Economic analysis of growth finance and liquid liabilities in Nigeria

This study came to inspect the impact of the development of both financial market and banking system on the economic growth of Jordan based on the annual data covering the period 1993–2017. Through the use of many methodologies: Johansen cointegration test, (VECM), and Granger causality test, where real GDP was used as an indicator of economic growth, the real market value of stocks (Market Capitalization) (LCAP) and Share Turnover (LTURN) are indicators for the financial market, Money supply in the broad concept (LM2), and Local domestic credit (LCR) are indicators for the banking sector.
The results of this study reported that the study variables are stationary, and in the level of order 2, they are integrated, and a long-run relationship between the study variables existed according to the Johansen co-integration test. VECM model result and the target model result confirm a short-run causality running from the all variables toward GDP. Granger causality test underline a single directional causality running from variables of our study to GDP and denote the short-run impact between LCAP, LTURN, LM2, LCR, and LGDP. The analysis of the variance decomposition shows that the development of the banking system affects economic growth almost equally with the impact of the development of the financial market. The results go to the same line of supply-leading hypothesis.

The purpose of the research is to find the right strategic formula to resolve bad loans suitable to environment and characteristics of micro-financial institutions and their consumers. It applies qualitative approach by means of interactive method put forward by Milles and Huberman (2009) as analysis method. Data are obtained from indepth interview with superordinates, staff and consumers of microfinance institutions in Kendari city. A microcredit institution “Harum” needs several strategis to handle bad loans. It includes: institutional reinforcement (improvement in service procedure, increase in human resources’ skill, more branch offices, more new recuitments, the involvement of sub-district government, the use of information system), reinforcement of consumers’ capacity (tight selection process, counseling of business management, advisory service, and special relationship). The research results serve as solutions to microfinancial institutions in handling bad loans, from which development and sustainability can be assured. Consumers might make use of this information to develop their business. They also might serve as references for regional government in making the right policy for the development of micofinancial institutions and small business empowerment. This is the first study exploring formulation of strategy for microfinancial institutions in handling bad loans. The research explores internal and external aspects of microfinancial institution, with holistic view of the right policy in terms of institutions and consumers.

Working capital plays a vital role in shareholders’ wealth creation, yet there is a dearth of empirical studies on the relationship between working capital management and firm value in the South African economic environment. This study attempts to fill this gap by using Richards and Laughlin’s (1980) Cash Conversion Cycle theory to investigate the impact of working capital management efficiency and its separate components on firm value of South African firms listed on the Johannesburg Stock Exchange (JSE). Panel data regression methodology was used to analyze accounting data obtained from I-Net Bridge/BFA McGregor for 75 firms for the 10 year period, 2003 to 2012, to determine the nexus between WCM and profitability (proxied by return on assets). The key findings of the study are as follows: 1) there exists a significant positive relationship between firm value and both inventory conversion period and receivables conversion period; 2) the relationship between the cash conversion cycle and firm value is positive but insignificant; 3) there is a significant positive relationship between accounts payable deferral period (PDP) and profitability; 4) firm size and firm value are significantly positively related, and 5) there is a significant negative relationship between leverage and firm value.