Feats and Failures of Corporate Credit Risk, Stock Returns, and the Interdependencies of Sovereign Credit Risk

This dissertation comprises two essays; the first of which investigates sovereign credit risk interdependencies, while the second examines the reaction of corporate credit risk to sovereign credit risk events. The first essay titled, Characterizing Sovereign Credit Risk Interdependencies: Evidence from the Credit Default Swap Market, investigates the relationships that exist among disparate sovereign credit default swaps (CDS) and the implications on sovereign creditworthiness. We exploit emerging market sovereign CDS spreads to examine the reaction of sovereign credit risk to changes in country-specific and global financial factors. Utilizing aVAR model fitted with DCC GARCH, we find that comovements of spreads generally exhibit significant time-varying correlations, suggesting that spreads are commonly affected by global financial factors. We construct 19 country-specific commodity price indexes to instrument for country terms of trade, obtaining significant results. Our commodity price indexes account for significant variation in CDS spreads, controlling for global financial factors. In addition, sovereign spreads are found to be related to U.S. stock market returns and the VIX volatility risk premium global factors. Notwithstanding, our results suggest that terms of trade and commodity prices have a statistically and economically significant effect on the sovereign credit risk of emerging economies. Our results apply broadly to investors, financial institutions and policy makers motivated to utilize profitable factors in global portfolios. The second essay is titled, Differential Stock Market Returns and Corporate Credit Risk of Listed Firms. This essay explores the information transfer effect of shocks to sovereign credit risk as captured in the CDS and stock market returns of cross-listed and local stock exchange listed firms. Based on changes in sovereign credit ratings and outlooks, we find that widening CDS spreads of firms imply that negative credit events dominate, whereas tightening spreads indicate positive events. Grouping firms into companies with cross-listings and those without, we compare the spillover effects and find strong evidence of contagion across equity and CDS markets in both company groupings. Our findings suggest that the sensitivity of corporate CDS prices to sovereign credit events is significantly larger for non-cross-listed firms. Possible reasons for this finding could in fact be due to cross-listed firms’ better access to external capital and less degree of asymmetric information, relative to non-cross-listed peers with lower level of investor recognition. Our results provide new evidence relevant to investors and financial institutions in determining sovereign credit risk germane to corporate financial risk, for the construction of debt and equity portfolios, and hedging considerations in today’s dynamic environment

Prevalence and determinants of child fosterage in West Africa: relevance to demography

Ethnographic studies in West Africa show that the practice of sending children away to be raised by relatives and nonrelatives is widespread among many ethnic groups. This paper is an attempt to explore the demographic relevance of the practice. The fostering information is obtained from two sources: the responses given by women to the question on children away from home, and by linking all children to their mothers with the unmatched children being treated as fosters. The characteristics of these children, their surrogate mothers, and those of the biological mothers are explored, and the determinants of child fostering are discussed as correlates of these attributes. The results are indicative of high incidence of child fosterage in Ghana, Sierra Leone, Liberia and Nigeria. Child fostering enhances female labor force participation, and may affect the fertility decisions of both natural and foster parents, mainly because it serves to reallocate the resources available for raising children within the society. It may also have consequences on child survival, depending partly on how the culture treats children outside of their maternal homes

Extramarital relations and perceptions of HIV/AIDS in Nigeria

Data from a 1991 survey of five Nigerian towns are used to examine currently married men’s and women’s perceptions of AIDS which, together with other socioeconomic factors, are then related to extramarital sexual behaviour. An overwhelming majority of the respondents have accurate information about AIDS. In particular, most associate HIV/AIDS transmission with multiple sexual partners, though only one-third of them think that the fear of AIDS has limited casual sex in their communities. About 54 per cent of men and 39 per cent of women have had extramarital relations, with 18 per cent of men and 11 per cent of women having done so in the previous week. The incidence of extramarital relations varies considerably by respondents' level of education, type of marriage, religion, and spousal closeness. More importantly, knowledge of multiple sexual partners as a risk factor for HIV/AIDS is inversely related to extramarital affairs. The study underscores the link between knowledge and behaviour, and calls for a well-articulated campaign designed to educate the populace about the threat of AIDS, with the aim of modifying both premarital and extramarital sexual behaviour, thereby reducing the risk factor for HIV through heterosexual relations which is the main mode of transmission in Nigeria

Interconnections among changing family structure, childrearing and fertility behaviour among the Ogu, Southwestern Nigeria

The interconnections of family transformation, childrearing and fertility behaviour are explored. Data were generated through nine focus groups organized among the Ogu and content analyzed. The analysis reveals that although the family system is still largely dominated by extended structure, the strong traditional kinship ties have begun to undergo serious strain. Child fostering and other means of spreading childrearing cost among relatives are fading out. Consequently, desired family size and ideal number of children in the society now gravitate to four children relative to over eight in the past. Given dwindling extended family resources for the support of a large number of its members, innovative reproductive behaviour is permeating the society, such as the adoption of family planning.childrearing, childrearing cost, family planning, family structure, fertility, fertility behavior, household, ideal family size, interconnections, kinship

Adolescent Sexuality and Reproductive Health in two Oil Producing Communities in Imo and Rivers States, Nigeria

The Study was conducted in two contiguous oil producing rural local government areas in Imo State and Rivers State of Nigeria, to examine adolescent sexuality and reproductive health situation in the area given its peculiarities. This is a baseline study for an intervention project aimed at identifying strategies for achieving behavioural changes among the youth, and for promotion of health-seeking behaviour for the control of HIV/AIDS and other sexually transmitted infections (STIs). Data were collected through questionnaires administered among 725 students in secondary schools and 249 school drop-outs, comprising 483 females and 491 males. The questionnaire generated ample information on knowledge, attitudes and practices of the youth with respect to sexuality and reproductive health as well as various background characteristics of the respondents. Supplementary qualitative data were collected through focus group discussions. The study found a high level of sexual activity among both in-school and out-of-school adolescents, low levels of knowledge of preventive measures, negotiation skills and STIs, and relatively high levels of premarital pregnancy, abortion and incidence of STIs. The paper proffered suggestions for introducing life-building skills and sexuality education in the secondary schools through peer health education and other school programs, and underscored the need to make schooling more interesting and attractive to the youth

Understanding Sexual Negotiation between Marital Partners: A Study of Ogu Families in Southwestern Nigeria

Studies on African sexuality have concentrated on men extra-marital affairs and a total neglect of sexual negotiation between husband and wife. The main objective of this study is to examine gender differentials in sexual negotiation strategies between marital partners among the Ogu, South-western Nigeria. Data were generated from survey conducted among 900 married men and women and 9 focus group discussions. Analysis reveals that both husband and wife have sexual needs that make them to desire sex naturally. While men do make direct demand for sex, women employ indirect erotic strategies to initiate sex. The consent of both partners is required for sexual encounter to give maximum pleasure. Logistic models show that urban residence and frequent spousal communication are associated with gender equity in sexual negotiation between marital partners. It is suggested that sexual health programmes should therefore focus on both partners and not just men

Sociocultural Context and Determinants of Treatments for Hemorrhoids Among the Nigerian Police, Oyo State Command

Hemorrhoids or piles, culturally known as Jedijedi among the people of southwestern Nigeria, are an anorectal disease surrounded by misconceptions. The consequences of these misconceptions are enormous. Therefore, the main objective of the present study is to understand the sociocultural explanation of piles among selected personnel of the Nigeria Police Force. We recruited 302 police officers for the exploratory survey through a multistage sampling technique. Five key informants were interviewed at the study area based upon their professions and proximity. Data interpretation was done through chi-square and content analysis. Results indicated a high prevalence (73%) of and misconceptions about hemorrhoids among the respondents. The majority (80%) of the respondents had a poor awareness of the risk factors, making a scientifically unfounded claim that sugar intake was responsible for piles. Their belief negatively influenced the treatments adopted. Furthermore, their choice of therapy was influenced by its affordability (p \u3c .05) and the fear of hemorrhoidectomy (p \u3c .05). The study established various misconceptions about hemorrhoids among herbal vendors and police officers, which influenced treatment choices. The study suggested that one potent tool for combating ignorance about the disease is sensitization, which will equip officers to adopt healthier behaviors and aid herbal vendors to give better treatment to their clients. In addition, experimental platforms should be set for herbal vendors and orthodox medical practitioners to form a synergy in combating the diseases

Maternal and environmental factors influencing infant birth weight in Ibadan, Nigeria

Fetal weight at birth is a major determinant of survival, physical growth and mental development of an infant. About 14 percent of all births in Nigeria are born with low birth weight. Studies on birth weight in Nigeria have focused mainly on the biomedical risk factors and have largely ignored the influence the socio-cultural environment which encompasses maternal knowledge, beliefs, and practices during the prenatal period. With the premise that birth weight shows a reverse social gradient, this study examined the effects of maternal, sociocultural and environmental factors on the birth weight of infants in Ibadan. The research adopted a prospective survey design method involving multistage sampling procedure to select 1,138 pregnant women accessing antenatal care services from both orthodox and community health providers. The instrument comprised structured questionnaire, and secondary data were generated from the patients’ files retrieved from the antenatal care centres. The study identified a number of maternal, socioeconomic and environmental factors that significantly influence low birth weight and suggested actions that would help reduce the risk factors of low birth weight and promote care-seeking and demand for skilled care at all stages of pregnancy

Demographic dynamics and development in Nigeria

Nigeria is the most populous country in Africa and has a very high population momentum with an annual growth rate of 3.2 per cent per annum. This momentum can be a panacea for development and economic growth if well harnessed. The focus of the article is to provide an overview of population dynamics in Nigeria with a view to situating this within a broader context of contemporary population and development discourse. The article benefited immensely from secondary data sources and desk review of evidence

Household Socioeconomic Status and Sexual Behaviour Among Nigerian Female Youth

This paper examines the determinants of sexual behaviour with special reference to the effect of household socio-economic status as a proxy for poverty. The data are derived from the Nigeria Demographic and Health Survey; the analysis is restricted to 1,831 never married females age 15-24. Both descriptive and analytical methods are used to assess the effects of each poverty-related factor when the effects of other demographic and socio-cultural factors are controlled statistically. The results show that 31.5% of the respondents have had sexual intercourse, and more than half of these had an affair in the month preceding the survey. The median age of sexual debut is 17 years, and there is little variation among socio-demographic and poverty-related indices, indicating a generally early initiation of sexual activity. Condom use is low among the youth; only 15% have ever used condom, and about 22% of the sexually experienced used condom the last time they had an affair. The results indicate that those who have access to the media and those of high socio-economic status are more sexually exposed than their counterparts who do not have access to media or have less household facilities. Exposure to premarital sex increases with access to newspapers, radio and television. The data do not support the view that the high level of sexual activity is a function of household poverty, although poverty exposes the youth to reproductive health risks as a result of low usage of condom among those from less well-off homes