Open Access Original Research Article

The Impact of Audit Committee Characteristics on Earnings Management in the Pre- and Post- Bahraini Corporate Governance Code 2011

Omar Issa Juhmani

Asian Journal of Economics, Business and Accounting, Page 1-12
DOI: 10.9734/AJEBA/2017/36234

Aims: This study tends to measure the effectiveness of the Bahraini corporate governance code (BCGC) 2011 on curbing earnings management practices by using audit committee (AC) characteristics in the pre- and post- BCGC 2011.

Study Design: The AC characteristics examined are AC independence, AC meetings and AC experts. To present evidence on whether the BCGC 2011 decreases the level of earnings management, this study investigated this issue by comparing the regression results in the pre- and post- BCGC 2011.

Place and Duration of Study: The initial study sample includes all Bahraini companies listed on the Bahrain Bourse (BB) for the year 2010 and for the year 2012, one year data before and one year data after implementing the BCGC 2011.

Methodology: Ordinary least-squares regression is used to examine the association between AC characteristics and earnings management practices pre- and post- BCGC 2011. The regression model is implemented separately for the year 2010 and for the year 2012.

Results: The results of the regression model show that earnings management does not significantly associated with any of the AC characteristics even pre- or post- the BCGC 2011.

Conclusion: The results may suggest that ACs doesn’t provide incremental monitoring in curbing earnings management in the post- BCGC period. The results of this study called for future research to examine the impact of BCGC 2011 on earnings management by using the board functions in addition to the AC functions in the regression model, and by using more years data pre- and post- BCGC 2011. This study contributes geographically to the effectiveness of ACs and earnings management literatures by analyzing data from an emerging market, and it has potential implication for regulators and policy-makers in Bahrain to increase the effectiveness of ACs.

Open Access Original Research Article

Official Development Assistance and Economic Development: Evidence from the West African Monetary Zone

Hillary Chijindu Ezeaku, Anthony E. Ageme, C. A. Anisiuba, J. U. J. Onwumere

Asian Journal of Economics, Business and Accounting, Page 1-8
DOI: 10.9734/AJEBA/2017/36247

The goal of this paper is to examine the linkage between official development assistance (ODA) and economic development in the West African Monetary Zone (WAMZ). The study made use of annualized data from six WAMZ countries from 1986 to 2015. The Panel OLS technique was employed to estimate our model. The findings revealed that official development assistance has significant negative effect on per capita income in the region. A unit change in ODA leads to 3.6% decline in GDP per capita within the period. External debt services however exert positive but insignificant impact on per capita income. The results further show that inflation rate has negative effect on GDP per capita. These findings were confirmed by orthonormal biplot analysis.

Open Access Original Research Article

The Effectiveness of Relational Bonds on Customer Loyalty Mediated with Customer Satisfaction: Telecommunication Industry, Batticaloa

Shamini Newton, V. R. Ragel

Asian Journal of Economics, Business and Accounting, Page 1-11
DOI: 10.9734/AJEBA/2017/36550

Aims: Customer loyalty is considered to be a key component in enhancing the survival of businesses, especially in the situations faced by highly competitive industries. Therefore, Tele communication service providers should be conscious of the factors affecting customer loyalty in building strong relationships. This study aimed to investigate the effectiveness of relational bonds on customer loyalty with regard to customer satisfaction in mobile telecommunication service providers.

Study Design: The descriptive survey design and Cross sectional analysis were used to analyse the data.

Place and Duration of Study: This study was based on the customer’s perspectives and their experiences with mobile telecommunications service in Batticaloa. Research was conducted from January 2016to November 2016.

Methodology: Stratified random sampling was used. The study divided the whole population (25,482) in Manmunai North divisional secretariat area – Batticaloa according to the villages in that DS division, and the sample of 200 families selected from all villages according to its contribution for total population and unit of analysis is family units. The descriptive statistics, correlation and regression analysis were used to analyze the data.

Results: The results revealed that strong positive relationship exist between the relational bond and (0.887) loyalty, same as satisfaction (0.892). Further, relational bonds were significantly impacted on (0.786) loyalty and (.795) satisfaction and also relational bond impact on customer loyalty significantly through customer satisfaction (.804). Therefore, it is reasonable to conclude that customer loyalty can be created, reinforced and retained by developing strong relational bonds between customers and service providers.

Conclusion: The study contributes to existing theoretical and practical knowledge by providing evidence about the relationships between relational bonds on customer loyalty, and between customer satisfaction. It is potential to maintain long-term relationships between the service providers and their customers

Open Access Original Research Article

Factors Affecting Access to Agricultural Loans in Anambra State: An Econometric Analysis

Francis O. Nwankwo

Asian Journal of Economics, Business and Accounting, Page 1-8
DOI: 10.9734/AJEBA/2017/28822

This study was designed to examine the extent to which farmers have benefited from loans/credit activities of commercial banks, as well as the factors affecting accessibility of credit/loans by banks to them. Multistage and simple random sampling techniques were adopted in selection process of sample farmers and bank officials. Two sets of questionnaires were designed and administered to 75 small-scale farmers and six officials of the two banks in the Onitsha Agricultural Zone of the state, to gather information and relevant data for study. Eighty-six percent of the questionnaire forms were returned and used in the analysis. Descriptive tools and econometrics method were used to analyse the data collected and to examine the effect of certain socio-economic and other variables on loan/credit approval. Findings show that farmers in the area have not benefited substantially from the agricultural loan facilities of commercial banks. Access to bank loans in the area was found to depend largely on ability of the applicant to provide collateral security. Age, crop type, and income were found to be important and significant determinants of access to agricultural loan in the Zone. The study therefore recommended among others, that the government should, through Central Bank of Nigeria, direct banks to increase the small-holder loan limit to farmers, as well as de-emphasizing their insistence on collateral security.

Open Access Original Research Article

The Effects of Job Rotation, Role Stress and Job Satisfaction on Organizational Citizenship Behavior of Bank Employees

Shelomeya Ragel, V. R. Ragel

Asian Journal of Economics, Business and Accounting, Page 1-10
DOI: 10.9734/AJEBA/2017/36543

Aims: This study mainly investigates the effects of job satisfaction on organizational citizenship behavior, along with the antecedent effects of job rotation and role stress on job satisfaction in banks. Further it examines the level of variables, relationships and impacts between ‘Job satisfaction and Organizational Citizenship Behavior’, ‘Role stress and Job satisfaction’ and ‘Job rotation and Job satisfaction’. Also this study trying to explore mediating role of Job satisfaction in connecting antecedents ‘role stress and job rotation’ with Organizational Citizenship Behavior.

Study Design: It is a descriptive study. A structured questionnaire was prepared and distributed among the sample with closed statements measured with ordinal measures called Likert’s Five Points Rating Scale.

Place and Duration of Study: The study population consists of bank employees of 13 banks in Batticaloa District, between September 2016 and December 2016.

Methodology: 200 bank employees as respondents by applying simple random sampling method from the study population of bank employees from 13 banks in Batticaloa District. The response rate has been 83% (97 men, 69 women; age range 21 – 60).

Results: Variables Job rotation, Job Satisfaction and Organizational Citizenship Behavior are in high level and Role stress is moderate level. Relationship between Job satisfaction and Organizational Citizenship behavior is found as strong positive (0.570) correlation and impact 32.5%. Antecedents Job Rotation has positive relationship and impact (R - 0.435; R2 - 0.189) while Role stress negatively correlated and has impact (R - -0. 652; R2 - 42.6) in Job satisfaction. As well Job satisfaction is playing mediating role in connecting antecedents Role stress and Job rotation with Organizational citizenship behavior.

Conclusion: Job rotation, Job Satisfaction and Organizational Citizenship Behavior are in high level and Role stress is in moderate level. ‘Job Satisfaction and Organizational Citizenship Behavior’ and ‘Job rotation and Job Satisfaction’ have positive relationships and impacts. Where, ‘Role stress and Job satisfaction’ have inverse relationship and impact. As well it is clear that Job satisfaction plays mediating role in connecting antecedents (Job rotation and Role stress) with Organizational Citizenship behavior.