Profitability of Contrarian Strategies: Evidence From the Stock Exchange of Mauritius

The aim of this paper is to assess the profitability of contrarian strategies on the Stock exchange of Mauritius. Using data from 2001 till 2009 for all 40 listed companies on the official market, the study shows little support in favour of the contrarian effect. In particular, the losers portfolio seems to outperform the winners portfolio in one out of nine strategies. However, when considering the market return, negative excess returns are noted for all portfolios across all strategies, providing strong support for a passive portfolio management strategy and weak support for overreaction hypothesis. In addition, the Size, Price, Earnings to Price (E/P) and Book to Market (B/M) Effect has been tested. The results suggest that the average market return is greater than size-based portfolios and price-based portfolios. However, when accounting for the E/P and the B/M effect, there seems to be a strategy which can beat the market. Nevertheless, most strategies for E/P and B/M portfolios indicate insignificant excess returns. In general, the results of this paper are undoubtedly in sharp contrast with most popular studies in developed markets. However, it is observed that investors on the SEM may not possess similar characteristics to those of well-advanced markets. In particular, according to Harvey (1995), emerging market countries are sometimes relatively isolated from capital markets of other countries

The mediating effect of attitude on adoption of mobile payment services in small island developing states. The case of Mauritius

Purpose: This study assesses the factors that impacts on an individual's adoption (ADOP) of mobile payment services (MPS) in the setting of a small island developing state (SIDS), Mauritius. Design/methodology/approach: The theoretical model for this study draws upon prior research, synthesizing elements from various established theories, including the Technology Acceptance Model (TAM), the Theory of Reasoned Action (TRA), the Theory of Planned Behavior (TPB), the Unified Theory of Acceptance and Use of Technology (UTAUT), as well as its variants, UTAUT 1, UTAUT 2, and Meta-UTAUT. These theories are augmented with factors pertinent to MPS ADOP. A significant contribution of this study lies in the inclusion of attitude (ATTI) as a mediator, elucidating its role in mediating the direct effects on ADOP. The study's sample comprises of 186 participants hailing from densely populated regions in Mauritius. To assess the influence of the various constructs on MPS ADOP, Structural Equation Modeling (SEM) is employed. Main findings: The findings indicate that, while Perceived Trust (PT) and Perceived Risk (PR) were not directly associated with the Adoption (ADOP) of MPS, there exists a direct relationship between Subjective Norms (SN), Compatibility (COM), and Intention to use (INT) with MPS Adoption. Furthermore, it was observed that Subjective Norms (SN), Compatibility (COM), Perceived Risk (PR), Perceived Trust (PT), and Intention to use (INT) are directly linked to Attitude (ATTI). Moreover, this analysis reveals that Attitude (ATTI) partially mediates the relationship between Subjective Norms (SN), Compatibility (COM), Perceived Risk (PR), Perceived Trust (PT), Intention to use (INT), and the Adoption (ADOP) of MPS. Practical implications: The outcomes provide a clearer understanding of the theoretical understanding of MPS ADOP and also enhance our understanding of important variables influencing adoption of MPS by customers. Recommendations are also made based on the research findings. Originality/value: The primary motivation behind this study is to bring to light an unexplored and pivotal dimension in the existing research landscape. While previous studies have examined the direct connections between SN, COM, PR, PT, and INT with respect to consumers' adoption of MPS, a significant research gap exists in comprehending the role of ATTI as a mediator within these associations. This study endeavors to unveil the intricate underpinnings of the adoption process among consumers in Mauritius. By concentrating on this aspect, the study aspires to bridge a substantial void in the scholarly literature, offering a nuanced perspective on the adoption of MPS

Motivators of Dividend Payout among Firms listed on the Stock Exchange of Mauritius

This paper aims at investigating the factors which motivate the dividend decision among the firms that are officially listed on the Stock Exchange of Mauritius. Factors such as the current ratio, price-to-book value, earnings per share, retention ratio, debt to equity ratio and market capitalisation rate per sector were considered. Using a sample of 38 listed companies on the SEM, the cross sectional analysis revealed that current earnings, retained earnings and liquidity are among the most significant motivators of dividend payout. Market capitalization rate per sector and price- to-book value turns out to be statistically insignificant while debt to equity ratio turns out to be positively related to dividend pay-out ratio which is in sharp contrast from the implication of the current legislation.Keywords: Dividend policy, dividend pay out, factors affecting dividend paymen