Vol. 13, No. 2, December 2020

The Disparity Between Exponentially and Lognormally Distributed Mean Severities in General Insurance Business

Fri, 04 Dec 2020 00:00:00 GMT

The Disparity Between Exponentially and Lognormally Distributed Mean Severities in General Insurance Business Ogungbenle, Gbenga Michael The purpose of this study is to enable us to obtain mean losses of an insured risk by means of the operational behaviour of density function with deductible modifications and then compare the mean severities under exponentially and log-normally distributed arbitrary policy in a cost per loss and cost per payment circumstances. The mean losses model thus obtained for an arbitrary policy in general insurance under deductible coverage modifications is meant to reduce the number and magnitude of claims received. Furthermore, the mean losses are then used to compute premium numerically, based on the applied deductible. Rate relativity data on deductible was obtained through a non-life insurance agent operating in property insurance market in Lagos. The result show that despite log-normal severity distribution has a thicker tail than the exponential distribution, its cost per loss payment (Y;) is correspondingly lower in value than the values of exponential mean loss that is (YZ )log normal < (YZ)expential. While the cost per payment is uniformly constant throughout the entire domain of definition for the deductible under exponential distribution, the insurer experiences higher cost per payment than expected in the subinterval 45 SD S1 under lognormal regime. It is, therefore, recommended that the insurer is advised to apply deductible in this subdomain to disapprove nuisance claims and control the problem of moral hazard.

An Assessment of Financial Leverage for Listed Pharmaceutical Firms of Bangladesh

Fri, 04 Dec 2020 00:00:00 GMT

An Assessment of Financial Leverage for Listed Pharmaceutical Firms of Bangladesh Jahan, Kawsar; Tumpa, Khadiza Khatun Purpose: This study tries to explore the imperative factors of financial leverage (FL) for the listed pharmaceutical firms in the Dhaka Stock Exchange (DSE) in Bangladesh. Research methodology: To complete the objectives, the study has collected data from 20 listed pharmaceutical firms of DSE for six years (2013 - 2018). Profitability, liquidity, size, growth, and tangibility are considered as the exogenous variable to explain the endogenous variable financial leverage (FL). The statistical techniques Pooled ordinary least square and fixed effect regression models have been used to analyze the panel data set. Result: The research results find that liquidity, profitability, and firm size are statistically significant factors for the listed pharmaceutical firms. The researchers observed that the most accomplished FL theories in pharmaceutical firms are trade-off and pecking order theory. Conclusion: Finally, the result of the study advocates that the concerned financial management of pharmaceutical companies of Bangladesh should pay more attention to increase their profit, asset size and maintain liquidity before taking external debt as finance and hence can keep contributing to progress the firm's performance as well as the development of countries in the forthcoming future.

Influence of Financial Literacy, Financial Planning and Awareness on Investment Vehiclesto Investment Preference of Public-school Educators in Puerto Princesa City, Palawan

Fri, 04 Dec 2020 00:00:00 GMT

Influence of Financial Literacy, Financial Planning and Awareness on Investment Vehiclesto Investment Preference of Public-school Educators in Puerto Princesa City, Palawan Josefina S. Viernes; Randy G. Olano This study aimed to examine respondents' financial planning status, their familiarity with various investment vehicles, and their investment preferences. Using the Theory of Planned Behavior, the researchers analyzed whether there is a correlation between financial literacy, financial planning, and awareness of investment vehicles and the investment preferences of public-school teachers. The researchers utilized a mixture of snowball and quota sampling method to gather data. By the end of the allotted time period, a total of 55 responses were gathered. Results showed that there is a significant relationship between subjective financial literacy and financial planning. However, there is no significant relationship between financial literacy and investment preference except for three occasions. Findings also revealed that there is a significant relationship between financial planning and investment preference in the areas of financing large purchases, protecting life and assets, investing savings, planning retirement. Lastly, the level of awareness about most investment products and the respondents' investment preference was found to be significant except for the following investment vehicles: Small Business, Networking, Time Deposit, Corporate and Government Bonds, Treasury Bills, and Long Term Negotiable Certificate of Deposit. These findings revealed that relationships between variables are not entirely significant there fore, investment preference may not be predicted using these constructs. However, due to the limitations in the time allotted to gather the data, the results might have been severely affected, thus, it is recommended that other researchers continue what has been started by this study. Future researchers may course through their survey for public school teachers through the heads of the Department of Education or the presidents of the two state universities in the province to get a higher number of responses.

Contemporary Practices of E-commerce in Bangladesh

Fri, 04 Dec 2020 00:00:00 GMT

Contemporary Practices of E-commerce in Bangladesh Islam, Sanjida E-commerce means buying and selling product and transmittal of the funds through electronic network. E-commerce consists of different technologies, including online fund transfer, electronic data interchange, Inventory management, Internet marketing, automated data collection systems, etc. The government of Bangladesh initiates lots of programs for enhancing the development of technologies in the field of business. The government also provides facilities for the business organization as well as other organizations to adopt digital technologies. There are both primary and secondary data used in this study. The research was conducted from January to May of 2021 surveying with a questionnaire involving 452 samples. Some simple statistical tools; pie-chart, bar diagram and tables were used to analyze data and present the result. The findings include use of social media for purchasing, purpose of use of internet, reliability of purchasing from internet, preference of mobile app, opinion about high speed internet, growth of e-commerce, purchase frequency and motivational factors for online purchase.