Volume 5

In recent years, the financial performance of Romanian commercial banks has been considerably reduced, due to the decline in lending activity and the increase in operating expenses. The paper aims to estimate the impact of credit, liquidity and solvency risk on the efficiency of the operational activity of commercial banks listed on the Bucharest Stock Exchange. The results obtained by the application of the multiple linear regression showed that the level of the „cost to income” indicator, during 2010-2015, was significantly influenced by the capitalization level, the lending rate and the saving rate.

The Zimbabwe Demographic Health Survey (ZDHS 2010-11) showed that only 6 percent of the population is covered by health insurance in Zimbabwe. This study investigated the feasibility, acceptability and sustainability of Community Based Health Insurance (CBHI) as an alternative to pooling risk and financing social protection in Zimbabwe. Willingness to Pay (WTP) for health insurance and socioeconomic data were collected through interviews with 121 household heads selected using a 2-stage sampling procedure on 14 villages in Musana and Domboshava rural areas, a population which is largely unemployed and reliant on subsistence agriculture. A CBHI scheme was established and followed up for 3 years documenting data on visits made, financial contributions from recruited households and their actual health expenditures. Findings indicate that CBHI is generally accepted as a means of health insurance in rural communities. The median willingness to pay for health insurance was $5.43 against monthly expenditures ranging of up to $180. The low WTP is attributable to low incomes as only 3.4 percent of the respondents relied on formal employment. Trust issues, adverse selection, moral hazard, and administration costs were challenges threatening sustainability of CBHI. A financial gap averaging 42% was generally on a downward trend and was closed by the end of the follow-up study as contributions were equivalent to medical expenses. We conclude that CBHI is feasible, has potential for sustainability and should be considered as a springboard for the planned Zimbabwean National Health Insurance.

The study builds on previous research that decomposes rating category default probability term structures from rating category interest rate term structures, and proposes a method to decompose rating migration matrices from market data, via decomposed default probability term structures. To investigate the power and accuracy of the proposed method, it was examined to what extent an existing, known rating migration matrix could again be surfaced by the method. Overall, the results are more than satisfactory, and the method promises to be accurate. Although not considered here, the main objective is the application of the method to market data. The outcome should be insightful in itself, and can be used to evaluate historical rating migration matrices commonly devised by rating agencies, and to form a better understanding of the default probability term structures embedded in market data.

This article attempted to examine the relevance of microinsurance, in promoting micro investments and sustainable development in Nigeria. Specifically, this work sought to assess the nature, characteristics and operations of microinsurance and to establish the link between these elements and the growth of micro investments as well as the variables of sustainable development, such as poverty level in the country. The experimental, pilot and replicative research designs were used. Secondary data sourced from the publications of the National Insurance Commission of Nigeria, reports from Delta State Ministry of Poverty Alleviation, journals, text books and periodicals, among others were analysed qualitatively and descriptively. It was discovered that microinsurance has high potency in promoting micro investments or micro projects in the country based on the experience in Delta State where a lot of micro entrepreneurs, mainly the beneficiaries of the state microcredit scheme and Youth Empowerment Programmes, have been compensated through microinsurance scheme. This has promoted micro entrepreneurship, business growth, stability and continuity leading to poverty alleviation in the State. To this end, it was recommended that other states and relevant agencies should adopt the microinsurance scheme as experimented in Delta State. This is one of strategies for effective financial inclusion required for sustainable development as obtained in other countries of the world.

The focus of this study has been on the economic implications of foreign reserves management on the performance of the Nigerian economy. Despite declaration of huge external reserves, the reserves had depleted drastically and economic indicators have not significantly improved, as they have always been highly fluctuating with marginal growth levels. This study aimed to establish relationships among economic performance indicators (capacity utilization rate, manufacturing output, growth rate of gross domestic product) and foreign reserves management variables (foreign reserves position, exchange rate, imports, exports). Relevant studies have been reviewed and the methodology implied desk and empirical research. The ordinary least square multiple regression model was used to analyze the data and it helped discover inverse relationships that exist among exchange rate, imports, exports and capacity utilization rate in Nigeria. The analysis found that exchange rate exerts significant impact on manufacturing output in Nigeria, and that there is an inverse relationship among manufacturing output, foreign reserve position, imports and exports. Moreover, positive relationships exist between foreign reserve position and both capacity utilization rate and growth rate of gross domestic product. Discoveries showed that if greater parts of Nigeria's foreign reserves were channeled to the productive sectors of its economy, capacities of productive machines would be fully utilized, domestic industries would perform well, real value of manufacturing output would increase, the domestic market would have significant positive improvements, and the growth rate of gross domestic product would be improved. On these grounds, proposed recommendations encompassed that the Nigerian government should redirect foreign exchange earnings and reserves in the productive sectors of the economy. Also, they should encourage more exports and discourage or reduce to minimum imports by reviving ailing domestic industries. The exchange rate should be properly controlled and managed by monetary authorities to aid local producers in acquiring productive facilities at cheaper rates and enhance domestic production.

The purpose of this study was to perform a universal inspection of the processes adopted in acquisitions by concentrating on attributes which are speedily implemented in the industry. The approach to this research study was based on literature reviews to gain knowledge on the causes of failure and the factors attributed to the success of acquisitions in the case study concerning a chemical company. This method was applied to identify if the failures and successes researched are shown in the case study. The research study firstly looked at various approaches to acquisitions, namely, the pre-acquisition, post-acquisition and integration phases together with the motives for acquisitions. The study delves further into factors influencing the failures and successes of acquisitions. A notable body of research was consulted to focus on these factors. The research study highlights a framework incorporating the management of post-integration strategy concurrently with the people and the organisational goals. The key findings showed that the company lacked a formal integration plan, cultural integration, ad proper communication plans. This resulted in staff unrest and high attrition of staff from deal announcement date up to post integration, leading to high resistance from staff and poor people integration. The company did however achieve financial success through synergy realisation. This positive outcome could have been achieved quicker with the proper integration plans within the different phases of the acquisition. The knowledge attained from this study will hopefully add to the body of knowledge on acquisitions.

This study examined the effects of dollarization on business in Zimbabwe focusing on economic indicators such as inflation rate, GDP, employment and ease of doing business during the period 2009-2015. Zimbabwe experienced a very difficult economic phase characterised by hyperinflation, negative economic growth, unavailability of basic commodities and negative economic growth rates during the period 1998-2008. In 2009 the country adopted a multi-currency system whereby the Zimbabwean dollar was in circulation alongside various other currencies, with the United States Dollar and the South African Rand being the dominant ones. There has been general speculation that Zimbabwe's economic problems are due to dollarization. Through analysing data from interviews and secondary sources, the research established that dollarization brought about stability in the economy, arrested inflation, and caused a marginal increase in GDP. However, the response of the employment rate was independent of the dollarization and may be attributed to other factors such as Economic Structural Adjustment Programme (ESAP) in 1992, the global economic crisis in 2008 and the absence of reliable data.

In this study, the researchers examine the Nigerian investment environment and assess its contributions or otherwise to the economic growth and development of the country. The study adopted ex post facto and secondary data research designs, using time series data obtained from various editions of CBN Statistical Bulletins. Some environment-specific factors such as the growth rate of RGDP (as dependent variable) and Exchange Rate (ER), Inflation Rate (IFR), Prime Lending Rate (PLR), and Total Government Expenditure (TGE), as independent variables. Augmented Dickey Fuller (ADF) test was carried out to test for stationarity of the variables Johansen's cointegration test was also conducted to ascertain the nature of relationship among the variables and on the whole, Ordinary Least Square regression technique was adopted in the analysis of the variables and model used in the study. The ADF results obtained showed that RGDPgr and PLR were stationary at level while ER, IFR, and TGE were stationary at first difference. Also, Trace test indicates 2 cointegrating equations at 5 percent level of significance. The OLS result showed positive relationship between ER, PLR and the RGDPgr but a negative relationship between IFR, TGE and RGDPgr. They recommend that Government through appropriate agencies should reduce prime lending rate to encourage borrowing for investment or other productive activities and that the unexpected negative relationship between government expenditure and economic growth which may be as a result of government spending in unproductive ventures, should be weighed and appropriately channelled.