Open Access Data Article

A Comparative Analysis of Corporate Governance Disclosure in Nigerian and South African Banks

Araniyar C. Isukul, John J. Chizea

Asian Journal of Economics, Business and Accounting, Page 1-15
DOI: 10.9734/AJEBA/2016/29335

This research examines corporate governance disclosure in Nigerian and South African Banks using the un-weighted disclosure index technique. This research provides a cross sectional examination of corporate governance disclosure practices in the annual reports of 10 listed banks in Nigeria and South Africa for the year 2013. The results suggest that Nigerian and South African banks have a high level corporate governance disclosure. However, Nigeria and South African banks have low levels of voluntary corporate governance disclosure. Furthermore, in reporting of voluntary corporate governance disclosure, Nigerian banks appear to be collating information with no link to the overall business strategy of the organization while the South African banks have a more robust approach to voluntary corporate governance disclosure as they apply international guidelines such as the global reporting initiative in reporting voluntary corporate governance disclosure.

Open Access Original Research Article

Univariate Time Series Modelling of Cedi-Dollar Nominal Exchange Rate

John Tumaku, Solomon Yemidi, François Mahama

Asian Journal of Economics, Business and Accounting, Page 1-12
DOI: 10.9734/AJEBA/2016/28867

This paper seeks to develop a statistical model capable of forecasting the Ghanaian Cedi US Dollar nominal exchange rate. The study uses end-of-month interbank exchange rate between January, 1994 and May, 2016. We employed the Autoregressive Integrated Moving Average (ARIMA) scheme in analysing the data. The study reveals that the exchange rate has a unit root implying that shocks to the exchange rate have a long term permanent effect. We have established that the end-of-month Cedi-Dollar rate follows ARIMA (0,1,2) process. The 12-month ahead forecast indicates that the value of the Cedi to the Dollar would decline in line with its past trend. The forecasts from the model compared favourably with actual realizations of the exchange rate. It is recommended that businesses whose cost is in Cedi but their revenue in Dollar should use the lower limit of the forecasts for the purposes of planning their business activities and vice versa.

Open Access Original Research Article

Nigeria’s Current Account Determination under Changes in Government Fiscal Policy and Exchange Rate Volatility (1970-2015)

Anyanwu Felicia Akujinma

Asian Journal of Economics, Business and Accounting, Page 1-14
DOI: 10.9734/AJEBA/2016/29982

In the face of current account imbalances, exchange rate volatility, fluctuation in lending rate and inflation, development and growth of the economy could be hampered. These calls for better informed and evaluated macroeconomic policies to take care of economic and financial challenges. With this scenario in mind, the long run linkage between current account, fiscal policy and exchange rate volatility was evaluated for a period of forty five years from 1970 to 2015. Secondly, whether fiscal policy and exchange rate volatility determines Nigeria’s current account position was also ascertained. The data were diagnosed for heteroskedasticity, serial correlation, Ramsey Reset and multicollinearity. Johansen co-integration was used in evaluating the long run linkage, short run and long run dynamics by VAR error correction model and determinants of current account by granger impact assessment analysis. The result of the Johansen co-integration revealed that current account, fiscal policy and exchange rate volatility amidst fluctuation in prime lending rate and inflation are connected in the long run. The negative normalised coefficient depicted that rising fiscal deficit and exchange rate volatility will in the long run tremendously affect the current account position of Nigeria. The granger impact assessment analysis disclosed that fiscal policy and exchange rate are not determinant of Nigeria’s current account. The study put forward that Federal Government of Nigeria should stop further budget deficit and ensure stability in the exchange rate. In addition, Central Bank of Nigeria should reduce the minimum rediscount rate which determines the prime lending rate.

Open Access Original Research Article

Effect of Petroleum Subsidy Removal on Poverty Level in Kogi State, Nigeria

Oluwoyo J. Temidayo, Audu Peter, Enemali Onuche

Asian Journal of Economics, Business and Accounting, Page 1-11
DOI: 10.9734/AJEBA/2016/29604

In every economy, government policy interventions are aimed at among other objectives, improving the welfare of citizenry bearing in mind the prevailing conditions. With the increase in misery index it became imperative for government to put in place policy meant to provide safety nets for the poor. One of such policy is Petroleum subsidy which has now been redrawn. It is against this backdrop that this research seeks to assess the effect of petroleum Subsidy removal on Poverty level in Kogi State. Primary Data was used and collected through well-structured questionnaires distributed among 300 respondents sampled using multi stage sampling techniques analyzed using chi- Square and students t-test. The study revealed that petroleum subsidy removal increased the cost of living, transportation cost and hence recommends that government should shift Subsidy to Transportation Sector by putting in place a subsidized transportation scheme.

Open Access Original Research Article

Key Aspects of the Bond Ratings in Indonesia

Jhon Urasti Blesia, Dita Ria Pramudika

Asian Journal of Economics, Business and Accounting, Page 1-14
DOI: 10.9734/AJEBA/2016/30244

Very few research projects based on bonds are conducted in Indonesia, compared to those based on stocks. In fact, investors who do not like taking risks tend to prefer investing in bonds. Several previous studies have reached differing conclusions about the effects of the variables observed, so the factors that affect bond ratings need to be examined once more. This study aims to determine the effects that firm size, liquidity, profitability, leverage, productivity, security and the age and reputation of the auditor, have on bond rating. 35 corporate bonds listed on the Indonesian Stock Exchange in 2012 were chosen as the sample, and analyses were performed using logistic regression analysis. As a result, this study found that the only variable significantly influencing bond ratings is their profitability. Investors, in order to avoid the risk of a company’s default, can thus measure profitability and take that into consideration.