Volume XXIII, Number 1 (May 2020)
ABSTRACTS
Does Working Capital Management Affect Profitability of Ghanaian Manufacturing Firms?
Kwadwo Boateng Prempeh
Godfred Peprah-Amankona
Abstract: This paper analyses the link between working capital management and profitability of firms in the context of developing economies. A balanced panel consisting of eleven (11) manufacturing firms listed on the Ghana Stock Exchange covering the period of 2011-2017 was used. The link between working capital management and profitability was examined using dynamic panel regression (Arellano-Bond Estimation) technique. The study revealed that there is a significant positive linear relationship between working capital management and firms’ profitability. The findings also reveal the existence of a concave quadratic relationship between working capital management and firms’ profitability. There is an optimal level at which working capital management maximises firm’s profitability, therefore, managers need to ensure that they operate within the limits of the optimal level by implementing an effective and efficient working capital management policy. The study concludes that, the practice of an aggressive working capital management policy maximizes a firm’s profitability.
JEL Classification:
Keywords: working capital management, cash conversion cycle, dynamic panel regression, manufacturing firms, profitability
Weather-Induced Moods and Stock-Return Autocorrelation
Anya Khanthavit
Abstract: TMoods affect investors’ attention, memory, and capacity to process information. Inattentive investors delay the price adjustment process, thus leading to a positive autocorrelation of asset returns. In this study, I investigate the relationship between weather-induced moods and stock-return autocorrelation in the Stock Exchange of Thailand from January 2, 1991, to December 29, 2017. Only good moods contribute significantly to return autocorrelation.
Keywords: iinformation processing, moods, limited attention, return autocorrelation, weather effects
Assessment of Women’s Early-stage Entrepreneurial Activity in 2018
Iuliia S. Pinkovetskaia
Tatiana V. Gromova
Irina N. Nikitina
The Optimal Capital Structure under the Conditions of Employment: An Application of Theory X and Theory Y
Chamil W. Senarathne
Interrelation of Capital Markets in the Context of Increased Audit Oversight in the European Union – Evidence on Third-Country Auditors
Mihaela Mocanu
Octavian Iancu Ionescu
Abstract: We identified a notable lack of academic literature on the issue of third-country auditors and the main contribution of our article is to address this gap. This research builds on adjacent audit oversight and capital markets literature and we extend this literature by providing evidence on third-country auditors. Specifically, we test the relationship between market capitalization and number of foreign IPOs of listed companies in representative EU countries (on one hand) and the existence of third-country auditors in those respective countries (on the other hand). Our research was performed in the second half of 2018 and is based on the latest data available. We have found that there are about 200 third-country auditors present in the public registers of audit oversight bodies in 11 EU countries. According to our network analysis, only European countries with a developed capital market have attracted third-country auditors. Most of the relationships of these developed EU capital markets are nurtured with non-EU capital markets that are at the same level of development (e.g. USA, Switzerland, Canada, Israel, and Australia). Our research hypotheses were validated: (1) the higher the market capitalization of a EU country, the higher the likelihood for the registration of third-country auditors; (2) the higher the number of foreign IPOs relative to the total IPOs on the stock exchange market, the higher the likelihood for the registration of third-country auditors.
Factors Influencing Purchases of Organic Food
Michaela Jánská
Patrícia Kollar
Čeněk Celer
Abstract: The goal of the article is to describe factors influencing purchases of organic food by consumers in a selected area of the Czech Republic. We have researched and analysed reference books and studies focused on the topic to fulfil the goals of the article. Data acquired during a questionnaire survey with selected consumers was used as primary data. The impact of different factors on the purchase of organic food was researched based on an effect of demographic indicators. Hypotheses were stated to study relations among variables, and we examined the statistical importance and correlation of particular hypotheses. We used another statistical method – a decision tree – to seek connections between the variables. The results show that purchases of organic food are influenced by the price, the taste, the sense of health and the content. The connection between the researched factors and demographic indicators is usually low and statistically insignificant.
JEL Classification: M30, M31
Keywords: Organic food, purchase, environmentally friendly agriculture, factors impacting purchases, taste of organic food
A Dynamic Network Comparison Analysis of Crude Oil Trade: Evidence from Eastern Europe and Eurasia
Abdolrasoul Ghasemi
Teymour Mohammadi
Jurica Šimurina
Atefeh Taklif
Keywords: Crude Oil Trade, Dynamic Network Connectedness Measure, Gravity Model, Nonlinear Panel ARDL Model
The Nexus between Economic Sentiment Indicator and Gross Domestic Product; a Panel Cointegration Analysis
JEL Classification: C33, E24, F02
Keywords: Economic sentiment indicator, GDP, business cycles, panel cointegration analysis, European Union
Financial Liberalization and Current Account Developments in New EU Member States
JEL Classification: C33, F32, F41
Keywords: European Union, current account balance, financial openness, real effective exchange rate, pooled mean group estimator