International Journal of Business & Economics (IJBE)
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The Determinants of Consumer Buying Behavior in Dhaka: A Cross-Sectional Study
Get PDFPurpose: The drivers of consumer purchasing behavior are examined in this study, with a particular emphasis on aspects related to products like product quality, product price, product advertisement, and brand loyalty. This study explores how product attributes affect the choices of customers in Dhaka using positivist methodology and quantitative data analysis.
Objectives: Analyzing the significance of consumer behavior factors was the study's primary goal. There are specific objectives of this study which are to determine what factors influence consumers' purchasing decisions, factors that determine a consumer's brand loyalty, how factors affect what people choose to buy.
Methodology: This paper's fundamental methodology is empirical analysis, incorporating primary data from a well-self-administered questionnaire. The study used a positive methodology, surveying 21-34-year-olds, primarily graduates who live in Dhaka city, and analyzing data from 50 randomly selected consumers. Descriptive statistics, multicollinearity matrix, regression, and ANOVA tests were used to examine relationships.
Findings: The study found that brand loyalty and product quality significantly influence consumer purchasing decisions, while product price and advertising have minimal impact. To take multicollinearity between variables into consideration, a redesigned model was created. In the analysis we have 95% level of confidence in the revised model: Consumer buying behavior (Y) = 5.18E-32. As the Significance of F value is greater than 0.05, the model is accepted. Acceptance of hypothesis: There is the importance of determinants to influence consumer behavior.
Conclusion: The research aids firms in adjusting their products to consumer preferences, improving marketing strategies, and aiding in the creation of morally sound laws supporting fair trade and consumer rights, ultimately promoting a more accountable marketplace.
Practical Implications: The research aids firms in adjusting their products to consumer preferences, improving marketing strategies, and aiding in the creation of morally sound laws supporting fair trade and consumer rights, ultimately promoting a more accountable marketplace
A STUDY OF THE IMPACT OF DIGITAL INCLUSIVE FINANCE ON THE REAL ECONOMY: EVIDENCE FROM CHINA
Get PDFWith the rapid development of digital technology, digital inclusive finance has become an important force for promoting the development of the real economy. Based on an in-depth analysis of the relationship between digital inclusive finance and the development of the real economy, this paper takes Henan Province as an example. Based on the Digital Inclusive Finance Index and the Henan Statistical Yearbook, panel data on 17 prefectural-level cities in Henan Province for the period of 2012-2021 are used to carry out a basic regression analysis of various dimensions by using the fixed effect model, and the promotion effect of digital inclusive finance on the development of the real economy and different dimensions of digital inclusive finance on the promotion of real economic development are drawn. The paper finally used the quantile regression method to carry out a heterogeneity test and concluded that the promotion effect of digital inclusive finance is more significant in regions with lower levels of economic development. Therefore, to better promote the development of the real economy, Henan Province should strengthen the construction of a digital inclusive financial system, emphasize scientific and technological innovation, and use digital inclusive finance to guide rural migrants to return to their hometowns for development
PERSISTENCE IN EUROPEAN STOCK MARKET RETURNS AND VOLATILITY
Get PDFThis paper applies fractional integration techniques to analyze persistence in stock market returns and volatility at different frequencies in the case of various European indices, specifically the French CAC, the Spanish IBEX 35, the German DAX, the British FTSE 100, and the Euro Stoxx 50, over the period from January 2018 to January 2023.Returns are calculated as the first differences of the logged prices, while absolute and squared returns are used as volatility proxies. The method used yields estimates of the differencing parameter d, which is allowed to take any real value, including fractional ones, and represents a measure of persistence. This parameter provides information about whether the series of interest exhibit either long memory or mean reversion. Specifically, a value of d greater than 0 indicates the presence of long memory in the series, while a value less than 1 implies mean reversion, with the effects of shocks being transitory. The results vary depending on the data frequency. More precisely, evidence of long memory is found for returns at the daily frequency only and for volatility proxies at both the weekly and daily frequencies but not at the monthly frequency. In most cases our findings imply that stock prices are I(1) and thus follow a random walk, which is consistent with the efficiency markets hypothesis (EMH)
THE VIRTUAL DEGREE OF LEVERAGED CAPITAL WITHIN CHINESE ENTERPRISES
Get PDFThe transition of China's tangible real economy to an intangible economy, along with phenomena such as capital idling and shadow banking, has significantly altered the relationship between financial markets and actual enterprises. As leveraged capital flows into real enterprises, it is crucial to discern how much is allocated to operational endeavors versus financial market investments. Leveraging the logic of asset allocation and capital acquisition in real enterprises, we developed a model to discern the allocation of leveraged capital. Through descriptive analysis, we delineate the landscape of Chinese listed companies' utilization of leveraged capital for financial assets. Our findings reveal that the proportion of Chinese enterprises holding leveraged capital has steadily risen, surpassing 86.53%, with an increasing trend in leveraged enterprises utilizing capital for financial asset acquisition, growing from 35.02% to 79.12% annually. Among leveraged enterprises investing in financial assets, the portion of leveraged capital directed toward such investments escalates annually, from 20.44% to 46.37%. However, as leveraged capital increases, the ratio allocated to financial assets diminishes. Approximately 14.38% of all leveraged enterprises allocate more than 50% of their financial assets through leveraged capital, with the proportion of enterprises solely reliant on leveraged capital for financial asset purchases steadily increasing, reaching 23.35% in 2020, predominantly concentrated in the manufacturing sector. This research holds theoretical significance for understanding the dichotomy between the virtual and tangible applications of leveraged capital at the microlevel. It uncovers the logical mechanisms governing leveraged capital and disparate asset allocations, fostering opportunities for quantitative exploration of the interplay between finance and the tangible economy. Additionally, our insights provide valuable reference points for regulatory bodies seeking to fortify oversight over leveraged capital utilization
DO CHARACTERISTICS OF BOARDS AND SUBCOMMITTEES AFFECT CORPORATE SUSTAINABILITY?
Get PDFPurpose: This paper explores the level of corporate sustainability in large listed companies in India. It also aims to identify the importance of the board and its subcommittees in improving corporate sustainability.
Methodology: This study employs an ordered probit model in a panel data framework.
Findings: The study provides evidence of the importance of independence and gender diversity of the board of directors and its committees in the context of corporate sustainability. It also evaluates whether the insights of key theories in corporate finance (like agency theory and stakeholder theory) are applicable in the context of corporate sustainability. Specific characteristics like the independence and gender diversity of the board, and its subcommittees (namely the audit committee, risk management committee and corporate social responsibility committee) were found to impact corporate sustainability.
Originality: This is the first study to identify the impact of characteristics of various subcommittees on corporate sustainability. This is also the first study to highlight the significance of a risk management committee in maintaining corporate sustainability. This study would be beneficial for researchers, practitioners and policymakers in the area of corporate sustainability
DISPARITIES IN CHINA'S LABOUR MARKETS BETWEEN URBAN AND RURAL AREAS
Get PDFThis paper focuses on examining the urban-rural gap in China's labour market, using CHFS data. The findings indicate that rural workers in China exhibit a high employment rate due to lower education levels, making it easier for them to secure basic jobs in society. However, they often face lower wages and lack housing and medical insurance, making it challenging for them to sustain themselves in urban areas. It is crucial to recognize that the economic well-being of workers is not solely determined by wage income but also by working conditions and stability. Disparities between urban and rural labour forces cannot be overlooked, as migratory workers also encounter distinct labour agreements and social welfare rights. Research suggests that individuals with lower education levels tend to fare better in rural areas, whereas those with higher education levels typically thrive in urban settings
ARE FUND MANAGERS SKILLED OR IS IT SIMPLY LUCK? A CASE OF ENERGY MUTUAL FUNDS
Get PDFFund managers often tout that the performance of the funds they manage is due to their wisdom and management skills. The success in convincing the investors to this notion enables them to claim a higher salary and perks for themselves and charge a hefty or premium fee from the investors for the company they work for. However, changes in government policies, as well as in domestic and international market conditions, often influence the performance of the funds they manage. Suppose investors are not aware of this phenomenon. In that case, they may end up unnecessarily paying a hefty fee to the fund managers and investing in the wrong stock or mutual fund thereby suffering a loss in terms of the return on investment and capital loss. So, the investors must know whether the performance of any funds is due to the wisdom or skills of the fund managers or simply due to some exogenous factors beyond their control, which, in this study, we call luck. In this study, we apply the so-called Fama and French's bootstrap simulation method to determine whether the observed value of alpha – a measure of the fund’s performance – is due to fund managers’ skill or simply luck using data on monthly returns of the fifteen Equity Energy mutual funds from January 2024 through June 2019. This method involves computing a distribution of t(alpha) estimates of actual fund returns and comparing it to the performance of a cloned population of lucky funds with their true alphas set to zero. If actual funds produce higher values of t (alpha)s than the cloned population of lucky funds, then fund managers do have the skill. This distinction between skill and luck is crucial, as funds can do well or poorly by luck.
Our study shows that funds can produce extreme alpha values just by luck, even if the fund's true alpha is zero. This implies that long-term investors are better off holding market portfolio ETFs and earning market return rather than paying more in fees and overall costs in attempts to beat the market.
JEL classification: G
DOES INCOME INEQUALITY PROMOTE ECONOMIC GROWTH?
Get PDFWe derive a model in which we show that economic growth is directly affected by a change in marginal propensity to consume. We apply the vector error correction model, results from which show that Gini coefficient – a measure of income inequality – negatively affects marginal propensity to consume. Therefore, we concluded that a rise in income inequality would negatively affect marginal propensity to consume and thereby economic growth in the long-term and the short-term both. The short-term effect will show up with a one-period lag.
JEL Classification: E20, E21, E25, O4
MEASURING ORGANIZATIONAL LEADERSHIP IN AFRICA
Get PDFOrganizational leadership in Africa is under-studied. Pan-African leadership theories have been proposed but it seems unlikely that the same leadership styles would be equally effective in every African country. For example, South Africa has much lower power distance and much higher individualism than Egypt or Nigeria according to the Hofstede system for classifying national cultures. The differences between South Africa and the other two nations appear vast enough to require different leadership styles. How can we cluster African countries into groups within which the same leadership styles will be effective? Our proposal is to conduct leadership surveys in multiple African countries and to examine the modal response in each country to each question. If the modal response is 4 or 5 on a 5-point scale, the question should be retained. If the modal response is 3, the question should be dropped. If the modal response is 1 or 2, the question should be retained but reverse scored. Countries with similar modal responses may have similar optimal leadership styles. We illustrate how this could be implemented using data from a leadership survey conducted in The Gambia, a small nation in West Africa. We conclude with implications for research and practice
‘Away From Home’ - A Systematic Literature Review of the Factors and Challenges of Women Migration
Get PDFFeminization of Migration refers to the increasing participation of women in long-distance migration, a trend driven by the evolving gender dynamics in the workforce. This shift is characterized by the engagement of women in occupations traditionally perceived as feminine, demanding the presence of women in these sectors. Consequently, the concept of the "Feminization of Migration" has prompted a gender-focused perspective on migration, redirecting attention towards the rights and interests of women within migration streams. Global patterns of women's migration have undergone a transformation, moving beyond the traditional role of women migrating as dependents with their families. Instead, there is a notable trend of women migrating independently, driven by economic motives and assuming the role of primary breadwinners for their families. This shift has not only altered the landscape of migration but has also amplified the presence of women in migration literature and practical policies designed with a gender-responsive approach. In light of these developments, this paper aims to conduct a systematic literature review that explores the factors and challenges associated with women's migration