Asian Journal of Economics, Business and Accounting

Evaluating Community Empowerment Using CIBEST Analysis: Financial and Spiritual Dimensions

Sri Fadilah, Yuni Rosdiana, Riyang Mardini — Wed, 27 Nov 2024 00:00:00 +0000

Aims: The research aims to measure the effectiveness of community empowerment with CIBEST Analysis in the community empowerment of "Balai Ternak BAZNAS" Program.

Study Design: The research used case study and descriptive analysis method, with mustahik respondents who received initiation of zakat funds.

Place and Duration of Study: Community empowerment of "Balai Ternak BAZNAS".

Methodology: To assess the effectiveness of the program CIBEST analysis was used.

Results: The results of research using CIBEST analysis can measure the performance of community empowerment through "Balai Ternak” program effectively. can be seen from the improvement in performance from the material dimension by increasing muzaki income and the results of "Balai Ternak” program with livestock products that can be enjoyed by muzaki and the community, especially meeting the needs for goat and poultry meat in the surrounding community. Also the spiritual dimension can be seen from the quantitative and qualitative increase in the implementation of prayer, fasting and paying zakat. also support from the family environment and government policies to improve the spiritual life of muzaki and the community.

Conclusion: The CIBEST model can effectively measure the performance of community empowerment through "Balai Ternak” program. This can be observed from the improved performance in the material dimension, which is reflected by the increased income of muzaki (donors) and the outcomes of "Balai Ternak” program, where the livestock products can be enjoyed by the muzaki and the community, especially in meeting the local demand for goat and poultry meat.

Analysis of Return on Asset and Inflation on Stock Returns in Telecommunication Sector Companies on IDX

A. Mustika Amin — Wed, 27 Nov 2024 00:00:00 +0000

Aims: The primary objective of this study was to assess the impact of return on assets (ROA) and inflation on stock returns for telecoms businesses listed on the IDX from 2019 to 2023.

Study Design: This research is a quantitative study that intends to investigate the effect of Return on Asset and Inflation on Stock Returns.

Place and Duration of Study: Indonesia Stock Exchange (IDX) between March to October 2024.

Methodology: The research method used is descriptive method with a quantitative approach, with the classical assumption test data analysis method, multiple linear regression analysis and hypothesis testing. The sampling technique in this study was purposive sampling where only 10 of the 16 populations were sampled.

Results: The Sig. result for ROA is 0.010 <0.05 and the t count value is 2.679> t table 2.012, meaning that ROA on variable Stock Return has a significant effect partially, while for inflation it is 0.011> 0.05 and the t count value is 2.657 > t table 2.012 means that Inflation on variable Stock Return does not have a significant effect partially. As for the F test results, the calculated F value is 6.233. While in the distribution table the value of F at a significant level of 5% is 3.195. The significant value is at a value of 0.004> 0.05, it can be concluded that ROA (X1), and inflation (X2) simultaneously have a significant effect on Stock Returns (Y).

Conclusion: Both ROA and Inflation Partially has a negative and significant effect on stock returns. In addition, simultaneously the results showed that ROA and Inflation simultaneously had a significant effect on Stock Returns.

Ownership Structure, Agency Costs, Board Independence and Corporate Risk among Firms Listed at the Nairobi Securities Exchange, Kenya

Joab Ooko — Thu, 28 Nov 2024 00:00:00 +0000

This study explored how ownership structure influences corporate risk in firms listed on the Nairobi Securities Exchange, with agency costs acting as a mediator and board independence as a moderator. Guided by agency theory and supported by mean variance-portfolio theory, stewardship theory, and resource dependence theory, the research adopted a positivist approach and employed a causal survey design to investigate the relationships between ownership structure, agency costs, board independence, and corporate risk. Panel data from 61 firms over an 11-year period (2011-2021) was analyzed. Panel data regression analysis was employed.

The findings revealed that foreign ownership, government ownership, and diffuse ownership were negatively correlated with corporate risk, while managerial ownership showed a positive relationship with risk. However, managerial, corporate, and diffuse ownership had insignificant effects on corporate risk. Agency costs had a minimal mediating effect, but board independence significantly influenced the relationship between ownership structure and corporate risk.

The study recommends that policymakers and regulators enforce limits on managerial ownership to prevent excessive control, encourage a broader distribution of shareholders, increase corporate and foreign ownership to reduce risk, and improve risk management frameworks for government-owned firms. Corporate managers should maintain a balanced board mix of independent and non-independent directors, establish conflict-of-interest policies, foster open communication, ensure that independent directors have a significant role in decision-making, and regularly review board composition. Additionally, managers should implement systems to monitor employee behavior, promote clear communication regarding company objectives, and offer performance-based incentives to reduce agency costs.

In conclusion, the study highlights the complex interplay between ownership structure, agency costs, and board independence in shaping corporate risk, with practical implications for firms seeking to manage and reduce their risk exposure.

The Impact of Internal Control Systems on Asset Protection and Financial Reporting Accuracy in SMEs

Rapuluchukwu Peter Igbojioyibo — Fri, 29 Nov 2024 00:00:00 +0000

Any small or medium-scale enterprise without a well-established internal control system is very prone to financial losses, reduced profitability, and eventual business collapse. In view of this, this study aimed to: assess how an effective internal control system contributes to the safeguarding of assets within SMEs and offer guidance on how SMEs can establish effective internal controls to safeguard their assets; evaluate the impact of an effective internal control system on the accuracy of financial reporting among SMEs as well as to offer guidance on how SMEs can establish effective internal controls to ensure accuracy of financial reporting. In carrying out this study, a survey research design was applied on a sample size comprising 120 SMEs owners in Nigeria. Likert-based scale questionnaire was administered on the sample respondents in order to collect primary data for the study. The research questions were analysed using frequency distribution and mean. Spearman correlation was used in testing the hypotheses. The findings revealed that: internal control system significantly helps to protect assets of SMEs (rho = .778, p = .000); internal control system significantly enhances the accuracy of financial reporting among SMEs (rho = .644, p = .000). In conclusion, the findings illustrate the essential role that internal control systems play in fostering a culture of accountability and transparency within SMEs, which is increasingly relevant in today’s dynamic business environment. It is recommended that SME owners and management implement comprehensive internal control systems that include regular audits and assessments to enhance asset protection measures. This proactive approach will help identify potential vulnerabilities and strengthen safeguards against theft or loss.

Taxes, Policies, and Change: Advocating VAT Facilities for Disabilities

Umar Abdul Aziz, Haula Rosdiana — Fri, 29 Nov 2024 00:00:00 +0000

This study explores the critical need for a Value Added Tax (VAT) facility to improve access to assistive devices for people with disabilities in Indonesia. It uses a qualitative approach with a literature review method, of Academic Books; Scopus Indexed Scientific Journals; Articles from Scientific Conferences; Media Articles; and International Sources. The study found that the “VAT exemption” mechanism is more effective in reducing the price of assistive devices, as it ensures tax neutrality and reduces price increases caused by inefficiencies in the tax system. However, the study also underscores the importance of implementing VAT exemption for assistive devices through the “VAT not levied” facility as a strategic measure to increase accessibility, improve welfare, and promote social inclusion for people with disabilities in Indonesia.

Analysis of the Influence of Experiential Value and Relationship Quality on Customer Loyalty: A Case Study on RDM Tourism Bus

Ridam Bagus Sahputro, Alldila Nadhira Ayu Setyaning — Fri, 29 Nov 2024 00:00:00 +0000

This study aims to determine the effect of aesthetics, escapism, service excellence, and customer ROI on behavioral and attitudinal loyalty, with relationship quality as an intervening variable. The approach used in this study is quantitative. Data were collected by distributing online questionnaires using Google Forms to 300 respondents who use RDM Tour Buses in Indonesia. The sampling technique employed was non-probability sampling using the purposive sampling method, and the data were analyzed using Structural Equation Modeling (SEM) with the assistance of the PLS program. All hypotheses in this study were accepted. The four elements of experiential value—aesthetics, escapism, service excellence, and customer ROI—significantly enhance relationship quality in the RDM Tour Bus business. It improves relationship quality effectively fosters both behavioral and attitudinal customer loyalty. This research helps companies understand the key factors that drive customer loyalty, leading to more effective marketing strategies. Enhancing customer service, strengthening relationships, and continuously improving app features, innovations, promotions, and service systems are essential for maintaining customer satisfaction and loyalty in the tourist bus industry. Theoretically, the study identifies factors influencing customer loyalty in transportation services, providing insights into experiential value, relationship quality, and customer loyalty. It also serves as a literature foundation for future studies about the tourism industry. Based on this study's findings, marketing managers in the tourist bus industry should prioritize experiential value factors, such as vehicle aesthetics and excellent service. By doing so, they can foster relationship quality, which in turn can cultivate both behavioral and attitudinal loyalty among users.

Role of Social Capital in Building Financial Resilience

Jung-Yi Wang, Hsiang-Tsai Chiang — Wed, 04 Dec 2024 00:00:00 +0000

Global climate change has created an urgent need to promote the transformation of green economy. This study adopted the social capital theory as a framework, and the banking industry plays a central role in this process, not only to identify the current development of green finance in Taiwan through green financial products but also to understand the attitudes of different customers towards green finance. This study aims to understand the relationship between banks and diversified communities through social capital, promote the innovation and application of green technologies, and integrate external resources to facilitate multi-party collaboration. The study was analysed and evaluated using the latest versions of SPSS 26 and Smart PLS 4.0, with a total sample size of 501 respondents. The results demonstrate that financial resilience has a positive impact on social capital, while carboxylic acid has a positive effect on usage intention. Consequently, this study proposes that the social capital theory is a valuable tool for understanding consumer intentions regarding green finance.

Integrating ICT for Enhanced Maize Market Access: A Business Model for Storage and e-Marketing in Char Land

Md. Abdul Majid, M. Wakilur Rahman, Md. Al Mamun, Md. Salauddin Palash — Fri, 06 Dec 2024 00:00:00 +0000

Aims: This paper puts forth the idea of MaizeConnect—a business model centred on information and communication technology (ICT) to improve a lot of rural maize farmers in Bangladesh when it comes to accessing markets.

Methodology: The research was conducted in the char areas of Jamalpur District, where the Making Markets Work for the Chars (M4C) project is being implemented. The research undertakes a mixed-methods approach of desk reviews, stakeholder consultations, and SWOT analysis to understand the model's viability and impact. A situation analysis was conducted in the selected research sites to understand the current marketing practices, identify gaps, and determine the specific needs of marginal farmers.

Results: An innovative e-marketing model has been developed for ensuring better access to smallholders in Bangladesh. This model not only seeks to give farmers direct access to buyers but also aims to tackle the problem of postharvest maize losses. The rural farmers are mostly poor, producing maize on a small scale. They don't have much power to negotiate, which makes their situation look pretty grim. MaizeConnect focuses on transforming the maize sector by providing easy-to-use technology, with three main benefits: price stabilization, market connectivity, and payment system inclusion. The model relies on collaboration between government, NGOs, and the private sector, with continuous support essential for sustained impact.

Conclusion: There is a unique opportunity to transform the rural agricultural landscape in Bangladesh through ICT integration in the maize value chain—specifically in improving market access and storage solutions. The MaizeConnect model can overcome key challenges including post-harvest losses, market inefficiencies, and the integration of smallholder farmers into a more profitable value chain.

Does Interest Rates Affect Financial Disclosure and Non-performing Loans? Evidences from Commercial Banks in Western Uganda

Sewanyina Muniru, Ongesa Tom, Nyambane David, Manyange Michael — Tue, 10 Dec 2024 00:00:00 +0000

The research examines the correlation between non-performing loans (NPLs) in Uganda's commercial banking sector and financial disclosure (FD), with attention to IR. A mixed-method study was conducted using survey data from 189 banking professionals, which contained descriptive statistics (means and standard deviations) combined with Pearson correlation analysis. SmartPLS was utilized to conduct research on the role of interest rates in shaping the relationship between FD and NPMs using Structural Equation Modelling (SEM). This indicates that there is a small but significant positive relationship between FD and NPLs (r=0.378, p0.05), suggesting that the more financial reporting is transparent, the lower the number of NPMs become. Interest rates play a significant role in shaping this connection, with the highest connection weight between IR and NPLs (0.916). This also showed that FD and NPLs were strongly negatively associated (r=0.777, p=0.000), suggesting the need for transparent reporting to mitigate the risk of such NPOs. The findings highlight the importance of interest rate policies and financial transparency in managing NPLs, providing valuable information for banking regulators and policymakers. Additionally, A partial explanation was given for why the connection between interest rates and financial disclosure played a role in decreasing NPLs, underscoring the crucial role of transparency within finance. It provides valuable insights into the dynamics of financial disclosure and its impact on non-performing loans in the banking industry.

Brand Ambassadors, Taglines, and Jingles: Synergistic Effects on E-commerce Brand Awareness – A Case Study on Tokopedia

Sherly Hesti Erawati, Rina Rahmawati — Tue, 10 Dec 2024 00:00:00 +0000

Aims: This study aims to examine the impact of brand ambassadors, taglines, and jingles on brand awareness among Tokopedia users, assessing how these marketing elements contribute to consumer recognition and recall.

Study Design: A non-causal descriptive research design was utilized to explore the relationships between the independent and dependent variables.

Place and Duration of Study: Data were collected from Tokopedia users through an online questionnaire distributed via social media platforms and user forums between June and August 2024.

Methodology: The study included 300 respondents, age range 17-30 years) who had made at least one purchase on Tokopedia. A structured questionnaire was employed to measure perceptions of brand ambassadors, taglines, jingles, and brand awareness. Multiple linear regression analysis was conducted to evaluate the effects of the independent variables on brand awareness.

Results: The regression analysis revealed that brand ambassadors (B = 0.45, p < 0.001), taglines (B = 0.30, p = 0.003), and jingles (B = 0.40, p < 0.001) significantly influenced brand awareness. The model explained a substantial portion of the variance in brand awareness (R² = 0.37).

Analysis of Factors Influencing the Budget Surplus (SiLPA) and Financial Performance of Ampelgading Community Health Center

Irawan Budi Prasetyo — Wed, 11 Dec 2024 00:00:00 +0000

Aims: This study aims to analyze the performance of regional budget management and identify the causes of the Budget Surplus (SiLPA) at the Ampelgading Community Health Center in Malang Regency during the period of 2021–2022 (Bali, 2021).

Study Design: A qualitative descriptive approach using a case study method was employed.

Place and Duration of Study: The research was conducted at the Ampelgading Community Health Center in Malang Regency from 2021 to 2022.

Methodology: Various data collection techniques were utilized, including observation, documentation, and interviews. The study focused on identifying factors contributing to SiLPA, such as revenue exceeding expectations, efficiency in regional spending, and the receipt of Health Operational Assistance (BOK).

Results: The findings reveal that the main factors contributing to SiLPA include significant revenue surpluses, effective expenditure management, and substantial BOK receipts. These elements collectively influenced the financial performance of the health center.

Conclusion: This research provides insights into how exceeding revenue projections, efficient spending practices, and BOK receipts significantly affect SiLPA, ultimately impacting the overall financial management of the Ampelgading Community Health Center. Based on these findings, it is recommended that health centers implement strategic planning to enhance revenue generation, optimize expenditure processes, and strengthen the management of operational assistance programs to further reduce budget surpluses.

Innovative Financial Models for Sustainable Investment in Zanzibar’s Blue Economy: Challenges and Opportunities

Hafidh Ali Hafidh, Zulekha Ayoub, Nahifa Said Soud, Mustafa Sharif — Wed, 27 Nov 2024 00:00:00 +0000

This paper explores the financial models applicable to the blue economy sectors in Zanzibar, focusing on innovative ways to finance marine-based economic activities. The study aims to assess various financing models such as traditional bank financing, microfinance, impact investing, crowdfunding, and government grants, examining their applicability, strengths, weaknesses, and feasibility within Zanzibar's unique context. This study used a mixed-methods approach, integrating quantitative surveys and qualitative case studies to analyze financial models for Zanzibar's blue economy. A purposive sample of 163 knowledgeable stakeholders—including representatives from financial institutions, government agencies, NGOs, entrepreneurs, and community leaders—was selected to capture diverse perspectives. Through a survey of 163 stakeholders, the research identifies microfinance as the most accessible and feasible model for small-scale and community-driven marine activities. The paper further discusses the challenges of financing the blue economy, including high upfront costs, limited access to traditional financing, and the need for comprehensive policy support. By analyzing case studies from other small island developing states, the study draws lessons on best practices for sustainable blue economy financing. The findings suggest that a combination of financial mechanisms is crucial for addressing the diverse needs of Zanzibar's blue economy, promoting growth, and ensuring the conservation of marine resources. The paper concludes by advocating for an integrated financial ecosystem that leverages both traditional and innovative financing models, policy reforms, and strategic partnerships to foster sustainable development in Zanzibar's blue economy.

The Impact of Leadership Skills on Information Technology Project Success in Lagos State, Nigeria

Paul Oluwafemi Popoola, Modupe Olayinka Ajayi, Kehinde Temitope Alade — Sat, 07 Dec 2024 00:00:00 +0000

The rapid expansion of the IT industry in Lagos State, Nigeria often referred to as "Africa's Silicon Valley" has revealed how crucial strong leadership is to the accomplishment of projects. Notwithstanding the extensive study on leadership styles, little is known about the precise effects of leadership skills in the IT sector, especially in Lagos' complex and rapidly expanding environment. This study fills this knowledge gap by investigating how important leadership abilities affect the results of IT projects. 206 IT professionals working for the Lagos State Ministry of Innovation, Science, and Technology. Data was collected through structured surveys and analyzed using quantitative techniques to evaluate the relationship between leadership skills and project success. Decision-making and adaptability are essential for navigating Lagos' unique challenges, while communication and emotional intelligence are crucial for team cohesiveness and efficient problem-solving. This study aims to evaluate the influence of leadership skills on IT project outcomes in Lagos State. The study validates the impact of leadership skills on IT project performance in Lagos State, demonstrating a significant relationship with a p-value of 0.01 at a confidence level of 95%, using regression analysis to analyse the data. The research offers valuable insights for IT professionals, organizations, and policymakers, enriching the understanding of leadership abilities needed to drive IT projects in Lagos, thereby contributing to the existing body of knowledge. These findings can guide leadership training programs and policy formulations to enhance project outcomes in Lagos' IT sector.

Zero-Based Budgeting as a Tool of Budgetary Control in Panchayati Raj in India

Amar Kumar Chaudhary — Tue, 10 Dec 2024 00:00:00 +0000

Zero-based budgeting (ZBB) is a systematic approach to budgeting that starts from a "zero base," aiming to analyze the requirements and costs of each activity. The aim of this article is to explore the application of ZBB as an effective means of budgetary control within the Panchayati Raj institutions in India, with Nigeria serving as an example of its successful implementation. As the cornerstone of decentralized governance, Panchayati Raj plays an important role in implementing rural development programs while ensuring optimal use of resources. However, traditional methods of incremental budgeting often lead to inefficiency, misuse of funds, and lack of accountability. The study delves into the principles of ZBB and its ability to increase financial discipline, prioritize spending, and align budget allocations with development objectives in the rural governance framework. Nigeria's implementation of ZBB highlights its ability to eliminate redundant programs, reallocate resources to critical sectors, and enhance transparency through stakeholder involvement and technological integration. Despite these advantages, ZBB faces challenges such as high time investment, manpower turnover, lack of experienced personnel, administrative complexity, bureaucratic inertia, local political resistance, and resistance to change. While ZBB requires considerable effort in terms of training and stakeholder engagement, it can significantly improve financial management and service delivery in Panchayati Raj institutions. The study concludes by emphasizing the need for capacity building and institutional reforms to achieve sustainable and equitable development in India's villages and offers policy recommendations for integrating ZBB into rural governance systems.