Open Access Original Research Article

Firm’s Market Structure and Financial Reporting Quality in Nigerian Quoted Companies

Jonathan A. Okunbor, E. L. Dabor

Asian Journal of Economics, Business and Accounting, Page 1-14
DOI: 10.9734/AJEBA/2018/33576

This study examines the relationship between firm’s market structure and financial reporting quality in Nigerian listed companies. Data were sourced from the annual reports and accounts of sampled companies quoted on Nigerian Stock Exchange (NSE) between 2010 and 2014. Firm’s market structure was operationalized by the factor score/index of audit firm size and industry type. Discretionary accruals, the dependent variable used as a measure for financial reporting quality was operationalised using the modified Jones model. The results of the Ordinary Least Square (OLS) regression with fixed effects of market variables supported by factor indices showed that firm’s market structure had significant impact on financial reporting quality. Based on these findings, it was recommend that regulators of the accounting and auditing professions should put in measures that would encourage small audit firms to grow through merger and acquisitions, in order for them to be able  compete with the Big-4 audit firms and reduce capital flights resulting from the profits taken by the foreign partners.

Open Access Original Research Article

Modeling Stock Returns Volatility in Nigeria: Applications of GARCH Family Models

Monica Jatau, Moses Abanyam Chiawa, David Adugh Kuhe

Asian Journal of Economics, Business and Accounting, Page 1-12
DOI: 10.9734/AJEBA/2018/39861

This study examines volatility and its stylized facts in Nigerian stock market using daily quotations of Guinness Plc and 7UP Plc stock prices for the period 2nd January 1995 to 31st December, 2016. The study employs basic GARCH (1,1) to examine the symmetric properties of the series while the asymmetric EGARCH (1,1) and Asymmetric Power ARCH, APACH (1,1) are employed to investigate asymmetry and leverage effects in the return series.  The results of symmetric GARCH (1,1) shows volatility clustering, high persistence of shocks and mean reverting behaviour for both returns. The results of the asymmetric EGARCH (1,1) and asymmetric power ARCH, APARCH (1,1) showed the presence of asymmetry with absence of leverage effects in Guinness Plc stock returns and the presence of asymmetry and leverage effects in 7UP Plc stock returns. This result suggests that positive shocks increase volatility more than negative shocks of the same magnitude in Guinness Plc whereas negative shocks generate more volatility than positive shocks of the same magnitude in 7UP Plc returns. The choice of heavy-tailed distributions (GED and student's t) in estimating volatility in this study confirmed the existence of fat tails in Nigerian stock returns. The study recommends some policy implications for investors and policymakers in Nigerian stock market. 

Open Access Original Research Article

A Comparative Economic Analysis of Sugarcane Cultivation with and without Intercrops in Selected Areas of Pabna District in Bangladeshc

Mohona Hasan, M. Harun-Ar Rashid, Maimuna Begum, Md. Rashid Ahmed

Asian Journal of Economics, Business and Accounting, Page 1-13
DOI: 10.9734/AJEBA/2018/44373

The study measures the relative profitability of different farming systems of sugarcane production in Ishwardi Upazila of Pabna district. A total of 60 farmers, out of which 30 with intercropping and 30 without intercropping farm were selected following a stratified random sampling technique. Simple cost and return analysis were performed to examine the profitability of sugarcane production. Cobb-Douglas production function technique was employed to determine the effects of some selected variables in the production process. The study found that most of the sugarcane farmers were illiterate and sugarcane cultivation was the main occupation of them. The study found that the per hectare total costs stood at Tk. 126663 and Tk. 110143 with and without intercropping farm, respectively. Per hectare, total cash cost of with and without intercrops farms was accounted for 74.46 and 72.90 per cent of their total cost, whereas the total non-cash costs per hectare amounted for 25.53 and 27.10 per cent of their respective total cost. Gross returns per hectare stood at Tk. 249416 and Tk. 159204 for with intercropping and without intercropping farms, respectively. The study explores that sugarcane farming for both with and without intercropping systems was profitable but with intercropping was more profitable than without intercropping system. The findings reveal that setts, human labour, fertilizer, power tiller and manure had a significant impact but insecticide had an insignificant impact on per hectare output for with intercrops farm, while for without intercrops farm manure and insecticide had negligible impact. Lack of adequate operating capital, lack of certified sets of sugarcane, labour scarcity and ownership are major acute problems that farmers had to face in producing the sugarcane.

Open Access Original Research Article

Cultural Issues and ‘Mofij’ in Local Business Development: Pragmatic Perspective

Md. Ashanuzzaman, Masum A. Patwary

Asian Journal of Economics, Business and Accounting, Page 1-9
DOI: 10.9734/AJEBA/2018/43258

A carefully designed study conducted to find out the cultural issues reigning business development in the northern region of Bangladesh. Also aimed at prescribing the possible way outs for organisations to cope up with these issues. Both the quantitative and qualitative research methods have been employed to analyse the collected data from both primary and secondary sources. The study indicated that communication; power distance, management styles, employee autonomy and ways of expressing feedbacks affect the business as a cultural issue. The significant finding is the most popular term ‘Mofij’ which in one sense a big cultural issue on the other, it could be a business brand.  Based on these findings, measures should be taken to develop business models which are easy to implement, responsive to these cultural issues and flexible enough to adopt any possible mean to use the cultural differences in favour of the business. The model should be well-equipped with properly derived practical local communication instructions such as term ‘Mofij’ and provide involved parties with appropriate cooperation strategy”.

Open Access Original Research Article

Family Owned Business in Anambra State; Issues, Problems and Prospect

K. Nnabuife, Ezimma, Okoli, Ifeanyi Emmanuel, Moneme, Chigozie Patrick, Ewah-Bassey Evelyn

Asian Journal of Economics, Business and Accounting, Page 1-10
DOI: 10.9734/AJEBA/2018/44817

The roles of Family Owned Businesses (FOBs) cannot be overemphasized in providing employment and contributing immensely to the economic growth of Nigeria. Anambra state known for its entrepreneurial exploits enjoys its fair share of family businesses as all over the states; there are a great number of them. However, the majority of these businesses do not survive up to the next generation and no more than a few get to the third generation, therefore making them unable to leave up to their expectation of economic contribution to the state and the nation at large. Therefore, this study sought to examine the challenges faced by these businesses, to explore the rationale for starting this form of business, to look at the problems of this form of business in the economy and to proffer possible solutions to the problems. The study found that some of the major problems they face are lack of planning, problem of access to finance, professionalization challenges, family dispute, infrastructural issues unstable and multiple taxation. The study recommended among other things that government policies that favour FOBs should be consistent, improvement in infrastructure, increased access to finance and harmonizing taxes paid by these businesses.