Journal of Business and Social Sciences Research

Macroeconomic Determinants and Development of Banking Industry in Nepal

Krishna Prasad Gwachha — 2022-12-31

This study aims to examine the macroeconomic determinants that have influenced the development of the banking sector in Nepal by using the ARDL approach technique with economic time series data over the period 1995 to 2020. The research study applied the ARDL approach for a small number of observations to avoid the spurious regression issue that plagues the creation of modern time series data. The research study used bound test co-integration analysis to determine the long-run equilibrium association between the macroeconomic determinants and the development of banking sector industry. The arithmetic average of the normalised values for banking efficiency, banking depth, and banking stability is used to measure the development of the banking industry. The research study found that per capita GDP and remittances have a positive and significant impact on the development of the banking industry. Additionally, the development of the banking industry was explained by government expenditure and stock market capitalisation. However, the research study reveals that the development of the banking industry is negatively impacted by trade openness and inflation in Nepal.

Determinants of Interest Rate Spread of Nepalese Commercial Banks

Purna Man Shrestha — 2022-12-31

This paper has analysed the determinants of interest rate spread (IRS) of Nepalese commercial banks. The panel data of 25 commercial banks from 2013/14 to 2020/21 was used for the analysis. The study used return on assets (ROA), management efficiency (ME), capital adequacy ratio (CAR), assets quality (AQ), and credit risk (CR, and operational efficiency (OE) as the bank specific determinants and inflation (INF) and growth rate of gross domestic product (GDP) as the macroeconomic determinants. Using the random effect model, the paper finds ROA, CR, ME, and OE as the major bank specific determinants and INF and GDP as the major macroeconomic determinants of interest rate spread. Similarly, the role of ROA, CR, INF and GDP was found to be positive while that of ME and OE was discovered as a negative role in determining IRS of Nepalese commercial banks. The findings of this study can be useful in formulating policies on the spread rate of interest.

Flourishing Organisational Citizenship Behaviour through Job Characteristics

Bhupendra Jung Shahi — 2022-12-31

Researchers' contributions in identifying predictors of organisational citizenship behaviours are appreciable, and still, contextual study of job characteristics as an antecedent of enhancing employees' citizenship behaviours will be valuable for the banking and insurance sectors. This study is an endeavour to investigate the way of association and influence of perceived job characteristics on organisational citizenship behaviours (OCBs). Cross-sectional survey data were obtained from 221 employees involved in varying natures of jobs in the Nepalese Banking and Insurance industry. Correlation analysis revealed the positive association of perceived job characteristics with organisational citizenship behaviours. Similarly, the regression analysis suggested that perceived overall job characteristics positively and significantly predicted organisational citizenship behaviours (OCB-I, OCB-O, and overall OCB). The study is expected to add value to job design considerations for flourishing citizenship behaviours from the context of the Nepalese banking and insurance sectors.

People Perception on Business Opportunities of Banana Restaurants of Tikapur: Evidence from Structural Equation Modelling

Bharat Jung Singh — 2022-12-31

Banana restaurant is a new concept in Nepal where the products are made using banana only which gives the first mover advantage in product development and has less explored in Nepal. Therefore, this study aims to analyse consumers’ perception and business opportunity of banana restaurant in Tikapur, Kailali, Nepal. This study adopted explanatory research, and 203 samples were collected from consumers of banana restaurants. In addition, data were collected using structured questionnaire by using KOBO Toolbox. Thus, the obtained data were analysed by using both descriptive and inferential methods. Findings indicate that consumers perceive products of banana restaurant positively and are enjoying the variety of products. Likewise, SEM results indicate that psychological, economic and social characteristics are significant to innovativeness and risk taking, whereas innovativeness and risk taking are significant to managerial performance. Banana restaurant has been contributing with local employment and shows the high level of business opportunity of the banana products in the market of Tikapur (Kailali, Western Nepal).

Impact of Working Capital Management Components on Profitability: A Case Study of Shivam Cement Limited

Rashesh Vaidya — 2022-12-31

The paper shows the impact of working capital management on the profitability position of the only listed cement industry of Nepal, i.e., Shivam Cement Limited (SHIVM). The paper has applied correlation coefficient and regression analysis to interpret the data defines as dependent and independent variables. The paper used net profit margin (NPM) as a dependent variable, while the receivable conversion period (RCP), payable deferral period (PDP), inventory conversion period (ICP), cash conversion cycle (CCC), current assets to total sales ratio (CASR), and current liabilities to total sales ratio (CLSR) are taken as independent variables to see an impact of working capital on profitability of the SHIVM. The paper found that SHIVM is efficient in generating revenue by utilising current assets and current liabilities. The paper also found that neither RCP nor ICP or CCC was seen as related to the profitability of the SHIVM. Nevertheless, only the PDP has a negative impact on the NPM of the SHIVM. This shows that an increase in the PDP for the SHIVM would not lead to an increase in its profitability. ICP of SHIVM is only highly correlated with the CCC, as the nature of the industry maintaining a bulk inventory also determined the relation.

Factors Affecting Behavioural Intention of Online Food Delivery Service Consumers in Kathmandu Valley

Laxman Pokhrel — 2022-12-31

The paper aims to investigate the factors influencing behavioural intention of online food delivery services in the Kathmandu Valley. The paper applied a cross-sectional survey research design with structured questionnaires. The data were collected from 277 respondents. The Covariance-Based Structural Equation Model (CB-SEM) was used to test hypotheses. The behavioural intention of online food delivery services is positively influenced by performance expectancy, social influence, and facilitating conditions. However, effort expectancy has no significant influence on behaviour intention for online food delivery services. In this paper, the researcher and manager will gain theoretical and managerial insights. This is among the few studies that investigate the factors influencing online food delivery services by applying the unified theory of acceptance and use of technology (UTAUT) in the Nepalese context.

Factors Influencing Impulsive Buying Behaviour of Women in Supermarkets of Nepal

Ajita KC — 2022-12-31

The primary goal of this study is to examine the factors influencing Nepalese women's impulsive buying behaviour in supermarkets. Cross-sectional research design was adopted for carrying out the study in which 211 responses were collected both online and in printed form. Selection of respondents was based on convenience and judgement sampling. Women's impulsive purchasing behaviour in supermarkets was found to be highly influenced by their financial independence and the store environment. Further, the outcomes of the study reveal that women are more inclined to shop when they have the financial means to pay for their items by themselves, while the store environment influences women to adjust their inflexible shopping lists. So, supermarkets are advised to arrange the store with good ambience and friendly staffs. Future studies shall take a broader geographic perspective and factors like packaging, culture, and way of life into consideration.

'Global Recession' in the Offing: Deliberating on Proactive Measures

Arhan Sthapit — 2022-12-31

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