Journal of Economics and Behavioral Studies

1-6

Authors: KOLAPO T. Funso, Naheem Abiola Lawal

This article looked at the connection between exchange rate risk and financial sector performance in Nigeria using time series data from 2008Q1 to 20017Q4. The study employed Autoregressive Conditional Heteroskedasticity (ARCH), and Granger Causality tests as estimation techniques. Financial intermediation index was used as the dependent variable while risk from exchange rate, risk from consumer price index and risk from interest rate were used as the independent variables. The findings from the study showed that exchange rate risk (EXR) coefficient value was -0.276230 with p-value of 0.0000, implying that EXR was negative and significant to influence FII. The risk from financial intermediation index reveals a coefficient value of -5.213590 and the p-value of 0.000 implying that when financial intermediation index increases, volatility or risk reduces which means that financial intermediation index was not a risky variable which was significant during the study period. However, the study concluded that the shock from exchange rate moves at a negative and significant direction to financial intermediation index of the economy. It is also concluded that exchange rate and financial intermediation index does not have uni or bi-directional relationships between each other. It is recommended that the Government and the Apex Bank of Nigeria are encouraged to increase the stabilization measurement for exchange rate to cushion its risk and by so doing; this could improve financial sector performance.

22-37

Authors: Alex Madzikova, Gwendoline Vusumuzi Nani

This study sought to find out the role of intrapreneurship on the growth of iron and steel manufacturing companies in Bulawayo, Zimbabwe. A post-positivist paradigm, a mixed method approach and a cross sectional design were adopted for the investigation. Three hundred and fifteen (315) middle management and supervisory staff drawn from twenty-two (22) iron and steel manufacturing companies in Bulawayo participated. Multiple stratified random sampling and heterogeneous purposive sampling were used to choose two hundred (200) respondents for the quantitative study and eight participants for the qualitative study respectively. Questionnaires and in-depth interviews were the data collecting instruments for quantitative and qualitative data respectively. Quantitative data was analysed using descriptive and inferential statistics and qualitative data was thematically analysed. Findings revealed that innovativeness, proactiveness, and risk taking were the key dimensions of intrapreneurship. Both quantitative and qualitative analyses showed the prominent measures of company growth in the iron and steel manufacturing companies as financial, employee numbers, productivity, and product range. Statistically intrapreneurship was found to be correlated to the growth of the iron and steel manufacturing companies. The study drew the following conclusions. Firstly, intrapreneurship is not a preferred strategy for driving growth in the iron and steel manufacturing companies in Bulawayo. Secondly, financial and product range were identified as the key measures of company growth. Thirdly, company support for intrapreneurship and individual’s intrapreneurial disposition were statistically linked to company growth. The study recommended that companies should motivate and support employees’ innovativeness, proactiveness, and risk taking through ideas, actions and work. Measurement of company growth should be expanded to include qualitative measures.

46-54

Authors: Misheck Mutize, Ejigayhu Tefera, McBride Nkhalamba

This paper explores trends and challenges in the development of African financial markets over the past two decades. Access to capital is essential for government to finance its budget and the performance of government policies is in part evaluated through how financial asset prices respond to the policy choices. Erratic security issuance, thin trading, low turnover ratios and lack of market depth has characterised African financial markets as inefficient. Applying a descriptive research model on key data from international think tanks to observe the behaviour of financial markets data in African countries, the study finds that African financial markets still face the traditional challenge of lack of market depth relative to other regions in other continents due to their limit size and very low market capitalisation. This is a key factor holding back the ability of investors to exploit expansion opportunities. This paper recommends that, part of the solution to challenges faced by African financial markets is for governments to assist in set-up electronic trading platforms, improve trading and settlement infrastructure.