Open Access Policy Article

Insecurity and Sustainable Development in Nigeria (in Context of Terrorism)

Ozoh Joan Nwamaka, Dinwobi Kelechi Stephen

Asian Journal of Economics, Business and Accounting, Page 1-10
DOI: 10.9734/AJEBA/2018/41482

Insecurity is a major and great threat to the national development of the country.                                       The rising movement of insecurity has not come to a standstill but has assumed                              dangerous dimensions which are threatening the corporate existence of the country as one geographical entity. This paper examines insecurity and its implications on sustainable development with special focus on terrorism massacre in Nigeria. Terrorist attack has become a major threat to national security and sustainable development of Nigeria because the increased operation has caused pain, havoc, and agony in the lives of Nigerians and the economy. This paper also  examines critically the various efforts by the government to put a stop to this menace. The study adopts descriptive research design which its data are drawn mainly from secondary sources                      and as such, the study adopted content analysis of issues. The study recommended restructuring of the economy which will lead to greater development, security and less corruption. Efforts should be made to create cattle ranches and provide better security against rustling. Nigerian states should also put in place good governance which will be able to respond proactively to the problem of killings in the country instead of reactive response.

Open Access Original Research Article

Strategic Planning and Corporate Performance in the Nigerian Banking Industry

Olanipon Olaoluwa Omotayo, Olumuyiwa Olarewaju Michael, Akinola Adekunle Andre

Asian Journal of Economics, Business and Accounting, Page 1-12
DOI: 10.9734/AJEBA/2018/36118

The study evaluated the different factors that influence the choice of strategic planning adopted by banks in the country. It also examined the effects of Strategic Planning on Corporate Performance. Primary data was used for the study. Lagos metropolis was used as the area of the study because 20 banks out of 21 post consolidated banks have their head offices in Lagos. Ten banks listed on the Nigerian stock exchange market with stable corporate identity were selected out of 21 Deposit Money Banks in Nigeria using purposive sampling technique. 200 senior staff of banks in the Nigerian banking industry was used as the population. Sample was selected using multi-stage sampling technique. Ten senior managers of the selected banks who are involved in strategic planning decision and coordination of resources in the banks were selected using purposive sampling techniques. Thus, the sample size for the study was 100 respondents. A well structured questionnaire was administered to the respondents. Data was analysed using descriptive and inferential statistics. The findings of the study revealed that the factors influencing the choice of strategic planning adopted by banks in the country include technological environment (85%); global environment (81%); management style (76%) and political/legal environment (70%). It also revealed that strategic planning proxied by environment by environmental scanning (t=4.624, p< 0.05); strategy formulation (t=3.000, p< 0.05); feedback and evaluation t=2.019, p< 0.05) had significant effect on organisational performance. The study concluded that strategic planning if properly integrated by Nigerian banks could make significant improvement on their performance in the industry.      

Open Access Original Research Article

Asset Pricing and Asymmetric Information

Alexandre Ripamonti, Diego Richard da Silva, Eurico Batista Moreira Neto

Asian Journal of Economics, Business and Accounting, Page 1-9
DOI: 10.9734/AJEBA/2018/42075

This study applies Johansen-Fisher panel cointegration to a sample of the most liquid shares on the Brazilian stock market for 20 years. It finds that stock prices are determined by the asymmetric information of a lagged period, and the dilution of information corrects stock prices in the current period. This shows that rational expectations theory can offer a new price measure in the rational valuation formula, and its main assumptions are met. Uninformed traders can benefit from this paper´s findings by monitoring asymmetric information.

Open Access Original Research Article

Effect of Interlocking Directorship on Discretionary Earnings Quality: Evidence from Nigeria

Patrick E. Idode, Oluoch J. Oluoch, Oloko Margret

Asian Journal of Economics, Business and Accounting, Page 1-12
DOI: 10.9734/AJEBA/2018/40733

Aims: To ascertain the effect of firm size on the relationship of interlocking directorship on discretionary earnings quality of quoted companies in the non-financial sector of Nigeria.

Study Design:  This study uses quantitative design.

Place and Duration of Study: The study focuses on Nigeria stock Exchange for a period of 15 years from 2002 to 2016.

Methodology: This study has used purposive sampling method; Panel data of 105 companies were extracted from a total population of 130 non-financial companies. Regression and correlation analysis was done including trend analysis.

Results: The beta coefficients of the resulting model, that is, the betas for the variables interlocking directorship and firm size were both statistically significant with p-values = 0.002 and 0.001, respectively which are less than 0.05. Similarly, the coefficient for the combined variables (interlocking directorship and firm size) was also statistically significantly with a p-value of 0.004 which is lower than 0.05. This implies that the null hypothesis β1=0 is rejected and the alternative hypothesis β1≠0 is taken to hold indicating that the model Y=0.425 (Interlocking directorship) + 0.064 (firm size – 0.028 (interlocking directorship and firm size) + e, is significantly fit. The               model DisEQ = α + β (Interlocking directorship x firm size) holds as suggested by the above           result.

Conclusion: This suggests that there is a significant negative linear relationship between the interlocking director and company’s discretionary earnings quality. Therefore, companies with interlocking directors on the board are prone to good discretionary earnings quality. Thus a company with a higher number of interlocking directors reduces discretionary earnings practices.

Open Access Original Research Article

Effect of Artificial Intelligence on the Performance of Accounting Operations among Accounting Firms in South East Nigeria

Odoh Longinus Chukwudi, Silas C. Echefu, Ugwuanyi Uche Boniface, Chukwuani Nnenna Victoria

Asian Journal of Economics, Business and Accounting, Page 1-11
DOI: 10.9734/AJEBA/2018/41641

Artificial intelligence (AI) is rapidly changing how financial institutions are operated and it is expected to increasingly take over core functions because of cost savings and operational efficiencies. In recent time, significant improvement has been made in artificial intelligence especially as it relates to accounting profession which have changed its focus from paper and pencil entry to computer and software entry. But the greatest danger of Artificial Intelligence is that people conclude too early that they understand it. The aim of this study is to examine the effect of artificial intelligence on the performance of accounting operations among accounting firms in South East Nigeria. Descriptive research design was adopted in the study among 185 accountants and managers in accounting firms in Anambra and Enugu state. Structured questionnaire was used to obtain the information needed for the study. Data collected were presented in table. The study hypotheses were tested using linear regression at 5% level of significance. The result of the study showed that Expert system (r = .904; ­­F = 608.447; p = .000) and Intelligent agent (r = .754a; ­­F = 178.810; p = .000); has a significant effect on the performance of accounting function of accounting firms in South East Nigeria. It was concluded that, the application of artificial intelligence positively influences the performance of accounting functions. The researchers recommended that accountants and accounting firms should continually improve their knowledge regarding artificial intelligence as this will enhance the performance of accounting functions, thereby eliminating certain accounting cost.