Open Access Original Research Article

Influence of Fin-tech on Customer Satisfaction: Empirical Evidence from Allied Bank of Pakistan

Ikramuddin Junejo, Asif Ali Shah, Asha Bachani

South Asian Journal of Social Studies and Economics, Page 1-13
DOI: 10.9734/sajsse/2019/v4i230120

The purpose of this research is to examine the influence of financial technology on customer satisfaction in Allied bank of Pakistan. For this research the sample size of 183 respondents of Allied bank of Pakistan was selected using convenient sampling. The questionnaire was designed by 5 Likert-scale that was used to collect the data in order to examine the influence of financial technology on customer satisfaction. The models used were factor analysis, regression analysis, multiple regression analysis. The results of regression analysis showed that, there is a significant influence of safety reliability, Service Security and has positive and significant influence on customer satisfaction; whereas, Ease of Use and performance has positive and insignificant influence on customer satisfaction. Finally, it is recommended that, in the face of high-level competition in the banking industry and similarity of products offered by commercial banks establishing customer’s feedback system and evaluating its technology platform with current technological advancements for the better customer satisfaction.

Open Access Original Research Article

Capital Structure and Organizational Performance: Evidence from Nigerian Food and Beverage Companies

G. T. Ayo-Oyebiyi

South Asian Journal of Social Studies and Economics, Page 1-9
DOI: 10.9734/sajsse/2019/v4i230121

This study seeks to investigate the impact of capital structure on the performance of organizational performance with particular reference to Nigerian Food and Beverage Companies. Secondary data was used for this study. It was adopted from the audited financial statements of the listed food and beverages companies in the Nigerian Stock Exchange (NSE), for the period of the year 2014 – 2018. The method of analysis used was Pearson Moment Correlation Coefficient and Linear Regressions. The results reveal that firm leverage, tangibility of assets and liquidity have an inverse relationship with the financial performance of the Nigerian food and beverage industry, while, growth and firm’s size have a positive relationship with the financial performance of Nigerian food and beverages industry.  The study, recommends that Nigerian Food and Beverage should, therefore, strike a balance between their choice of capital structure and the effect on its performance as it affects the shareholder's risks.

Open Access Original Research Article

Performance of Mutual Funds and Mutual Fund Manager in Pakistan

Syed Feroz Aziz

South Asian Journal of Social Studies and Economics, Page 1-9
DOI: 10.9734/sajsse/2019/v4i230122

Purpose: This study examined the performance of mutual fund and mutual fund manager in Pakistan during the period of Jul, 2006 to Jun, 2016. The objective is to found the funds’ performance through risk and return and ability to forecast the funds return by mutual fund manager.

Methodology/Design: The data will be used from the authentic source of SBP publication (State Bank of Pakistan) and MUFAP (Mutual fund association of Pakistan) of 54 mutual funds working in Pakistan. The data will be analyzed by using Statistical tests of Sharpe ratio, Sortino ratio, Treynor measure and Information ratio.

Results: Results indicated that fund returns are found positive and significant against risk free securities but funds return against the market return and fund manager ability to forecast fund returns is found negative and insignificant the rate of return of an investment made in mutual funds.

Originality/Value: Islamic funds and Sortino and Information ratio based on our knowledge have not been studied by the previous researchers.

Open Access Original Research Article

Effects of Exchange Rate on Foreign Direct Investment Inflow in Nigeria

Chukwurah, Josephine Chikwue

South Asian Journal of Social Studies and Economics, Page 1-12
DOI: 10.9734/sajsse/2019/v4i230123

Aims: This study examined the place of exchange rate in determining foreign direct investment inflow into the Nigerian economy using time series data from 1980 to 2017.

Study Design:  Historical research design method was adopted for the study, it uses secondary sources and a variety of primary documentary evidence.

Place and Duration of Study: Department of economics, faculty of social sciences, Nnamdi Azikiwe University, between September 2010 and May 2018.

Methodology: The method adopted for this study was the Autoregressive Distributed Lag (ARDL) estimation approach and error correction mechanism within the framework of dynamic OLS (DOLS) estimation. The analysis began with a verification of the unit root properties of the variables. The Augmented Dickey Fuller (ADF) and Philips-Perron (PP) unit root procedures were employed and both tests indicate that the variables were integrated of either order I(0) or order I(1). This warranted the use of Bounds testing approach in determining the cointegration among the variables in the various equations in the selected countries. Analysis using the Bounds testing approach to cointegration confirmed the existence of long run relation among the variables of the models. In determining the impact of exchange rate on foreign direct investment inflow in Nigeria, we estimated an ARDL model.

Results: The results indicate that exchange rate affects FDI in both the long and short run. The result also reveals that the impact of exchange rate on FDI in the short run continuous up to three periods after the initial disturbance.

Conclusion: This study concluded that exchange rate appreciation will lead to increases in foreign direct investment inflow. The study therefore recommended, amongst others, that government should apply exchange rate regime that is competitive at the international market so as to attract more FDI inflow to the Nigeria economy.

Open Access Original Research Article

The Validity of Wagner’s Law in India: A Post-liberalisation Analysis

Suraj Sharma, Surendra Singh

South Asian Journal of Social Studies and Economics, Page 1-13
DOI: 10.9734/sajsse/2019/v4i230124

Aims: The present study attempts to analyse the behavior of government expenditure in relation to national income using most appropriate advanced econometric techniques to test the Wagner’s law of increasing State’s activity in Indian scenario during the post-liberalisation period of 1988 to 2017.

Data: The study uses the IMF database entitled “International Financial Statistics” and World Bank database entitled “World Development Indicators” for testing Wagner’s law for the Indian economy.

Methodology: The study employs appropriate econometric techniques to our model where government expenditure is used as regressand and gross domestic product and urbanisation is used as regressors. The study first investigates for unit roots in data using ADF and PP tests. Further, to investigate any co-integration among variables the study employed Johansen co-integration test. Once co-integration is confirmed, a vector error correction model has been estimated and lastly, Granger causality test is applied to check for any causality.

Results: The results of Vector Error Correction Model reveal that both the Gross Domestic Product and the urban population have a positive and statistically significant effect on government expenditure in the long-run. Ceteris paribus, every 1.0 percent increase in GDP leads 0.36 percent increase in government expenditure. On the other hand, 1.0 percent increase in urban population leads to a 3.75 percent increase in government expenditure. The Granger causality results divulge that there is unidirectional causality running from urban population to government expenditure, whereas neither unidirectional nor bidirectional causality was found between GDP and public expenditure. In short-run, neither GDP nor urban population influences public expenditure.

Conclusion: To sum up, the present investigation provides support for Wagner’s law in case of India in the long run only. It has been found that urbanisation has a greater impact on public expenditure than the national income (GDP) and which is also supported by Granger causality test showing significant unidirectional causality running from level of urbanisation to government expenditure.