Showing papers in "International Journal of Accounting and Economics Studies in 2017"

Informal sector in urban areas in Tanzania: some socio-demographic, economic and legal aspects

Abstract: Article published in journal titled: International Journal of Accounting and Economics Studies, 5 (2) (2017) 163-168

Corporate governance and tax aggresiveness, an evidence on manufacturing companies in Indonesia

Abstract: The aim of this research is to find out about the influence of corporate governance (Size of Board Commissioners and size of directors) toward tax aggressiveness in manufacturing companies, which are listed in Indonesian Stock Exchange. The sample of this research was 58 manufacturing companies over three years is 2013-2015 with a total of 174 samples, using a purposive sampling method. In this research, researchers used documentation study to collected secondary data with web browsing. Data analysis was performed with the classical assumption and hypothesis testing with multiple linear regression method.To analyze data using SPSS software version 21. The results of hypothesis testing showed that have an influence among corporate governance (Size of Board Commissioners and size of directors) toward tax aggressiveness in manufacturing companies with an indicator books tax different.

Enhancing rural livelihoods in Tanza-nia : A small-holder farmers’ perspective

Abstract: Poverty reduction has been a difficult milestone for Tanzania to achieve despite recording remarkable economic growth over the past decade. This is because the attained growth is not inclusive, in that sectors contributing to this growth employ fewer people. Given the fact that agriculture continues to employ the majority of people in Tanzania, efforts to improve livelihoods should necessarily be geared towards transforming the sector. It is in this context that using a sample of 3,000 farmers from 13 regions of Tanzania; this Tanzania, this study set out to examine challenges facing farmers and their respective solutions following the sustainable livelihood framework. Findings show that improving farmers’ livelihoods would entail concerted efforts by the government to avail to farmers, quality and affordable seeds, fertilizer, agricultural infrastructures, subsidies, extension services, markets, information alert, affordable loans, and areas for pastures. This implies that the government needs to allocate enough funds to the agricultural sector if farmers’ needs are to be met. We note, however, that government’s allocation to the sector has alarmingly generally been exhibiting a declining trend for the past four years. It is against this background that we strongly recommend that the government rethinks its position and prioritize the agricultural sector in its budget.

The role of resistance in incorporating XBRL into financial reporting practices

Abstract: Using the actor-network theory (ANT), this article sought to analyze the translation process induced by the Danish regulatory agency for financial reporting to incorporate the eXtensible Business Reporting Language (XBRL) into the financial reporting practices, giving special attention to how resistance demonstrated by certain actors shapes the process of incorporating the technology into the financial reporting environment. The empirical analysis, relying on a series of semi-structured interviews conducted between November 2013 and February 2016, highlighted the strategic steps taken by the regulatory agency to deal with the emerging resistance. The analysis illustrated how the initial setting created at the early stages of the translation process develops into a socio-technical context in which the participating actors' no longer express resistance, and commit to the incorporation of XBRL. In this respect, the paper contributes to previous studies on XBRL, adds to the financial reporting literature by illustrating how resistance shapes the introduction of complex regulatory changes, and contributes to the ANT literature, especially those based on Michel Callon’s translation model.

The tandem of "capital-work" as the basis for labour economics

Abstract: From a fundamental accounting principle of duality follows that capital is an abstract category, defined as the ability to perform work. The study abstract nature of capital reveals important features, in particular, that capital is undergo spontaneous scattering. Developing a model of measuring human capital and consideration of the spontaneous dispersion of capital led to the conclusion that the fair remuneration must balance the natural dissipation of human capital. Research shows that remuneration is determined by the percentage of capital. This percentage is the size of random, whose average value is 8% per annum [1/year]. Analysis of the level of remuneration shows that human capital is preserved and there is its depreciation. This average is also the economic constant of potential growth. Issues of capital measurement and fair remuneration are part of the emerging labour economics.

Do the cultural and behavioral factors have an impact on adoption of international accounting standards

Abstract: In this paper, we try to explain the effect of cultural and behavioral factors on the decision to adopt IFRS in developing countries until 2013. By using contingency theory and based on a sample of 77 developing countries, this head study allowed us to show that the behavioral factors, essentially accounting conservatism, are more dominant that cultural factors behind the decision to adopt IFRS by developing countries (DC).

Research and development accounting treatment: effects of CEO characteristics and corporate governance mechanisms

Abstract: This study aims to examine empirically the influence of Chief Executive Officer (CEO) characteristics and corporate governance mechanisms on Research and Development (R&D) capitalization in France. Using data drawn from a sample of non-financial firms listed in SBF 120, this study provides empirical evidence for the influence of CEO characteristics and audit quality on R&D capitalization. As results, we find that R&D capitalization is likely to be increased in firms managed by younger managers, CEOs with higher ownership, shorter tenure and higher educational level. Also, R&D capitalization is likely to be increased in firms with lower audit quality, in higher leveraged firms, in less performed and larger firms. This study offers insights to investors and accounting standard setters interested about the subject of R&D capitalization determinants. Importantly, it confirms that some CEO characteristics and corporate governance mechanisms are likely to affect the CEO’s behavior regarding the R&D accounting treatment.

The effect of accounting conservatism and earn-ings management on earnings quality

Abstract: The net income has been always one of the important issues that had always been a favorite among financial statement's user, and the quality and management of it have always been the focus of attention of investors and creditors. The purpose of this study is to investigate the role of conservatism and earning management in earning quality. For this purpose, the Givoly and Hayn (2000) index were used as conservative measurement criteria and the modified Jones model (1995) was used as a measure of earning's management measurement, and the Dechow and Dichev (2002) index were used as a measure of the quality of earning (earnings sustainability) of the company. The statistical population of this study is 123 companies that listed on Tehran Stock Exchange between 2009 and 2014. For testing the research hypothesis a multivariate regression analysis was used. The results of the research indicate a significant negative (invert) relation between accounting conservatism and earning's management on the quality of earnings.

International financial reporting standards (IFRS) adoption and oil & gas companies performance in Nigeria

Abstract: This study investigates the effect of IFRS adoption on the performance of oil and gas marketing companies in Nigeria. The study utilise financial statements of a sample of eight (8) oil and gas companies operating in the country. These companies were purposively selected due to availability of data. Firms’ performance was proxied by Profit Margin (PM), Return on Assets (ROA) and Return on Equity (ROE) ratios and were considered as dependent variables to be determined by reporting regime (RR) as independent variable. While Current Ratio (CR), quick Test (QT), Total Debt Ratio (TDR) Earnings per Share (EPS) and Equity Debt Ratio (EDR) are use as control variables. The ratios were computed and compared for 4 years (2010 to 2011) before mandatory IFRS adoption and 2012 to 2013 often mandatory adoption OLS, regression with help of eviews 9 was employed for the analysis. The study reveals IFRS adoption has not improved the performance of oil and gas companies in Nigeria. The paper recommended that, oil and gas companies should continue to comply with provisions of IFRS as it will improve their reporting quality which may also improve their performance as result of more investment flow, easy access to capital and comparability.

The relationship between education and income inequality (the case of Pakistan)

Abstract: The Income Inequality refers to the unequal distribution of family or individual wealth among the inhabitants of a particular economy. It is often determined by the percentage of income to a percentage of population. Like 50% of Pakistan’s income is controlled by the highest 20% population. It is generally thought of as “unjust," if the major share of a country’s income goes to the rich. Many researches have been done to find the level of Income Inequality in Pakistan, but these researches are not comparable because of differences in techniques, selection of welfare determinant, choice of data (individual or family incomes) and difference in indices for inequality measurement. It is also observed that two studies give contradictory results for the same period. This research tries to fill the gap by measuringthe impact of education on unequal distribution of income in Pakistan. The study uses Gini Coefficient method to measure Income Inequality in Pakistan by taking data available at the websites of PSLM (Pakistan Social and Living Standards Measurement Survey), HIES (Household Income and Expenditure Survey) and MDG’s (Pakistan Millennium Development Goals).This This paper tries to determine the effects of various components of education on Income Inequality. Progress in education is judged by assessing three indicators: Primary Enrolment Rate, Completion Rate (grades 1-5) and Adult Literacy Rate. In this research, we define Adult Literacy Rate as Tertiary Rate as it includes population of ages 15 years and older. The pooled cross sectionaldata considered in this study is for the periods 2004/05, 2007/08 and 2010/11 The results of regression are as expected, which shows an unambiguously negative association between Primary Enrolment Rate andIncome inequality, however, as concluded by Barro (1996), it is validated that inequality increases with higher education. Therefore, an increase in schooling helps distributes income justifiably.

A comparative study of information content of cash flow, cash value added, accounting earnings, and market value added to book value of total assets in evaluating the firm performance

Abstract: The aim of the present study was to compare the utility of traditional accounting reporting and financial reporting for performance evaluations. Accordingly, the relationship between six ratios of net cash flows, net operating cash flows, cash value added, income after tax, income before tax, and market value added to the book value of total assets and Tobin’s Q ratio as an indicator of performance evaluation were examined. For this purpose, the information of 122 companies listed on Tehran Stock Exchange in the years 2009 to 2014 were used. Besides, linear regression and analysis of variance (ANOVA) were used to analyze the data. The results showed that except for the ratio of net cash flows to the book value of total assets, there was a significant relationship between the other five ratios. In addition, it was noted that cash value added to net operating cash flows had more information content concerning evaluating the firm performance. The results also indicated that net cash flows did not contain information content for evaluating the firm performance. However, the market value added had the maximum information to be used for evaluating the firm performance.

The impact of taxation on economic growth in India : A disaggregated approach using the ARDL bounds test to co-integration

Abstract: Most Governments in the world are striving to attain long term growth and economic development with taxation as one of the major tools. However, it is necessary to know which components of tax are to be targeted in order to attain economic growth. This study therefore disaggregated the various components of direct and indirect taxes and investigated their effects on Economic Growth in India using time series data from 1977-2015 and the ARDL Bounds test approach to co-integration. The study found that in the long run, among the components of direct taxes, personal income tax had no impact on economic growth whiles corporate income tax had a positive statistically significant impact on economic growth. Further on the indirect taxes, the study found that in the long run, whiles excise duty had no statistically significant impact on economic growth, customs duty had a positive statistically significant impact. The study therefore concluded that policy makers must be circumspect in targeting which tax components to be used as tools in influencing long term economic growth and economic development.

Necessity and problems of formation of alternative paradigm of the development of accounting science

Abstract: The main research objective is to develop the theory of accounting for the conditions of forming post-industrial society solving research tasks, which concern the concept of accounting system of post-industrial type and the development of its main attributes. What will support the development of general theory and reveal accounting as a system of creating information resources at macro- and micro-levels. It will reflect the main principles and tasks of accounting in the light of modern development of economy, investigate the structure, elements and connections of the system, and define tasks, instruments and methods of each of subsystems of accounting.

Investigating the relationship between credit risk indicators and timely fulfillment of the customers' obligations (a case study of bank sepah branches in east Azerbaijan and Ardabil regions)

Abstract: This research was conducted with the aim to investigate and identify the relationship between credit risk indicators and timely fulfillment of the legal customers’ obligations of Sepah Bank. To do this, credit data and financial ratios of 370 cases of Sepah’s Bank legal customers who had used credit services of Sepah Bank branches in East Azerbaijan and Ardabil regions during a period from 2012-2014 were collected. In this respect, data related to 27 financial ratios as explanatory variables of 370 cases of the mentioned sample were extracted from their credit files and were selected to be tested after performing required refinement and classifying in two groups of extracted data from audited and unaudited financial statements. Then the relationships between these variables and timely fulfillment of obligations were investigated using logistic regression method and considering the significance of the independent variables at 95% confidence level. The results of the research showed that accounting, current, and acid test ratios, working capital, return on total assets, return on equity and gross profit to sell listed in unaudited financial statements group and current ratio/ liquidity ratio, current assets ratio, accounts receivable turnover ratio, return on total assets, debt-to-equity ratio, debt to asset ratio, current debts to equity ratio listed in audited financial statements group have a significant relationship with timely fulfillment of the customers' obligations.

Estimating elasticities of main consumption groups for Egypt : using cross sectional data

Abstract: The paper analyzes the demand of main consumption groups in Egypt to extraction parameter estimates of these groups. The consumer demand studies in Egypt are limited especially in addressing the demand groups. This paper considers elasticities of main consumption groups by estimating the linear approximation almost ideal demand system (LA/AIDS) using cross-sectional data from the Egyptian 2012/2013 household income and expenditure and consumption survey (HIECS). The estimated model was done by the Iterated Seemingly Unrelated Regressions (ISUR) estimator with the homogeneity and symmetry constraints imposed. The principal findings indicated that the Marshallian own-price elasticities were negative for main groups except for health, transport, and restaurants and hotels while the signs of expenditure elasticities were positive that meaning all groups are normal or luxury groups.

Forest accounting: A theoretical perspec-tive

Abstract: It is necessary to make theoretical analysis of various aspects of forest accounting in order to make further improvement in it. The main objective of the study is to make glance of forest accounting physical and monetary terms. The specific objectives of the study are as follows; 1. To make review of literature of forest accounting in context of past studies and forest accounting concepts. 2. To make glance on various parameters of forest accounting. 3. To make glance on forest accounting concepts. 4. To suggest improvements in forest accounting system. Present study concludes that there is no proper forest accounting system still has not been developed as well as comprehensive forest valuation method is lacking. And absence of forest accounting made impact on biodiversity and economy.

Web based financial disclosure in European con-text: European transparency directive analysis

Abstract: This study aims to explain the relationship between firm specific characteristics and the corporate Web based disclosure level in European Union countries. European companies should apply the transparency directive requirements, which clarifies principal component of corporate Websites content. We analyze the Websites content of 197 listed groups on capital market of six European countries: Germany, Spain, French, Italy, Netherlands and UK. Web disclosure level, endogenous variable, is measured by disclosure index. It includes four dimensions: content, timeliness, technology and user supports. Our findings show that profitability, concentration ownership, information technology (IT) sector and Big 4 affect significantly Web disclosure index. We conclude that IT sector determining factor of Web financial disclosure in Europe.

The determinents of accruals based earnings management :case of listed Moroccan companies

Abstract: This article aims to identify the determinants of accruals based earning's management in Moroccan listed companies. On one hand, it examines the relation between discretionary accruals as the measure of earning's management and what literature documents as incentives to this practice, in particular, politico-contractual motivations, the avoidance of losses and earnings decreases and growth opportunities. On the other hand, it investigates whether corporate governance mechanisms may constrain management's opportunistic behaviors. The empirical results provide evidence that managers manipulate earnings in the presence of losses and, that growing firms is more likely to engage in earning's management. In terms of constraining factors, our findings indicate a negative relation between discretionary accruals and both institutional and concentrated ownership. Thus, we suggest that these shareholders play an effective role on monitoring managers.

Development expenditure, fiscal consolidation and public revenue in India

Abstract: Following challenges with increasing fiscal deficit, the Government of India adopted the path of fiscal consolidation with the sole intention of reducing fiscal and other deficits. However, in the drive to reduce government expenditure, it is necessary to be cautious of how it affects expenditures such as development expenditure that are very essential to the well-being of people. This study therefore investigated how fiscal consolidation and Public revenue affect development expenditure in India using time series data from 1977-2015 and the ARDL model. The study found that, in both the short run and long run, public revenue had a positive significant impact on development expenditure whiles fiscal consolidation had a negative significant impact on development expenditure. The study therefore recommended that in our attempt to attain fiscal consolidation, care must be taken not to abandon development expenditure which has serious effects on the well-being of people.

The impact of the quality of audit firms peer-review on tax evasion

Abstract: This study examines the quality of audit firms peer-review impact on the audit activity on firms to disclose fair financial reports which will influences tax revenue of the countries and to reduce the Tax evasion. Audit Firms peer-review play a significant role in the countries tax evasion. The Audit Firms peer-review ensure that different investors and business in nations are confident and knowledgeable when making business decisions. The AICPA Peer Review is committed to improving the quality of auditing and accounting services. The program is a universal assessment whose value in serving the interest public and companies lies in its remedial and educational nature. Audit Firms peer-review has an impact on the collection of revenue considering the tests, there is an importance in the association between tax collected after auditing and before auditing. This demonstrates that there is increase in revenue collection after quality audit.

Effect of migration on employment (A case study of district Hangu, Pakistan)

Abstract: When a person leave his/her home place and migrate to other place, he/she may call emigrant. This paper deals with effect of migration on employment. The study was carried out to investigate the pre and post occupation of emigrants. Primary data was conducted from two villages of district Hangu, namely Shnawari and Darband through questionnaire and descriptive statistic was used to achieve the objectives. It is concluded that emigration has significant effect on employment opportunity, before emigration 45.58% people were jobless and the figure dropdown to 1.36% after migration. Most of them are drivers and majority of emigrants have qualified up to matric. They have skill but lack of technical training and the remittance they send have a significant impact on household income.

Impact of macroeconomic factors on development of Paki-stan

Abstract: Macroeconomic factors play a fundamental role in attracting the growth the country. This research examined the impact of various macroeconomic factors on GDP of Pakistan for the period of 1975-2015. The core objective of this research was to check the impact of inflation, investment, exchange rate and net export on development of Pakistan. The tool for analysis was Ordinary Least Square (OLS) multiple regression model. This research used Descriptive Statistics, Harvey's test for checking the heteroscedasticity and Breusch Godfrey LM test to check autocorrelation among variables. The results of this study show that inflation exerts negative significant effect on Pakistan GDP whereas investment shows positive significant effect and exchange rate have positive insignificant effect on GDP of Pakistan. Moreover net export has been highly positive significant on Pakistan GDP.

Pakistan’s devolved family planning services : poor governance may be the main issue

Abstract: Regardless of the declining rates of fertility in the late twentieth century, the population growth rate in Pakistan is the highest in the region and only surpassed by sub-Saharan Africa across the globe. The main reasons are access for poor women in villages due to shortage of outlets and outreach programs and poor service provision due to lack of equipment, inefficiency to retain staff and overload of other responsibilities like polio campaign. A fear of side effects, health concerns, low female literacy rate, weak women autonomy and high mortality rates are important deterrents from usage of family planning services. Researchers have summed up the difficulties of Pakistan in this matter as, “a reluctance or inability to translate reproductive preferences into appropriate behaviour.” The government and ministries mutual cooperation in articulating policies helps in role clarification with respect to population planning. Advocacy at the district, provincial and federal levels is required counselled by medical research along with social objectives by liaising with states with experience of tackling the same issue to analyze performances based on accomplishment of specific FP indicators.

Salient accounting value drivers and equity re-turns : Evidence from US industries

Abstract: Past literatures suggest the presence of ubiquitous disquiet among corporate financial managers, financial analysts and portfolio managers that changes in certain accounting variable's results in changes in stock prices, irrespective of whether future cash flow's subsume these changes in salient accounting variables. Using an empirical rational inquiry, this paper attempts to test whether there is any relationship between salient accounting variables and equity returns for five major US industries (Manufacturing, Services, Wholesale, Constructions and Retail) from the period 1996 to 2015, and as a result, may contribute to accretion or loss in stockholders’ wealth. To account for divergent industry-specific revenue generating process and the existing fluidity in industry-specific application of accounting standards, this study thus disaggregates sample data by industry. The industry approach implies that the effect of salient accounting variables on equity prices may be described as a conflation of industry-specific characteristics and capital market synergies. Consistent with this notion, this study finds that salient accounting variables which are used to measure operating performance, growth opportunities, investment management and profitability have the significant impact on equity returns. However, and most importantly, the study finds that the impact of the salient accounting variables varies from one industry to another. As such, this study is particularly useful for equity market participants in the identification of industry related, market-relevant accounting variables, which may be used to guide future financial policies.

Why bond market couldn’t thrive in Pakistan

Abstract: Fixed income market has recently emerged in Pakistan. Onward 1990, prolusion of government securities paved a way for corporates to come forward with their debt papers and long term yield curve came in to existence by introducing FIB’s in 1992 followed by issuance of first Term Finance Certificates (TFC) in 1995. The TFCs’ coupon rate exhibits a wide range of different fixed and floating coupons related to numerous interest rates containing the discount rate, the Karachi Inter-bank Offer Rate (KIBOR) and Pakistan Investment Bond (PIB) rates. The SBP launched electronic trading platform for fixed income securities on 11th January, 2010 with the intention of improving the functioning and profundity of primary and secondary markets of sovereign bonds. The data available reveals that through this platform, the cumulative trading of sovereign securities touched 66% of the overall trading volume till the end of 2010 relative to 58.0% in January, 2010. In its initial stage, the E-bond platform provided the complete trading of sovereign bonds like T-bills, PIBs and Ijarah Sukuk. The other type of fixed income securities like repo, FRAs and swaps facilitated in subsequent phases.

Investigation of volatility and spillover in foreign ex-change return in Indian Chinese & Malaysian market

Abstract: In this paper it is tried to make the comparison the foreign exchange return volatility in the three emerging economies of Asia. It is also endeavored to investigate the return co-movement and the volatility spillover between the foreign exchange markets of India, China and Malaysia with reference of US dollar, Indian Rupees, Chinese Yuan and Malaysian Ringgit in each other foreign exchange market to. The daily data have collected from Federal Reserve data base from April 2012 to March 2017. For analysis MGARCH model, the GARCH DCC as well as VAR model applied. The empirical result of volatility spillover effect shows that in Indian and Malaysian foreign exchange market the US dollar seems as shock transmitter. It also shows that the influence of US dollar in Chinese foreign exchange market is very low as compare to the Indian and Malaysian exchange rate market. In Chinese market Malaysian ringgit is dominant currency and it transmits the shocks to the US dollar. The conditional volatility result shows that among all the foreign exchange market, Indian market has high volatility return of foreign currency as compare to other market.

Impact of capital structure on profitability and earnings of the firm; a study on Pakistani companies from Non-Financial sector

Abstract: Capital structure is the driver of profitability and earnings of any company; therefore, the impact of capital structure is analyzed in companies selected from non-financial sector of Pakistan including public and private sector. The financial data of 22 companies has been observed from 2010-2015. Eviews 8 has been used to analyze the panel regression. The Hausman test confirms that random effect model is appropriate for both ROE and EPS. Findings reveal that DE is insignificantly negatively related to ROE but significantly positively related to EPS, where DA is insignificantly positively related to ROE but significantly negatively related to EPS. The policy makers of sample companies should consider the impact of capital structure on EPS.

The theory of measuring human capital history and the present

Abstract: The manuscript should contain an abstract. The abstract should be self-contained and citation-free and should not exceed 300 words. The abstract should state the purpose, approach, results and conclusions of the paper. The author should assume that the reader has some knowledge of the subject but has not read the paper. Thus, the abstract should be intelligible and complete in it-self (no numerical refer-ences); it should not cite figures, tables, or sections of the paper. The abstract should be written using third person instead of first person.

Minimum wage - a necessity or a superfluous thing?

Abstract: The article moves the issue of the minimum wage, its significance and the meaning of existence on the social level. There have been discussions over the issue over the years, with many supporters of the minimum wage as well as its opponents. The subject can be considered in many respects macroeconomic, microeconomic, financial, but primarily social. The author presents, what impact has the existence of a minimum wage on a man, especially a young man who has just finished education and answers the questions: whether the discrepancies in earnings are a normal thing? Whether the minimum wage can affect the reduction of social stratification in earnings? It also shows the concept of fair wage and using modern methods of measuring human capital shows that it is possible to calculate the level of minimum wage for pay. In the next section, it compiles the calculated minimum wage levels in each country, together with the minimum wage that is in effect. By analyzing all the possibilities, the author concludes that the existence of a minimum wage is essential for the proper functioning of society as well as for the economy of a whole. However, it is a prerequisite to set it at the right level, not too low and not too high, which in theory is feasible, but in reality, practically impossible, but still cannot stop efforts and constantly update the value of the minimum wage to be as close as possible to the optimal value.