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This study is an attempt to analyze the relationship that exists between bank performance and capital structure of listed banks in Turkey under IFRS adoption. The study employs Fully Modified Least Square (FMOLS) and Dynamic Ordinary Least Square (DOLS) to analyze panel data of listed banks in Turkey. The results of the study provides that Return on Assets and Return on Equity are negatively affected by leverage in Turkish listed banks, thus bank performance is negatively impacted by leverage. Bank size is also found to have significant negative impact on return on equity and stock price of listed banks in Turkey but not on return on assets. Growth rate of banks is found to have a significant impact on Return on Equity but not on Return on Assets. The study results also gives that IFRS adoption in Turkish listed banks significantly affect Return on Equity and Return on Assets positively. Therefore, the adoption of IFRS standards by listed banks in Turkey improves the performance of banks. This study, thus recommends the adoption of IFRS standards in the banking sector of Turkey as this will greatly improve the performance of banks.

Keywords: Return on Assets; Return on Equity; IFRS; Stock price; Capital structure; Bank performance.

JEL Classification: G30, C33

To cite this paper:

Mohammed, B., & Isiksal, A. (2022). The Relationship between Capital Structure and Bank Performance of listed Banks of Turkey under IFRS Adoption. Asian Journal of Economics and Finance. 4(1), 1-18.

Using the EGARCH (1,1)M model, this study examines and compares the liaison between timevarying volatility and stock return as well as leverage impact on the Dhaka Stock Exchange (DSE) and the Bombay Stock Exchange (BSE). Daily return data from the DSEX and S&P BSE SENSEX indices are used to estimate the model. It is found that the riskreturn relationship in DSE is negative which is not consistent with theory of finance, whereas the investors’ of BSE demand higher return for bearing additional risk. In addition to this, the impacts of volatility clustering, volatility persistence are more prevalent in DSE than BSE though the importance and impact of old news is very significantly important in both markets. Beside we have also found significant leverage effect in both markets but investors’ sensitivity towards negative shocks is higher in BSE than the DSE.

Keywords: DSE, BSE, volatility, EGARCH (1,1) M.

JEL Classification: C22; G12; G15

To cite this paper:

Md. Masud Karim, Md. Monimul Huq & M.A. Rashed Kabir (2022). Modeling Volatility, Risk-Return Trade off and Leverage Effect using EGARCH (p,q)-M Model: Evidence from Bangladesh and India. Asian Journal of Economics and Finance. 4(1), 19-31.

In this paper, we broaden the debate on the determinants of bank excess liquidity by focusing on a new mechanism. Using time series data from six CEMAC countries and using shock simulation in a structural VAR as well as Cointegration analysis in an ARDL model, the empirical analysis shows that the financial rigidity caused by the increase in the information asymmetry premium leads to a fall in investment which weakens economic activity. The fall in economic activity amplifies the increase in information asymmetry premium resulting in an increase of free reserves. Finally when the effect of the financial accelerator is reduced by stretching the information asymmetry premium towards zero, then the refunding policy through calls to tender favors a decrease of interest rates, a profusion of credit and consequently the increase of investments and consumption. We suggest all measures aimed at reducing the asymmetry of information on the credit market, in particular, the creation of credit offices and / or public credit registers, the creation of rating agencies for companies and individuals, improvement of the quality of institutions whose poor quality leads to the camouflage of information and moral hazards.

Keywords: financial accelerator, bank excess liquidity, information asymmetry premium, key interest rates

JEL classification: E6 E30 E32 E44

To cite this paper:

Tchounga & Gilles Brice M’bakob (2022). Financial Accelerator and Bank Excess Liquidity in CEMAC Zone. Asian Journal of Economics and Finance. 4(1), 33-57.

The study investi gates financial situation of pharmaceutical firms listed on the Hanoi stock exchange (HNX). The study employs a set of aggregated data from 10 pharmaceutical firms listed on the HNX. At the same time, the study also receives comments from experts experienced in the research field. We have performed some descriptive statistics, compared and correlation analysis with support by Stata13 software to evaluate and measure financial situation of pharmaceutical firms listed on the HNX through the financial indicators, including (i) Sales (size); (ii) return on total assets (ROA). The results show that there is a difference in financial situation of pharmaceutical firms listed on the HNX. Firms with operating time of 30 years or more account for a relatively low proportion of these enterprises.

Keywords: sales (size), return on total assets (ROA), finance 

JEL codes: M41, F65, O16, P33, P45

To cite this paper:

Duc Tai Do (2022). Evaluation of the Financial Situation: The Case of Pharmaceutical Firms listed on the Hanoi Stock Exchange. Asian Journal of Economics and Finance. 4(1), 59-68.

The purpose of this research was to consider the influence of financial development on Tanzania’s tax revenue. To accomplish the intent of this study, the main specific objective was concerned about the effect of financial depth on tax revenue in Tanzania. This study adopted quantitative approach and time series as research design, this study was conducted in Tanzania. Because of the accessibility of the data for the time of 1996-2020. The annual time series data for the Tanzanian financial development and tax revenue were obtained from secondary sources which include the World Development Indicators (WDI) and Tanzania Revenue Authority (TRA). The method was employed to make the estimation is the Dynamic Ordinary Least Square (DOLS). The financial characteristics were considered to be relevant tax revenue parameters based on the study’s aims. As a consequence, the examination of the estimation findings revealed that financial depth had a beneficial influence on increasing tax revenue in Tanzania. As a result, this paper recommends that the government place a greater emphasis on financial development, as it may be a vital instrument for increasing tax revenue for social welfare, poverty reduction, and macroeconomic stability. The Bank of Tanzania has maintained its monetary policy stance, which aims to increase lending to the private sector to encourage economic activity.

Keywords: Financial development, financial stability and depth, tax revenue, DOLS, Tanzania

JEL Classification Codes: G30; G38; H20

To cite this paper:

Ramadhan Makame Hussein & Zuhura Mohammed Abdallah (2022). Financial Development and Tax Revenue in Tanzania: Analyze the Impact of Financial Depth on Tax Revenue. Asian Journal of Economics and Finance. 4(1), 69-78.

Given the importance of the economic indicators on the economic growth in Bangladesh, this paper examines the shortrun and long run causality between remittance, imports, exports and GDP growth of Bangladesh using the data over the liberalized period 1976-2016. Applying the Johansen cointegration and elasticity concept, this study finds that variables are cointegrated as well a long run nexus between exports, imports, remittances and GDP growth in Bangladesh. Besides, the Granger Causality test in a VECM (Vector Error Correction Model) framework, this study finds unidirectional causality from import to growth in Bangladesh. The hardly surprising result, remittance does not show any feedback effect/causality in both the short run and long run. The possible interpretation may be that remittances mainly benefit the individual receivers. The finding also explores that exports, imports and remittances endorse each other in the short run.

Keyword: Economic growth (GDP); Export; Import; Remittance; Granger Causality test; Vector Error Correction (VECM); Cointegration; Unit root test; ADF (Augmented DickyFuller) test, PhillipsPerron (PP) test; elasticity.

To cite this paper:

Farzana Yesmin Chowdhury & Sudip Dey. (2022). Causal link between Export, Import, Remittance and Economic Growth in Bangladesh. Asian Journal of Economics and Finance. 4(1), 79-93.

India’s agricultural credit system has made laudable decadal growth. The farm credit is utilized for the agricultural productive purpose or not, whether agricultural credits are given against the mortgage of jewels or disbursing loans under any subsidized schemes, if credit disbursed under the subsidized scheme, procedures target beneficiaries, the challenges in identifying the targeted groups, and the lacunas in accessing the institutional credit under the schemes by the clients of the banks. It is imperative to the nuances confining institutional credit operations, accomplishments, challenges, and impact on the intensity of indebtedness of the farmers in the selected area. The objective of the paper is to observe the availability and accessibility and determinant of bank credit in agriculture in Ariyalur and Tirunelveli districts of Tamil Nadu. The paper is divided into four sections. The first section is introductory in nature; which is the background, objectives of the study. The second section discusses the review of literature. The third section analyses the status of farm credit and cooperative bank in Tamil Nadu. Lastly provides the concluding remarks.

Key Words: Farmers, Cooperative Banks, Commercial Banks, Tamil Nadu

JEL Classification Code: G10; G20; G30

To cite this paper:

K. Murugan (2022). Cooperative Credit and Farmers Livelihoods in Ariyalur and Tirunelveli of Tamil Nadu. Asian Journal of Economics and Finance. 4(1), 95-115.

The current study is undertaken to assess the impact of economic factors on retirement planning behaviour of salaried employees. In order to fulfil the objectives of the study, primary data are collected through structured questionnaire from 302 employees of higher education department working in three universities operating in Jammu region of Union Territory of Jammu and Kashmir by using purposive sampling technique. Statistical techniques like EFA, CFA, Oneway ANOVA and Independent sample test are used for data analysis and scale purification. The finding of the study revealed that economic factors have direct and significant impact on retirement planning behaviour of salaried employees. The current study advances debate on retirement planning and makes significant contribution towards the existing literature relating to behavioural finance. It looks into how for the economic characteristics of salaried employees influence their decision while making plans for retirement.

Keywords: Retirement planning, economic factors, salaried employees, purposive sampling

JEL Classification Codes: G11, G24, G32, G41

To cite this paper:

Tarsem Lal & Vikram Singh (2022). Examining the Impact of Economic Factors on Retirement Planning Behaviour of Salaried Employees. Asian Journal of Economics and Finance. 4(1), 117-136.