Open Access Original Research Article

Market Value Maximization, After-Tax Profit and the Cost of Capital of Entrepreneurial Firms

Daibi W. Dagogo, John C. Imegi

Asian Journal of Economics, Business and Accounting, Page 1-9
DOI: 10.9734/AJEBA/2017/32397

This paper examines the implications of various costs of capital on the market value and profit of entrepreneurial firms. Specifically, four costs were identified as follows: cost of debt (kd), cost of equity (ke), cost of retained earnings (kr), and weighted average cost of capital (ko). Ten-year time series and cross sectional data were collected from ten entrepreneurial firms quoted in the alternative investment markets category of Nigeria Stock Exchange. Two panel data regression models were formulated with two dependent variables (market value and net profit), and four independent variables (kd, ke, kr, and ko). Random effect model (REM) was preferred on two grounds: first, the intercept for each model bearing the cross-section effect was treated as random variable with a mean value of I, and second, there is no correlation between the individual or cross-section error component έi and the regressors ( ). We found that market value responds significantly to changes in ke and kr. Profitability was not found to have responded to changes in any particular cost in a statistically significant measure even at p ≤ 0.1. It was concluded that values of capitalized funds depend more on the vagaries of market forces than on profitability prospects of the firms’ assets.

Open Access Original Research Article

Impact of International Public Sector Accounting Standards (IPSAS) Adoption on Financial Accountability in Selected Local Governments of Oyo State, Nigeria

O. Ademola Abimbola, A. Adegoke Kolawole, A. Oyeleye Olufunke

Asian Journal of Economics, Business and Accounting, Page 1-9
DOI: 10.9734/AJEBA/2017/33866

The study evaluated the impact of International Public Sector Accounting Standard (IPSAS) on the financial accountability of selected local governments of Oyo State, Nigeria. The impact of IPSAS adoption on corruption reduction, transparency and accountability in the selected Local Governments were critically examined. The study which adopted survey design collected data using five point likert-scale questionnaires which was administered on sample of 105 Accountants and Internal Auditors in the selected local governments of Oyo State Nigeria.

The data was analyzed using descriptive statistics. The hypotheses formulated were tested using chi-square analysis at 5% level of significance. The result of the study showed that adoption of IPSAS increases the level of accountability, transparency and reduces corruption in the selected local governments. This implied that the economy of Nigeria will be better off if IPSAS is fully adopted and implemented.

Having seen IPSAS as the agents of the needed change in Nigeria, the study recommends                      that Nigerian government should enact an enabling law to back up the adoption and              implementation of IPSAS and more importantly institute appropriate sanctions to ensure full compliance.

Open Access Original Research Article

An Empirical Examination of Challenges Faced by Internal Auditors in Public Sector Audit in South-Eastern Nigeria

Egbunike Patrick Amaechi, Egbunike Francis Chinedu

Asian Journal of Economics, Business and Accounting, Page 1-13
DOI: 10.9734/AJEBA/2017/33944

Internal auditors play crucial role in ensuring, accountability, probity and governance of public sector entities. However, the effective performance of such duties would depend on the challenges faced by internal auditors in public sector institutions. The objective of this study is therefore to examine the challenges faced by internal auditors in public sector audit in south-eastern, Nigeria. The study shall specifically examine whether independence of internal auditors, compliance with set out rules and regulations of public fund management and, improper segregation of duties pose a challenge to internal auditors of public sector entities. The study adopted the survey research design. The population of the study was drawn from accountants and auditors in the offices of the Accountant-General and Auditor-General of Anambra State. The study employed Independent-Samples Mann-Whitney U Test technique in testing the formulated hypotheses. The study finds out that while independence and the compliance with set out rules and regulations of public fund management pose a challenge to internal auditors of public sector entities, however, that improper segregation of duties does not pose a challenge to internal auditors of public sector entities. The study recommends that the independence of internal auditors in public institutions should be enthroned. And, secondly, to ensure compliance with rules and regulations of public fund management ensured.

Open Access Original Research Article

Effect of the Burnout Syndrome on Intraprenuership: A Practice in Province Ankara

Aykut Ekiyor, Gökçen Şenel

Asian Journal of Economics, Business and Accounting, Page 1-11
DOI: 10.9734/AJEBA/2017/33946

In this study identifying the relation between burnout and intraprenuership was aimed. Additionally, the aim was to reveal the difference between the demographic features and burnout and intraprenuership. In accordance with this purpose the problem question was identified as “Has the burnout that the employees come through effect their intraprenuership behaviors. The universe of the study has been chosen from 99 nurses with a convenience sampling method working in a state hospital functioning in Turkey. A face to face questionnaire method has been conducted to the nurses. In the analysis of the data T-test, ANOVA test, regression analysis and correlation analysis was used. According to the results, there is a reverse relation between burnout and intraprenuership, and came out to a result that a rise in the burnout will have a decrease in the intraprenuership.  

Open Access Review Article

Tax Revenue and Macroeconomic Growth in Nigeria: A Contextual Analysis

Miftahu Idris, Tunku Salhabinti Tunku Ahmad

Asian Journal of Economics, Business and Accounting, Page 1-12
DOI: 10.9734/AJEBA/2017/33362

This paper aims at evaluating the influence of tax revenue on the macroeconomic management of the Nigerian economy using a conceptual approach. By so doing, a comprehensive review of the literature as well as in-depth analysis of tax structure are critically conducted. Undeniably, an insight that shows a precise influence or relationship between tax revenue and the nation’s growth can be regarded as a working tool for policymakers particularly in developing countries. In view of that, this paper explores the revenue trend in Nigeria for over three decades in relation to its effects on GDP growth. As shown by the literature, the existence of causal relationship between tax revenue and economic growth suggests the positive influence of taxation as a fiscal policy tool in enhancing macroeconomic growth. This is certainly the policy implication of Keynesian propositions. On the other hand, non-existence of causal relationship between tax revenue and economic growth implies that taxation as a fiscal variable shall be insignificant especially in the long run, as propounded by the Classical doctrine. In spite of the aforementioned policy importance, the percentage of tax revenue as a share of GDP in Nigeria remains positive but relatively low. This is attributed to the increased dependency of the economy on oil revenue while neglecting other potential sources especially in the areas of non-oil growth such as agriculture, solid minerals, and small-and-medium enterprises. However, this paper has established that tax revenue is an essential instrument for resource mobilisation and plays a positive and significant role towards sustainable growth and development of the Nigerian economy. Further evidence shows that tax revenue increases the size of public sector savings and produces higher returns which can be used to encourage the provision of infrastructural facilities that stimulates output growth in the economy. In view of that, there is a growing need for proactive measures within the Nigerian tax system to ensure full enforcement and compliance of tax regulations, proper monitoring and evaluation of tax procedures in order to fight corruption and strengthen accountability in the public sector management. There is also need to examine the link between the burden of these sources of revenue on taxpayers and the productivity of revenue to the government. The regulatory institutions responsible for handling tax related matters should be steered towards the need to re-design efficient and equitable tax policies capable of complementing public sector expenditure and hence, correct for the problems of ever-increasing deficit and debt which engendered enormous macroeconomic disequilibrium in the country.