Open Access Original Research Article

Risk and Risk Management Practices of Rice Millers in Selected Local Government Areas in Cross River State, Nigeria

Ohen Susana Ben, Terence Samuel Elemi

Journal of Economics, Management and Trade, Page 1-10
DOI: 10.9734/JEMT/2017/33258

The study is on risk and risk management practices of rice millers in selected Local Government Areas in Cross River State, Nigeria. Specifically, the study analyzed the perception of rice millers on sources of risk in rice milling in the study area, identified the various risk management practices used by the rice millers, determined the relationship between risk management practices and rice milling output and examined the factors affecting the utilization of risk management practices by rice millers. Two Local Government Areas were purposively selected from each of the three agricultural zones in Cross River based on their level of rice production in the State. Proportionate random sampling was used to select 105 rice millers from the list of rice millers in the study area. Data were collected using structured questionnaire and analyzed using mean, frequency table, percentages and standard deviation, Kendall W-statistics, correlation analysis and binary logistic regression. The study showed that respondents perceived lack of capital, output price variability, input price variability, changes in technology, high cost of labour, high rate of interest and access to input as sources of high risk while the theft, ill-health, war and government regulations were considered as low risk in the study area. Also, diversification of enterprise was the most favoured risk management practice in the study area followed by diversification of source of income for the enterprise, cooperative marketing and insurance. There was a weak but positive correlation between risks management practices and rice milling output with risk management practices explaining only 5 percent of the variation in rice milling output. The weak relationship is an indication that risk management practices is not the only determinant of increase in milling output but other factors like direct production inputs and capacity of the mill may also influence output. The binary logistic regression explained 62.3 percent (Nagelkerke R2) of the variance in utilization of risk management practices and correctly classified 81.0 percent of cases. It showed that variables such as education, household size, mill capacity, farmer of rice, and perceived risk sources were also positively affected the utilization of risk management practices. The implication of the findings is that rice millers require a level of education and orientation in enterprise management to enable them overcome the negative effect of risk in business.

Open Access Original Research Article

Manpower Development and Employees’ Performance: Qualitative Assessment of Small and Medium Scale Business in Abuja Nigeria

Obi-Anike ., Happiness Ozioma, Ofobruku Sylvester Abomeh, Okafor Chikodili Nkiruka

Journal of Economics, Management and Trade, Page 1-6
DOI: 10.9734/JEMT/2017/33438

Manpower development is receiving broader consideration with the emergent of current globalization and unstable job market due to the present economic recession in Nigeria. Developed and developing countries in the world have placed emphases on manpower development as instrument geared towards improving employees’ performance by devoting necessary organisation resources towards manpower training and knowledge transfer. Although there is a broad assumption that manpower has positive effects on organisations’ productivity, yet there is paucity empirical data on how manpower development impact on SMEs in Nigeria federal capital territory, Abuja coupled with the dwindling productivity fortune of SMEs in these past years as reported by Abuja chambers of commerce and industry. The focus group discussion qualitative method was adopted for this study. The purpose of the focus group discussion was to strengthen and corroborate evidence and findings from the literature. The findings from the literature reviewed and Focus Group Discussion, of this study revealed that manpower development leads to better employees’ performance. Thus SMEs businesses should view manpower development as a fundamental response to the achievement of better employees’ performance. Specifically, SMEs organisations must invest necessary resources in developing manpower which tends to have a great impact on employees’ performance.

Open Access Original Research Article

Cognitive Analysis and Modeling of Innovation Potential

Svitlana Labunska, Iegor Iermachenko, Olena Prokopishyna

Journal of Economics, Management and Trade, Page 1-14
DOI: 10.9734/JEMT/2017/35127

Aim: The main aim of the research is to develop cognitive model for innovation potential evaluation.

Study Design: Empirical research of financial, statistic and management reports of enterprises dated 2012 and 2015, analysis of expert findings for the same periods.

Place and Duration of Study: Accounting Department of Simon Kuznets National University of Economics, between May 2016 and April 2017.

Methodology: Content analysis has been used as the primary method to reveal the nature of innovation potential. Research proceeds from the fact that enterprise innovative potential is the integral subsystem of its innovation capacity and consists of material, labor, financial and information resources. The inherent characteristics of innovative potential were captured by applying cognitive analysis and modeling methods.

Results: Based on the content analysis it was ground, that innovation potential is one of the main components of enterprise’s innovation capacity, which is formed in the periods preceding the period of innovation implementation. As for empirical part of research, sample included 81 (based on data of the year 2012) and 93 (based on 2015 year) companies of engineering, metallurgy and chemical industry of four regions of Ukraine, expert analysis involved 27 top-managers. Developed cognitive map and method of evaluating of innovation potential allowed to reveal, that metallurgical enterprises have high innovation potential, however in modern realities of the Ukrainian economy and the world market situation, their innovative activity is restrained; the engineering companies have low innovation potential and hardly implement organizational innovations.

Conclusion: Cognitive methods of analysis and modeling of innovation potential allow to ensure accuracy of evaluation, which is achieved by combining quantitative data of financial reports and qualitative information of expert groups; comparability of results for enterprises of different industries and regions; possibility of quantitative generalization for conclusions at different levels of management.

Open Access Original Research Article

Trade-led Growth and Growth-led Trade Hypotheses in Bangladesh: An ARDL Bounds Test Approach

Md. Abu Hasan, Md. Sanaullah, Mir Khaled Iqbal Chowdhury, Anita Zaman

Journal of Economics, Management and Trade, Page 1-10
DOI: 10.9734/JEMT/2017/26758

This study investigates the relationship between foreign trade and economic growth using annual data of real GDP (proxied for economic growth), real exports and imports for the period of 1979 to 2014 in Bangladesh. The study operates the bounds testing cointegration procedure and ARDL-error correction model to examine the short-run and long-run relationships among the variables. The ARDL bounds test approach reveals that the long run cointegrations exist among the variables when GDP is dependent on export and import, and export is dependent on GDP and import. The long run coefficients of ARDL results show that export is positively and import is negatively related with GDP at 1% level of significance. Furthermore, GDP and import have a positive and highly significant long-run effect on export in Bangladesh. The short run dynamics along with the error correction term (ECT) results indicate that the coefficients of error correction terms of the two models are negative and highly significant which suggesting that the long run causalities are also directing from exports and imports to GDP, and GDP and imports to exports. The error correction terms imply that GDP requires about ten years to converge to equilibrium after being shocked, while export requires only about nine months. All of the short run coefficients of the models are significant and consistent with the long run results signifying that export-led growth, growth-led export and import-led export models are valid in Bangladesh. Although the role of imports on economic growth is negative, imports perform a noteworthy role to promote exports in Bangladesh both in the short run and long run. In conclusion, we can comment on this empirical study that trade liberalization which has been started in 1979 significantly benefits the economic growth in Bangladesh.

Open Access Original Research Article

2011 Securities and Exchange Commission Code of Corporate Governance and Performance of Deposit Money Banks in Nigeria

G. O. Demaki

Journal of Economics, Management and Trade, Page 1-11
DOI: 10.9734/JEMT/2017/31537

This paper empirically evaluated the effect of the Nigeria 2011 Securities and Exchange Commission (SEC) Code of Corporate Governance on the performance of Deposit Money Banks (DMBs) in the country. To achieve this aim, yearly secondary data were obtained from 2006 to 2015 from the annual reports and accounts of fourteen (14) DMBs purposely selected for this study. The performance variables of interest in this study were return on asset, return on equity, liquidity, capital adequacy and tangibility. The principal-agency theory forms the theoretical base of this empirical investigation. For the purpose of analysis, the method of estimation adopted includes descriptive statistics, analysis of correlation matrix and the Wilcoxon Sign-Test. Findings from the study reveal that following the implementation of the 2011 SEC code of corporate governance, there was significant difference in the performance indices of banks in Nigeria as compared to their performance prior to the implementation of the codes. It was therefore recommended among others that in line with the provisions of the 2011 SEC code, corporate ethics and values should be aligned with personal ethics especially among board members appointed to every respective board committee. Similarly, strategic and integrated approach should be taken to regularly review the significance of each area of the 2011 SEC codes to enable it guarantee long term significance and relevance to the ever changing business environment of banks in Nigeria.