Showing papers in "Research Journal of Finance and Accounting in 2015"

The impact of liquidity on jordanian banks profitability through return on assets

Abstract: Every stakeholder has interest in the liquidity situation of a company. Suppliers of goods will review the liquidity of the company before selling goods on credit. Employees should also be worried about the company’s liquidity to know whether the company can cover its employee related obligations–salary, pension, etc. So, a company needs to keep sufficient liquidity so that liquidity extremely affects profits of which some part that will be divided to shareholders. Liquidity and profitability are closely related because one increases the other decreases. Bank profitability is the ability of a bank to generate revenue in excess of cost, in relation to the bank’s capital base. A profitable banking sector is better able to resist negative impact and share in to the stability of the financial system. This study sought to find out whether liquidity through quick ratio has significant impact on Jordanian banks profitability through return on asset (ROA). The study used the 2005-2011 financial reports of 15 Jordanian banks listed at Amman Stock Exchange (ASE). The study revealed that there is significant impact of independent variable quick ratio on dependent variable return on asset (ROA). That means profitability through return on assets (ROA) in Jordanian banks is significantly influenced by liquidity through quick ratio.

The Effect of Taxpayer Awareness, Knowledge, Tax Penalties and Tax Authorities Services on the Tax Complience: (Survey on the Individual Taxpayer at Jabodetabek & Bandung)

Abstract: This study aims to analyze the effect of taxpayer awareness, knowledge, tax penalties and service tax authorities on tax compliance, so the state revenue from tax sector can be improved, the research carried out on an individual taxpayer who performs registered in Office taxes are in Jakarta, Bogor, Depok, Tangerang, Bekasi (Jabodetabek) and Bandung, where the region so many industrial centers managed by a private person. The method used is the method of Causal by multiple linear regression analysis. Data was collected using accidental sampling method, by distributing questionnaires to taxpayers who are visiting the Tax Office of Jabodetabek and Bandung.Research shows awareness of the taxpayer has a positive and significant effect on an individual taxpayer compliance. Knowledge have a negative and significant relationship of Taxpayer Compliance. This means that WP have this level of knowledge of good tax actually looking for loopholes to avoid tax liabilities, tax penalties has a positive and significant relationship to the individual taxpayer compliance which performs at the Tax Office in Jabodetabek and Bandung area. This shows that the more effective application of tax penalties, the tax compliance rate will be higher. Service tax authorities have a positive and significant relationship of Compliance Individual taxpayer who performs at the Tax Office in Jabodetabek and Bandung area. This suggests that the better the service tax authorities, the tax compliance rate will be higher Keywords : Tax compliance, taxpayer awareness, knowledge, tax Penalties, and service tax authorities.

Determinants of Bank Profitability and Basel Capital Regulation: Empirical Evidence from Nigeria

Abstract: This study, empirically, investigates the determinants of bank profitability. The debate on whether Basel capital regulation affects bank profitability continues to attract research interest among academics and policy makers, globally. I contribute to this debate by providing a country-specific study. Overall, I find that Basel capital regime had no significant effect on bank profitability. The result is significant because it lends support to the view that Basel capital regulation in different countries is modified to meet other prudential objectives relative to its intended objective - to reduce excessive risk-taking in banks. Second, after employing NIM and ROA profitability metrics, I find that the determinants of bank profitability, and its significance, depends on the profitability metric employed. Third, I find that loan quality significantly influences bank interest margin while bank size and cost efficiency significantly influences return on asset (ROA). Finally, bank capital adequacy ratio is observed to be a significant determinant of bank profitability. Keywords: Bank Profitability, Performance, Basel, Return on Asset, Net Interest Margin, Bank Regulation.

Women’s Economic Empowerment through Financial literacy, Financial Attitude and Financial Wellbeing

Abstract: Economic empowerment is a combination of individual’s knowledge, ability, skills and confidence for handling her own financial wellbeing. Increasingly, individuals are responsible for their own financial literacy and encountered with complex integrated financial instruments. The purpose of this study is to highlight the key constructs including financial literacy, financial attitude, financial wellbeing and economic empowerment and then present the impact of financial literacy, financial attitude and financial wellbeing on the economic empowerment. The sample size of this survey based study consists of 300 working women from non-financial sector. The results of this study indicate that financial literacy, financial attitude and financial wellbeing are positively and significantly related to economic empowerment. Higher the level of financial literacy and positive financial attitude in women, greater will be the financial wellbeing and ultimately increase women’s empowerment. Economic empowerment is found to be affected by age, education, income level, marital status profession, saving and investment behavior. Significant difference in economic empowerment was found on the basis of age and marital status of the respondent. Finally, results revealed that the presence of financial literacy, positive financial attitude and financial wellbeing is necessary for the economic empowerment of working women. Keywords: financial literacy, financial attitude, financial wellbeing, economic empowermen

Determinants of the Performance of Firms Listed At the Nairobi Securities Exchange

Abstract: This study analyzed the factors affecting the performance of 41 non-financial companies listed on the Nairobi Securities Exchange (NSE) using panel data over the period 2003 to 2013 A Hausman test results suggested the application of a random effects model for ROA and a fixed effects model for ROE The empirical results of the estimation of both ROA and ROE show that corporate governance was statistically significant in determining the performance of firms and it had the expected sign (Positive) The leverage of the firm also had the expected negative sign and was statistically significant in explaining the performance of companies Firm size and liquidity were however found to be statistically insignificant in determining the performance of these firms Any limitations/suggestions for areas of further research/cross-reference!! Keywords: Financial performance, Liquidity, Leverage, Nairobi Security Exchange, Return on Assets, and Return on Equity

Does firm size influence on firm’s Profitability? Evidence from listed firms of Sri Lankan Hotels and Travels sector

Abstract: The aim of this research study is to examine the influence of firm’s size on firm’s profitability in listed firms of Sri Lankan hotels and travels sector firms. For this purposes, this study performed fixed and random effect econometric estimation models and used the data for the time period from 2008 to 2012. The study results indicate that between the two econometric estimation models, Hausman specification test recommended the estimation of the fixed effects model. According to the fixed effect model result firm’s size is positively related to profitability measure of return on assets. Further this study reveals those total debt ratio has a negative relationship with firm’s profitability. This research explores the influence of firm’s size on firm’s profitability in listed firms of Sri Lankan hotels and travels sector firms and laid some contribution to the existing literature as Sri Lankan firms’ context. Moreover that observed findings could assist the corporate sector management as well as policy makers to take appropriate decisions in their fields. Based on the knowledge of authors, this is the first study that reveals the influence of firm’s size on firm’s profitability in listed firms of Sri Lankan hotels and travels sector firms. Moreover, influence of firm’s size on firm’s profitability is misty; hence this study continues that search by the help of Sri Lankan hotels and travels sector firm’s data. Keywords: Firm’s size; Firm’s profitability; Sri Lanka

Firms' Specific Characteristics and Stock Market Returns (Evidence from Listed Food and beverages Firms in Nigeria)

Abstract: Because of the mix of opinion in the literature, the mix of empirical findings, and the limited empirical works on the relationship between firms’ specific characteristics and Stock Market Returns particularly with reference to listed food and beverages firms in Nigeria, it is not out of place to conduct further research on this area to ascertain position. Hence, the study investigated the impact of certain firms’ attributes namely: Market Capitalization, Debt-to-Equity Financing and Earnings per Share on Stock Market Returns of listed food and beverages firms in Nigeria for the period 2007-2013. The population comprises all the twenty-one (21) food and beverages firms listed on the Nigerian Stock Exchange (NSE) December, 2013. Out of which nine (9) firms constitute the sample of the study. The study adopted both correlation and ex-post facto research design. The data for the study was purely from secondary sources obtained from the annual reports of the sampled firms as well as NSE fact book. Data was analyzed using several options of multiple panel data regression. But the most robust of all is OLS regression as suggested by ‘Breusch and Pagan Lagrangian Multiplier Test for Random Effect’. The findings revealed that Market Capitalization has a significant negative impact on Stock Market Returns of listed food and beverages firms in Nigeria; while the impact of Debt-to-Equity Financing and Earnings per Share on Stock Market Returns are found to be positive and statistically significant. Based on these findings the study recommend as follows: that government and policy maker (Security and Exchange Commission) should design and implement more stringent rule where firms will be compelled and monitored on providing high quality financial reporting, so as to be reporting earnings that reflect their actual performance. This would prevent investors from falling on to the trap of earnings manipulation (as it happened to shareholders of Cadbury Nigeria plc.). In addition, prospective investors should not only focus on huge returns for investing in smaller capitalized or high levered firms; rather, further analysis need to be carried out to tradeoff between risk and returns. Keywords: market capitalization, debt-to-equity financing, earnings per share, stock market returns and stock market

Activity-Based Costing (ABC) – An Effective Tool for Better Management

Abstract: Activity-based Costing (ABC) is a powerful tool for the an organization to have an accurate and effective cost for its product avoiding cost distortion that may lead sustainable development and growth which is mandatory to be competitive in the era of globalization and complex business environment. The article contains some brief description of international journals on ABC. Author has tried to bring up the main essence of these journals. The mentioned journals cover a wide range of topics from theoretical aspects of ABC to its application. Author has discussed some specific cases in different countries. Some of our journals highlight the impact of ABC on the European firms where as some other has tried to discuss the American context of ABC. Analysis contains some data on the Nestle Bangladesh Ltd. which maintains the ABC. We have tried to analyze how successful the company is in implementing ABC. In the analysis of journals, author focused on different era of business like service sector, technology business, manufacturing sector and many more. Implementing ABC in these different sectors is a little bit different. ABC has to be implemented considering the characteristics of that sector. In total ABC has been proved to be successful for almost all the sectors. There have been some modifications in ABC also. Some other concepts have also been discussed here like theory of constraints, time driven ABC and many more. Key w ords: ABC, management accounting, manufacturing sector, time driven ABC.

Impact of Financial Leverage on Firms' Profitability: An Investigation from Cement Sector of Pakistan

Abstract: This research is an attempt to establish a stochastic relationship between Financial leverage and Profitability of cement sector operating in Pakistan. For this purpose 18 cement manufacturers out of 21 are incorporated in the study and six years annual data from 2005 to 2010 regarding financial leverage and profitability of the said firms were taken into consideration. The sample size for eighteen firms for six years consists of 108 observations. An Ordinary Least Square model is applied on the data to establish a causal relationship between the variables. The study finds that financial leverage has a statistically significant inverse impact on profitability at 99% confidence interval. Key w ords : Financial Leverage, Firms’ profitability, OLS JEL: C12, G32, L61

Examining the Effectiveness of Electronic Payment System in Ghana: The Case of e-ZWICH in the Tamale Metropolis

Abstract: There have been significant development of technological innovations in Ghana’s banking sector and financial services in general. The introduction of e-ZWICH in Ghana in 2008 came with so much euphoria as great news meant to move the country towards a cashless economy. Many Ghanaians signed on to the first biometric payment system – the e-ZWICH. After several years, the interest and patronage seem to have waned drastically. The study examines the effectiveness of that form of electronic payment system in the Tamale metropolis in Ghana. The study adopts questionnaire administration to ascertain the common types of e-payment systems, the level of adoption of e-ZWICH, and the factors affecting its effectiveness. This study reveals that there is low patronage of the e-ZWICH smart card due to frequent link failures, long queues in banking halls and limited point-of-sale devices. This has stalled the effective adoption and use of the system. The study recommends that the innovators and regulators introduce measures to renew the interest of stakeholders through sensitization workshops, making the point-of-sale devices more available and enhancing the smooth operation of the devices. Keywords : e-ZWICH, Point-of-Sale devices, Biometric, Innovations, Payment systems

Factors Affecting Investment Decision Making: Evidence from Equity Fund Managers and Individual Investors in Pakistan

Abstract: Traditional theories of finance assume that investors behave rationally in the stock market, but according to behavioral finance investors behave irrationally while making their investment decisions. Behavioral finance explains the effect of investor psychology on their investment decision making. Purpose - The purpose of the study is to investigate the impact of behavioral factors such as heuristics, risk aversion, use of financial tools and firm-level corporate governance on investment decision making. Design/Methodology/Approach – This study use questionnaire technique for primary data collection from equity fund managers and individuals who invested in commercial banks, insurance companies and stock exchanges of Pakistan. The study collected 100 responses from individuals and equity fund managers. To accomplish the objective we use correlation analysis and regression analysis technique. Findings –The study concludes that Heuristics, Use of financial tools and Firm level corporate governance have positive and significant Impact on investment decision making, whereas Risk aversion has negative and significant impact on investment decision making. Moreover, all behavioral factors, firm level corporate and investment decision making have positive and significant relationship with each other. Stock exchanges and regulatory authorities may use these results to educate investors about behavioral factors. Findings of this research study may help to increase the investor’s confidence.

Factors that Affect Students' Career Choice in Accounting: A Case of Bahir Dar University Students

Abstract: The purpose of this study is to investigate factors affecting students’ career choice in accounting. The researcher was used a five point likert scale questionnaires and collected the data from 197 Bahir Dar university colleges of business and economics regular students. Order logistic regression analysis were applied to determine the impact of independent variables under each factors like intrinsic factors, extrinsic factors, perception toward accounting and other social factors on the dependent variable, career choice in accounting. Gender is also used as a control variable. Based on the regression model analysis interest to the course, ability, desire to run a business, the need for dynamic and challenging environment has a positive significant effect on students’ choice of accounting under intrinsic factor. Job opportunity, responsibility and opportunity for experience has a positive and social status has a significant negative effect on students’ choice of accounting under extrinsic factor. Following the established rule and stress has a significant negative effect on students’ choice of accounting under the students’ perception toward accounting. Under social factor family influences has a positive significant effect on students’ choice of accounting. In addition the researcher was applied marginal effect to know the impact of each response category on the dependent variable. In general the overall finding suggests that even if students have a positive attitude for most intrinsic factors and extrinsic factors, they have also a negative image for students’ perception toward accounting profession. Therefore, all responsible bodies should have to work together to create good image of accounting into the society. Keywords: Accounting, Career Choice, Students

Contingent factors of Strategic Management Accounting

Abstract: This study aiming at examining the relationship between selected contingent factors (e.g. Market orientation and, environment uncertainty) and the extent of strategic management accounting usage in context of Jordanian companies by applying selection fit method, the quantitative data obtain from top management of companies listed on Amman Stock Exchange, provide some evidences supporting the effect of contingent factors on the extent of strategic management accounting usage. The results of the current study drew conclusions regarding the extent of strategic management accounting information usage in context of Jordanian companies. Academics and practitioners should be aware to the importance of such strategic management accounting information and its role in the strategic decisions. Keywords: Strategic Management Accounting, Contingency theory

The study effect agency theory and signaling theory on the level of voluntary disclosure of listed companies in Tehran Stock Exchange

Abstract: This study investigates the effects of agency theory and signaling theory on the level of voluntary disclosure . empirically the research data is collected from 45 firms in the Tehran Security Exchange (TSE) during 2008-2013.multiple regressions technique is used for examining the stated hypotheses. It is used for, two models. The first model is based on agency theory and the second model is based on signaling theory.The relationship between ratio of fixed assets, Leverage, ROE, Liquidity on the level of voluntary disclosure.. In order to examine the hypotheses, data is collected from the annual reports of the companies using official bulletins of the Tehran stock exchange, mainly, through Novin software, Keywords: agency theory, signaling theory, voluntary disclosure

Determinants of Audit Fee in Pakistan

Abstract: Audit fee studies, being a tool to assist negotiation between auditors and clients are regularly undertaken all over the world and essentially stem on the factors prevalent in the specific auditing/accounting environments. Unfortunately, Pakistan has been less explored in this regard with only two studies being conducted focusing its market. Both the studies used a single year data for analyses and were conducted in a less regulated environment than presently prevalent in Pakistan. After the establishment of SECP and regulatory changes in corporate sector, no such study has been conducted in Pakistan. Using the Simunic (1980) model, this study reveals that client’s size of business, complexity of business and international recognition and affiliation of audit firms (Big four firms) are significant determinants of audit fee in Pakistan. Results in study indicate that ignorance of risk factor by the auditors may pose serious threat to fame and reputation of audit firm along with indication of feeble legal regime in Pakistan. Keywords: Audit fee, client’s size of business, audit complexity, audit risk, big firm

Competence of Human Resources, The Benefits of Information Technology on Value of Financial Reporting in Indonesia

Abstract: The purpose of this study is an attempt to explain, but tested empirically, competency of human resources, the benefits of technology to the value of financial reporting in Indonesia (relevance, accuracy, and verifiability) to develop a theoretical framework as the basis for the hypothesis as an answer to the research question, namely, the extent to which: (1) the influence of human resource competencies (2) the effect of technological benefits of human resources and (3) the effect of financial reporting. This study will be used in the test with ? = 0.05 to test each hypothesis proposed. This study is scheduled to be performed on the 54 sectors in the neighborhood Provincial Government in Indonesia. Also described in this paper is the research methodology used. Keywords : competency, human resources, benefitsm information technology, value, financial reporting

Analysis of the Main Determinants of Inflation in Nigeria

Abstract: The retard economic growth in Nigeria is associated with macroeconomic instability variables, in particular, the unstable rate of inflation. Consequently, the pursuance of poverty reduction and economic prosperity policy targets remained elusive. This study investigated the main determinants of inflation in Nigeria for the period 1986 – 2011. The Augmented Dickey-Fuller unit root statistics test revealed that all the variables are stationary after first and second difference at 5% level of significance. The co-integration result reveals long-run equilibrium relationship between the rate of inflation and its determinants. The Granger causality test revealed evidence of a feedback relationship between inflation and its determinants. The estimated VAR result showed that fiscal deficits, exchange rate, import of goods and services, money supply and agricultural output have a long run influence on inflation rate in Nigeria. Only lending rate influenced inflation in the short and long run horizon. The variance decomposition and impulse response results show that “own-shocks” were significantly responsible for the variation and innovations in all the variables in the equation. Obviously, inflation in Nigeria is fiscal and monetary policy influence. While this study discourages excessive waste of public funds through fiscal deficit, it recommends that the monetary authority should encourage a lending rate policy that promotes investment as well as retention of a desired level of money supply and interest rates that reduce inflation rate in Nigeria. More so the authorities should greatly be proactive in financing agricultural and manufacturing sector to increase local production of competitive goods that appreciate the Nigeria naira currency in relation to major international currencies. Keywords: Inflation, Fiscal policy, Monetary policy, Agriculture, Econometric tools.

Efficiency Analysis of Foreign-Capital Banks in Turkey by OCRA and MOORA

Abstract: Banks, as financial institutions bridging investors and depositors, play important roles in the development of the national economy. Efficient operation of the banking sector is necessary not only for the strategic objectives of the banks but also investors, and the national economy itself. The national economy of a country is seriously affected by inefficiency of the banking system. Therefore, measurement of efficiency is an important issue and should continuously be carried out. In this study, the efficiency of 9 foreign-capital banks in Turkey between 2005 and 2014 is evaluated by the operational competitiveness rating (OCRA), multi-objective optimization by ratio analysis (MOORA) and simple additive weighting (SAW) method. The criteria weights were determined on a scale ranging from 1 to 9. All three methods revealed that Finansbank (FB) and Denizbank (DB) had the best performance, while HSBCB and INGB ranked after them. Keywords: Bank Performance, Simple Additive Weighting, Multi-Objective Optimization by Ratio Analysis, Competitiveness Operational Rating, Foreign-Capital Banks.

Mean Reversion in Stock Prices: Evidence from Karachi Stock

Abstract: This study provides a complete examination of the stock prices behavior in the Karachi stock exchange. It examines that whether Karachi stock exchange can be described as mean reversion or not. For this purpose daily, weekly and monthly index data from Karachi stock exchange ranging from period July1, 1997 to July 2, 2011 was taken. After employing the Multiple variance ratio and unit root tests it is concluded that stock market follow mean reversion behavior and hence have reverting trend which opens the door for the active invest management. Thus technical analysis may be help to identify the potential areas for value creation. Keywords : Mean Reversion, Random Walk, Technical analysis, Karachi stock exchange.

The Impact of Strategic Costing Techniques on the Performance of Jordanian Listed Manufacturing Companies

Abstract: This study provides an effort to present strategic costing techniques as a group in the context of SMA literature, where these techniques were primarily studied separately in the past . The study examines the impact of using strategic costing techniques on Jordanian Listed Manufacturing Companies (JLMC) and to examine the impact of these techniques on the performance of these companies. A survey on JLMC was conducted for data collection. A total of 91 questionnaires were distributed to these companies. Out of this number, only 60 were returned. The response rate was about 65.9%. Descriptive statistics studies showed that JLMC achieved better performance compared to the period before adopting strategic costing techniques. One-sample t-test showed that all of strategic costing techniques were used by JLMC. The results of multiple regressions showed that these techniques contribute significantly and explain a high percentage of variation of JLMCs' performance. Three of explanatory variables were ABC, TC, and COQ have a statistically significant positive effect on JLMC's overall performance, financial performance, and market performance. The rest of explanatory variables which were attribute costing, LCC, and VCC did not have a statistically significant effect on the mentioned categories of performance of JLMC. Regarding the production performance of JLMC, it has been found that all of explanatory variables except attribute costing technique have a statistically significant positive effect on this category of performance. In respect to the limited studies about the relationship between strategic costing techniques as group and firm performance, this study recommends researchers conduct more studies on this subject. The study also recommends JLMC continue adopting all of SMA techniques in the future. Keywords: Strategic management accounting, strategic costing techniques, ABC, TC, attribute costing, LCC, COQ, VCC, firm performance.

Impact of Monetary Policy Instruments on Profitability of Commercial Banks in Nigeria: Zenith Bank Experience

Abstract: This paper examined the impact of monetary policy instruments on profitability of commercial banks in Nigeria using the Zenith Bank Plc experience. The paper used descriptive research design. It utilized time series data collected from published financial statements of Zenith Bank Plc as well as Central Bank of Nigeria Bulletin from 2005 to 2012. Four research questions and four hypotheses were raised for the study. Pearson Product moment correlation technique was used to analyze the data collected while t-test statistic was employed in testing the hypotheses. The study discovered that cash reserve ratio, liquidity ratio and interest rate did not have significant impact on the profit before tax of Zenith Bank Plc. However, minimum rediscount rate was found to have significant effect on the profit before tax of the bank. The paper concluded that a good number of monetary policy instruments do not impact significantly on profitability of commercial banks in Nigeria. The paper recommended that management of commercial banks in Nigeria should look beyond monetary policy instruments to enhance their profits.

Working Capital Management and Profitability: A Study on Cement Industry in Bangladesh

Abstract: Working capital management is the key to success for the manufacturing firm. As a manufacturing firm the profitability of cement industry mainly depends on the efficient management of working capital e.g. managing the current assets and current liabilities satisfactorily. This study is decorated to outline the profitability and working capital position of selected cement industries, correlation between them and whether the profitability is affected by working capital management. Ratio Analysis have been used to show Profitability position & Working Capital position, Correlation Matrix have been used to show correlation between them and Regression Analysis have been used to show the impact of Working Capital management on Profitability respectively. The study is mainly based on secondary data. The study reveals that Profitability position & Working Capital position over the study period is not satisfactory. From the study it is also found that there is significantly positive correlation between profitability and working capital components as well as impact of day sales outstanding (DSO) on profitability ratios is negatively significant. The study recommended that sample cement industries should reduce their day sales outstanding (DSO) for improving their profitability position.

International Financial Reporting Standards’ Adoption and Financial Statement Effects: Evidence from Listed Deposit Money Banks in Nigeria

Abstract: The motivation of this study is derived from prior studies which relate to the investigation of IFRS impact on the financial statements of banks. It examines the effects of the adoption of the International Financial Reporting Standards on the financial statements of banks. A regression model is estimated using pooled data and fitted with dependent variables. The results show that IFRS adoption has positively impacted some variables in the financial statement of banks, for example, profitability and growth potential. The paper also reveals that given the fair value perspective of IFRS, the transition to IFRS brings instability in income statement figures. Future research may identify the specific provisions of IFRS that are responsible for the positive impact on financial performance measures. Such detailed knowledge is useful to standard setters who may wish to improve existing accounting standards. Further research should extend the sample size and the time horizon of the study in order to add to the findings reported here. Keywords: IFRS, financial statement, income statement, fair value, profitability, growth, financial performance measures.

Factors Affecting Quality of Local Government Financial Statements to Get Unqualified Opinion (WTP) of Audit Board of the Republic of Indonesia (BPK)

Abstract: This study aims to test both simultaneously or partially SAP Implementation How big influence, Quality Human Resources, Internal Control System Implementation, Organizational Commitment and Utilization of Information Technology affect the quality of the financial statements in relation to local government getting Unqualified Opinion of the Audit Board. The study population of the survey took place 10 in the area within the County and City Government and Development Coordination Agency Region IV West Java Province which consists of West Java Province as well as the unit of analysis is the Accounting Section relating to local government financial statements.This study used a purposive sampling method and using a multiple linear regression analysis. Prior to the regression test, the data were tested beforehand using the classical assumption test. The results of the analysis showed that the simultaneous application of SAP, HR Quality, Implementation of Internal Control Systems, Organizational Commitment and Utilization of Information Technology significantly affect the quality of local government financial reports. While partially Quality of Human Resources, Internal Control System Implementation and Utilization of Information Technology but not significantly SAP Implementation and Organizational Commitment significantly affect the Quality of Local Government Finance Report. These results need to be re-examined because there is no similar empirical studies that support or contradict these results. Keywords : Local Government Finance Report, Implementation of SAP, HR Quality, Implementation of Internal Control Systems, Organizational Commitment and Utilization of Information Technology, and Unqualified Opinion.

The Impact of Capital Structure on Profitability of Banks Listed on the Ghana Stock Exchange

Abstract: The purpose of this paper is to examine the impact of capital structure or leverage on profitability of listed banks stock exchange Ghana from 2007 to 2013. The concept of capital structure in finance explains the way a firm finances its assets/operations by the use of a blend of debt and equity. The blend of debt and equity would make banks more profitable bearing in mind the adverse effect of the extreme of each form of financing. Data was collected from Ghana stock exchange and the annual reports of the17 listed banks. Descriptive statistics and multiple regression models were used to analyze the data. The result revealed that the banks listed on the Ghana Stock Exchange are highly geared. This can be attributed to their over dependency on short term debt which is due to the relatively high Bank of Ghana Lending rate and low level of bond market activities. The study showed that financial leverage measured by short term debt to total assets (STDTA) had significant positive relationship with profitability measured by return on assets (ROA), return on equity (ROE) and earnings per share (EPS). Long Term Debt to Total Asset (LTDTA) also had a significant positive relationship with ROA and ROE but however, had a negative and insignificant relationship with EPS. Asset growth rate had a negative and insignificant relationship with profitability measured by ROA, ROE and EPS. Firm size also showed positive and significant relation with all the profitability measures such as ROA, ROE and EPS. Keywords: Capital structure, Profitability, Multiple regression, Ghana stock exchange, Bank of Ghana.

The Effect of Competence and Independence Of Auditors on the Auditquality

Abstract: This study aims to determine the effect of the competence and independence of auditors. This research is motivated by a large public accounting firm (KAP) were suspended in this case because of poor competence and independence of the auditors that affect audit quality that occurs on Public Accountants. Competence and independence of auditors that will either result in a good quality audit. Probability auditors foundmateriality misstatement depends on the quality of the auditor's understanding (competence) while reporting misstatements depends on auditor independence. Audit quality is aprobability that the auditor will discover and report irregularities in the client's accounting system. The unit of analysis in this study is a Public Accounting Firm (KAP) in Yogyakarta. The population in this study were all auditors working inKAP. Sampling was done by using purposive sampling method, and the total sample of 50 respondents. The primary data collection method used was a questionnaire method. The data analysis technique used in this study is the technique of multiple line arregression analysis. Results of research conducted showed that the competence and independence of the significant effect of 35.9% on audit quality. Keywords : Competence, Independence, audit quality

A Systematic Review of Budgeting and Budgetary Control in Government Owned Organizations

Abstract: Budgeting and budgetary control entails the establishment of goals by the management of an organization and designing a process which serves as a framework within which an organization effectively articulates overall planned activities. The quantification of these planned activities in financial terms is known as budgeting, while the establishment of an effective mechanism to guarantee desired result is known as budgetary control. This study therefore seeks to undertake a systematic review of budgeting and budgetary control in Government owned organizations and given the importance of the foregoing, attention was focused on the Nigerian National petroleum Cooperation (NNPC). To achieve the objective of the study, primary data were obtained through the use of a well structured questionnaire administered to the respondents, while the secondary data were obtained from the annual financial statements, files, memos, tax laws and gazette of the NNPC. The findings revealed that a necessary and sufficient condition for achieving effective budgeting and budgetary control is the involvement of all relevant stakeholders in the preparation of the budget, given the established processes in government circles, while emphasizing a deliberate and faithful implementation, by all responsible officers. This rests on the existence of a mental picture of the present state of affairs, vis-a-vis the future expected state of affairs, within the organization. It therefore recommended that since budgeting and budgetary control contributes to management efficiency and high productivity of an organization, all relevant stakeholders must be involved in the budget process, from preparation to implementation, in other to guarantee overall goal attainment. Keywords: Budgeting, Budgetary Control, Effective, Efficient, Management, Performance.

Conflict Management and Organizational Performance: A Case Study of Askari Bank Ltd.

Abstract: In a society where people with a diverse interests, views, and values coexist, differences between such individuals and groups are to be expected. The objective of this research study is to look at conflict situations and its causes, as well as possible solution of improve working environment in an Organization. Our study shows that Conflict stems from incompatibility of goals and interest and if it continued it will destroy the Organization. Conflict affects the Organization in several ways such as decreased employee satisfaction, insubordination, decreased productivity, economic loss, fragmentation, and poor performance. A formal questionnaire was constructed and survey method was used to collect data from a target group of respondents. Descriptive analytical techniques such as frequency, percentage, mean, standard deviation & variance and factor analysis were applied to analyze and interpret the data. Ratio Analysis is used to analyze Askari Bank’s performance. The major findings are that Education does not have any effect on the opinion of respondents on Conflict Management Strategies. Similarly, there is no significant difference between the opinion of male and female respondents regarding the causes of conflict. However, there is a significant effect of conflict on organizational performance. We suggest that Management must adopt Conflict Management strategies that improve the Performance of the Organization, besides ensuring a free flow of communication between the management and the employee as well as promote interpersonal relationships among co-workers to boost their morale. Keywords: Conflict, causes, effects, conflict management, conflict management strategies, organizational performance

Taxation and Nigerian Economic Growth Process

Abstract: This study empirically investigates the impacts of taxation on the growth of the economy. The Nigerian government has embarked on monitoring its collection but the economy has failed to experience the desired growth that will lead to the targeted economic development.The chosen economic growth indicator, the real Gross Domestic Product (RGDP), is specified to depend on the taxation indicators which are the petroleum profit tax (PPT), company income tax (CIT), customs and excise duties (CED), value added tax (VAT). The study employed the use of both simple and multiple linear regression analysis of the ordinary least square method. These were used to determine the impact and relationship between the endogenous variable, RGDP, and the exogenous variables, PPT, CIT, CED and VAT. It was discovered that if all the exogenous variables were tested individually on the economic growth, they show a significant impact individual on economic. The F-statistic shows that the overall model is statistically significant.This paper therefore recommends that the fiscal laws and regulations of the government should be strengthened so as to checkmate tax offenders, improve tax administrative machinery and transparency of government officials that are involve in tax revenue management. Keywords: real Gross Domestic Product, Petroleum Profit Tax, Company Income Tax, Customs and Excise Duties, Value Added Tax, Economic Growth

Financial Literacy and Management of Personal Finance: A Review of Recent Literatures

Abstract: The objective of this paper is to present a review and synthesis of recent studies on financial literacy and related issues. Starting with review of prior literature surveys, the current study advances personal finance literature by presenting recent studies on financial literacy, the link between financial literacy and financial management behavior, and financial inclusion. And showed that people, even in developed world, lacks basic knowledge, skill and attitude for optimal personal financial management decisions. As a result enhancing financial literacy and personal finance education becomes relevant policy in developed and high income countries since the mid-1900s. A recent academic and policy interest in developing countries, albeit large scale surveys are lacking, show increasing global relevance financial literacy and savvy financial behavior for socio economic health of a nation. Recent studies from emerging and developing countries confirmed low level of financial literacy and it’s correlation with being female, young or old, unemployed, having low educational attainment, low income, and living in rural area however few studies found some demographic variables insignificant. These studies suggested furthering of financial education to different cohorts of population, especially targeting those with low financial literacy level. Nevertheless, empirical evidences on the impact of financial literacy on financial behavior, and financial inclusion remained mixed, but suggesting positive outcomes of well-designed and targeted financial education, sometimes coupled with other interventions. Keywords: Financial literacy, financial behavior, financial inclusion, literatures review.