International Research Journal of Finance and Economics
 Issue 140
 October, 2015
MGNREGS and Economic Empowerment of Women: Evidence From Kerala, India
Keerthan Rose Alexon Puthukkeril and Manoj P K

The paper examines the impact of Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) on the economic empowerment of women labourers associated with this scheme. The study uses a sample of 675 women labourers, comprising of 225 each randomly drawn from the three top most performing Grama Panchayaths corresponding to the three top most performing Districts in Kerala in respect of MGNREGS (viz. Thiruvananthapuram, Palakkad and Alappuzha). The study analyses the economic status of these women prior to and after getting MGNREGS employment, based on a number of parameters. It is noted that there is significant improvement in their economic status as a result of employment under MGNREGS.
Keywords: Alternative Income, Financial Security, Standard of Living, Freedom to Spend.
Stock Market Returns and Volatility in an Emerging Stock Market: Evidence from Nigeria
Esosa Bob OSAZE and Jeffrey Ogie EGUAVOEN

This study attempted to establish the relationship between stock returns and volatility and to test for the existence of volatility persistence as well as asymmetric effect in the Nigerian stock market. The nature of this research necessitated the use of secondary data which comprise the daily all share index obtained from the Nigeria Stock Exchange (NSE) and spanning 27th December, 2000 to 30th September, 2010. The Exponential Generalized Autoregressive Conditional Heteroskedasticity-in-Mean (EGARCH-M) model was adopted. In evaluating the issues in the study empirically, descriptive statistics and the two tests for conditional heteroskedasticity which are ARCH test and Ljung-Box test were carried-out. Also, unit root tests and the estimate of the EGARCH-M were conducted. Empirical findings of the study revealed that there is a positive and significant relationship between stock returns and volatility, asymmetric and leverage effects as well as volatility clustering in the Nigerian stock market. However, there is little evidence to suggest the existence of volatility persistence, though the market was volatile.
Keywords: Stock, Volatility, Emerging Market, Autoregressive, Heteroskedasticity, GARCH
Comparison of Resistance Training and Electro Muscle Stimulation on Whr and Muscle Damage in Over Weight People
Bijan Goodarzi

To determine the effects of electro muscle stimulation (EMS) in compare with resistance training (RT) on decreasing weight and the level of Creatine Kinase (CK) in overweight students. The study comprised of 90 male students who were classified into 3 groups as EMS (n=30), RT (n=30) and Control (n=30). Anthropometric measurements and CK levels were analyzed. Analysis of weight in 3 groups after 16 week exercise reveal that RT is more effective to decrease weight but in EMS increased level of the CK. Overweight and Obesity is the important problem in the new era. Effects of new and advanced exercise protocol and positive effect of decreasing weight and help reduce the risk of cardiovascular diseases in the young population. Also level of CK showed that long time using of EMS could be increased muscle damage.
Keywords:Electro Muscle stimulation, Resistance Training, Overweight, CK
Corporate Governance: Mechanisms and Functions
Hamed Vares and Zohreh Naseri Taheri

Agency theory has been by far the dominant paradigm in the literature on corporate governance and public firms. Since control is in the hands of managers who act as agents on behalf of the shareholders, there exists a moral hazard in which the agents may act in ways that do not serve the interests of owners. Solutions to constrain such opportunistic behaviour on the part of management combine a mixture of mechanisms as monitoring and incentives. In this article, we review agency problem and then introduce several corporate governance mechanisms such as board of directors, ownership concentration, managerial ownership, managerial compensation and debt financing which function to reduce agency cost.
Keywords: Corporate Governance, Agency Theory, Agency Cost, Mechanisms, Functions.
Determinants of Dividend Policy behavior Evidence from Pakistan
Antonio Goncalves de Andrade, Yang Qing and Akhtiar Ali

The present work attempts to explore dividend puzzle by studying dividend policy behavior of non-financial companies listed in Karachi stock exchange. Panel data of 195 observations for period 2009 to 2011 was selected to test the model using random logit and random probit tools. Dividend payout is used as a dependent variable and leverage, profitability, liquidity, firm size, free cash flow, business risk, change in earnings per share and asset structure are independent variables. The empirical result shows a negative relationship between dividend payout and leverage whereas, earnings per share, profitability, firm size and age have positive relationship with dividend payout.
Keywords:Dividend payout, panel data, non-financial firms and tools
Foreign Direct Investment and Economic Growth Quality during the Crisis Period
Truong Quang Thong

Using statistical data retrieved from the General Statistics Office (GSO) and State Bank of Vietnam (SBV), this paper explores Foreign Direct Investment (FDI) as a contributory factor to Vietnam’s economic growth from a qualitative point of view. On the ground of its findings, broader implications can be drawn for macro policy planning including but not limited to the less-than-unexpected contribution of Total Factor Productivity (TFP), the issues of trade deficit and current account deficit resulting from the FDI, and the role of this sector in creating employment as well as enhancing labor quality and productivity.
Keywords: FDI, economic growth, TFP, trade deficit, labor quality
JEL: E01, F21, F43
The Reform of Work Agreement in Indonesia
A R Budiono

BurgerlijkWetboek (commonly translated into the draft Civil Code) regulates the work agreement. Norms of work agreement in the BurgerlijkWetboek not able to accommodate the development of employment relationship after Indonesia’s independence.Then published Law No. 12 of 1948, which also set about the work agreement. Very understandable if the work agreement arrangements in the Act No. 12 of 1948 finally also incapable to accommodate the development of the employment relationship when the industry is currently developing very rapidly in Indonesia. There has been law No. 25 of 1997 on Manpower, but never effectively valid. Finally made Law No. 13 Year 2003 on Manpower. Although there are still many shortcomings in some sectors, it can be said that Law No. 13 of 2003 has reformed work agreement in Indonesia.
Keywords: work agreement, employment relations
Estimating Beta Pricing Models with or without an Intercept: Results from Simulations
Armin Bänziger and Thomas Gramespacher

The two-pass (cross-sectional) regression approach is widely used for estimating risk premia and testing factor pricing models. We investigate on two problems of the methodology, namely the error-in-variable bias and the large standard errors of the estimates.To mitigate these effects, we propose to run the first- and/or second-pass regression without an intercept(constant), hence imposing the theoretical restriction of the factor pricing model. We use simulations to assess the (finite sample) properties of estimators in the different regression specifications. Findings show that the error-in-variables bias and the standard errors of the estimates can be reduced considerably. Nevertheless, the standard errors remain substantial, even in large samples, so that statistical inference remains achallenging endeavor.
Keywords: Asset pricing econometrics, two-pass approach, cross-section regression, simulation study
JEL Classification: G12, C58
Study on Assessing Economic Vulnerability in CEMAC
Adèle Micheline Ngo Bilong and Chameni Nembua Célestin

The main purpose of this study is to assess economic vulnerability of CEMAC. The determination of the Economic Vulnerability Index has demonstrated that each of the six CEMAC countries is considerably vulnerable even as reasons differ from a country to another. Among the CEMAC countries, Cameroon, Congo and Chad are the most vulnerable. The high vulnerability in Cameroon can be explained by the instability of agricultural production and export earnings while in Congo and Chad, the major factor of vulnerability is the high concentration of exports. In Gabon and Equatorial Guinea, in addition of the small size of the population, the high concentration of countries in the export of base products are the main causes of economic vulnerability. Finally, CAR’s economy is largely dependent on agriculture, forestry species and forestry. These three sectors represent an important part of its GDP so, a natural or external shock on these sectors could involve a considerable decrease of GDP.
Keywords: CEMAC, Economic vulnerability Index, economic exposure, economic shocks
Implications Financial Development on Economic Growth in Nigeria: Vector Error Correction Model
Odo, Stephen Idenyi, Eze, Onyekachi R. and Ogbonna Sam Onyeisi

The general objective of this study is to evaluate the relationship between financial development and economic growth in Nigeria from 1980-2013. The study made use of co-integration techniques and vector error correction model. The study observed that there exist a long run equilibrium relationship between financial development and economic growth in Nigeria, that ratio of broad money supply to GDP have no significant implication on economic growth in Nigeria, ratio of domestic credit to private sector to GDP have no significant implications on economic growth in Nigeria and that the causal relationship between financial development and economic growth indicated that ratio of Domestic Credit to the Private sector granger cause the economy. In the estimation of VECM, the error correction term indicated that the system corrects its previous disequilibrium at a speed of 74.6% each year. The policy implications of the findings shows that government should encourage the monetary authority like the central bank of Nigeria to reduce interest rate thereby increasing money supply so that prospective investors can increase their investment and raise the nation’s production capacity. Based on the findings, we recommend that considering the ratio of broad money supply to GDP which has no significant impact on economic growth within the period under study, government should encourage the monetary authority like the central bank of Nigeria to reduce interest rate thereby increasing money supply so that prospective investors can increase their investment and raise the nation’s production capacity.
Keywords: Financial Development, Economic Growth, Co-integration, GDP, VECM, M2.