Open Access Case study

Cultural Dynamics and Performance of Family Owned Businesses in Anambra State

K. N. Nnabuife, Ezimma, Okoli, Ifeanyi Emmanuel, Arachie, Augustine Ebuka

Asian Journal of Economics, Business and Accounting, Page 1-12
DOI: 10.9734/AJEBA/2018/43948

The over-reliance on patriarchal inheritance culture which seems to inhibit the capacity of Family Owned Businesses (FOBs) to professionalise and its implications for industrialising Africa necessitated this study. The broad objective was to examine the relationship between Cultural Dynamics and Performance of selected Family Owned Businesses in Anambra State. The study adopted a survey research design. The population of the study was 1500, and the sample size was 316 which guided the distribution of questionnaires in adherence to the proportion of allocation using Bowley’s Allocation formula. Data were analysed with the aid of descriptive statistics and hypothesis tested with the Ordinary least square Regression analysis at 5% level of significance. The result revealed that there is a positive relationship existing between inheritance culture and professionalism in the selected FOBs. The coefficient of determination (R Square) shows that 88% change in professionalism is accounted for by changes in inheritance culture. The study concluded that the culture of an environment overlaps with the culture of FOBs situated in it and the more the owners of FOBs align with the culture of inheritance, the more likely it is for the business not to be professionalised. Among other things, the study recommended that irrespective of the fact that the ownership of the business stays within the family circle, efforts should be made by the families to employ capable hands and experts to help in managing the business. Moreover, even when inheritance is by seniority, management should be left in the hands of more capable, effective and efficient family members since this has far-reaching implications in the industrialisation of Africa.

Open Access Original Research Article

Remittances and Financial Inclusion: Micro-econometric Evidences from Pakistan

Yasir Amin, Abdul Jalil

Asian Journal of Economics, Business and Accounting, Page 1-13
DOI: 10.9734/AJEBA/2018/44990

This study investigates the impact of foreign remittances on financial inclusion in Pakistan. Using the household-level data of Pakistan Standard of Living and Measurement (PSLM) for the year 2014-15, this study tests whether the remittances have any impact on households' use of formal financial services offered by the formal financial institutions or not.  We specify the equation in Logit framework and estimate through the maximum likelihood method. The study finds that there are significant chances that financial inclusion will increase with the increase in the amount of remittances inflows. This is true in the case of both foreign remittances and total remittances. Pakistan's financial system needs to make it easier for migrants to send inflows into the country to make the most out of remittances.

Open Access Original Research Article

Service Quality and Customer Satisfaction of Electricity Distribution Company: A Study of Olumo Business Hub, Abeokuta, Ogun State

A. Shodiya Olayinka, O. Ojenike Joseph, O. Jolaosho Surajudeen, T. Adebayo Adeyinka

Asian Journal of Economics, Business and Accounting, Page 1-18
DOI: 10.9734/AJEBA/2018/44493

This study examines the relationship between service quality and customer satisfaction in Ibadan Electricity Distribution Company. To achieve this, IBEDC customers residing in Ogun State were sampled to seek their opinion on their level of satisfaction with IBEDC's services. Survey research was employed which involved the distribution of questionnaires to customers. The questionnaire sought information based on the five SERVQUAL dimension of reliability, empathy, responsiveness, tangibles and assurance which were measured on a 7-point Likert scale. A total of 397 customers were surveyed with 19 SERVQUAL survey items and 3 customer satisfaction survey items. Data collected were analysed with the use of the arithmetic mean, standard deviation and Partial Least Squares Structural Equation Model (PLS-SEM) for testing the five hypotheses theorised in the study. From the study, it was established that the reliability of IBEDC does not have a significant effect on customer satisfaction in Olumo business hub, Abeokuta which implied that IBEDC’s ability to perform the promised service dependably and accurately or delivering on its promises is very poor. The study established that the empathy of IBEDC does not have a significant effect on customer satisfaction in Olumo business hub, Abeokuta which implied that IBEDC's caring and provision of individualised attention to customers by their staff are very poor. It established that the responsiveness of IBEDC does not have a significant effect on customer satisfaction in Olumo business hub, Abeokuta which implied that IBEDC’s willingness or readiness of staff to provide service is very poor. The study also established that the tangibles of IBEDC do not have a significant effect on customer satisfaction in Olumo business hub, Abeokuta which implied that IBEDC physical facilities (offices), staff appearance, materials associated to the service (transformers, wires etc. and equipment used to provide electricity are very old and obsolete. The finding from the study shows that the assurance of IBEDC does not have a significant effect on customer satisfaction in Olumo business hub, Abeokuta which implied that IBEDC’s staff knowledge and courtesy to convey trust and confidence is very poor.

Open Access Original Research Article

Forward-Looking Information Based on Integrated Reporting Perspective: Value Relevance Study in Indonesia Stock Exchanges

Wiwik Utami, Putri Dwi Wahyuni

Asian Journal of Economics, Business and Accounting, Page 1-12
DOI: 10.9734/AJEBA/2018/44981

The International Integrated Reporting Council (IIRC) in 2013 has formulated the Integrated Report Framework. Integrated reporting provides forward-looking information related to the company's holistic picture, future targets and the relationship between financial performance and non-financial performance. Indonesia does not require companies to report integrated reporting, but many voluntary ones have provided partial disclosures about aspects that are regulated in the integrated report framework. This study aims to provide empirical evidence about the effect of forward-looking disclosure on firm value. The research population is a manufacturing company on the Indonesia Stock Exchange for the 2015 and 2016 annual reports. The sample is selected based on the availability of annual reports accessed through the company's web and the Indonesia Stock Exchange. The population is 144 manufacturing, and sample companies were 70 which was collected for two years, so there were 140 firms’ years. The forward-looking measurement is based on the disclosure index. GCG variables are used as control variables because empirically GCG can affect the value of the company. The results of the study showed that forward-looking disclosure has a significant effect on the value of the company and can explain the 20.9% variation in the value of the company.

Open Access Original Research Article

An Empirical Relationship between Foreign Exchange Rate, Inflation and Interest Rate in Nigeria

David Adugh Kuhe

Asian Journal of Economics, Business and Accounting, Page 1-9
DOI: 10.9734/AJEBA/2018/39863

This paper investigates the empirical relationship between naira/US dollar exchange rate, inflation and interest rate in Nigeria. The study uses annual time series data from 1970-2017. Augmented Dickey-Fuller unit root test, Johansen cointegration, fully modified least squares; Error correction model and Granger causality test based on Toda-Yamamoto procedure were employed in this study as methods of analysis. The results reveal that all variables are integrated of order one and hence cointegrated. The study finds inflation as having negative and significant impact on exchange rate while interest rate was found to have positive and significant impact on the foreign exchange rate in Nigeria in the long-run. The economic impacts of inflation and interest rate on the exchange rate in the short-run are found to be low, temporal and not long lasting. The ECM model has identified a moderate speed of adjustment by 50.39% for correcting disequilibrium annually for achieving long-term equilibrium steady-state position. The Granger causality test result shows statistical evidence of unidirectional causality between exchange rate and inflation and between exchange rate and interest rate in the short-run. There is also a unidirectional causality that runs from interest rates to inflation meaning that inflation is Granger caused by interest rates in Nigeria. The study recommends that lowering the lending interest rate and targeting inflation to single digit is a better exchange policy strategy for Nigeria.