The Analysis of the Credit Spread Bonds for Banking Sub-Sector Effect in 2014 – 2016 (Published)
The credit spreads are the interpretation of the bond returns received by investors as measured by the difference between the corporate bonds yield rate and government bonds. The purpose of this study is to analyze the impact of changes in macroeconomic variables. Such as volatility of stock returns, default probability and inflation on banking sub-sector credit spread bonds. This study analyzes the change of credit spreads bonds based on the category of the grades, the investment grade and non-investment grade. The data were analyzed using panel data which consist of several companies with investment grade and non-investment grade categories during 2014 – 2016. The result showed that the relationship of default probability and inflation variables had significant effect in the credit spreads of investment grade bonds, while the variable volatility of stock return had no significant effect. While significant effect was found inthe non-investment grade bonds, the variable volatility of stock returns, default probability and inflation.
Keywords: Credit Spreads, Default Probability, Inflation, Panel Data, Volatility of Stock Returns
The Analysis of the Credit Spread Bonds for Banking Sub-Sector Effect in 2014 – 2016 (Published)
The credit spreads are the interpretation of the bond returns received by investors as measured by the difference between the corporate bonds yield rate and government bonds. The purpose of this study is to analyze the impact of changes in macroeconomic variables. Such as volatility of stock returns, default probability and inflation on banking sub-sector credit spread bonds. This study analyzes the change of credit spreads bonds based on the category of the grades, the investment grade and non-investment grade. The data were analyzed using panel data which consist of several companies with investment grade and non-investment grade categories during 2014 – 2016. The result showed that the relationship of default probability and inflation variables had significant effect in the credit spreads of investment grade bonds, while the variable volatility of stock return had no significant effect. While significant effect was found inthe non-investment grade bonds, the variable volatility of stock returns, default probability and inflation.
Keywords: Credit Spreads, Default Probability, Inflation, Volatility f Stock Returns
Macroeconomic Analysis of the Relationship between Monetary Policy Instruments and Inflation in Nigeria (Published)
This study examined the role of monetary policy instruments in controlling inflation in Nigeria. The study adopted interest rate, minimum rediscount rate, liquidity ratio, and cash reserve ratio as proxy for monetary policy instruments and the independent variables. These were regressed against inflation rate, the dependent variable. Secondary time series panel data for the period covering 1982 to 2011, were collected from the Central Bank of Nigeria (CBN) Statistical Bulletin in 2011. The study employed multiple regression technique based on E-views 7 computer software to analyze data obtained on the study variables. Four hypotheses were tested and the null hypotheses were accepted based on the regression results. The study found that interest rate, minimum rediscount rate, liquidity ration and cash reserve ratio had no significant influence on inflation. The study recommended that Nigeria shift from being a consumption driven (import) economy to production based (export) economy for the impacts of these policies to achieve desired results.
Keywords: Cash Reserve Ratio, Inflation, Liquidity Ratio, Minimum rediscount rate, Monetary Policy
Bank Profitability, Inflation and Cost Efficiency: A Case of Pakistani Banks (Published)
The study investigates the impact of internal and external factor and macro-economic variables on profitability on commercial banks of Pakistan. Dependent data analysis confirms that the bank size, capitalization, labor productivity, concentration and inflation were significant impact on the bank profitability in Pakistan
Keywords: Bank, Cost Efficiency, Inflation, Pakistan, Profitability Analysis
Bank profitability, Inflation and Cost efficiency: A case of Pakistani Banks (Published)
The study investigates the impact of internal and external factor and macro-economic variables on profitability on commercial banks of Pakistan. Dependent data analysis confirms that the bank size, capitalization, labor productivity, concentration and inflation were significant impact on the bank profitability in Pakistan.
Keywords: Bank Profitability, Cost Efficiency, Inflation, Pakistani Banks
ANALYZING THE EFFECTS OF MACRO VARIABLES TOWARD THE DEMAND OF EQUITY FUNDS IN INDONESIA (Published)
The purpose of this research is to analyze how macroeconomics variables, such as interest rate (BI rate), inflation, exchange rate rupiah, GDP per capita and the money supply, influence the demands of equity funds in Indonesia. This research use time series data from 2001 through 2011quarter by using multiple linear regression model and Ordinary Least Square (OLS) method. The result of this research indicates that Net Asset Value of equity funds in Indonesia has increased in 2002 – 2004 in the period of the research. It is influenced by 4 strong macroeconomics indicators in Indonesia along with the improving economic of the country. Downward trends of interest rate happened in early 2002 until 2005 has encouraged investors to search another alternative investment instrument, so that the demands of equity funds increased.
Keywords: Exchange Rate Rupiah, GDP Per-Capita, Inflation, Influence The Demands Of Equity Funds., Interest Rate (BI Rate), Money Supply
Macroeconomic Factors That Influence Stock Market Development in Nigeria (Published)
Stock markets provide channels for the mobilization and allocation of funds in the economy to be used by firms and others in fully exploiting their material, human and management resources for optimal output. The stock market itself can be influenced by macroeconomic factors prevalent in the economy. A co-integration and error correction model was employed on macroeconomic data from Nigeria and the results suggest that factors such as national savings rate, inflation rate, economic growth rates and financial intermediary development influenced stock market development during the period 1970-2011. Results from the Chow test suggested that there was no structural break in stock market development after the introduction of the Structural Adjustment Programme in 1986. It was recommended that stabilizing the financial and economic aggregates by the government for the overall growth of the economy will help to grow the stock market. JEL Classification: G20, G28, E44, O55
Keywords: Domestic Savings, Engle-Granger Co-Integration, Financial Intermediary Development, Inflation, Stock Market Development