Journal of Economics and Behavioral Studies <p><strong>Journal of Economics and Behavioral Studies (JEBS)</strong> is an open access peer reviewed journal (ISSN 2220-6140) that publishes original unpublished research work. JEBS provides a forum for the intellectual exchange of academic research in the fields of economics, finance and behavioral studies. JEBS publishes 6 issues per year.</p> <p><img src="/public/site/images/admin/cc_by2.png"></p> <p>This work is licensed under a&nbsp;<a href="" target="_blank" rel="license noopener">Creative Commons Attribution 4.0 International License</a></p> AMH International en-US Journal of Economics and Behavioral Studies 2220-6140 <p>Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of a revised paper in the light of suggestions of the reviewers, editorial team edits and formats manuscripts to bring uniformity and standardization in published material.</p> <p>This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy&nbsp;author (s) hold and retain copyrights without any restrictions.</p> Risk-Taking and Performance of Small and Medium-Sized Enterprises: Lessons from Tanzanian Bakeries <p>SMEs are the major drivers of socioeconomic development of many economies. In order to influence economic growth, SMEs must be capable of enhancing their competiveness, growth, and sustainability. These capabilities are acquired by SMEs that understand and adopt entrepreneurial strategies that work. There is abundant literature confirming that one of these entrepreneurial strategies include risk-taking practices. SMEs are still facing challenges to understand and apply the right risk-taking strategies that influence their performance. We therefore characterise risk-taking as risk planning, risk controlling, and strategic risk initiatives, and seek to establish their contribution on SME performance. This study draws lessons from the risk management practices of small and medium-sized bakeries in Tanzania where agriculture, a sector that directly relates with bakery business, is one of the leading sectors in driving economic growth. We adopt a multi-stage sampling technique and receive responses from 161 questionnaires, and 20 in depth interviews from bakery owners/managers throughout Tanzania. The principal component analysis, qualitative content analysis (manifest analysis), and the moderator analysis are used in analyzing these data. We ascertain that both the firm age, and the gender, of the owner/manager moderate the relationship between risk-taking strategies and SME performance. We argue that SMEs have the responsibilities of improving their risk-taking practices and capabilities in order to drive their competitiveness. Additionally, SMEs need to employ their efforts and resources in supporting their risk management initiatives, and integrate them in their business operations, and policy development practices, and ultimately advance their sustainability.</p> Kafigi Jeje Copyright (c) 2020 Kafigi Jeje 2020-07-23 2020-07-23 12 3(J) 1 22 10.22610/jebs.v12i3(J).2941 Modeling Market Integration and Asymmetric Price Transmission Dynamics of Yam Markets in Ghana <p>Functioning agricultural markets are fundamental to unlock economic growth and to accelerate agricultural development. Understanding the behavior of agriculture markets is crucial for price, poverty and livelihood policy strategies in agrarian economies. To assess price transmission and market efficiencies of Ghanaian yam markets spatial market integration analysis of five major yam markets: Techiman, Tamale, Wa, Kumasi and Accra was conducted. Monthly wholesale price data between January 2006 and June 2018 were used. Results from the momentum threshold autoregressive (M-TAR) model indicated the presence of co-integration and price transmission asymmetries. Thus, price increases in Techiman reference market are more rapidly transmitted to the other regional markets than price reductions. It is recommended that the source of this type of asymmetry be investigated as it favors middlemen at the expense of producers and retailers/consumers for appropriate marketing policy intervention.</p> Isaac Abunyuwah Copyright (c) 2020 Isaac Abunyuwah 2020-07-25 2020-07-25 12 3(J) 23 31 10.22610/jebs.v12i3(J).2710 Effects of Exchange Rate Volatility on Trade: Evidence from West Africa <p>The objective of this paper has been to investigate the impact of exchange rate volatility on trade in the context of exports, imports, and the trade balance in West Africa. Applying the pooled Ordinary Least Square, the fixed effects, and the random effect models, and obtaining robust estimates for export and trade balance models by employing xtgls, panels (correlated) Corr (ar1), and adopting xtscc, fe regression with Driscoll-Kraay standard error to estimate the import model. The empirical results show that the impact of exchange rate volatility on exports and imports is insignificant. However, the result of the trade balance model shows a positive and significant link between exchange rate volatility and the trade balance. Thus, suggesting that traders tend to engage more in export activities with an increase in exchange rate volatility. Also, the analysis suggests that depreciation of the real exchange rate will lead to a decrease in exports. Thereby, confirming the limited production capability and heavy reliance on imported goods and services. Hence, this study recommends diversification of production activities and adopting strategies aiming at reducing dependence on imported goods and services. The empirical result shows a positive association between an increase in domestic economic activities of trading partners and exports of the West African countries. This implies that West African countries must engage in trade with countries that have a high economic growth rate. The result also shows a positive link between inflation rate and imports. This suggests the implementation of effective monetary policies geared towards controlling inflation.</p> Pabai Fofanah Copyright (c) 2020 Pabai Fofanah 2020-07-25 2020-07-25 12 3(J) 32 52 10.22610/jebs.v12i3(J).3009 CEO Duality and Financial Performance: Testing the Moderating Role of Firm Age: Evidence from a Developing Economy <p>This paper tests the moderating role of firm age on the relationship between Chief Executive Officer (CEO) duality and financial performance among manufacturing firms in Uganda. A cross section survey was adopted using 78 manufacturing firms in Uganda. Data was analyzed using descriptive statistics, correlation and hierarchical regression. Modgraph software was also used to ascertain the validity of the set hypothesis<strong>. </strong>Results reveal that whether the CEO doubles as chairman of board or not, this does not significantly affect firm Financial Performance. However, as the firms grow older, the role of CEO-Board Chairman duality phenomenon gains significance in determining financial performance. Therefore, as firms grow in age, the CEOs should not be the same as Board chairpersons if firms have to perform well financially. Since only a single research methodological approach was employed in this study, future research can undertake to use a mixed methods approach to provide more detailed insights. Further, a longitudinal approach can also be employed to study financial performance trends among manufacturing firms over years. Entrepreneurs of these firms should put emphasis on proper segregation of the CEO role and those of the board chairman especially as firms grow in age. A moderating role of firm age on the relationship between CEO duality and financial performance was tested among manufacturing firms; previous studies have tended to test the direct or mediating effects.</p> Richard Akisimire Ernest Abaho Maureen Tweyongyere Copyright (c) 2020 Richard Akisimire, Ernest Abaho, Maureen Tweyongyere 2020-07-25 2020-07-25 12 3(J) 53 64 10.22610/jebs.v12i3(J).3016 A Conceptual Framework on the Financial Statement Disclosure in Indonesia Local Government <p>This research begins with the problem of the Indonesian Minister of Finance recognizing cities and districts in Indonesia have a low level of compliance regarding financial reports and the Supreme Audit Board (BPK) has published a report that highlights compliance issues in the local government of Indonesia based on the Summary of First Semester Examination Results in 2019 there is a problem of the level of compliance of local government related to the disclosure of financial statements in Indonesia. The purpose of this study was to determine the factors influencing the degree of mandatory disclosure to local governments in Java and Sumatra Islands. This study has three objectives namely to find out the number of local parliamentarians, local government budget spending, existence of an assistance and training program for disclosure financial statement. Therefore, this research contributes to provide an illustration for local governments in measuring financial statement disclosures.</p> Oktavia Nurlianto khoirul aswar Copyright (c) 2020 Oktavia Nurlianto, khoirul aswar 2020-07-25 2020-07-25 12 3(J) 65 69 10.22610/jebs.v12i3(J).3030 The Importance of Behavioral Economics during COVID-19 <p>Behavioral Economics seeks to understand the environments where decisions are made and to build proposals to optimize them. It offers the possibility to improve the design of public policies and, therefore, to enhance their results. The appearance of COVID-19 has caused thousands of deaths and millions of infected people around the world. This article describes the main behavioral biases that people exhibit during this pandemic. In order to curb the number of infections and stop the panic, it is essential to use Behavioral Economics tools, such as those proposed in this paper, to design messages that are simple and that motivate appropriate changes in human behavior. This work shows the importance of transmitting information correctly, of being aware of our own biases and that individual responsibility is fundamental to get out of this crisis.</p> Javier Cifuentes-Faura Copyright (c) 2020 Javier Cifuentes-Faura 2020-07-25 2020-07-25 12 3(J) 70 74 10.22610/jebs.v12i3(J).3038