scholarly journals EFFECT OF MACRO-ECONOMIC FACTORS ON FINANCIAL PERFORMANCE IN KENYA OF REGISTERED REAL ESTATE INVESTMENTS TRUSTS

2021 ◽  
Vol 6 (1) ◽  
pp. 72-92
Author(s):  
Sophia Wanjiku ◽  
Joshua Bosire ◽  
Joshua Matanda
Keyword(s):  
Real Estate ◽  
Regression Model ◽  
Financial Performance ◽  
Series Data ◽  
Population Census ◽  
Unique Contribution ◽  
Macroeconomic Variables ◽  
Independent Variables ◽  
Real Estate Investments ◽  
The Government

Purpose: The purpose of the study was to determine the macroeconomic effect on Registered Real Estate Investments Trusts (REITs) financial performance in Kenya. Materials and Methods: Causal research design was used to describe the REITs financial performance. This study used the population comprising of thirteen REITs firms in Kenya. The entire population (census) was used for the study. This study utilized secondary sources of data to get the information required to satisfy the research objectives. Time series data on REITs financial performance was computed for a four-year period as at 1st January 2016 to 31stDecember 2019, thus making use of 4 data points. The process of data analysis entailed preparation of the collected data through cleaning, editing and coding so that statistics could be keyed in the SPSS (statistical package for social sciences) package. The data was presented through tables and figures Results:  The regression model results without the moderating variable showed that R = 0.792, R² = 0.627 indicating that 62.7% of the variance in the REITs financial performance can be accounted for by the independent variables (macroeconomic variables). On the other hand, the regression model results with the moderating variable showed that R = 0.838, R² = 0.703 indicating that 70.3% of the variance in the REITs financial performance can be accounted for by the independent variables (macroeconomic variables) and the moderating variable considered in this study.  Unique contribution to theory, practice and policy: The study recommended that the government and REITs stakeholders should focus on policies and strategies that encourage favorable balance of payment in Kenya. REITs develop and design their products to suit consumers tastes and preferences to ensure their increased as consumption increases. Lastly, the government should expand the money supply to lower the inflation rates through tight fiscal and economic policies.

Investigating the non-linear Wagner’s hypothesis in South Africa

2017 ◽  
Vol 8 (4) ◽  
pp. 462-473 ◽  
Author(s):  
Temitope Lydia A. Leshoro
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Government Spending ◽  
Time Series Data ◽  
Series Data ◽  
Unique Contribution ◽  
Content Type ◽  
Non Linear ◽  
Regression Error ◽  
The Government

Purpose The commonly adopted view of the relationship between government spending and economic growth follows the Keynesian approach, in which government spending is considered to determine economic growth. However, there is another theory, which suggests that economic growth in fact determines government spending. This is Wagner’s hypothesis. The purpose of this paper is to investigate which of the two approaches applies to South Africa, and further observes the level of non-linearity between the two variables. Design/methodology/approach This study was carried out using quarterly time series data from 1980Q1 to 2015Q1. Granger causality technique was used to observe the direction of causality between the two variables, while regression error specification test (RESET) was employed to determine whether the variables exhibit linear or non-linear behaviour. This was followed by observing the threshold band, using two techniques, namely, sample splitting threshold regression and quadratic generalised method of moments. Findings The causality result shows that South Africa follows Wagner’s law, whereby government spending is determined by economic growth, supporting Odhiambo (2015). The RESET result shows that the variables depict a non-linear relationship, thus the government spending economic growth model is non-linear. It was found that if positive economic development is to be achieved, economic growth should preferably be kept within the −1.69 and 3.0 per cent band, and specifically above 1 per cent band. Originality/value The unique contribution of this study is that no previous study has attempted the non-linear government spending-economic growth nexus whether within the Keynesian or Wagner law for South Africa.

scholarly journals PENGARUH SUBSIDI BBM TERHADAP IMPOR MINYAK BUMI PERIODE 1980 – 2013

2017 ◽  
Vol 18 (1) ◽  
pp. 30
Author(s):  
Riwi Sumantyo ◽  
Puji Lestari
Keyword(s):  
Time Series ◽  
Exchange Rate ◽  
Time Series Data ◽  
Data Use ◽  
Series Data ◽  
Foreign Exchange Reserves ◽  
Independent Variables ◽  
Fuel Subsidies ◽  
The Exchange Rate ◽  
The Government

The study on the effect of fuel subsidies toward oil import is a controversial topicdiscussions. This study will explore the effect of fuel subsidies on oil import by addingseveral independent variables, consist of; the number of vehichles, the exchange rateand inflation. Data use time series data from 1980-2013. The tool of analyze is OrdinaryLeast Squares Method (OLS).Based on the results show that the simultaneous testexplains that the fuel subsidies, the number of vehichles, the exchange rate, and inflationhave a significant effect on oil import. However partially, the variables of fuel subsidies,the number of vehichles, and the exchange rate have a positive and significant effecton oil import. Inflation does not affect on oil import. The coefficient of determinationuses Adjusted R-square test is about 98%. The implication of this study is governmentscan increase oil production Indonesia. The government should facilitate the licensing ofinvestment and rejuvenate the old oil wells. It aims to reduce Indonesia dependence onoil import so that it can save foreign exchange reserves.

Application of ARMA Regression Model of Housing Prices Influence Factors of Xi'an

2013 ◽  
Vol 405-408 ◽  
pp. 3340-3342
Author(s):  
Hui Zhi ◽  
Yue Fan Wang
Keyword(s):  
Real Estate ◽  
Regression Model ◽  
Housing Prices ◽  
Influence Factors ◽  
Housing Price ◽  
The Real Estate ◽  
Housing Price Index ◽  
Long Run ◽  
The Government ◽  
The Impact

By selecting the relevant factors affect the real estate price, with the qualitative analysis method to analyze the housing prices changes of Xi'an, and then establish ARMA regression model of the housing price index, found that the factors exist long-run co-integration. In order to better reflect the actual, the government policy as a dummy variable is introduced into the model to make regression results more significantly, showing that government policies play an important role in the control of the impact on real estate prices.

scholarly journals THE EFFECT OF MACROECONOMIC VARIABLES ON FISCAL SUSTAINABILITY IN INDONESIA, PERIOD 2004Q1-2018Q4

2020 ◽  
Vol 1 (2) ◽  
pp. 61
Author(s):  
Muhammad Latif Abdullah ◽  
FNU Sunaryati
Keyword(s):  
Budget Deficit ◽  
Foreign Debt ◽  
Fiscal Sustainability ◽  
Series Data ◽  
Government Budget ◽  
Macroeconomic Variables ◽  
Domestic Debt ◽  
The Government ◽  
The Impact ◽  
Government Budget Deficit

Abstract Fiscal sustainability illustrates the condition of a healthy government budget which can finance government spending without increasing debt supply. The purpose of this study is to analyze the impact of macroeconomic variables on fiscal sustainability which in this study fiscal sustainability is proxied as a government budget deficit. The data used in this study is the 2004Q1-2018Q4 time series data using the Vector Error Correction Model (VECM). The results showed that fiscal conditions in Indonesia are sustainable and macroeconomic variables such as domestic debt andinflation has a positive effect on increasing the government budget deficit. Whereas the variable state revenues and foreign debt negatively affect the government budget deficit.Keywords : Fiscal Sustainability, Government Budget Deficit, Domestic Debt, Foreign Debt.

scholarly journals Effect of Earnings Ability on Financial Performance of Savings and Credit Societies in Kenya

2017 ◽  
Vol 2 (5) ◽  
pp. 56
Author(s):  
Prof. Willy Muturi ◽  
Jane J. Barus ◽  
Dr. Patrick Kibati ◽  
Dr. Joel Koima
Keyword(s):  
Financial Performance ◽  
Reliability And Validity ◽  
Target Population ◽  
Legal Framework ◽  
Unique Contribution ◽  
Linear Regression Models ◽  
Secondary Sources ◽  
The Social ◽  
Institutional Capital ◽  
The Government

Purpose: The purpose of this study was to establish the effect of earnings ability on financial performance of savings and credit societies in Kenya. Methodology: The study employed an explanatory research design. The target population was 83 registered deposit taking SACCO’s in Kenya that have been in operation for the last five years. The sample size for the study was all 83 SACCOs that have remained in existence since 2011-2015. Census methodology was used in the study.  Both primary and secondary sources of data were employed.  Multiple linear regression models were used to analyze the data using statistical package for the social sciences (SPSS) and STATA. A pilot study was conducted to measure the research instruments reliability and validity. Descriptive and inferential analysis was conducted to analyze the data. The data was presented using tables and graphs. Results: Based on the findings the study concluded that earnings ability influenced the financial performance of savings and credit societies in Kenya. This can be explained by the regression results which showed that the influence was positive and also showed the magnitude by which earnings ability influenced the financial performance of savings and credit societies. The univariate regression results showed that earnings ability influenced the financial performance of savings and credit societies by 6.438units. Unique contribution to theory, practice and policy: The study recommended for continuous review of credit policies, establishment of irrecoverable loan provision policies, development of sound staff recruitment policies and the use of appropriate financing mix. Further, the Government should review legal framework to ensure that institutional capital is used to grow SACCO’s’ wealth.

scholarly journals Analisis Kinerja Keuangan Pada Industri Property dan Real Estate Serta Kontribusinya Terhadap Pendapatan Negara Dari Sektor Pajak

2020 ◽  
Vol 8 (2) ◽  
pp. 227-236
Author(s):  
Veren Ferina ◽  
Amrulloh Amrulloh
Keyword(s):  
Real Estate ◽  
Financial Performance ◽  
Global Economy ◽  
Stock Exchange ◽  
Financial Statements ◽  
Health Condition ◽  
Financial Statement ◽  
Financial Statement Analysis ◽  
Financial Condition ◽  
The Government

The global economy is currently experiencing a shocking crisis.  Many people, particularly   entrepreneurs, are affected by this condition. This compels companies in Indonesia  to maintain their  good performance in order to be able to compete and  survive. Company performance can be identified  and assessed through analysis on the company's financial statements. The financial statements  consist of the Statement of Financial Position, the Profit and Loss Statement, the Equity Change Report, the Cash Flow Statement, and the Notes to Financial Statements. With the analysis of financial statements, the performance of an enterprise can be assessed by performing  a mathematical calculation of the items in the financial statements. In addition to examining the company's performance, financial statement analysis can also predict the company's financial condition in the future. It also serves as the source of  information about the company's health condition. This financial statement analysis is very useful as information for various parties, such as the government, investors, and other users of financial statements to assess the financial condition of a company.             The purpose of this study was to determine the financial performance of property and real estate companies as well as their contributions to the state from the tax sector. The research was conducted  by taking financial statements from property and real estate companies listed on the Indonesia Stock Exchange in 2016-2018.   The results show that the property and real estate companies with  the best financial performance was Bumi Serpong Damai Tbk. In terms of contributions made by companies from the tax sector, Pakuwon Jati Tbk has contributed increasingly  consistent every  year. However,  if seen from its financial performance, Bumi Serpong Damai Tbk has the best performance and good tax contributions. Key words :Analysis of Financial Performance and Tax Contributions.

scholarly journals THE EFFECT OF PORTFOLIO SIZE ON THE FINANCIAL PERFORMANCE OF PORTFOLIOS OF INVESTMENT FIRMS IN KENYA

2017 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Peter Kimani Mbogo ◽  
Dr. Josiah Aduda ◽  
Mr. Mirie Mwangi
Keyword(s):  
Real Estate ◽  
Financial Performance ◽  
Sample Size ◽  
Money Market ◽  
Optimal Portfolio ◽  
Survey Study ◽  
Unique Contribution ◽  
Money Market Funds ◽  
Portfolio Size ◽  
Descriptive Survey

Purpose: The purpose of this study was to determine the effect of portfolio size on the financial performance of portfolios of investment firms in Kenya.Methodology: The research design was descriptive survey study in nature since it focused on all investment firms in Kenya. The population of the study was all the investment firms in Kenya. This implied that the total population of this study is 90 firms as given by the Kenya Association of Investment Groups (KAIG). For representativeness purposes, the current study took a sample size of 50% of the population. This was 45 firms. This sample size was justified since this study could not anticipate how good the response rate would be.  The 45 firms must have been in existence for 5 years (2007 to 2011).Results: The finding reveal that investments firms in Kenya had put the biggest allocation of funds in stocks, followed by real estate portfolio and the least holding was in bond and money market funds.  The findings also reveal that that the stocks portfolio generated the highest returns followed by bond and money market returns while real estate portfolio generated the least returns.  The first objective of the study was to establish the optimal portfolio size for investment firms in Kenya. The findings in this study indicated that an optimal portfolio should hold between 16 and 20 stocks. Unique contribution to theory, practice and policy: It was recommended that investment managers should consider increasing the number of stocks from the current average of 13 stocks to between 16 to 20 stocks.  Such a portfolio size would be optimal since approximately 91% of risk would have been diversified.

scholarly journals A Study of Impact of Tourism Direct Employment Trends on Tourism Arrivals: An Empirical Analysis of Sri Lankan Context

2019 ◽  
Vol 12 (3) ◽  
pp. 62
Author(s):  
AMM. Mustafa
Keyword(s):  
Sri Lanka ◽  
South Asian ◽  
Time Series Data ◽  
Series Data ◽  
Sri Lankan ◽  
Correlation Relationship ◽  
Independent Variables ◽  
Employment Trends ◽  
The Government ◽  
Tourism Arrivals

Sri Lanka is one of the major tourist attraction destinations in South Asian region. After the economic reforms in 1977, the successive governments implemented various attractive policies and programmes to promote tourism in pursuing economic growth and development. The government further employed a number of initiatives to encourage and attract tourism arrival in the country. In this backdrop, this study is to analyze the impacts of the tourism direct employment trend on tourism arrivals in Sri Lankan context by using the time series data from year 1978 to 2017. The dependent variable used in this study is tourism arrivals. The independent variables are tourism direct employment and tourism Earnings. The tools used to achieve the objective of this study are Correlation Analysis, Multiple Regression, and Residual test. In this study, it is found that the correlation relationship between the variables is very strong. tourism direct employment and Tourism Earnings are directly related with tourists’ arrivals. The data collected have analyzed by using the econometrics software EViews 10. Based on the result recommended that to increase the magnitude of the direction tourism arrival in Sri Lanka, the factors such tourism direct employment and tourism Earnings should play statistically significant roles. This significant role should be considered by the relent authorities in Sri Lanka.

Quantification of financial consequences of buildings' ageing: analysis of panel building-level data from the Polish office space market

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bolesław Kołodziejczyk ◽  
Dmytro Osiichuk ◽  
Paweł Mielcarz
Keyword(s):  
Real Estate ◽  
Financial Performance ◽  
Content Type ◽  
Financial Outcomes ◽  
Level Data ◽  
Real Estate Investments ◽  
Occupancy Rates ◽  
The Impact ◽  
Real Estate Assets

PurposeRelying on a unique proprietary Polish office market space database, the paper attempts to quantify the impact of buildings' age on the financial performance of real estate assets.Design/methodology/approachPanel econometric modeling was utilized to disentangle the impact of buildings' functional obsolescence and technical deterioration on their long-term financial performance.FindingsIn line with casual empiricism, our findings show a negative associative link between properties' age and potential lease revenue. The concomitant stickiness of service charges presages a possible long-term deterioration of financial outcomes of real estate investments. While older buildings generally have higher occupancy rates, the absorption rates are found to be negatively affected by the properties' age. On the bright side, the elasticity of vacancy rate with respect to rental rates is found to decrease as buildings get older. Further, the rent differential is confirmed to be more pronounced in higher age properties hinting at an existing potential for price discrimination, which may at least partially compensate for stagnant rents.Originality/valueOur empirical results confirm the properties' age to be a statistically significant factor in shaping the long-term performance of real estate assets, which should be better accounted for in financial projections for real estate developments.

DETERMINANTS OF FINANCIAL PERFORMANCE OF COMMERCIAL BANKS LISTED AT NSE IN KENYA

2020 ◽  
Vol 5 (2) ◽  
pp. 66
Author(s):  
Kenneth Njihia Ndungu ◽  
Joshua Bosire
Keyword(s):  
Real Estate ◽  
Financial Performance ◽  
Interest Rates ◽  
Commercial Banks ◽  
Secondary Data ◽  
Unique Contribution ◽  
Strong Positive Correlation ◽  
Real Estate Finance ◽  
Funds Allocation ◽  
Real Estate Financing

Purpose: The purpose of this study was to establish the determinants of financial performance of NSE listed commercial banks in Kenya. Methodology: A descriptive study design attributed to a census approach aiming at the eleven listed commercial banks in Kenya was applied. The research relied on secondary data obtained from the audited financial statements of the said banks to create the correlation between the research variables. The information on the financial effecting of the listed banks was collected using a data collection matrix. The data was analyzed by the assistance of SPSS and the outcome presented in tables using statistical aspects, which include means and standard deviations. Results: The study established that government securities (r = 0.680) had a positive and strong correlation with financial performance. Similarly, Real estate (r = 0.738), Loans (r = 0.922) and, stocks (r=.469) had a positive and weak correlation with financial performance. The findings of study show loans (p=0.000) was most significant, followed by funds allocated to Government securities at p=0.149 then by funds allocated to stocks (p=.850) and least significant was real estate financing at p=0.972 at 95% confidence level.  The findings show that there was a strong positive correlation (r=0.926) between Funds allocation and financial performance of commercial banks, according to the findings, 85.7% of financial performance of commercial banks could be attributed to the funds allocation to various assets. Adding another variable say, x5 will lower the strength of the model from 85.7 % to 84.6 %.  Unique contribution to theory, practice and policy: The study recommends that listed commercial banks should diversify their real estate finance schemes to make it reachable to more customers since real estate had a significant effect of their financial performance. A study should be conducted on other variables such as inflation, exchange rates and interest rates fluctuations. A study should also be conducted to investigate the low yield of investment in loans in contrast to investment in government securities

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