Open Access Original Research Article

Vector Autoregressive Modelling of the Interaction among Macroeconomic Stability Indicators in Nigeria (1981-2016)

Tuaneh, Godwin Lebari

Asian Journal of Economics, Business and Accounting, Page 1-17
DOI: 10.9734/AJEBA/2018/46515

The dynamic behaviour of macroeconomic stability indicators particularly their; evolution, interaction and interdependence, obviously cause shocks among themselves. This study is a multivariate time-series modelling and investigation of the interaction and pattern of causality among exchange rates, inflation rate, interest rates, and implicit price deflator in Nigeria using unrestricted Variance Autoregression (VAR). Quarterly data on the variables spanning the period from 1981 to 2016 were sourced from CBN Statistical bulletin and used for the study. The study used both descriptive and analytical design. The result of the inverse root of AR characteristic polynomial indicated that the VAR model was stable. The Trace Statistics and Max Eigen result showed no co-integrating relationship. The Schwarz Information Criterion showed a lag length of 2. The VAR estimates indicated that the exchange rate was significantly affected by its first lag and second lag, while inflation rates was significantly affected by its first lag. The Wald statistics showed that both lags of each variable were jointly significant in affecting itself. The impulse response showed that all variables were instantaneously affected by own shocks, however, it ruled out the response in exchange rate to contemporaneous shocks in inflation rate, interest rate and implicit price deflator. The variance decomposition further showed that at least 80% of the impulse response were from own shocks. It was consequently recommended that government should regulates interest rates and exchange rates.

Open Access Original Research Article

Diverse Performance Measurements and Earnings Management in Quoted Manufacturing Companies in Nigeria

Agbeye, Seyi John

Asian Journal of Economics, Business and Accounting, Page 1-24
DOI: 10.9734/AJEBA/2018/46578

The increasing rate of business failure in Nigeria shortly after posting impressive results has raised the issue of earnings management to the forefront. This study examined the relationship between diverse performance measurements and earnings management in quoted manufacturing companies in Nigeria. Twenty seven firms quoted on the Nigerian Stock Exchange (NSE) were through purposive sampling selected for the study. Financial statements for 2008 – 2015 were used as secondary data while a questionnaire was administered on both the consumers of the products and staff of the sampled companies. The hypotheses were tested using Ordinary Least Squares (OLS) regression analysis. Findings from the study suggested that the impact of financial performance measures on earnings management is negatively significant while the relationship between non-financial performance measures and earnings management is positively non-significant. It was revealed that the combined influence of financial and non-financial performance measures on earnings management in quoted manufacturing companies in Nigeria is 35.5%. It was concluded that firms were only concerned about financial performance measures to engage in earnings management. It was recommended that investors and analysts should pay close attention to financial performance measures of manufacturing firms. Regulatory authorities such as Financial Reporting Council of Nigeria (FRCN) should intensify efforts at ensuring that firms do not manage earnings to look impressive in order to obtain loans. Government should create conducive environment for companies to operate maximally to avoid earnings management.

Open Access Original Research Article

Descriptive Analysis of Entrepreneurial Skill and Opportunities Utilization for Sustainable Development in Nigeria

Momoh I. Yalo, Hakeem Tomi Saliu, Dare Joseph Enimola

Asian Journal of Economics, Business and Accounting, Page 1-10
DOI: 10.9734/AJEBA/2018/46741

This study focused on entrepreneurial skill and opportunities utilization for sustainable development in Nigeria. The study adopted a purposive sampling and selected 316 SMEs. The study also adopted multi-stage sampling technique. Data collected were analysed with descriptive and Likert statistical methods. The study revealed that the utilization of entrepreneurial skill and opportunities is greatly influenced by financial, human and social capital; and that sustainable development can be facilitated in Nigeria when there is a maintained balance among these factors. Thus, the study concluded that the influence of financial, human and social capital on the utilization of entrepreneurial skill and opportunities cannot be overemphasized; as they have heavy implications on sustainable development in Nigeria. The study therefore recommends that government and other stakeholders should ensure adequately balanced supply of financial, human and social capital such that entrepreneurial skill and opportunities can be utilized to a great extent, for the benefit of sustainable development in Nigeria.

Open Access Original Research Article

Industry (Economic)-wide Learning: A Comparative Study of Manufacturing and Non-manufacturing Sector in Japan

Aduba, Joseph Junior, Izawa, Hiroshi

Asian Journal of Economics, Business and Accounting, Page 1-14
DOI: 10.9734/AJEBA/2018/46859

In knowledge economies, building technological capability is a continuous process, and as well as unarguably key to industrial policy development. Industry (economy)-wide learning has been linked to reduction in unit labor cost and overall production cost of goods and services. In this study, we comparatively studied the learning pattern of Japanese manufacturing and service sector using industrial-level-data. This study is perhaps the first attempt to study the productivity of Japanese Industry using learning curve at the aggregate level. Looking back to almost 4 decades long (1980-2017) of financial data on input-output, we estimated the trend in technological learning using various models and thereafter calculated the annual progress ratios (via production function imputed in log linear & cubic model) and revealed the dynamic technological learning across the sectors at the aggregate level. This enabled us to identify years with good learning rates which is synonymous to cost saving across the two sectors of the economy. The results show that, while learning was restored and sustained in the service sector of the economy in the last decade, the same cannot be said about manufacturing sector where learning (cost-saving ability) was completely lost. We conclude that (1) as typical of advance economy, Japan is now service-oriented economy with manufacturing playing a complimentary role, (2) the service sector seems to have benefited from IoT (technologies and innovations) to achieve higher productivity at lower cost!

Open Access Original Research Article

Fair Value Accounting in the Agricultural Sector: The Analysis of Economic and Educational Factors

Joseph Kwasi Agyemang, Christa H. Wingard, Owusu Acheampong

Asian Journal of Economics, Business and Accounting, Page 1-13
DOI: 10.9734/AJEBA/2018/46763

Currently, the significance of fair value in financial reporting is gaining momentum and current debates are moving in the trend of full fair value reporting. Small and medium-sized entities are not let off in this instance. The move to new reporting standards results in numerous challenges for diverse interest groups such as auditors, preparers and regulators. The main objective of the study was to establish the fair value implementation challenges facing SMEs in the agricultural sector in Ghana. The population for this study is made up of accountants in the SMEs in the agricultural sector. Expert sampling method was used in the study. A sample size of 90 farms was adopted. A purposive sampling, which is non-probability sampling, was adopted in this study. The questionnaire was administered personally to each respondent in accordance with each objective of the study. The Statistical Package for the Social Sciences (SPSS) was used in this study for the interpretation and analysis of data. This study established that, in Ghana, commodity markets do not exist and that farmers do not have access to market information. The study also established that there is inadequate training and education for preparers of financial statements and academic education not focusing on agricultural accounting.