International Journal of Finance https://carijournals.org/journals/index.php/IJF <p>International Journal of Finance is a high factor peer reviewed journal published both online and printed version by CARI. The International Journal of Finance demonstrates that finance factors cooperation shows the increasing scope of various financial management strategies in recent past and corroborates the importance of international knowledge about finance. A double blind peer review process is employed as far as the peer review of the research paper is involved which contributes to a high quality publication. It can be regarded to be one of the top academic journal publishers in the sector of publishing of finance research.</p> CARI Journals Limited en-US International Journal of Finance 2520-0852 Volatility dynamics of the Botswana Stock Exchange (BSE). Good or Bad for Investors? https://carijournals.org/journals/index.php/IJF/article/view/965 <p><strong>Purpose:</strong> Volatility can be a risk if it results to investors generating negative returns. On the other hand, it can be an opportunity if it results in investors generating positive returns. Whether volatility generates positive returns or negative returns for investors may depend on the general volatility dynamics of a stock market. The concern is that the volatility levels of BSE stocks may not be enhancing the returns of investors. Therefore, the study investigated whether the volatility dynamics of BSE are good or bad for investors.</p> <p><strong>Methodology: </strong>Using market data from 2011 to 2013, we employ a GARCH-M (1,1) model to find out if BSE volatility dynamics are enhancing the returns of stocks listed on the stock exchange.</p> <p><strong>Findings: </strong>The results showed that the risk coefficient in the mean returns is significant but negative. This implied that the returns of stocks listed on the BSE are significantly, but negatively related to market volatility. Therefore, we concluded that the current market volatility dynamics of the BSE are not enhancing the returns of investors and are bad for investors in the short-term.</p> <p><strong>Unique contribution to theory, practice and policy:</strong> We recommend that investors use a buy and hold strategy in order to realize positive returns. &nbsp;</p> Edson Kambeu Justine Mbudaya Copyright (c) 2022 International Journal of Finance 2022-08-01 2022-08-01 7 3 25 33 10.47941/ijf.965 FOREIGN DIRECT INVESTMENTS AND ECONOMIC GROWTH: A CRITICAL LITERATURE REVIEW https://carijournals.org/journals/index.php/IJF/article/view/971 <p>The relationship between foreign direct investment (FDI) and economic growth has attracted major attention from academics and the governments of developing countries. Since economic growth is one of their main focuses, FDI attraction-related policies have been prioritized during the process of economic growth and development in these countries. It is widely observed that FDI mitigates the saving-investment imbalance and provides technology which is used for the production of goods and services. Although some studies have found evidence of the positive impact of FDI on economic growth, others have revealed the opposite result. The objective of this paper was to perform a critical theoretical and empirical literature review on foreign direct investments and economic growth. The theories guiding this study included the internalization theory, eclectic paradigm theory, product lifecycle theory, Solow growth model and endogenous growth theory. From the empirical studies reviewed, most studies conclude that foreign direct investments influence economic growth in a positive way but it is also evident that the studies also provide conflicting findings with some oscillating from negative to positive and others indicating no relationship at all. The difference in findings among the scholars might arise from methodological differences and operationalization of the study variables. Contextual differences might also explain the inconsistent findings as most of the studies have focused on developing economies. The study identified preconditions in the host country that help harness FDI and influence economic growth and they include developed financial and legal institutions, proper infrastructure, conducive monetary and fiscal policies, and an enabling macro-economic and structural environment that directs FDI to productive investments.</p> Otieno William Otieno Josiah Aduda Copyright (c) 2022 International Journal of Finance 2022-08-02 2022-08-02 7 3 34 60 10.47941/ijf.971 RELATIONSHIP BETWEEN WORKING CAPITAL MANAGEMENT PRACTICES AND FINANCIAL PERFORMANCE BY REGISTERED PROPERTY DEVELOPERS IN KENYA https://carijournals.org/journals/index.php/IJF/article/view/938 <p><strong>Purpose:</strong> Working capital management is acknowledged as a very significant element in examining performance of firms. In property development sector, large developers dominate the market but there still exist a huge housing hollow. Property development firm faces challenges in areas of working capital management that limits them in fulfilling the housing needs of citizens and further exposes the firms to poor financial performances. The current study sought to establish the relationship between working capital management practices and financial performance by registered property developers in Kenya. Specifically, the study sought to investigate the relationship between debtors’ management practices, inventory management practices, cash management practices and creditors’ management practices and financial performance by registered property developers in Kenya.</p> <p><strong>Methodology</strong>: The study was anchored on Agency Theory, The Theory of Working Capital Management, The Trade- off Theory and The Pecking Order Theory. The population of the research was seventy-six registered property developers in Kenya. The unit of observation comprised of finance managers. A census approach was employed in the study. The study utilized both primary and secondary data where structured questionnaires were used to gather primary data while a secondary data collection was used in gathering secondary data from the respective firm’s financial reports. Both inferential and descriptive statistics were employed in analyzing the collected data and results presented in form of tables and figures.</p> <p><strong>Findings</strong>: The results of the analysis revealed that Cash Management Practices, Debtors’ Management Practices, Creditors’ Management Practices and Inventory Management Practices positively and significantly relates with financial performances of registered property developers in Kenya. The study concluded that Cash Management Practices, Debtors’ Management Practices, Creditors’ Management Practices and Inventory Management Practices positively and significantly relates with financial performances of the property developers.</p> <p><strong>Unique contribution to theory, policy and practice:</strong> The study recommends the management of registered property developers in Kenya to enhance their practices in Cash Management, Debtors’ Management, Creditors’ Management and Inventory Management since the practices positively and significantly relates with financial performance of the property developers.</p> Grace Wangari Njoroge Gordon Opuodho Copyright (c) 2022 International Journal of Finance 2022-07-20 2022-07-20 7 3 1 24 10.47941/ijf.938