Open Access Original Research Article

Financial Information Disclosure and the Reliability of Fair Value Estimations in Published Financial Statements: Evidence from Real Estate Sector in Nigeria

Ameachi Patrick Egbunike, Abiahu Mary-Fidelis Chidoziem, Sandra Eseoghene Okwuada

Asian Journal of Economics, Business and Accounting, Page 1-7
DOI: 10.9734/AJEBA/2017/37250

The inadequacy of historical cost measurement has been unto capture current market information and conditions have given rise to the increased use of fair value measurement. However, there has been a controversy as to whether Fair Value Accounting actually satisfies this need it purports to in respect of necessary conditions and benefits for its usage. The study specifically analyzed the reliability of fair value estimations in financial statement disclosures and the availability of active markets for fair value allocation. The respondents consisted of professional accountants in business and public practice and academics in Anambra State. The study was anchored upon the efficient market hypothesis and the agency theory. Disproportionate stratified random sampling technique was used to select the sample from each stratum; the study used simple random sampling giving the study a sample population of 67 respondents from the target population which was believed to be a good representation of real estate market. Primary data were gathered using unstructured questionnaires while the ANOVA test was employed to analyze the information gathered. The result showed that fair value estimates are not reliable to users of financial information. It was also found that there is low availability of active markets for fair value estimation. The paper concludes that companies should adopt a hybrid form of measurement (measurement should entail both fair and historical values) and provide all necessary information needed to understand the allocation of fair value in the notes to the accounts to improve the reliability of financial information disclosed in published financial statements.

Open Access Original Research Article

Green Purchase Intention on Consumer Decision Making towards Green Products

Nilaksana Lavan, F. B. Kennedy

Asian Journal of Economics, Business and Accounting, Page 1-7
DOI: 10.9734/AJEBA/2017/36563

Aims: Growing concerns on environmental friendly products, due to increased environmental issues. Although Green Electronic Product is one of the solutions to save the environment and reduce the pollution in the present world.  This study is to contribute to the body of knowledge in this area of Consumer Decision Making towards Green Electronic Products. This study specially investigates the influence of Green Purchase Intention on Consumer Decision Making towards Green Electronic Products.

Study Design: It is a descriptive research. The study considers Green Purchase Intention as independent variable with two appropriate dimensions as Behavioural Attitude and Subjective Norm and Consumer Decision Making as dependent variable with three suitable dimensions as Product Characteristics, Consumer Individual Characteristics and Environmental Characteristics

Place and Duration of Study: It was conducted in Manmunai North Divisional Secretariat Area, Batticaloa District in Sri Lanka during the period between June 2016 and December 2016.

Methodology: 200 respondents who resides at Manmunai North Divisional Secretariat Area, Batticaloa District in Sri Lanka were taken for this study. The convenience sampling method was applied. Respondents who are aware and purchase green electronic products was only taken to administer questionnaires regarding green purchase intention and consumer decision making. Data was collected through closed ended questionnaires and the analysis was conducted by SPSS Statistics, which are Univariate, Bivariate analysis.

Results: Green Purchase Intention as an independent variable has High Level attribute of the Consumer Decision Making (Mean X1 =4.22 and SD = 0.356). With individual analysis, the consumers have high level of attribute towards Green Electronic Products buying decision on both Behavioral Attitude (Mean = 4.33) and, Subjective Norm (Mean = 4.11). Consumer Decision Making towards Green Electronic Product has High Level attribute of the Consumer Decision Making (Mean X4 =4.19 and SD= 0.32). And the consumers have High Level of attribute on Product Characteristics (Mean =4.18), Consumers’ Individual Characteristics (Mean = 4.18) and Environmental Characteristics (Mean = 4.21). Results indicate that there is statistically linear significant and positive relationship (r = .532, p <0.01) between Green Purchase Intention and Consumer Decision Making. Co-efficient of Determination (R2) is 0.343 and Adjusted R- Square is 0.337 indicate a Lower relationship between Green Purchase Intention’s dimensions and Consumer Decision Making towards Green Electronic Products.

Conclusion: The study found that this independent variable dimensions indicate high level in Consumer Decision Making towards Green Electronic Products. The findings of the present study suggest that the Green Purchase Intention is having the strong positive relationship with Consumer Decision Making towards Green Electronic Products. Eventually, this report recommends some actions for improving the role of Green Purchase Intention in influencing the Consumer Decision Making towards Green Electronic Product market.

Open Access Original Research Article

Effect of Capital Formation on Economic Growth in Nigeria

Nweke Godwin Onyinye, Odo Stephen Idenyi, Anoke Charity Ifeyinwa

Asian Journal of Economics, Business and Accounting, Page 1-16
DOI: 10.9734/AJEBA/2017/36075

This study examined the effect of capital formation on economic growth in Nigeria. The specific objectives of the study are to: (i) determine if capital formation has any significant impact on economic growth in Nigeria. (ii) determine the direction of significant causal relationship between capital formation and economic growth in Nigeria. The study adopted co integration and vector error correction model in the analysis of the variables specified in the model in addition to VEC granger causality test. The result of the data analyzed showed that; Stable long run relationship exists between the dependent and independent variables as indicated by two (2) co integrating equations. In the VECM, it was found that gross capital formation (GCF) has a positive insignificant impact on real gross domestic product (RGDP) in the short run and the long run. Government capital expenditure (GCE) revealed negative significant correlation with RGDP (real gross domestic product) both in the short and long run; From the causality test, the p value of 0.0004 for RGDP and p-value 0.0016 for GCF is less than 0.05; showing that a bi directional causality runs amid RGDP (real gross domestic product) and gross capital formation (GCF). Another two way causality also among GCF (gross capital formation) and GCE (government capital expenditure) indicated with a p-value of 0.0007 and p-value of 0.0000 for GCF. The implication of this study is that gross capital formation has no significant impact on economic growth in Nigeria within the period of study. Based on the findings and policy implications, the study makes the following recommendations; there should be a deliberate collaboration between the government and the private sector towards building enabling environment that promotes capital investment in the economy. There should be conscious effort by both government and private sector to address the issue of corruption in the economy in addition to strengthening public statistical bodies to ensure that all private investments are captured and regulated.

Open Access Original Research Article

Influence of Employee Attitude on Employee Readiness for Organizational Change

Anthony Andrew

Asian Journal of Economics, Business and Accounting, Page 1-11
DOI: 10.9734/AJEBA/2017/37126

After more than three decades of civil war in the north and eastern provinces, number of changes has been introduced by the government of Sri Lanka focusing on a fast and significant development in the education sector.  Researchers and practitioners have both found employee readiness to be a critical factor in successful change efforts. This study was conducted with a main objective to examine the influence of employee attitude on employee readiness for organizational change, focusing on the government schools in the Eastern Province of Sri Lanka. The sample of this study was the teachers of government schools in the Eastern Province. Hence the primary data was collected from 100 teachers from the study area by using a survey questionnaire. Further it was analyzed using the method of descriptive analysis to explore the nature of the sample group, and bivariate analysis was performed to assess the relationships between the study variables.

The Results of this study revealed that the employee attitude was significantly and positively correlated with employee readiness for organizational change. Furthermore the findings of this study provide empirical evidence and also contribute to the existing body of knowledge for employee readiness predictor variables for organizational change.

Open Access Original Research Article

Assessment of Deferred Tax Recognition and Measurement under IFRS and Nigeria-SAS: An Empirical Examination

Ogbodo Cy. Okenwa, Egbunike Francis Chinedu, Abiahu Mary-Fidelis Chidoziem

Asian Journal of Economics, Business and Accounting, Page 1-21
DOI: 10.9734/AJEBA/2017/37651

This study examines the recognition and measurement of deferred taxes of manufacturing companies in Nigeria under IAS 12 and Nigerian-SAS. Deferred tax liabilities are recognized for taxable temporary differences and deferred tax assets are recognized for deductible temporary differences. The specific objective of the study is to determine the magnitude of change in deferred tax assets, deferred tax liabilities, and current taxes following the adoption of IAS 12. Three research hypotheses were formulated for the study. This study adopted the ex-post facto research design. The sample of the study comprises of fifteen (15) manufacturing companies in Nigerian. The study relied on secondary data from annual financial statements of the companies. The formulated hypotheses were analysed using paired samples t-test for difference, while linear regression was used to check for dependence. The analysis was performed with the aid of SPSS version 23. The dependent variables were proxied using deferred tax assets, liabilities and current tax liabilities as per IFRS reporting period while the independent variable were proxied using deferred tax assets, liabilities and current tax liabilities as per Nigerian-SAS reporting period. The study finds statistical significant change in deferred tax assets, tax liabilities, and current taxes. The findings also revealed a positive connection between deferred tax of manufacturing firms in Nigeria under IFRS and Nigerian-SAS. Consequent upon this study, it was recommended among others that deferred tax assets and liabilities are to be presented at the amounts that are expected to flow to or from the reporting entity when the tax benefits are ultimately realized or the tax obligations are settled.