Browsing by Author "Ogwang, John"

Now showing 1 - 7 of 7
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    Agricultural Credit Facility and Performance of Agri-Business Enterprises in Lango Sub Region
    (Lira University, 2022) Opudo, Robert Caesar; Ogwang, John
    Background: This study examined the agricultural credit facility and performance of agri-business enterprises in Lango Sub-Region. The purpose of the study was to examine the effects of agricultural credit facility on the performance of agri-business enterprises in Lango Sub-Region focusing on cotton and simsim enterprises in Lira and Kole Districts. The objectives of the study were to determine the effects of agricultural credit facility, interest rates, loan limit, loan periods and collaterals on the performance of agri-business enterprises in Lango Sub-Region. Methods: The study used quantitative approach with cross-sectional survey design and guided by theory of constraints (TOC). A study population of 454 with a sample size of 246 respondents. The study employed simple random sampling technique and purposive sampling to reach the respondents. Quantitative data was analyzed using descriptive and inferential statistics (regression) with the aid of Eviews version 9. Results: The findings showed that ACF collateral requirements have a positive significant effect at 5% level (p<0.05) on performance of agri-business enterprises. It was also noted that the effects of credit size on performance was insignificant (p-value>5%). The credit period was found to have negative coefficient of (-0.0219, p>0.05) implying a weak insignificant negative effect and the interest rate had coefficient of (0.0645, p>0.05), hence showing a weak positive insignificant effect. Conclusion: The study concluded that ACF collateral requirements are the major factors responsible for the effectiveness of ACF on performance of agri-business enterprises, specifically, cotton and simsim. Recommendation: The study recommends that ACF collateral requirements be relaxed and objectively valued, and well aligned to the value of the loan so that many farmers can access credits. Meanwhile, sensitization of farmers on how to apply and get ACF loans should be intensified and that government and agency should set deliberate credit system for cotton and simsim and also to reduce on the costs of the agricultural inputs such as fertilizers, tractors among others and that future studies examine the effects of monetized economy on household production and consumption pattern in Lango Sub Region. Keywords: Agricultural Credit Facility, Performance, and Agri-Business Enterprises
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    Competitive Strategies and Financial Performance of Beverage Companies in Uganda: A Case of Coca Cola Company, Northern Uganda
    (Lira University, 2022) Odongo, Jimmy; Ogwang, John
    Background: The study examined the effects of competitive strategies on the financial performance of Coca Cola Company Limited in Northern Uganda. The study assessed the effects of product differentiation strategy; cost leadership strategy and market focus on the financial performance of Coca Cola Company Limited in northern Uganda. Methods: The study used a cross sectional survey as a research design to investigate the characteristics of the population as expressed in a particular point in time. This design was suitable for the data that are quantitative in nature to enable the researcher collect numerical data with selfadministered questionnaires. The study was carried out in Coca Cola Company branches in the districts of Apac, Lira City, Lira District, Oyam, Pader, Agago, Gulu City, Kitgum, Dokolo, Alebtong, Kole, Kwania, Nwoya, Amuru, Amolatar and Otuke. The target population was 176 participants that was composed of managers, accountants, cashiers, stores officers and sale representatives. Because the target population was homogenous, a stratified random sampling technique, purposive sampling and simple random sampling were used. The size of the study population was determined by the researcher using Krejcie and Morgan. The primary data was collected from the respondents using a 5-likert type scale questionnaire. The effects of competitive strategies on financial performance was analyzed using regression model. Findings: There were significant effects of some of the measures of competitive strategies dimension constructs of (cost leadership) on the financial performance of coca cola. The construct of cost leadership was significant at 1% level of confidence while the constructs of market focus strategy on financial performance of coca cola company yielded a regression positive coefficient of 0.1223 with a positive p-value of 0.1212. The results answer the research question about the effects of market focus strategy on financial performance of coca cola company and differentiation strategies had a positive p-value of 0.5533 and a coefficient of 0.0418 which had insignificant effect on the financial performance of coca cola. However, some of the measures used to assess differentiation and market focus strategies had significant effects on financial performance of coca cola company. Conclusion: The study concluded that other measures like; possession of competitive resources and product uniqueness are important in enhancing ROI of coca cola company limited, efficiency of processes, sources of raw material and cost saving for customers are good in enhancing ROE and that focus on specific classes of customers, focus on specific market are important in enhancing the profitability of coca cola company limited. Recommendations: The study therefore recommended that management of coca cola should invest more on the cost leadership strategy since the findings indicated that, the strategy had significant effects on financial performance of coca cola company limited. The study also recommended that management of coca cola should do market analysis so as to deliver market products according to the needs of the customers. This will avoid supplying products to certain areas that are not the preference of customers in those areas. Keywords: Competitive Strategy, Performance, and Financial Performance
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    An Empirical Analysis of Sovereign Credit Risk Co-movement between Japan and ASEAN Countries
    (Journal of Economics and Behavioral Studies, 2016) Jitmaneeroj, Boonlert; Ogwang, John
    Japan is the most developed economy in Asia. However, it has been on record for being the most heavily indebted country among OECD countries. In many circumstances, the high sovereign debt level indicates a high possibility of sovereign credit risks associated with investment in government bond. The high sovereign credit risk may also generate a number of negative externalities for private businesses operating in the host country. This paper investigates whether sovereign credit risk of Japan as measured by its sovereign credit default swap (SCDS) can better predict and commove with sovereign credit risk of selected ASEAN countries. The bivariate VAR model was used to test for Granger Causalities among these countries SCDS premiums and correlation analysis to investigate co-movements between SCDS of these countries. The results indicate that Japan’s sovereign credit risks do not co-move with those of ASEAN countries, Furthermore, Sovereign credit risks of ASEAN countries tend to lead those of Japan as evidenced by unidirectional causalities from these countries to Japan. The overall suggestion is that sovereign credit risk of Japan is not likely to influence those of ASEAN. The paper concludes with some implications for businesses.
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    Professor’s Optimal Workload Problem and His Remunerations: A General Solution from Lagrangian Function
    (International Journal of Business, Humanities and Technology, 2020) Ogwang, John
    The author proposed a general solution to professor’s optimal workload by using Lagrange method. University Management is treated as a utility maximizer, whose objective is to efficiently utilize professor’s teaching hours and research output to the maximum level. The paper used the Cob-Douglas utility function for this utility maximization problem. The data used for this analysis were obtained from policy documents of Lira University and Makerere University in Uganda. The model generated varying maximum levels of teaching loads and research output for different categories of academic staff and faculties (Science and Non-science faculties). Generally, workload increases in both dimensions of teaching and research, as remuneration increases when one is promoted from a lower position, say a senior lecturer, to higher position, say Associate professor. The model also generated higher workload both in teaching and research for the Faculty (Sciences) whose academic staff are better paid compared to staff in the non-science Faculty who are paid lower remunerations. The paper contributes to existing literature on Faculty workload model in two ways: Firstly, is the design of differential maximum workload system for different categories of Academic Staff depending on the level of their remunerations and seniority. Secondly, the decomposition of Academic staff’s maximum workload into its teaching and research components for any given fixed amount of remuneration. The paper concludes by suggesting appropriate policy implications.
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    Some Non-Linear Problems in Accounting and Finance: Can We Apply Regression?
    (International Journal of Business, Economics and Management, 2020) Ogwang, John
    Recent studies have indicated that many decision problems in accounting and finance can be better modeled by non-linear models in practice. However, existing literatures have also shown that managers and decision makers are not very conversant with non-linear models as compared to linear models because of the simplicity of linear models. In this paper, attempts are made to transform some non-linear models in accounting and finance which conform to exponential and power functions to their equivalent linear forms. The resulting equivalent linear models are subjected to regression analysis. The paper documents interesting practical non-linear problems in accounting and finance where it is possible to apply regression, and provides technical interpretations of coefficients of resulting regression equations. Some non-linear problems which have been documented in this analysis include; depreciation of non-current assets, the learning curve model, life cycle costing, compounding, discounting and exponential growth bias. Although logarithmic transformation of non- linear functions is not a novel idea in literature of accounting and finance, there is no evidence in literature that scholars have proposed particular cases in finance and accounting where these linear transformations and their resulting regression equations would yield meaningful results that can enhance management decision making. This paper fills this gap by documenting practical non-linear problems in finance and accounting where linearization and subsequent application of regression analysis generates useful results for management decision making purposes.
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    A Technical Note on New Applications of Lorenz Curves in Business Based on Pareto Principles
    (International Journal of Applied Economics, Finance and Accounting, 2021) Ogwang, John; Obote, Dennis; Abwot, Ursula
    In this paper, the authors proposed new applications of Lorenz curves. Specifically, the authors demonstrated how Lorenz curve can be applied to display heterogeneities in values of some economic commodities. The economic commodities studied here includes: (1) classes of items of inventory, something which is a very important issue of management accounting. This problem is based on the pareto principle also known as ABC technique of inventory control. The corresponding Lorenz curve for inventory values of different classes of items would guide management on which class of inventory to be accorded more control mechanisms. (2) Customers, who from management accounting and finance perspectives, are viewed as assets of the firm. However, just like any other asset, customers have different values to the firm and therefore, some classes of customers are more important to the firm than others, this is based on a well-known principle of 80/20 percent rule in marketing and it is similar to the pareto principles. This situation was illustrated using Lorenz to help management identify the class of customers who are very important to the firm and design appropriate measures of retaining these customers. The paper provided illustrative numerical examples to guide readers. To the best of our knowledge, this is the first paper to apply Lorenz curves to examine these kinds of distribution problems.
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    Time matters less: Variance partitioning of return on equity for banks in Uganda
    (SSRN, 2023) Jitmaneeroj, Boonlert; Ogwang, John
    This study investigates variations in the return on equity (ROE) and its determinants within Ugandan banks from 2010 to 2020. Using a two-level hierarchical linear model (HLM), we analyze ROE variability at both time and bank levels, considering temporal effects and the impact of specific bank-level variables on ROE. Variance decomposition reveals that the variability in ROE is more attributable to bank-specific factors than to temporal ones, signifying that individual banks’ practices have a more pronounced impact on performance than time-bound fluctuations. Our HLM results, marked by high intraclass correlation coefficients (ICC) that range between 64.4% and 85.8%, underscore the dominance of bank-level variables in accounting for ROE variations. Key determinants of ROE identified by the HLM analysis include inflation, policy uncertainty, assets, equity, profits, profit margin, asset turnover, equity multipliers, and nonperforming loans. A primary takeaway from our findings is the potential for operational efficiency enhancements and judicious investment decisions to produce favorable shifts in ROE. For banking managers, this highlights the necessity for ongoing process refinement and meticulous investment scrutiny. We recommend that policymakers mull over incentives for these practices, possibly through regulatory concessions or guidelines endorsing efficient operational benchmarks.