Income Inequality and its Important Determinants in India
Sanjay Kumar Rout, Rajeswari Behera
Page Numbers : 171-187
DOI : 10.36348/sjef.2022.v06i05.002
Income inequality is considerably high and still growing, which may cause a significant loss of India’s human development and economic performance in the post-pandemic period. Thus, using cointegrating models viz; FMOLS, DOLS, CCR, and ARDL models, we scrutinize short-run as well as long-run impact of natural disaster, economic development, technological innovation, and human capital on income inequality in India. Results show that the natural disasters and economic development worsen income inequality in both short- and long-run. Further, India’s human capital also aggravates income inequality in the short run. In contrast, India’s technological innovation and human capital in the long run improve income distribution significantly. Finally, the policy suggestions are mentioned in the conclusion section. Our results are consistent and robust with alternative modelling.
Original Research Article
May 17, 2022
The Value of the Capital Market Development-Bursa Research Scheme's (CBRS) Recommendation Changes in
This study analyses the changes in analyst recommendations in the Malaysian stock market from 2010 to 2018. Using samples of 668 upgrade recommendations and 495 downgrade recommendations, this study employs event study methodology to examine price performance by predicting abnormal returns using the market model. The findings indicate that significant positive stock price reactions occur following upgrade recommendations and significant negative stock price reactions occur following downgrade recommendations over a short-term and up to six-month period. Further analysis reveals no statistically significant difference in performance between analysts who are participants of the Capital Market Development Fund – Bursa Research Scheme (CBRS) and those who are not. This finding implies that, despite the significant market reaction to both upgrade and downgrade recommendations, CBRS’s financial analysts do not provide better analysis than those of non-CBRS analysts.
Original Research Article
April 29, 2022
Determinants of Exchange Rate in African Sub-Sahara Countries
Sylvia Dung, Emeka Jude Okereke
Page Numbers : 154-163
DOI : 10.36348/sjef.2022.v06i04.006
The study examines empirically exchange rate determinants in African sub-Sahara countries specifically Anglophone West African countries like The Gambia, Ghana, Liberia, Nigeria, and Sierra Leone between 1981 and 2019. In order to achieve this objective, both descriptive statistics and the Panel Least Square (PLS) estimation methods were employed to analyze the data. The result of the analysis reveals that INFL has a negative relationship with EXCR but it does impact significantly on it at 5 percent level; INTR has negative and an insignificant impact on EXCR at 5 percent level; CABL has negative relationship with EXCR and it also impacts significantly on it at 5 percent level; TMTR has negative relationship with EXCR and it also impact significantly on it at 5 percent level. The study therefore concludes that inflation rate (INFL), interest rate (INTR), current account balance (CABL) and terms of trade (TMTR) depreciates exchange rate (EXCR) in African sub-Sahara countries specifically Anglophone West African countries. Based on the findings of the research work, the following are recommended: The government should encourage export diversification especially the non-oil sector exports. This can be achieved through value addition to both the agriculture and manufacturing sub-sectors output. There should be stable exchange rate management policy that avoids over-valuation or excessive depreciation of their currencies and ensures international competitiveness of tradable goods, relative price stability as well as avoiding inconsistent fiscal policies.
Original Research Article
April 19, 2022
Financial Performance of Islamic Commercial Banks in Indonesia
Lukman, Agus Eko Sujianto, Endro Sugiartono, Dessy Putri Andini, Budiono
Page Numbers : 147-153
DOI : 10.36348/sjef.2022.v06i04.005
Assessment of the financial performance of banks is very important to be carried out by internal organizations and as a basis for corporate planning in the future. The financial performance in question is related to CAR, NPF, BOPO and FDR which theoretically and empirically affect bank profitability, namely ROA. The objectives of this study are: (1) to examine the effect of CAR on ROA; (2) examine the effect of NPF on ROA; (3) examine the effect of BOPO on ROA and (4) examine the effect of FDR on ROA. The Islamic Commercial Banks that are the locus of this research are BRI Syariah and BNI Syariah which represent Bank Syariah Indonesia before the merger in 2021. The research data is taken from the documentation of the two banks published by the Financial Services Authority of the Republic of Indonesia, from 2015 to 2020 in the form of data quarterly. The results of testing the research hypotheses can be stated: (1) CAR has a significant effect on ROA; (2) NPF has no significant effect on ROA; (3) BOPO has a significant effect on ROA and (4) FDR has a significant effect on ROA.
Original Research Article
April 13, 2022
Financial Performance Determinants of Financing Companies Listed on the Indonesia Stock Exchange
Farih Hidayat, Augustina Kurniasih
Page Numbers : 141-146
DOI : 10.36348/sjef.2022.v06i04.004
This study aims to determine the effect of gearing ratio, financing to asset ratio, non-performing financing, and efficiency ratio on the financial performance of multi-finance companies. The research population is all finance companies (multi) listed on the Indonesia Stock Exchange in 2021. The sample that meets the criteria is 16 companies. Data were analyzed using panel data regression. The results showed that the Random Effect was the best model. Partially found that the Gearing ratio does not affect Return On Assets (ROA) as a proxy for the company's financial performance. In contrast, the Financing to assets ratio (FAR) positively affects Return On Assets (ROA). Non-Performing Financing (NPF) and Operating Expenses (BOPO) have a negative effect on Return On Assets (ROA).
Original Research Article
April 13, 2022
Analysis Implementation of Activity-Based Budget for Planning and Control of Direct Labor Costs on the Inpatient Department (Case Study at XYZ Hospital)
Damar Wanto, Nengzih Nengzih
Page Numbers : 136-140
DOI : 10.36348/sjef.2022.v06i04.003
The research began with a request from the board of directors where researchers working at the hospital asked to prepare a budget based on activities. In addition, the competitive conditions in the hospital industry triggered by various factors require a complete change in the application of management principles in each hospital. Changes in organizational structure, for example, aim to allow flexibility, create a cross-functional team that focuses on patient satisfaction. Changes in human resource management have resulted in performance-based management replacing the function-based management that executives knew and used in the past. This activity-based management requires hospital managers to change the method they use for budgeting, from functional-based budgeting to activity-based budgeting.
Original Research Article
April 6, 2022
Domestic versus Foreign Islamic Banks: Do they have the same Profitability Determinants?
Nora Azureen Abdul Rahman, Norhafiza Nordin
Page Numbers : 126-135
DOI : 10.36348/sjef.2022.v06i04.002
The liberalisation of the Islamic banking industry in Malaysia has given rise to the emergence of many foreign Islamic banks in the country, raising a major concern regarding its impact. This study investigates the impact of bank-specific and macroeconomic factors on bank profitability from 2005 to 2017. Unbalanced panel data of eleven domestic and six foreign Islamic banks have been employed to achieve the study's objective. The findings show that different factors influence the profitability of domestic Islamic banks and foreign Islamic banks. While internal factors significantly affect the profitability of domestic Islamic banks, the profitability of the foreign Islamic banks is more stable and less affected by internal and external factors. The findings provide insights to domestic Islamic banks to improve their operations, profitability, and competitiveness. These banks' better operational efficiency and performance will consequently improve the overall Islamic banking industry.
