Level Of Financial Efficiency Research Articles

Foreign Financial Flows on Financial Efficiency in Sub-Sahara African Countries

The level of financial efficiency in Sub-Saharan Africa (SSA) remained low and incomparable to that of industrialized nations of the world, despite the supposed advantages of foreign capital inflows. This study examined the relationship between foreign financial inflows and financial efficiency in Sub-Saharan Africa against this backdrop (SSA). This study's specific goals are to look into how remittance inflows affected financial efficiency in SSA and how FDI inflows affected it as well. Out of 49 countries in Sub-Saharan Africa, 42 were chosen for the study using a purposive sampling technique and an ex-post facto research design. The study used pooled mean group, mean group, and dynamic fixed effects techniques to estimate the model parameters using panel autoregressive distributed lag (PARDL) methods of estimation. The findings revealed that remittance inflows have significant positive impact on the financial efficiency, while FDI inflows have insignificant influence on the financial efficiency. In addition, the combination of economic growth with remittance inflows yielded negative impact on the financial efficiency while the combination of economic growth with FDI inflows yielded a positive impact on financial efficiency. The study concluded that remittance and FDI inflows play vital roles in guaranteeing improvement in financial efficiency of Sub-Sahara African countries directly and indirectly through inclusive economic growth. The study recommended that financial openness policies, like removing restrictions and encouraging free flow of financial resources between entities in domestic economy and foreign economies to promote further foreign financial inflows and enhance further financial efficiency. It is also recommended that financial openness policy should be pursued alongside inclusive economic growth measures such as economic diversification policies.

FINANCIAL MARKET OF UKRAINE: STRUCTURE AND DEVELOPMENT TRENDS

The purpose of this work is to study the current state and trends in the financial market of Ukraine. Methodology. The following methods of scientific research were used: analysis and synthesis; theoretical generalization; abstraction and comparison; systematic approach. Results. The article reports that the financial market of Ukraine is in the process of formation, which is due to the uneven spatial dynamics of financial capital in the course of market reforms; heterogeneity of economic and financial space of the country; fundamental asymmetry between regions in terms of financial capacity; localization of financial institutional infrastructure; level of investment attractiveness, etc. It was found that the main problem of the financial market of modern Ukraine is the inability to provide an effective redistribution of financial resources needed to meet the challenges of modernizing the domestic economy and create an innovative impetus to the reproductive processes. Practical implications. To improve Ukraine's financial sector and boost economic growth, it is necessary to create an effective mechanism for improving banks' lending policies. To develop bank lending and create financial stability in this period it is necessary to make banking services of higher quality to improve their competitiveness; to set maximum interest rates on loans within the framework of state acts and monitor their implementation; to encourage commercial banks to lend to innovative projects; to increase the size of main assets of state banks, increase their number and strengthen their role in the financial and credit market of Ukraine, etc. Value/originality. It has been researched that the structure of the financial market is dominated by the number of companies engaged in the provision of loans, loans, financial leasing, the provision of guarantees; carrying out factoring, currency exchange and money transfer operations. For the development of bank lending it is necessary to improve banking services to improve their competitiveness; set maximum interest rates on loans within state acts and monitor their implementation; stimulate lending by commercial banks to innovative projects; increase capital resources of state banks, increase their number and strengthen their role in the financial and credit market of Ukraine, etc. These measures will contribute to the recovery of the national economy and increase the level of financial efficiency of the domestic banking system.

ANALISIS PERBANDINGAN KINERJA KEUANGAN PEMERINTAH DAERAH KABUPATEN/KOTA DI INDONESIA SEBELUM DAN SESUDAH KRISIS EKONOMI GLOBAL 2008

This research aims is to determine whether there are differences between financial performance of local governments in Indonesia at the level of financial independence, financial effectiveness, financial efficiency, and financial activities before and after the global economic crisis 2008. To analyze the financial performance of local governments, the research conducts financial ratio analysis of APBD. The samples used in this research is local governments in the province of DKI Jakarta, East Kalimantan, Riau, East Java, North Sumatra, Riau Islands, South Sumatra, Central Java, South Kalimantan and Lampung, which are the top ten provinces which have the largest foreign trade value according to the Badan Perencanaan dan Pembangunan Nasional (Bappenas) in 2010 and is expected to hit the global economic crisis 2008, and that was published the data of APBD from 2003 to 2012. The analysis instrument used to determine differences between financial performance before and after the global economic crisis of 2008 was the Paired Sample T Test. The results of research show that there were no differences between the financial performance of the local governments in Indonesia at the level of financial independence and financial effectiveness before and after the global economic crisis 2008. In other hand, there are differences between the financial performance of the local governments in Indonesia at the level of financial efficiency and financial activity before and after the global economic crisis 2008.

Improvement of industrial development management as a basis food security: an integrated approach

The current stage of economic development in Russia is characterized by a new mainstream in management theory – the promotion of management technology to leading roles in the management of economic entities, priority is given to managers. It is believed that they are able to bring enterprises to the desired level of financial efficiency. Management developments of previous generations of managers, especially Russian ones, are not sufficiently taken into account. The article considers the formation of industrial development management, the contribution, first of all, of Russian economists and practitioners to the formation of the management paradigm. It is shown that the General principles of an integrated approach were developed in the first quarter of the twentieth century and Russian scientists and statesmen played a significant role in this. The main directions of formation of management tools, the increasing role of science-based planning in it are revealed.

Interactions between financial efficiency and sports performance

Purpose In the current economic climate, the huge rise in the levels of debt incurred by professional football clubs challenges the need to improve their efficiency levels. Hence, analysis of their productivity is essential and represents an integral dimension to any realistic and efficient strategy. Any such strategy includes the identification and analysis of the inputs and outputs that underpin club sustainability. The purpose of this paper is to evaluate the relationship between the team performance of professional European football clubs and the stability of their financial efficiency. Design/methodology/approach The sample spans 15 professional football clubs that won the league titles in the leading football leagues (the English, German, Spanish, Italian and French leagues) in the period between 2009 and 2014. The analysis made recourse to the data envelopment analysis method. Findings The results demonstrate that of the 15 clubs analysed, only 10 proved efficient. Football is now an industry that moves major quantities of financial capital and holds the attentions of large groups of fans worldwide. However, despite this attractiveness, the financial crisis and recession, ongoing since 2008, increasingly requires the better management of such resources. To this end, clubs should improve their control over the financial resources available given the positive relationship prevailing between the sporting performance of clubs and their levels of financial efficiency. Originality/value Analysis of the efficiency levels of the inputs and outputs encapsulating performance related financial variables may aid in improving the standards of planning and sustainable management at professional sport clubs.

Profit-orientation and efficiency in microfinance industry: an application of stochastic frontier approach

ABSTRACTThe aim of this study is to ascertain the effect of the current wave of commercialization of microfinance institutions (MFIs) on their financial and social efficiency. We hypothesize that during the period of analysis, while the for-profit institutions achieve higher levels of financial efficiency, the non-profit MFIs achieve better social efficiency levels. In order to realize the underlined objective of this study, we use a sample of 162 MFIs gathered from Microfinance Information eXchange (MIX) market database, for the period 2007–2013 from 30 countries located in four regions Africa, MENA, Asia and Latin America. The analysis is based on a two-stage model. The first stage consists on classifying MFIs into two groups according to their main orientations (for-profit and non-profit). We design afterward two models to obtain both social and financial estimates for each particular type of MFIs, using the stochastic frontier analysis model. In the second stage, a regression analysis is carried out to determine which variables have an effect on financial and social efficiency.

Technology-driven information sharing and conditional financial development in Africa

ABSTRACTInformation technology is increasingly facilitating mechanisms by which information asymmetry between lenders and borrowers in the financial sector can be reduced in order to enhance financial access for human and economic development in developing countries. We examine conditional financial development from ICT-driven information sharing in 53 African countries for the period 2004–2011, using contemporary and non-contemporary quantile regressions. ICT is measured with mobile phone penetration and internet penetration, whereas information-sharing offices are public credit registries and private credit bureaus. The following findings are established. First, there are positive effects with positive thresholds from ICT-driven information sharing on financial depth (money supply and liquid liabilities) and financial activity (at banking and financial system levels). Second, for financial intermediation efficiency, the positive effects from mobile-driven information sharing are apparent exclusively in certain levels of financial efficiency. Third, with regard to financial size, mobile-driven information sharing is positive with a negative threshold, whereas internet-driven information sharing is positive exclusively among countries in the bottom half of financial size. Positive thresholds are defined as decreasing negative or increasing positive estimated effects from information-sharing offices and vice versa for negative thresholds. Policy implications are discussed.

The Real Costs of Disclosure

This paper shows that improving financial efficiency may reduce real efficiency. While the former depends on the total amount of information available, the latter depends on the relative amounts of hard and soft information. Disclosing more hard information (e.g. earnings) increases total information, raising financial efficiency and reducing the cost of capital. However, it induces the manager to prioritize hard information over soft by cutting intangible investment to boost earnings, lowering real efficiency. The optimal level of financial efficiency is non-monotonic in investment opportunities. Even if low financial efficiency is desirable to induce investment, the manager may be unable to commit to it. Optimal government policy may involve upper, not lower, bounds on financial efficiency.

Seasonalities in Eastern Foreign Exchange Markets: A Barrier to Euro Adoption?

Plans for an early adoption of the euro by some new EU members hang on political will and a set of nominal criteria. The focus, however, should be on the available adjustment mechanisms supporting a permanently fixed exchange rate. Efficient financial markets could provide stabilisation (following a shock), substituting the weakened array of traditional policy instruments. In order to assess the availability of such alternative, this paper presents a particular empirical analysis of efficiency in the foreign exchange markets of three recently acceded countries. The results suggest that some caution is needed in the transition towards full monetary integration, as the level of financial efficiency already attained may be insufficient to ensure an adequate source of stabilisation in economies affected by specific disturbances.

FINANCIAL INTEGRATION IN EAST ASIAN EQUITY MARKETS

Abstract. This paper examines the degree of financial integration that exists in East Asian equity markets using the International Capital Asset Pricing Model methodology. We employ three market portfolios to test for integration: the weighted average equity index of all sample countries, the Japanese market index and the US market index. The study shows that the level of financial efficiency and the integration of sample countries is high and has improved significantly during 1991 to 2005, and they are more financially integrated within the region and with the Asian leading market (Japan) than with the world leading market (the USA).