to offline) competition model to address how the competitive return policies can be employed to coordinate the O2O distributions under the manufacturer – traditional retailer supply chain where the manufacturer opens an online channel to compete with the traditional retailer. Our results show that utilizing the revenue sharing plus profit sharing mechanisms, the manufacturer and the traditional retailer can employ different return policies for their respective channels to coordinate the O2O distributions and achieve a Pareto solution for all parties in a manufacturer - traditional retailer supply chain. Particularly when the product is becoming increasingly compatible with online sales, the value of the differential of return policies would further increase for both the manufacturer and the retailer.

A STUDY ON GOLD AS A SAFER INVESTMENT ALTERNATIVE AMONG SMALL AND MEDIUM INVESTORS WITH SPECIAL REFERENCE TO KOZHIKODE DISTRICT

Among the various precious metals “Gold” is the most popular as an investment. Why it is so? The answer is it is a mainstream asset as it is not only an effective diversifier but also gives a competitive return when compared to major financial assets. The present study analyses ‘Gold as a safer investment alternative’ by examining its risk and return in terms of other investment alternatives like stock and bond. The risk and return analysis of an asset class is better studied with its volatility measurement. The present study uses daily prices of gold, stock Nifty 5o, and India Government Bond. To measure the volatility of time series, Generalized autoregressive Conditional Heteroskedasticity GARCH(1,1) process is used the results shows that risk in terms of volatility of gold prices is 0.970124(&lt;1) which showed less when compared to stock(is 0.956541(&lt;1) and bond(1.003183(&gt;1) risk. This study also analyses various demographical factors that influence on the decision to invest in gold and as well as in selecting a particular kind of gold investment. The chi-square test was applied and the results showed that all the variables under study except education qualification (‘p’ value 0.8308) dictated investors decision in selecting gold as an investment opportunity.

The Valley of Death for New Energy Technologies

It is often claimed that a difficulty of raising investment funds prevents promising new energy technologies from attaining commercial viability. We examine this issue using a dynamic intertemporal model of the displacement of fossil fuel energy technologies by non-fossil alternatives. Our model highlights the fact that since capital used to produce energy services from fossil fuels is a sunk cost, it will continue to be used so long as the price of energy covers merely short-run operating costs. Until fossil fuels are abandoned, the price of energy is insufficient to cover even the operating costs of renewable energy production, let alone provide a competitive return on the capital employed. The full long-run costs of renewable energy production are not covered until some time after fossil fuels are abandoned.

Comparing the profitability of a dairy business with alternative investments

In the present study, the profitability of a dairy-farm case study evaluated over the period 2003–2004 to 2014–2015 was compared with the performance of other dairy farms and other non-agricultural investments over the same time. Investments are generally made on the expectation that a net return will be earned that justifies using capital in one particular way rather than an alternative way. The expected, and actual, returns from capital invested in different assets will differ according to the risks involved. Investors choose an investment, and mixes of investments, that align with their goals, preferences for risk and anticipated returns over time. Dairy farming involves investing in assets, such as land and improvements, water, livestock, plant and equipment, and people, which are managed to produce milk and ultimately to earn a competitive return on capital. With uncertain seasonal conditions, fluctuating costs and prices, declining terms of trade, wide ranges of equity and management abilities, and a steady decline in the number of commercial farm businesses, it may be tempting to presume that investing in farming, and dairy farming in particular, is a hard road, leading to lower and more variable returns than investing in non-agricultural investment opportunities in the economy. This need not be the case. Analysis of how a dairy business in northern Victoria performed from 2003–2004 to 2014–2015 showed that this farm did well compared with (i) other dairy businesses in Victoria and (ii) alternative investments, such as shares, bonds and property, over the same time. Compound annual return to capital for the dairy farm over the 12 years studied was 12.4% (real, before tax). Over half the return came from the farming operations and the remainder came from owning assets that appreciated in value, particularly in this case, water. The dairy business that was studied was well managed and earned higher annual average returns than the average returns of investments with similar risk elsewhere in the economy, such as shares, and matched it with the best performing of these alternative investments.

The Impact of Banks’ Characteristics on Profit Distribution Management of Islamic Banks

In practice, Islamic banks manage profit sharing to manage risks by following interest rate, namely Profit Distribution Management (PDM). Results indicate that management considers banks’ financial characteristics in doing PDM and reserves push PDM more. Market share and third-party funds confirm the prospect theory. Low market share and high third-party funds suggest high uncertainty of returns, so bank takes risk by drawing reserves partially for competitive return although income is low. Effectiveness of third-party funds and banks’ age do not confirm the theory. Assets’ compositions don’t support or restrict PDM. This study implies the need of tighter regulation of reserves.

A Framework to Analyze the Performance of Thinly Traded Agricultural Commodity Markets

Thinly traded agricultural commodity markets are a concern for farmers and policy markers due to the belief that prices in these settings will be highly volatile, subject to manipulation, and incapable of efficiently allocating resources. Analysis of thin agricultural markets has to date been impeded by lack of an appropriate analytical framework from which to study their behavior. In this paper we propose the modern agricultural markets (MAM) framework as an appropriate paradigm through which to view and evaluate thin markets. We argue that thinly traded markets that meet key conditions required for a MAM will generate maximum economic surplus and enable farmers to earn at least a competitive return on their investments. In the absence of these conditions, however, the concerns known as the “thin market problem” have validity. We set forth the MAM framework, interpret it in a thin‐market context, and conduct several brief case studies of thin markets to illustrate use of the approach and draw some key inferences about these markets' behavior. The analysis indicates that appropriate government policies directed to thin markets are those that facilitate their convergence to MAM status, but in reality key policies under recent consideration would have the opposite effect.

KONSENTRASI INDUSTRI DAN RETURN SAHAM: STUDI EMPIRIS DI BURSA EFEK INDONESIA

The purpose of this study is to examine the effect of industry concentration to future stock return. We analyze all industries listed in Indonesia Stock Exchange over 2007 - 2009 period. By using regression analysis, the result shows that companies operating in less concentrated or more competitive industries generate higher future stock return. In another word, firms in more concentrated or less competitive earn lower future stock return. In addition, this study reveals that size has negative effect on future stock return, while leverage show not such effect. This result indicates that there is difference in the size of companies. Indonesian concentrated industries are dominated by the large compenies. Keywords: industries concentration, industries stock return, competitive industries

Toward a 21st Century Social Contract

This article makes the case for a new contract between business and government that will help us address the critical challenge of our time: the globalization of commerce, and its disruptive effects on labor, local communities, and the environment. The authors begin by showing how globalization has created a new playing field for government and business in which our current governance models and a social contract that proved remarkably effective during the 20th century can no longer ensure economic stability and social progress. While the private sector has for the most part demonstrated its ability to adapt and flourish in a global economy, governments have struggled, thanks in large part to complex decision‐making processes and centralized bureaucracies that were created in response to 20th‐century realities. The result has been ever more indebted nations and governments that have been unable to maintain the core foundation and social investments on which their economic competitiveness and the social well‐being of their citizens depend.Our challenge now is to create a new social contract between business and government that is equal to the challenges of a global economy. The authors identify a number of key issues that must be addressed in creating this new framework, and explore recent and emerging business leadership initiatives that are working to address them. These range from initiatives that encourage greater self‐regulation by business of its impact on society and the environment to those that explore ways for the private sector to help governments deliver services more cost effectively.As part of the fallout from the recent financial crisis, business, broadly speaking, no longer enjoys the level of public trust it once did, which has added significantly to the challenges it now faces in taking on greater social responsibility. To direct its considerable resources to the greater public good while continuing to produce a competitive return to shareholders will require a degree of innovation and leadership that many companies will find difficult. But without this increased participation of business and its leaders, it is hard to see how we will prosper in the increasingly uncertain future we now face.

Corporate Governance, Product Market Competition and Firm Performance: Empirical Analysis of Indian Corporate Sector

On one hand product market competition acts as an ultimate solution to align interests of managers and shareholders, and on the other hand, competition alone may not be sufficient because it may not prevent managers from expropriating the competitive return after the capital is sunk. These hypotheses motivate us to investigate the interaction between corporate governance and product market competition in India where predominance of owner-mangers might cause corporate governance reforms to have a slow impact. Using a cross section of 1350 firms we attempt to capture various attributes of corporate governance by constructing an index of corporate governance based on board structure, ownership structure, audit quality and investor information disclosure. The index is then used along with traditional measures of competition to analyze the question of whether corporate governance and competition are complements or substitutes. In general the empirical analysis suggests that relying on product market competition to improve corporate governance of firms may not be appropriate in the Indian setting and therefore, direct corporate governance reforms seem to be necessary and effective.

Incentives Matter: Assessing Biofuel Policies in the South

As a result of the increase in the real cost of fossil fuel-based energy in recent years, federal and state governments have taken a more active role in energy policy by creating incentives to develop alternative sources of energy, including biofuels. However, policymakers often become focused on the specific type of energy and not the energy services consumers ultimately value. The lack of recognition of energy as a commodity results in policies that ignore the characteristics of the associated markets: easy entry and exit, no barriers to entry, and sensitivity to changes in supply and demand. Consequently, energy industries may fail to arise because entrepreneurs must be able to account for all costs and earn—at a minimum—a competitive return on the investment. This article evaluates the options available to policymakers related to biofuels, which are of particular concern to the South, and includes an assessment of the knowledge base on which policy decisions are made.

Financial Planning and Investor Communications at GE (With a Look at Why We Ended Earnings Guidance)*

In this edited version of a talk given at a conference of accounting academics and corporate practitioners, the Vice Chairman and Chief Financial Officer of General Electric describes the company's internal budgeting and financial planning process, and how the information generated by this process is communicated to investors. The company's business model—the common thread running through all its different businesses—is to make large investments in technology that make possible the firm's equipment sales, which in turn provide the basis for a profitable long‐term services business. The main role of the company's internal analysis and planning process is to help management allocate capital in a way that produces long‐run growth in revenues and earnings but, most important, a competitive return on investor capital.Another major aim of the company's planning process is to help management identify and manage major risks that could interfere with management's ability to carry out its strategic investments and goals. The company's focus on risk management is both reflected in, and facilitated by, a forecasting process that puts less emphasis on the accuracy of “point estimates” and pays greater attention to the range and distribution of possible outcomes. “What we really care about,” as the author says, “is the quality of the thinking and the dialogue among our managers that takes place around the forecasting process.”And it is the output of these internal processes, and “the quality of the thinking and dialogue” behind it, that are “the essence of what the company is trying to communicate to analysts and investors.” Instead of holding up quarterly earnings targets—a practice the company ended in 2008—management's communications with investors are intended to create “a continuous flow of information and feedback about the ongoing performance, investment opportunities, and risks confronting the firm.” In the author's words, “Ending the firm's longstanding practice of holding up earnings target s to the Street, and then trying to meet them, helped us rid ourselves of needless pressures and burdens… that can get in the way of managing for long‐run growth and profitability.”