Open Access Original Research Article

Small Earnings Changes by Using Fair Value Measurement: Evidence from the Banking Industry of Sri Lanka

G. K. Suren W. de Chickera, Liu Qi

Asian Journal of Economics, Business and Accounting, Page 1-13
DOI: 10.9734/ajeba/2019/v10i430111

One of the most serious concerns presently facing the accounting profession is the growing complexity, extension, and significance of issues adjoining fair value measurements. The fair value accounting is liable for enhancing financial destruction. This research study the samples of licensed commercial banks and the financial institution listed under Colombo stock exchange to examine the association between the fair value accounting and the small earnings increase reported by the banks attributable to earnings management. We used the statistical methodology follow by Beatty et al. [1] to test the banks reported fair value assets and liabilities associated with bank report small earnings increase. We use both the current year and one-year ahead data after controlling discretionary provision for loan loss, discretionary security gains and losses and other features of banks. We found evidence that; banks reported fair value assets and liabilities are positively associate with bank reported small earnings increase. We further use the fair value hierarchy; to identify which level of fair value assets and liabilities associated with bank reported small earnings increase and we found the evidence that the level 2 fair value assets and liabilities are a predominant determination for the association between banks reported fair value assets and liabilities associated with bank report small earnings increase. The assets available-sales report under fair value is the primary use of item earnings management and the level 2 fair value assets and liabilities to reporting smooth earnings over the periods. Therefore, consistent with past research and present us, banks use the fair value measurements to manage the earnings.

Open Access Original Research Article

Impact of Motivation and Job Satisfaction on Employee’s Performance: An Empirical Study

Md. Habibur Rahman, Mst. Rinu Fatema, Md. Hazrat Ali

Asian Journal of Economics, Business and Accounting, Page 1-10
DOI: 10.9734/ajeba/2019/v10i430112

Employers often face severe problem in motivating and creating job satisfaction for the workers working in the organization. To create program and policies to motivate and develop job satisfaction among workers in the organization. Most of the researchers on motivation and job satisfaction have concluded with positive findings for Performance efficiency. The study will find out the factor that increase performance workers in the working environment. For the purpose of the study, a sample of selected bank is considered and information collected from different individual. The data were analyzed using simple percentages and mean scores while hypothesis developed were tested accordingly. The result of the ANOVA and correlation indicates that both intrinsic and extrinsic factors of motivation and job satisfaction have impact on performance of the workers in Bank.

Open Access Original Research Article

Misleading Aggregate Considerations in Sector-Specific Causalities: Long-term Bank Credit Usage in Fishing vs. Agriculture in Turkey

Celal Demirkol, Ali Faruk Acikgoz

Asian Journal of Economics, Business and Accounting, Page 1-14
DOI: 10.9734/ajeba/2019/v10i430113

As an alternative source of financing the assets, bank credits have ever been on the spot of business finance and financial analysis. Those sources of financing have mostly compared with the short-term appearance of either liabilities or liquidity. The relevant finance literature ensures that the long-term appearance of bank credits in the balance sheets of businesses is not only affected by the composition of short-term liabilities but also the liquidity. Nevertheless, bank credit usage, especially in the long-term, may have different characteristics amongst sectors. Some sectors may even deserve a thorough analysis in their challenge of bank credit finance. The fishing sector and the businesses which it contains may have been neglected in terms of revealing the causalities which might have been hidden by considering its aspects as a supplement in the aggregate figures of the agriculture sector in Turkey. Thus, this study aims at the core debt and liability variables along with a liquidity control variable, cash and cash equivalents or cash, to reveal the causality and cointegration aspects on the long-term bank credit potential in the nexus of these two inter-related sectors. We hereby compare the results of the model designed for the study in between fishing and agriculture sectors in Turkey for the time span of available and comparable data which has been represented by the Central Bank of Turkey as a part of nonfinancial or real sector data from 1996 up to 2009. The findings depict that fishing sector, unlikely to agriculture sector in which it is generally added and forced to share the same investment atmosphere of incentives, policy implications, and attitudes of the creditors, does have different features in terms of long-term bank credit usage. Cash and cash equivalents are not significant regressors for the agriculture sector, however, fishing sector has evidence in the long-run that cash and cash equivalents have noteworthy impact in the long-term bank credits. The results of the study will therefore help both the decisions on the creditors’ and fishing sector sides enriching the profound details and sector specific reasoning for which an aggregate point of view where fishing sector is seen as a part of agriculture sector could not reflect the sector’s characteristics on the path to develop the fishing sector and the businesses therein. We also believe that this study will present evidence for any policies and incentives in promoting new investments in the fishing sector of Turkey.

Open Access Original Research Article

Influence of Service Brand Communication on Behavioral Intention Special Reference to the Private Professional Educational Institutes in Batticaloa District

V. R. Ragel, S. Kishomigah

Asian Journal of Economics, Business and Accounting, Page 1-11
DOI: 10.9734/ajeba/2019/v10i430114

Service brand communication plays a crucial role in determining the Behavioral Intention towards the brands, which is useful for business. It provides the values to consumers as well. This study examined whether service brand communication has an influence on Behavioral Intention in Private Professional Educational Institutes as a research problem. This research was carried out with an objective to examine the influence of service brand communication on behavioural Intention in Private professional Educational Institutes in Batticaloa district. Personal interactive communication and marketing mix communication are considered as the measurement variables of service brand communication and Behavioral Intention is considered as the dependent variable. 200 students from 07 Private Professional Educational Institutes in Batticaloa district have been selected as a sample base on the stratified proportionate random sampling method for this study. Data were analyzed and evaluated by Descriptive statistic, Correlation and multiple regressions analysis. Findings have shown the service brand communication and Behavioral Intention is at a high level. Moreover, it also found that there is a strong positive relationship between service brand communication and behavioral intention. Service brand communication significantly influences the behavioral intention of private professional educational institutes. Results of this study suggest that the service brand communication is important to examine the dispositional source of behavioral intention.

Open Access Review Article

Economic Growth and Environmental Pollution in Brunei: ARDL Bounds Testing Approach to Cointegration

Issa Moh’d Hemed, Suleiman Malik Faki, Salim Hamad Suleiman

Asian Journal of Economics, Business and Accounting, Page 1-11
DOI: 10.9734/ajeba/2019/v10i430115

Aims: This study examined the short run and long run dynamic relationship between economic growth and environmental pollution in Brunei. We adoptedAuto Regressive Distributed Lag (ARDL) model to scrutinize the existence of the Environmental Kuznets Curve (EKC) among the studying variables by using time series data cover the period of 1974 to 2014.

Methodology: The ARDL bound test revealed the existence of long-run relationship among the integrated variables when CO2 chosen as a dependent variable.

Results: The results support the existences of EKC hypotheses in the long-run whereas in the short-run an inverted U-shaped curve was not confirmed between GDP and CO2 in Brunei. The results of Granger causality based on VECM analysis have shown unidirectional causality runs from economic growth to CO2 in the short run. Further analysis through stability test indicates the coefficients in the model are stable and do not suffers with structural break within the time taken in the study.

Conclusion: The government of Brunei should proceed to target the sustainable means of production, which has an environmental friendly and consumes less energy to enhance economic growth and maintain environmental quality in the long run.