International Research Journal of Finance and Economics
 Issue 172
 March, 2019
The Influence of Business Opportunity Response, Business Network, and Ability to Build Ideas on Planned Behavior and Entrepreneurship Intention
Nur Halim, Murdjani Kamaluddin, Nurwati and Adnan Hakim

The aim of this research designed as descriptive associative, to determine causality between the response variable business opportunities, business networks, the ability to build on the idea, planned behavior, and entrepreneurial intention of college student. The location of this research is at several universities in Kendari. The data collection of this research was conducted at the beginning of February 201 8 until the beginning of March 2018, which was adjusted to the lecture time and time of the student business service. The population of this research is all active students in Kendari. Sampling is adapted to the technical analysis of structured equations. Sample research using technical analysis of SEM. The size of the sample in this study as much as 150 respondents spread across several universities in Kendari, Southeast Sulawesi. Types of data used in this study are quantitative data and qualitative data is data obtained by measuring the value of one or more variables in the sample. In this research, some variables are measured with ordinal data that is primary data sourced from respondents done by way filling questioner. The analysis model used in this research is structural equation model (SEM) equation analysis with simultaneous equation. This study found a strong influence on the response of business opportunities, business networks, and the ability to build on the idea and planned behavior against the interests of students to to run the business, but not has strong influence of response to business opportunities, business networks, and the ability to build on the idea of the planned behavior.
Keywords: Business Opportunities Responsive, Business Network, Idea Building Skills, Planned Behavior Entrepreneurial Intention, Student
Formulation of Brazilian Sugar Basis Forecasting using Time Series Models: Comparison Between The Northeast and Southeast Spot and Ice Futures Markets
Felipe Araujo de Oliveira, Márcio Rodrigues Bernardo, Waldemar Antônio da Rocha de Souza and Carlos Heitor Campani

Sugar basis identification indicates a strategic tool for decision-making in Brazil. We formulate an accessible forecast using ARMA (p, q) time series models, comparing Brazilian sugar spot and ICE futures markets. We identify sugar basis in Alagoas and São Paulo with synchronous high and low primary movements, volatility, with a correlation coefficient of 0.70, illustrating a high and positive magnitude, and descriptive statistics for Alagoas that are higher than São Paulo. Alagoas shows seasonality over the year, whereas São Paulo, for nine months. Comparing forecasting errors between ARMA (p, q) and SARMAX (p, q) models, the monthly sugar basis model for Alagoas is SARMAX (1, 0). For São Paulo, the forecast model is ARMA (2, 0). In addition, the Alagoas sugar basis breakpoint month is 2008M09, and São Paulo breakpoint month is 2011M11. These breakpoints coincide with the identifiable sugar basis level and volatility trends in the examined period. Both forecast models are easy to use and implement, and are strategic informational inputs for more efficient allocative decisions by the Brazilian sugar supply chain.
Keywords: Brazilian sugar basis; Forecast; Time series; Breakpoints; ARMA (p, q) and SARMAX (p, q).
JEL Classification: C22, E27, Q14
A Reexamination of the Service Quality Differential between Marketing Systems in Commercial Insurance
Jui-Yun Wu, Chun-Ting Liu and Chao-Feng Chiang

Previous studies have shown that more costly insurance intermediaries can provide better service quality to clients in personal insurance. From an alternative perspective, this study attempts to verify the product quality hypothesis in commercial insurance with 245 effective questionnaires from Taiwan’s top 1,000 manufacturing firms. By employing regression analyses, we test the impact of different marketing channels and the specific characteristics of firms on seven input as well as output dimensions related to service quality. We find mixed evidence for the product quality hypothesis. The findings support that the insurance broker dominates over the underwriting director in terms of consulting service. However, this is not the case in terms of renewal willingness due to the price concern.
Keywords: product quality hypothesis, insurance broker, underwriting director.
JEL Classification:
Does Reduction in Inequality of Income Distribution Matter for Poverty Reduction? Evidence from Nigeria’s Poverty Trends
Ademola Obafemi Young

In recent years, the debate on whether growth is sufficient for poverty alleviation or it should be accompanied by the establishment of income distribution policies has been a subject of controversy in economic development discourse. While the debate is still inconclusive, there are strong arguments that though growth is good for the poor; nonetheless, growth with redistribution is expected to provide even better outcomes. This study seeks to supplement the debate by providing empirical evidence from Nigeria’s poverty trends. The paper estimated poverty elasticity with respect to growth and inequality, the theoretically well-established pro-poor growth index and growth-inequality trade-off index in the context of Nigerian economy spanning between the period 1970 and 2018 using ARDL-Bounds Testing Approach to Cointegration. The results obtained revealed that high poverty elasticity with respect to inequality measures confirm the importance of inequality in poverty reducing effort. Thus, economic growth policies that promote an increase in income in conjunction with a reduction in income disparities are more effective in combating poverty in Nigeria than those that focus only on raising RGDP per capita growth.
Keywords: Autoregressive Distributed Lag (ARDL) Model, Growth-Inequality Trade-Off Index, Income Inequality, Poverty Incidence; Pro-poor Growth Index, Nigeria.
JEL Classification: O15; 055
Implications Of Financial Technology For Professionals In Financial Services In Nigeria
Sunday Mlanga

The study conceptually and theoretically examined the implication of Financial Technology (FinTech) for professionals in the financial system. It was discovered that any entity or professional within the financial milieu that fails to align with the ever changing technology incorporated into the financial system will be left behind. Hence, it is recommended that professionals must make deliberate attempts to the technologically inclined as regards FinTech. Also, regulators must also be technologically adept in a bid to curb excesses that may arise as a result of the rise of FinTech such as non-compliance with the data protection of customers while firms must regularly train its staff and consciously build dynamic capabilities to ensure that the firms adapt to the dynamic nature of FinTech within the financial system. Also, the government in Nigeria just like in China should implement policies that will further strengthen FinTech and encourage such innovators within the borders of Nigeria.
Keywords: FinTech, Innovation, Professionals, Financial Services, Nigeria
JEL Classification:
Tradition of Inflation Affected by Wages, Inflation, and Exchange Rate on the Investment Policies in Indonesia
Priyono, Briyan Cadalora Putra, Cisa Cadalora Putri

The aim to be achieved in this study is to determine and test wage variables on investment policy, test the inflation variable on investment policy, examine the exchange rate variable on investment policy, and examine which of the wage variables, inflation variables, and exchange rate variables are the most influential towards investment policies.
The population in this study were all workers who worked in formal retail units with a total workforce of 96,745 people from 6,183 formal retail units, while the sample in this study was calculated using the Slovin method with an error limit of 9% and had an accuracy rate of 91%.
Test results, wages affect investment policies, Inflation affects investment policies, exchange rates affect investment policies, and wage variables, inflation variables, and exchange rate variables together affect investment policy.
Keywords: Wages, Inflation, Exchange Rates, Investment Regions
JEL Classification: O31, O35, O39, Z31