This article employs the case study method to explore the nature of political interference in rural water schemes through the perspectives of local politicians in eastern Nepal. Using thematic analysis and in-depth interviews with seven key respondents in Panchthar District, the article finds that most delays in rural water schemes are attributed to entrenched political undercurrents, which often result in project failure. This finding aligns with public choice theory, which posits that political interference is rooted in the vested interest of electoral gain rather than optimal and sustainable choices. The study further identifies the presence of the tragedy of the anti-commons in rural water schemes, contributing to further political impasse. However, despite their differences, politicians expressed concern about climate change, and hence the study suggests adopting a utilitarian approach in order to implement sustainable and climate-resilient water schemes.

This paper applies ordinal logistic regression to a survey collected from 225 rural households across four different districts of Nepal to analyze the nonpayment behavior of households at rural water schemes. This study finds that non-payment behavior is highly influenced by a household’s perception of how others pay rather than their own paying ability. This shows that the trust issue, which stems from an apparent n-prisoners dilemma, negatively reinforces free-riding behavior among the households. Further, the study also indicates that cultural and geographical distribution influence households relative positions on the nonpayment spectrum.

When an economy faces deep economic problems such as a recession then the conventional form of monetary policy may not work. Short-term nominal interest rates are bound by zero and lowering bank reserve rates is not possible because of risk default (Fuhrer & Madigan, 1997). Additionally, as the economy is hit by the liquidity trap, in these circumstances people are better off holding cash than investing, therefore, they accumulate the money, prolonging the problem and avoiding any economic recovery taking place. In response to the global financial crisis (GFC) of 2007-2008 use of unconventional monetary policies (UMP) has been popular in tackling melt-down among advanced economies particularly in the form of quantitative easing (QE). Use of UMP has been a debatable issue among economists considering the extent of fulfilment of macroeconomic goals and the spillover effect in the global marketplace.

Microfinance Institutions (MFIs) provide financial services to those who have no access to finance and are hence considered a tool for poverty alleviation. However, the clear relationship between the depth of the MFIs and their sustainability is still lacking as there is an ongoing debate on whether the two components complement each other or whether there exists a tradeoff. This study applied the panel regression analysis to the data from 44 MFIs of Nepal from 1999 to 2019 and explored the inter-relationship between depth and sustainability of MFI in the Nepalese context. In addition to the two variables of interest, this study further analyses the interaction effect of operational efficiency. The findings show a significant tradeoff relationship between outreach and sustainability at a 99% confidence interval, further moderated by operational efficiency. As a result of increased operational efficiency, MFIs can have better outreach and sustainability. These findings can thus provide a better policy prescription that promotes operational efficiency and ultimately improve both the outreach and sustainability of MFIs.

Wintergreen is a wild herb that grows in the hills of Nepal that can be used for extracting oil which has several medicinal values. It is being sold into premium-value markets in the USA by doTERRA Inc. doTERRA has a co-impact sourcing partnership with the NGO Choice Humanitarian, scouts the local farmers or entrepreneurs and helps them set up the production business. The difference between the price of the final product and the price that local entrepreneurs get is very high. Despite this, the venture has created a new opportunity for local farmers to make large profit as the cost of production is low. However, the business itself has several challenges from scalability and sustainability aspects. Further, the price is set by the single buyer and the market has monopsonist characteristics; hence, the producer has less bargaining power. Despite these challenges, creating a better business environment enables the export of essential oil and that can be a potential foreign currency source for country like Nepal.

With technological innovations happening at workplaces, 21st century organizations demand competencies in thinking creatively and critically. These two skills will potentially help prospective employees become confident individuals, concerned citizens, self-directed learners, and active professionals. In this context, it becomes imperative to overhaul the lecture-based and banking model of the traditional pedagogical approach in order to impart such skills among undergraduate and graduate students. To address this issue, a lab-based teaching-learning method focused on problem-solving and design thinking was introduced at OAMK Labs in Finland. This study assesses the efficacy of lab-based learning in enhancing creativity and critical thinking among students from engineering, management, and science backgrounds of Kathmandu University, Nepal. The study was conducted in a workshop setting using a randomized control trial (RCT) where participants were divided into control and treatment groups. Participants in treatment group took part in a design thinking workshop that applied lab-based learning pedagogy, while those in the control group were given some reading material on improving creativity and critical thinking. Standard tests on both critical and creative thinking in a pre- and post-stages were administered to both groups. Data was analyzed using standard Difference-in-Differences technique. The results showed that while the level of critical thinking improved significantly, among the learners in treatment group alone, the creativity level in the post-stage increased significantly among learners in both groups. Results validated the efficacy of lab-based teaching-learning in addressing the need for critical and creative thinking skills among learners.

The paper investigates the factors that affect the risk tolerance of the general investors in Nepalese stock market. Using data of 99 investors, study applies ordinal logistic regression to evaluate the impact of investor’s education level, gender, financial literacy, years in trading, prior history of loss and history of margin lending on risk tolerance capacity of the investor. The paper finds that with prior loss, chances of high-risk investor moving to moderate risk is 4.48 log odds while that of moderate risk investor moving to low risk is 1.33 log odds. Meanwhile financial literacy increases the risk level across risk spectrum by log odds of 1.59. On the other hand keeping other things constant with availability of margin lending, there is 48% probability investor falls into moderate risk category. The study however didn’t find any influence of gender, years in trading and education on risk tolerance. The research finds that financial literacy is an important driver in risk appetite of investors than their education level. Further it shows that past experience of the investor very much influences their level of riskiness. Finally paper finds margin lending having more influence on those investors that falls under moderate risk level. The study thus provides guidelines for policy maker in setting the margin rate, and also helps portfolio manager to assess the risk appetite of the potential investor and finally provides empirical evidence of financial literacy in stabilizing risk tolerance of investors.

This paper investigates asymmetric oil price pass through on inflation in Nepal using time series data of 331 months from April 1987 to February 2018. The paper applies Nonlinear Autoregressive Distributed Lag (NARDL) model to estimate long run and short run asymmetric adjustment of refined petroleum products on Consumer Price Index (CPI). Finding shows presence of long run asymmetric adjustment between price of all petroleum products and CPI. However, when the model is controlled for monetary impact and price level of India, only the price of diesel is found to have long run asymmetric pass through into inflation. The long run cointegrating equation shows unit rise in price of diesel is accompanied by small contraction in CPI in long run by -0.048 units. Meanwhile unit fall in price of diesel is shown to have positive long run pass through in CPI by 0.431 units. This apparent anomaly could be attributed to fact that with rise in price of diesel, demand for cheaper adulterant like kerosene increases thus resulting in fall in CPI Similarly, fall in unit price of diesel could have overall increased industrial demand and other resources which in turn led to significant increase in CPI. Meanwhile, study didn’t find any significant asymmetry in short run between CPI and petroleum products. However, in short run a significant impact on the CPI by actual size of increased price of Petrol and Diesel has been found. Hence, in short run, it shows that it is the size of price increase in Petrol and Diesel; not the price itself that has significant effect on the CPI. Since petroleum products in Nepal are not priced by market, these findings can provide guidelines for future oil pricing in reducing the spillover impact on general price level.

Repos and reverse repos are popular money market management tools used by the Central Bark of Nepal especially to manage liquidity crunches and surpluses which may arise from time to time. However, the evidence of the actual impact of these tools in correcting the money market is somewhat contested. This paper investigates the impact of repos and reverse repos on interbank bon-owing rates in the Nepalese market using a longitudinal data set from 2007 to 2016. The paper uses an iterative approach for identifying the best model to explain the phenomenon. The main finding of this research is that the money market maturity period of repos is more significant in reducing interest rates during a liquidity crunch rather than the volume of repos issued. Further, the research also finds that reverse repos are not significant enough to mop-up excess liquidity in the market. These findings can provide guidelines for monetary policy in Nepal, insofar as the issuance of repos and reverse repos is concerned.

This paper applies event study analysis to explore the impact of change in leadership on the market return of Fortune 500 firms. The study analyzes various market reaction following the announcement of CEO's departure along with the circumstances leading to it . The results show that on the occurrence of the event, market reacts positively in line with “ability hypothesis”. Especially inside succession comparatively found to provide better market reaction than outside succession. However the type of departure showed no statistically significant abnormal returns Further abnormal return prior to the event was witnessed suggesting information leak. Overall the study is consistent with Efficient Market Hypothesis.

This paper investigates the relevance of CAPM single factor and Fama-French three factor (Fama-French) models to explain the return for cross sectional portfolios in the context of Nepalese stock market. We use stock market data and treasury bill rate over the period of August 2007 to July 2013 and estimate the factor models after correcting for the violation of classical linear regression assumptions. Our results show that in all five portfolios (B/L, B/M, B/H, S/M, S/H), three factor model has better explanatory power over CAPM. The estimations of Fame-French showed that Excess market return (ER) and Value factor are more significant than Size factor in model fitting. Finally, the study tested for the seasonality in Nepalese stock return using the dummy variable. The results showed significant seasonality effect for fiscal year end thus indicating possibility of tax loss effect in Nepalese stock market but seasonality effect on account of festival period is found to be insignificant.

This paper investigates the relevance of CAPM single factor and Fama-French three factor (Fama-French) models to explain the return for cross sectional portfolios in the context of Nepalese stock market. We use stock market data and treasury bill rate over the period of August 2007 to July 2013 and estimate the factor models after correcting for the violation of classical linear regression assumptions. Our results show that in all five portfolios (B/L, B/M, B/H, S/M, S/H), three factor model has better explanatory power over CAPM. The estimations of Fame-French showed that Excess market return (ER) and Value factor are more significant than Size factor in model fitting. Finally, the study tested for the seasonality in Nepalese stock return using the dummy variable. The results showed significant seasonality effect for fiscal year end thus indicating possibility of tax loss effect in Nepalese stock market but seasonality effect on account of festival period is found to be insignificant.

This paper provides an empirical analysis of FTSE100 stock returns during the period of 2009 to 2013 with an aim to assess the relevancy of Fama- French three factor model post financial crisis of 2008. FTSE100 index was chosen in particular as it is benchmark of the prosperity among UK stocks. Assortment of six portfolios S/L, S/M, S/H, B/L, B/M and B/Hbased on firm‟s size and book-to-market ratio was constructed as per gudielines of Fama- French model. The ordinary least square estimation showed consistently positive and significant in all observed portfolios.However the results indicated that excess market return is the dominant variable among three risk factors meanwhile size factor (SMB) was significant while explaining only small-scale portfolios returns but had no effect on the average returns of large-scale portfolio. Likewise value factor (HML) appeared to be somewhat effective only in case of high book-to-market stock portfolios. Thus the impact of book-to-market value on the average excess returns of these observed portfolios behave in an un-systematic manner.

This paper applies a forward-looking approach to the minimum variance portfolio optimization problem for a selection of 100 stocks. The purpose is to determine which market conditions favor this strategy of using option-implied information. Out-of-sample volatility, the Sharpe ratio and certainty equivalent return have been measured against eight benchmarks, including the equal-weighted 1/N and minimum variance portfolio based on historical estimates. Equivalent or superior performance is evident in terms of reduced volatility and higher certainty equivalent return. However, strict outperformance of the best benchmarks is only seen when option-to-stock volume ratios are high and information signals in the options market are strongest.

This paper provides an empirical analysis of FTSE100 stock returns during the period of 2009 to 2013 with an aim to assess the relevancy of Fama- French three factor model post financial crisis of 2008. FTSE100 index was chosen in particular as it is benchmark of the prosperity among UK stocks. Assortment of six portfolios S/L, S/M, S/H, B/L, B/M and B/Hbased on firm‟s size and book-to-market ratio was constructed as per gudielines of Fama- French model. The ordinary least square estimation showed consistently positive and significant in all observed portfolios.However the results indicated that excess market return is the dominant variable among three risk factors meanwhile size factor (SMB) was significant while explaining only small-scale portfolios returns but had no effect on the average returns of large-scale portfolio. Likewise value factor (HML) appeared to be somewhat effective only in case of high book-to-market stock portfolios. Thus the impact of book-to-market value on the average excess returns of these observed portfolios behave in an un-systematic manner.

1Newcastle Business School, Northumbria University, Newcastle, U.K. 2Shaker Dev Campus, Tribhuvan University, Kathmandu, Nepal