Open Access Original Research Article

Modelling the Response of Fiscal Policy to External Shocks: The Case of Nigeria

Uche, C. C. Nwogwugwu

Asian Journal of Economics, Business and Accounting, Page 1-11
DOI: 10.9734/AJEBA/2018/42419

The study assesses the response of Nigerian fiscal policy to a number of external shocks, namely; oil price, foreign aid and exchange rate shocks using Vector Autoregressive (VAR) estimation approach. The results show that fiscal policy in Nigeria is responsive to external shocks mainly oil price shocks, while shocks due to government revenue are also shown as significant for explaining economic activities measured by GDP in Nigeria.

Open Access Original Research Article

Entrepreneurial Intention among Advanced Level Students in Colombo District, Sri Lanka: The Mediation Effect of Role Models

D. M. C. Senarath, M. P. S. R. Perera

Asian Journal of Economics, Business and Accounting, Page 1-12
DOI: 10.9734/AJEBA/2018/42762

Entrepreneurship is not pursued as an attractive career choice by the Sri Lankans as they more attracted to jobs. Entrepreneurial Intention (EI) of younger generation of the country is more crucial in this condition where they are the essence of the active citizen pool of the country. The main objective of this study is to find out the factors that affect EI of Advanced Level (A/L) students in Colombo District, Sri Lanka. The study includes three constructs discuss under the Theory of planned Behaviour (TPB), which affect the EI of individuals. Further, the study efforts to identify the mediation effect of role models (RM) on the above factors when determining EI. A total of 376 students from schools in Colombo District, Sri Lanka participated in this study by responding to the structural questionnaire. Data analysis was done by correlation analysis, multiple regression analysis, and factor analysis. Findings of the study shown that attitudes towards Entrepreneurship (ATE), subjective norms (SN), perceived behavioural control (PBC) as well as role models are positively and significantly related with EI. The study also exposed that role models significantly mediate the relationships between ATE, SN and PBC with EI. Further, the study reflects that there is a positive effect on EI in terms of ATE, SN and PBC. Since Sri Lanka is having a critical issue with rising unemployment rates, self-employment is a respectable solution for the younger generation. This study adds value to the literature in the means of application of TPB in the context of Sri Lanka.

Open Access Original Research Article

Analysis of the Relationship between Interest Rates and Gearing Ratios of Banks Listed on the Ghana Stock Exchange

Matthew Kwabena Valogo, Adinan Bahahudeen Shafiwu, Joyce Adabuge

Asian Journal of Economics, Business and Accounting, Page 1-8
DOI: 10.9734/AJEBA/2018/43390

This study aims at analysing the relationship between interest rates and gearing ratios of banks listed on the Ghana Stock Exchange. The research design was a correlational analysis using time series data. The population for this study consists of all the (10) banks listed on the Ghana Stock Exchange. The data for the study was purely secondary and the selected period ranged from 2012 to 2016, (5 years). The data were analysed with trend and correlation analysis and represented with charts and tables using descriptive statistics. The study findings revealed that of the listed banks the debt-to-equity ratio also known as the gearing ratio had both a minimum and maximum for 0.89 and 0.92 respectively with the expected mean being 0.79 which deviated from the actual mean by 0.18. Comparably the interest rate results showed a minimum and maximum value of 0.04 and 9.56 respectively with their respective mean values of 2.13, also deviating from the actual mean by 1.91. In addition GDP had minimum and maximum values of 3.70 and 9.30 with the mean standard deviation values of 5.51 and 2.26. Based on the findings the study concluded that there is a negative relationship between the gearing ratio and interest rate and a positive relationship between GDP and inflation. Thus, any increase in the interest rate could result in a decrease in gearing ratio. Based on conclusions above, the study recommends that financial managers must strive to obtain debt instrument with lower interest rate in order to boost the long-term financial strength (gearing) of their firms. Also the Bank of Ghana (BoG) should sanitise the monetary environment through their monetary policy regulation to ensure lower or stable interest rate so as to facilitate the strength of the gearing ratio of banks in the economy.

Open Access Original Research Article

Organisational Politics and Performance: The Intervening Role of Tribal Diversity in the Hospitality Industry in Ghana

Eunice Aidoo, Agnes Odoi

Asian Journal of Economics, Business and Accounting, Page 1-16
DOI: 10.9734/AJEBA/2018/43383

Aims: The primary objective of the study is to investigate the effects of tribal diversity in the relationship between organisational politics and performance in the hospitality industry in Ghana.

Methodology: To achieve this a sample of 122 employees from 30 hotels in Ghana were selected using stratified sampling technique. The study used questionnaires for data collection and employed quantitative techniques for the analysis of the data. Means, standard deviations, correlations and regression analysis were used to present the results.

Results: The study revealed that employees perceive organisational politics to be prevailing within their organisations. The relationship between tribal diversity and organisational politics was established to be significant at a level of (0.043) less than the alpha value of (0.05).  The study also found a significant relationship between tribal diversity and organisational performance at a significant level of (0.040) less than the alpha value of (0.05). The relationship between organisational performance and organisational politics was found to be a negatively significant relationship. The study revealed that organisational politics and organisational performance without the mediating variable (tribal diversity) was significant at (p=0.001) but introducing tribal diversity did not change the relationship nor the extent of the relationship. Hence, tribal diversity did not mediate the relationship between organisational politics and organisational performance.

Open Access Review Article

Corporate Social Responsibility Disclosure and the Value of Listed Conglomerates Firms in Nigeria

Umar Salisu, Saidu Sani, Jamilu Umar Lawan

Asian Journal of Economics, Business and Accounting, Page 1-8
DOI: 10.9734/AJEBA/2018/42804

This study investigates the relationship between corporate social responsibility disclosure (CSRD) and financial performance of listed conglomerates firms in Nigeria, with the use of secondary data. The secondary data was sourced from sampled firms’ annual account and reports between 2007-2016.The data generated were analyzed using descriptive, multivariate regression, Correlation and disclosure index. The major finding from the analysis reveals that there was a positive relationship between CSRD and financial performance, in the light of the major findings it was concluded that, CSRD brings about improvement in the financial performance of the sampled conglomerates in Nigeria since they maintain a positive relationship.