Journal of Finance & Economics Research (JFER)
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Does Balance of Payments Constrained Growth Model Hold in Saudi Arabia?

Research Article

The paper aims to examine whether or not the balance of payments constrained growth model holds in Saudi Arabia. Also, the paper seeks to examine whether the balance of payments constrained growth model can predict Saudi Arabia's real GDP growth rate. In the long-run, the estimation results show that Saudi Arabia has an elastic income elasticity of demand for imports and an inelastic price elasticity of demand for imports. The McCombie test shows that the hypothetical income elasticity of demand for imports, which assumes balance of payments is in equilibrium, is not significantly different from the estimated income elasticity of [...]

Journal of Finance & Economics Research 2017
By Mohammed Al- Mahish
Keywords: Balance of payments constrained growth model; economic growth; Saudi Arabia

Impact of Capital Structure on Firms? Financial Performance: Evidence from United Kingdom

Research Article

The purpose of this paper is to examine empirically the impact of capital structure on financial performance of United Kingdom (UK) firms' during the period from 2006 to 2015. The investigation is performed using data of 739 UK very large and large listed companies on London Stock Exchange. The study uses four performance measures, including return on equity - ROE, return on assets - ROA, Tobin's Q and earnings per share EPS as dependent variables. The two capital structure ratios, namely long-term liabilities and short-term liabilities as well as growth rate of total assets are applied as independent variables. Size [...]

Journal of Finance & Economics Research 2017
By Ngoc Bao Vuong; Trang Thi Quynh Vu; Payel Mitra
Keywords: Capital structure, firm's performance, leverage, debts, performance measures

Relationship between Trade Openness and Energy Consumption in Oil Importing Asian Countries

Research Article

The present study intended to examine the impact of trade on energy consumption using data of four oil importing, heavily populated, and developing economies of Asia namely Pakistan, India, China and Bangladesh. The study covers the period of 1972 to 2011. The data was checked for the Cross-sectional Dependency using CD-test, then CIPS panel unit root test, Panel cointegration, and Pooled Mean Group estimates approaches were used. Empirical results confirmed the Long-run relationship between energy consumption and trade openness. This study confirms the influence of trade on energy consumption and that they are positively related. International trade increases the energy [...]

Journal of Finance & Economics Research 2017
By Imtiaz Arif; Syeda Wajiha Kazmi; Lubna Khan
Keywords: Energy consumption, energy price, trade openness, gross domestic product, Asian developing countries.

Remittances, Foreign Direct Investment and Growth in SADC: A Panel Co-integration Approach

Research Article

The current growth in per capita gross domestic product for countries within Southern Africa Development Community (SADC) has been below the target of 7% as provided by the sustainable development goals. This study uses panel co-integration techniques to establish the presence of non-linearity between long term growth and remittances, the substitutability or complementarity between foreign direct investment (FDI) and remittances as sources of long term growth. Annual data for 12 SADC member states for the period 1970 to 2014 was employed. Findings show that remittances promote long term growth and the connection between the two is nonlinear. Remittances positively affect [...]

Journal of Finance & Economics Research 2017
By Strike Mbulawa
Keywords: Economic growth, SADC, remittances, FDI, DOLS, non-linearity.

Herding Behaviour among Credit Rating Agencies

Research Article

The aim of this paper is to identify the influence degree among the main rating agencies and the other variables that affect rating changes for sub-sovereign entities in Germany, Austria, Belgium, France, Italy and Spain, using a total of 32 territorial entities between 1996 and 2012. Due to the shortage of European sub-sovereigns with more than 2 ratings, we estimated six binary probit regressions as a combination of 3 rating agencies two to two. We conclude that Fitch is the most influential agency on the other two rating agencies, but Standard and Poor's is the leader. There are other relevant [...]

Journal of Finance & Economics Research 2017
By Nicolas Jannone Bellot, MaLuisa Marti Selva, Leandro Garcia Menendez
Keywords: Credit rating agencies, probit-regression, European sub-sovereigns entities.
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