The Effect of Efficiency and Liquidity on the Profitability of the Saudi Commercial Banks (Published)
This study aimed at finding the effect of efficiency and liquidity on the profitability of the Saudi Commercial Banks. The profitability as a dependent variable is measured by return on assets, return on equity, operating profit Ratio, net interest margin ratio and net interest income ratio. Meanwhile, the efficiency and liquidity as independent variable are measured by Cost to income, Loans to total assets, total customer deposits to total assets and Loans to deposits. The study sample included 12 banks for the period 2014 to 2020. A set of statistical tools and financial indicators were used to test the validity of hypotheses. The results indicated that first, second and fifth hypothesis were rejected and third and fourth were accepted. The study recommend that Saudi commercial banks should focus more on liquidity and follow appropriate policies to gain more profitability. Finally, more studies and research work are required in the same field.
Citation: Ahmad Mohammad Alamri and Ahmad Aref Almazari (2021) The Effect of Efficiency and Liquidity on the Profitability of the Saudi Commercial Banks, European Journal of Accounting, Auditing and Finance Research, Vol.9, No. 8, pp.1-13
Equity in education is when every student receives the resources needed to acquire the basic work skills of reading, writing, and basic arithmetic. While Ghana has achieved near universal access to primary and lower secondary education, the gross enrollment rate in higher secondary education was below 45 percent in 2014, with large disparities in access. In the year 2017, the government of Ghana implemented a free SHS policy on a free access to secondary education for all. This research sought to investigate the implications of the free senior high school policy to educational access and equity in secondary education in Ghana. The document analysis approach was adopted for this study. The findings revealed that the free SHS policy has really increased enrollment figures in secondary schools’ attendance. The researcher recommended that parents, teachers, school administrators, policy analysts and relevant stakeholders have the responsibility to offer alternative proposals and do so in a manner that is constructive and helpful to the policy discourse.
An extensive review of equality and the distribution of income for the social activities (Published)
The three topics put together in the title of this paper are not appropriate and can be compared with elements of the classic Russian definition of Winston Churchill. Mystery, mystery in mystery. Make no mistake. This is a complex field. The purpose of this paper is to add some wrinkles to the Byzantine subject area. The ultimate goal is to introduce a new way to measure income distribution. An approach that can provide the basis for actually moving the public policy needle on the issue of income redistribution. The paper begins with a broad overview of “equality and income sharing” as the topic develops from the past. Plus year, the main measure of income distribution is used by economists to assess equality and social status, focusing on the Lorenz curve / Gini ratio analysis. Furthermore, the argument “income distribution and distribution” continues. This is a match for the previous discussion on equality, the preface to the topic “equity and income distribution”, and this paper details a new approach to assessing the equity of income distribution. . This paper concludes with a series of policy implications on income redistribution, as implied by the measurement of income distribution described in the previous section of this paper.
Capital Structure and Firm Performance Nexus in Nigeria: A Case Study of Aluminum Extrusion Company PLC (Published)
This study investigated the link between capital structure and firm performance in Nigeria using Aluminum Extrusion Company PLC (ALEX), a company listed under the Basic material sector of the Nigerian Stock Exchange as a case study. The study adopted return on capital employed as proxy for firm performance (response variable), while capital structure components such as debt to equity ratio, debt to capital employed ratio and equity to capital employed ratio were used as the explanatory variables. Secondary data were collected from the annual published financial reports of the company for the period 2009 to 2018. The study employ descriptive statistics and multiple regression technique based on the E- view 9.0 Software as the methods of data analysis. The results revealed that debt to equity ratio has significant positive effect on return on capital employed, debt to capital employed ratio has negative influence on return on capital employed and equity to capital employed ratio has no influence on return on capital employed. Overall, capital structure has no significant effect (at 5% level) on firm performance. Based on the findings, the study recommended among others that the company should finance her activities with retained earnings and use debt as the last option as this is in agreement with the perking Order theory; that the indirect effect of capital structure on firm performance be analyzed by future researchers and that the company managers are advised to be extremely conscious in the use of debt financing as an option in their capital mix up to the optimal limits, as debt to equity ratio provides positive effect though not significant on performance.
This study investigated the effect of capital structure on firm performance using a sample of seven companies listed under the consumer goods sector of the Nigerian Stock Exchange. The study adopted return on assets as proxy for performance (the response variable), while capital structure components such as debt to equity, debt to capital employed and equity to capital employed were used as the explanatory variables. Secondary data were collected from the annual published financial reports of the sampled consumer goods sector companies for the period 2009 to 2018. The study employed descriptive statistics and multiple regression technique based on the E-view 9.0 software as the methods of data analysis. The results revealed that debt to equity has insignificant positive impact on return on assets, debt to capital employed and equity to capital employed had negative but insignificant effect on return on assets. Over all, capital structure has no significant effect (at 5% level) on firm performance in the consumer goods sector. Based on the findings, the study recommended among others that the management of consumer goods sector companies should exercise caution in considering the use of debt finance (following the Pecking order theory) in their capital mix up to the optimal limits, as debt to equity ratio provided insignificant positive effect on performance; and that further studies be conducted on other sectors of the economy to provide more robust generalized inferences.
The significance of project finance cannot be overemphasized as there is a paradigm shift in financing capital intensive projects by both private and public entities using project finance schemes as opposed to traditional corporate finance across the world. Unfortunately, a number of such projects are engulfed into financial distress at some point in their life cycles. In order to address this issue, this paper examined the elements of project financial distress, its major signs, sources, and as well as suggesting ways to eliminate these undesirable consequences. The methodology used is the critical analysis of empirical literature. Findings of this study provide basis for addressing financial distress conditions by restructuring financially distress projects. The findings also indicate that restructuring can be looked at in four broad dimensions notably; financial, asset, operational, and managerial
Prices do not remain constant over a period of time. They tend to change due to various economic, social or political factors. Changes in the price levels cause two types of economic conditions, inflation and deflation. Inflation may be defined as a period of general increase in the prices of factors of production whereas deflation may fall in the general price level. These changes in the price levels lead to inaccurate presentation of financial statements which otherwise are prepared to present a true and fair view of the company’s financial health. This is so because the financial statements are prepared on historical costs on the assumption that the unit of account. Accounting for price level changes is a system of maintaining accounts in which all items in financial statements are recorded at current values. This system of accounting ascertains profit or loss and presents financial position of the business on the basis of current prices. Accounting for price level changes is also called inflation accounting.
The Application of the Capital Asset Pricing Model (CAPM) In the Nigerian Chemicals and Paints Industrial Sector (Published)
This paper calculated the (historical) betas of listed stocks in the chemicals and paints sector of the Nigerian Stock Exchange over a 13-year period (2000-2012). The beta estimation of listed stocks showed that the beta content of the entire sector ranges between 1.04% and -0.13 or between 6.78 and -2.31% providing an average beta content of 0.37 or 1.50% of the total risk for the sector. The results indicate that the unsystematic risk content in chemicals/paints sector stocks constitutes the bulk of the sector’s risk profile and that most of the stocks’ betas had defensive attributes over the study period. The investment implication is that including an appropriate mix of chemical and paints stocks in the investors’ portfolios would, ceteris paribus, help investors to achieve a combination of investments that are not highly correlated with larger economic cycle as well as higher-risk equity securities that can potentially yield higher returns than the market.
The study investigated the relationship between bank equity capital and profitability by sampling fourteen (14) banks, using the purposive sampling technique, out of the twentyeight (28) universal banks operating in Ghana at the time, with data covering an eleven- year period (2005-2015). The study adopted the panel data methodology to examine the effect of bank capital on profitability. The random-effects Generalised Least Square (GLS) regression was adopted as an estimation technique for the research. The study revealed that equity capital is significantly and positively related to Net Interest Margin (NIM), and Return-on-Equity (ROE). Bank size is significantly and negatively related to ROE, and insignificantly inversely related to NIM. Regulated bank capital is a disincentive to inclusive financial intermediation in Ghana.