Corporate governance and the performance of Nigerian banking sector

This study investigated the ways and manners in which the affairs of banking sector in Nigeria are managed by those charged with the responsibility. It showed the relationship between corporate governance and the performance of banks in Nigeria. The population of the study consisted of all the twenty four consolidated banks in Nigeria that met the requirement of ^25billion capital base as at today. A sample of five of them was considered adequate for generalization. One hundred and thirty questionnaires were administered on the management staff of those selected banks out of which 120 were returned and10 were not properly filled. Statistical Package for Social Scientist (SPSS) was used to analyze the data collected and interpretation of data was done through simple percentages. Pearson Product Moment Correlation was used to test the relationship that exists between efficient Corporate Governance in the banking sector and the roles of external auditor and the composition of the board of directors. The study revealed that, lack of proper corporate governance is the bane of so many banks in Nigeria. The collapse and failure of many banks was as a result of both poor audit control and directors’ negligence to observe due diligence and acceptable standard practices. However, banking sector has greatly contributed to the gross domestic product of Nigeria and consequently improved the economy. Therefore, transparency, honesty and objectivity have to be encapsulated in the running of banking operations so as to have a positive effect on the continuity of the organization

On Duality Principle in Exponentially Lévy Market

This paper describes the effect of duality principle in option pricing driven by exponentially Lévy market model. This model is basically incomplete - that is; perfect replications or hedging strategies do not exist for all relevant contingent claims and we use the duality principle to show the coincidence of the associated underlying asset price process with its corresponding dual process. The condition for the ‘unboundedness’ of the underlying asset price process and that of its dual is also established. The results are not only important in Financial Engineering but also from mathematical point of view

Kaizen Cost Management Technique and Profitability of Small and Medium Scale Enterprises (SMEs) in Ogun State, Nigeria

The study examines the relationship that exists between Kaizen cost management technique and profitability of small and medium scale enterprise in Ogun State, Nigeria. It evaluates the nature of Kaizen cost management technique and how it can be adopted to reduce and control operational costs of SMEs. The study adopted primary data and a sample of 269 respondents consisting of small and medium scale enterprises were purposively chosen from Agro-allied, confectionery, general trading and transport business in Ogun State Nigeria. The study population comprised 2,685 enterprises obtained through a preliminary survey of SMEs in the three senatorial districts of Ogun States namely Ogun West, Ogun East, Ogun Central. A structured questionnaire was used to elicit information on relevant variables from respondents. The Statistical Package for Social Sciences (SPSS) was adopted to analyze the questionnaire. The result of statistical test of hypothesis shows that there is a significant relationship between Kaizen cost management technique and profitability of SMEs. A further test of significant relationship between cost components and profitability of SMEs using Regression Analysis shows that only fixed cost reliably predicted the average annual profit by a factor of 0.099. Key-words-: Kaizen, cost management, technique and Profitabilit

DETERMINANTS OF DIVIDEND POLICY AMONG NIGERIAN LISTED CONSUMER GOODS MANUFACTURING COMPANIES

The study seeks to identify determinants of dividend policy among listed consumer goods manufacturing companies in Nigeria. Secondary (cross sectional and time series) data were collected from seven (7) consumer goods manufacturing companies randomly selected from twenty-seven (27) listedcompanies on the Nigeria Stock Exchange (NSE) as at 2016. Thecollected data were analyzed using Ordinary Least Square Methods.  The resultsof the study show that there is a negative significant relation between profitability and dividend policy (b3= -0.43; t= -2.88 and p<0.05). Also, a positive significant relationship exists between liquidity and dividend (b4 =0.17; t=1.04 and p<0.05).However, there is no significant relationship between firm size and dividend policy (b1= 0.017; t= 0.10.7 and p> 0.05) and finally a negative insignificant relationship exists between financing policy and dividend policy (b2= - 0.12; t= - 0.70 and p > 0.05). This implies that business size and financing policyare not determinants ofdividend policy in Nigerian listed consumer manufacturing companies. The study recommends, among other things, that operators in the manufacturing sector facing dividend policy decision should focus more on improving profitability and liquidity. &nbsp

A Note on Black-Scholes Pricing Model for Theoretical Values of Stock Options

In this paper, we consider some conditions that transform the classical Black-Scholes Model for stock options valuation from its partial differential equation (PDE) form to an equivalent ordinary differential equation (ODE) form. In addition, we propose a relatively new semi-analytical method for the solution of the transformed Black-Scholes model. The obtained solutions via this method can be used to find the theoretical values of the stock options in relation to their fair prices. In considering the reliability and efficiency of the models, we test some cases and the results are in good agreement with the exact solution

He’s Polynomials for Analytical Solutions of the Black-Scholes Pricing Model for Stock Option Valuation

The Black-Scholes model is one of the most famous and useful models for option valuation as regards option pricing theory. In this paper, we propose a semianalytical method referred to as He’s polynomials for solving the classical Black-Scholes pricing model with stock as the underlying asset. The proposed method gives the exact solution of the solved problem in a very simple and quick manner even with less computational work while still maintaining high level of accuracy. Hence, we recommend an extension and adoption of this method for solving problems arising in other areas of financial engineering, finance, and applied science

ON A DIVIDEND-PAYING STOCK OPTIONS PRICING MODEL (SOPM) USING CONSTANT ELASTICITY OF VARIANCE STOCHASTIC DYNAMICS

In this paper, we propose a pricing model for stock option valuation. The model is derived from the classical Black-Scholes option pricing equation via the application of the constant elasticity of variance (CEV) model with dividend yield. This modifies the Black- Scholes equation by incorporating a non-constant volatility power function of the underlying stock price, and a dividend yield parameter

Understanding How Dividends Affect Option Prices

In this paper, we propose a pricing model for stock option valuation. The model is derived from the classical Black-Scholes option pricing equation via the application of the constant elasticity of variance (CEV) model with dividend yield. This modifies the Black- Scholes equation by incorporating a non-constant volatility power function of the underlying stock price, and a dividend yield parameter

The Modified Black-Scholes Model via Constant Elasticity of Variance for Stock Options Valuation

In this paper, the classical Black-Scholes option pricing model is visited. We present a modified version of the Black-Scholes model via the application of the constant elasticity of variance model (CEVM); in this case, the volatility of the stock price is shown to be a non-constant function unlike the assumption of the classical Black-Scholes model

Stochastic Analysis of Stock Market Price Models: A Case Study of the Nigerian Stock Exchange (NSE)

In this paper, stochastic analysis of the behaviour of stock prices is considered using a proposed log- normal distribution model. To test this model, stock prices for a period of 19 years were taken from the Nigerian Stock Exchange (NSE) for simulation, and the results reveal that the proposed model is efficient for the prediction of stock prices. Better accuracy of results via this model can be improved upon when the drift and the volatility parameters are structured as stochastic functions of time instead of constants parameters