Tag Archives: Regression

Marketing Research on Food Consumers’ Behavior in Georgia’s Consumer Market (Published)

The marketing survey of thirty products has been included in the consumer basket of Georgia. Information obtained from the respondents’ surveys on the current and consumable acceptable prices of products are used by this information to construct linear, indicative and linear models to reflect the change in time.

Keywords: Marketing, Regression, Respondent, consumer prices

Education and Economic Growth in South Asia (Published)

Interconnection between education and economic growth is a subject of great interest in most developing nations in the world today. This is because economic growth is one of the key indicators of the level of national development. In this study, regression analysis is applied to look into the genuine effects and the relationship between education and economic growth of the Southern Asian Countries such as Bangladesh, India, Nepal, Pakistan, Maldives, Bhutan and Sri Lanka. The methodology consists of the means of estimation and econometric analysis which help to determine the actual quantitative effects of education in economic growth especially in South Asian nations. By this, an affirmation of the relationship between the two variables can be made due to enough evidence obtained in this study.

Keywords: Education, GDP, Regression, South Asia, economic growth

Education and Economic Growth in South Asia (Published)

Interconnection between education and economic growth is a subject of great interest in most developing nations in the world today. This is because economic growth is one of the key indicators of the level of national development. In this study, regression analysis is applied to look into the genuine effects and the relationship between education and economic growth of the Southern Asian Countries such as Bangladesh, India, Nepal, Pakistan, Maldives, Bhutan and Sri Lanka. The methodology consists of the means of estimation and econometric analysis which help to determine the actual quantitative effects of education in economic growth especially in South Asian nations. By this, an affirmation of the relationship between the two variables can be made due to enough evidence obtained in this study.

Keywords: Education, GDP, Regression, South Asia, economic growth

Mathematical Modelling Of Derived Energy Content from Moisture Content of Palm Kernel Tree (Published)

It is important to model out the optimization of energy process of palm kernel tree so as to evaluate the optimal values of the energy content parameters which will determines the performance and the useful lifespan of the palm kernel tree. This present study aims to develop models to investigate the effect of moisture content on the energy content of palm kernel tree that are 10 years and 20 years old using regression technique. In order to check the adequacy of the regression model, analysis of variance (ANOVA) was used. The experimental results are based on adequate laboratory methodology to increase the reliability of the experiments. It was clear from the ANOVA that the regression model is capable to predict the energy content with high accuracy.

Keywords: ANOVA, Energy content, Moisture Content, Palm kernel tree, Regression

Effect of Bank Specific Factors on Bank Loan Performance in Nepal (Published)

This study examines the effect of bank specific factors on loan performance of commercial banks in Nepal. Bank size, capital, deposit, liquidity ratio and lending interest rate are taken as bank specific factors. The study has conducted correlation and regression analysis using panel data of twenty four commercial banks during the period of 1996 -2017. The empirical results show that bank size, capital and deposit have positive impact on bank lending. Hence, commercial bank willing to increase lending should increase its capital, even more than regulatory standard. Further banks willing to lend more should expand their total assets and deposit. Liquidity ratio and interest rate have negative impact on bank lending. Thus, commercial banks willing to increase bank lending, should be careful in maintaining minimum liquidity requirement and interest rate fluctuation. Central bank willing to increase bank lending to productive sector should encourage banks to decline their lending interest rate.

Keywords: Bank Lending, Capital, Deposit, Interest Rate, Liquidity Ratio, Regression, Size

Gender and Academic Performances (Published)

Academic performances of male and female students were compared using grades obtained the various levels. The student t-test and Regression analysis were used. The result shows that: The female students score high in the upper grades A’s, B’s and C’s while the Male student have more of D’s, E’s and F’s. Both Male and Female students are putting in more efforts over the years in increasing the number of A’s and B’s they obtain. There is a reduction the number of C’s, D’s and F’s. On the number of E’s, the female students are decreasing the number they get so as to bring up their FCGPA, whereas the male students are increasing theirs thereby decreasing their FCGPA. The rate of improvement over the years is faster for the female students than the male students. The female students have a higher FCGPA than the male students. Female students perform better than their male counterparts

Keywords: : Academic Performance, Final Cumulative Grade Point (FCGP)., Gender, Regression, Scores

An Improved Model for Financial Institutions Loan Management System: A Machine Learning Approach (Published)

The inability of financial instructions, especially the Microfinance Banks, to forecast for the need of borrowers in order to make provision for them has been a cause for concern. Applications are made and most times the reply is that funds are not available. This paper demonstrated the design and implementation of neural network model for development of an improved loan-based application management system. The back propagation algorithm was used to train the neural network model to ascertain corrections between the data and to obtain the threshold value. The data was collected over a period of three years from UCL machine learning repository.  The system was designed using object oriented methodology and implemented with Java programming language and MATLAB. The results obtained showed the mean squared error values 1.09104e-12, 5.56228e-9 and 5.564314e-4 for the training, testing and validation respectively. It was seen from the result that neural network can forecast the financial market with minimum error.

Keywords: Mean Square Error, Neural network, Regression, Validation, and Forecasting.

Trend of Wheat Production in Lesotho and Its Determinants: Five Decades and Beyond (Published)

Wheat being the third most important cereal crop in Lesotho, after Maize and Sorghum, has been decreasing in production, area planted and yield. This decline has not been determined using statistical analysis. The objectives of the study were to (1) determine trend in wheat production, area planted and yield, (2) estimate regression coefficients of factors affecting wheat and (3) establish correlation coefficient of these factors. Time series data from 1961 to 2013 on total production of wheat, area planted, yield, rainfall and temperature were captured from FAOSTAT (2013). GENSTAT software was perform statistical analysis. The results revealed a dramatic decline in production, area planted and yield of 77%, 82% and 33.16%, respectively. Regression analysis revealed significant difference (p>0.01) among the regrsessors and each regressor had elasticity coefficient influencing wheat production. Correlation analysis showed that yield was highly correlated (r =0.6678) with area and moderately correlated with temperature (r =0.363) and rainfall (r = 0.2011).

Keywords: Correlation, Lesotho, Production, Regression, Wheat Trend

Working Capital Management Antecedents Impact on Firm Specific Factors: A Ten Year Review of Karachi Stock Exchange (Published)

The study aims of investigate relationship of working capital antecedents and profitability of the company. Seven variables are taken as proxy variable to measure working capital and its management. Population of the study is based on Karachi stock exchange listed companies. The sample of study is manufacturing sector of Pakistan. Thus, sample period contains on the ten years from (2005-2014). All variables have sound reliability and data is normally distributed. Therefore, correlation and regression analyses are applied. Hence, study revealed significant relationship of working capital management and profitability.

Keywords: Correlation, Normality, Normally Distributed, Profitability, Regression, Sample Period, Working capital.

Dummy Variable Multiple Regression Analysis of Matched Samples (Published)

Presented and discussed in this paper is the use of dummy variable multiple regression techniques in the analysis of samples drawn from several related or dependent populations ordinarily appropriate for random effects and mixed effects two factor analysis of variances model with one observation per-cell or treatment combinations. Using the extra sum of squares principle the method develops necessary sums of squares, degrees of freedom and the F-ratios required test to the significance of factor level effects thereby helping resolve the problem of one observation per treatment combination, encountered in the usual two factor analysis of variance models with one observation per cell. The method provides estimates of the overall and factor mean effects comparable to those obtained with the two factor analysis of variance methods. In addition, the method also provides estimates of the total or absolute effects as well as the direct and indirect effects of the independent variables or factors on the dependent or criterion variable which are not ordinarily obtainable with the usual analysis of variance techniques. The proposed method is illustrated with some sample data and shown to compare favourably with the usual Friedman’s two-way analysis of variance test by ranks often used for the same purpose.

Keywords: Dummy Variable, Extra Sum of Square, Friedman’s Two-Way ANOVA, Mixed–Effects ANOVA, Regression, Treatment.

Determinants of Financial Intermediation and Its Implications on Economic Growth in Nigeria (Published)

The main objective of this study is to investigate the effect of financial intermediation on economic growth in Nigeria. The study made use of ordinary least square regression analysis. The study shows that interest rate margin has significantly impacted on economic development in Nigeria, that credit to private sector has significantly impacted positive on the development of Nigerian economy and that the level of lending rate over the years has impacted negatively on economic growth in Nigeria. The policy implication is that improper management of financial intermediation will help the economy to develop. This means that there is significant and positive effect of financial intermediation on economic growth in Nigeria. We therefore recommend that Nigerian government should ensure that a component analysis of the real sector of the Nigerian economy be carried out with a view to having a better understanding of the inverse relationship between the loans to the private sector and the performance of Nigerian economy through financial intermediation.

Keywords: Credit to Private Sector, Financial Intermediation, Interest Rate Spread, Regression, economic growth

DOES EARNING PER SHARE DETERMINE MARKET PRICE OF ORDINARY SHARES? EVIDENCE FROM NIGERIA BANKING SECTOR (2000 – 2013) (Published)

The study aims at examining the magnitude and nature of the relationship between earnings per share and market price of ordinary shares in Nigeria banking industry from 2004 to 2013. In addition, it aims at ascertaining the impact of earnings per share on prices of ordinary shares in Nigerian banking industry. Ordinary least squares method in the form of multiple regression was applied in the analysis. Stationarity test was conducted using the Augmented Dickey- Fuller (ADF) and Phillip Perrons (PP) tests. The result reveals that earnings per share significantly and positively influence the market price of ordinary shares; with a strong and positive association too. Earnings per share also granger causes market price of ordinary shares and these characteristics are sustainable in the long run in Nigerian banking sector. The implication of the findings is that an increase in earnings has the tendency of increasing significantly the market price of shares and earnings per share is one of the key factors responsible for fluctuations in market price of ordinary shares in Nigerian banking sector. Therefore, it is pertinent for banks targeting the enhancement of their equity price to adopt workable strategies towards attracting more deposit, increasing their lending, reducing their expenditure profile and opening up other investment avenues to improve upon their earnings.

Keywords: Banks’, Earnings, Granger, Nigeria, Regression, Shares

Crude Oil Production, Prices, Export And Foreign Exchange Rate, Do They Interact? Evidence from Nigeria (2006 – 2014) (Published)

The purpose of the study is to determine the extent to which Foreign Exchange Rate is influenced by or associated with crude oil selling price, crude oil export and crude oil production and the direction and magnitude of their granger causalities in Nigeria oil and gas sector (2006 -2014). Data were collected from Central Bank of Nigeria Statistical Bulletin and multiple regression, correlation and granger causality approach were adopted in the analysis of data. It was found that foreign exchange rate is positively influenced by volume of crude oil export and the selling price per barrel of crude oil, though not significantly; while a weak and insignificant relationship exists between crude oil export, crude oil production and foreign exchange rate. There is no Granger Causality running from any of the explanatory variables namely crude oil export, crude oil selling price and crude oil production, to foreign exchange rate. This implies that there are other factors that exert more far reaching impact on foreign exchange rate than crude oil production, export and sales price in Nigeria. Hence, the regulatory agencies in Nigeria such as the Central Bank of Nigeria (CBN) and Securities and Exchange Commission (SEC) should strengthen other macroeconomic and microeconomic variables in other to foster a stable foreign exchange regime.

Keywords: Causality, Correlation, Foreign Exchange, OPEC, Regression, crude oil

DOES EARNING PER SHARE DETERMINE MARKET PRICE OF ORDINARY SHARES? EVIDENCE FROM NIGERIA BANKING SECTOR (2000 – 2013). (Published)

The study aims at examining the magnitude and nature of the relationship between earnings per share and market price of ordinary shares in Nigeria banking industry from 2004 to 2013. In addition, it aims at ascertaining the impact of earnings per share on prices of ordinary shares in Nigerian banking industry. Ordinary least squares method in the form of multiple regression was applied in the analysis. Stationarity test was conducted using the Augmented Dickey- Fuller (ADF) and Phillip Perrons (PP) tests. The result reveals that earnings per share significantly and positively influence the market price of ordinary shares; with a strong and positive association too. Earnings per share also granger causes market price of ordinary shares and these characteristics are sustainable in the long run in Nigerian banking sector. The implication of the findings is that an increase in earnings has the tendency of increasing significantly the market price of shares and earnings per share is one of the key factors responsible for fluctuations in market price of ordinary shares in Nigerian banking sector. Therefore, it is pertinent for banks targeting the enhancement of their equity price to adopt workable strategies towards attracting more deposit, increasing their lending, reducing their expenditure profile and opening up other investment avenues to improve upon their earnings.

Keywords: Banks’, Earnings, Granger, Nigeria, Regression, Shares

AN EMPIRICAL ANALYSIS OF PRE AND POST MERGER OR ACQUISITION IMPACT ON FINANCIAL PERFORMANCE: A CASE STUDY OF PAKISTAN TELECOMMUNICATION LIMITED (Published)

The research of this study is to define the objectivity of merger and acquisition impact in pre and post scenario of the event. The study has played with two parts, the first part of the study implement regression model with the help of accounting ratios of profitability and long term financial position ratios with score of bankruptcy. The second part of the study just analyzes the pre and post financial ratios and its trend over the period of time. The time period taken for the selected company PTCL is from 2003 to 2009, which covers the event. The results of first part of the study has shown that profitability and long term financial position of the company is producing a strong positive impact on the firm score of bankruptcy. The second part of financial ratio has seen that after acquisition the profitability of has declined significantly and it has affected the score of the bankruptcy i.e. Z-Score. The overall long term financial position is neither improved nor declined. It has shown a constant trend over the period of time in which the data is taken. It has been conclude that performance of PTCL has not improved over the period of time

Keywords: Acquisition, Bankruptcy, Long Term Financial Position, Merger, PTCL, Profitability, Regression, Z Score

MACROECONOMIC VARIABLES AND SHARE PRICE MOVEMENTS IN NIGERIA BREWERY INDUSTRY: EVIDENCE FROM NIGERIAN BREWERIES PLC (Published)

The research aims at examining the relationship between macroeconomic variables and the movement of share prices in Nigeria brewery industry, with emphasis on Nigeria Breweries Plc; the largest beer producing brewery firm in Nigeria. The level of association of the variables is validated using the ordinary least squares method, modeled in form of multiple regression. Granger causality method was applied to examine the causality relationship among the variables in the short run. Augmented Dickey- Fuller (ADF) test was conducted on all the variables, complemented with the Phillip-Perron’s (PP) test for unit root to check for data series stationary. All the variables except interest rate had the data series differenced at second difference as a result of their unit root issues. Interest rate was however differenced at level and intercept. The result indicates a positive but insignificant relationship between share price and inflationary rate, real GDP and exchange rate while a negative and insignificant relationship is found between share price and interest rate as only 13% of the variations in share price could be explained by the independent variables. Correlation between share price and all the independent variables are positive but largely weak. Granger causality test reveals no causal relationship between share price and interest rate, inflationary rate, real GDP and exchange rate in the short run. The paper recommends that macroeconomic variables should be seriously considered in setting monetary and fiscal policies because of its multiplier effect on the economy

Keywords: Brewery, Causalities, Macroeconomics, Regression, Share Prices, policies

MACROECONOMIC VARIABLES AND SHARE PRICE MOVEMENTS IN NIGERIA BREWERY INDUSTRY: EVIDENCE FROM GUINNESS BREWERIES PLC (Published)

The aim of the research is to validate the relationship between macroeconomic variables and the movement of share prices in  Nigeria brewery industry. The level of association of the variables is evaluated using the ordinary least squares method, modeled in form of multiple regression. Granger causality method was applied to examine the causality relationship among the variables in the short run. Augmented Dickey- Fuller (ADF) test was conducted while the Phillip-Perron’s (PP) test was applied for robustness check for stationary of the data series. All the variables except interest rate had the data series differenced at second difference. Interest rate was differenced at level and intercept. Significant relationship was found between inflationary rate and share price as well as between real gross domestic product and share price as about 95% of the variations in share price could be explained by the independent variables. Positive and strong correlation exists between share price and real GDP as well as exchange rate while a weak and negative correlation is found between share price and interest rates. A strong and negative correlation exists between inflationary rate and share price. No causal relationship is indicated by Granger causality test in the short run. The paper recommends that in the pursuit of the millennium development goals and the realization of transformation agenda of the federal government of Nigeria, the planners of the economy should take the interactions of these macroeconomic variables and share prices into consideration in setting fiscal, monetary and other economic and investment policies

Keywords: Brewery, Causalities, Macroeconomics, Regression, Share Prices

An Empirical Evidence on impact of Credit Management, Liquidity Position and Profitability of Nigerian Banking Sector (Review Completed - Accepted)

The study critically examines the relationship between credit management, liquidity position and profitability of some selected banks in Nigeria using annual data of ten banks over the period of 2006 to 2010. Time series properties of all variables used in the estimation were examined through Augmented Dickey Fuller (ADF) test in order to obtain reliable results. It shows that all the variables were stationary and significant at first differences. The results from Ordinary Least Square (OLS) estimate found that current ratio is positively related to debt ratio and significant at 1% level. This confirms the alternative “risk absorption” hypothesis, which stipulates that efficient credit management enhances firms’ ability to create liquidity. In addition, the result shows that ROA has significant positive effect on current ratio confirming the “financial fragility – crowding out” hypothesis which stipulate that the ability of firms’ to maintain certain degree of liquidity reduces firms’ profitability enhancement. This conclusion has important policy implications for emerging countries like Nigeria as it suggests that when a company’s credit policy is favourable, liquidity is at a desirable level and lastly, the findings revealed that companies should ensure the monitoring and regular review of their credit policy and the allowance of cash discounts should be minimized as much as possible.

Keywords: Commercial Bank, Credit Management, Liquidity Position, Profitability, Regression

Determinants of Agricultural Sustainability in Southeast Nigeria -The Climate Change Debacle (Published)

The renewed quest for sustainable economic development which is synonymous with sustainable agricultural development and hence agricultural sustainability impelled this study titled “Determinants of Agricultural Sustainability in Southeast Nigeria”. Southeast Nigeria is located within latitudes 5oN to 6o N of the equator and longitudes 6oE and 8oE of the Greenwich (prime) meridian (M.S corporation, 2009). Multi-stage sampling technique was used to select a sample of 312 cassava based food crop farmers from whom data were collected using structured and validated questionnaire. Data bothering on the respondents’ socio-economic characteristics, the type, quantity, and sources of inputs used and output produced were collected. These were analysed with the use of descriptive statistical tools and ordinary least square multiple regression analytical tools. Result showed that factors such as farm size, annual income, household size, level of education, and climate change are significantly and inversely proportional to sustainability level of farmers, while labour cost was significantly but directly proportional to agricultural sustainability. It was concluded that, efforts should be made at both micro and macro levels of government to improve on the mitigation and adaptive strategies of climate change available to farmers by making such more affordable, available and user friendly through extension education on the appropriate uses of such technologies in a more sustainable manner.

Keywords: Adaptive and Mitigation, Appropriate, Climate Change, Determinants, Regression, Sustainability