Open Access Case study

Estimates Model of Factors Affecting Financial Distress: Evidence from Indonesian State-owned Enterprises

Aminullah Assagaf, Etty Murwaningsari, Juniati Gunawan, Sekar Mayangsari

Asian Journal of Economics, Business and Accounting, Page 1-19
DOI: 10.9734/ajeba/2019/v11i330131

This study as a model estimation of factors that influence the financial distress of State-Owned Enterprises. This study contributes to the gap in an earlier study using a logistic model which classifies companies with indicators one for companies experiencing financial distress and a zero for the company is not experiencing financial distress, so it is not possible to do research specifically on one group of firms, for example, companies that experience financial distress. This study uses a marginal approach in measuring financial distress that is proxy with a marginal score with a more realistic and proven mathematics and accounting calculations. For the company's management with state, companies can use these results as a reference in evaluating the achievements of past operating performance, or to formulate strategies and policies in the future of corporate planning in order to achieve the level of marginally better scores or financial distress. This study needs to be continued by using secondary data corresponding realization of audited financial statements, so the result is more realistic and relevant because it uses the data of financial statements that meet the accounting standards.

Open Access Original Research Article

Firm's Imperfect Compliance and Pollution Emissions: Theory and Evidence from South Africa

Yu Kun Wang, Xiaoyong Zhang

Asian Journal of Economics, Business and Accounting, Page 1-9
DOI: 10.9734/ajeba/2019/v11i330129

Carbon emissions exacerbate global climate change. Transitioning away from coal is a cost-effective path to a low-carbon economy. Although many articles have considered the issue of manufacturers' production and emission of pollution. Few papers have discussed the impact of environmental tax and fuel tax on the cost of environmental degradation. This paper seeks to fill this gap by developing a theoretical model to discuss the relationship between environmental pollution and economic growth. Furthermore, in order to support the theoretical results and testify the relationship between carbon emissions and taxation, we take South Africa as a case for discussing the effect of environmental taxation and fuel levy on firms' carbon emissions. We show that the impact of environmental taxes on carbon dioxide emissions is greater than that of fuel taxes on carbon dioxide emissions. In addition, we find that the GDP level of South Africa is on the left of the inflection points of Kuznets Curve. In other words, the current growth of South Africa's economy is at the cost of worsening the environmental degradation.

Open Access Original Research Article

Some Suggestions for Teaching Undergraduate Business Statistics Courses

Gunawardena Egodawatte

Asian Journal of Economics, Business and Accounting, Page 1-9
DOI: 10.9734/ajeba/2019/v11i330130

Student anxiety is high in many business statistics courses. Often, students fail in these courses because they rely highly on grades rather than on meaningful learning. Instructors also feel the pressure because their students do not attempt to learn deeply. I taught Quantitative Methods courses for a number of years in a University in Ontario, Canada. In this paper, I have critically analyzed some of the challenges that instructors face in teaching these courses and suggested some solutions based on an educational point of view. Continuous assessment, portfolio construction, and improving the efficiency of instructor evaluations are three key suggestions for consideration.

As these challenges are common to most undergraduate courses in business statistics, the suggestions would mainly help to raise student motivation, encourage students to learn deeply, and increase instructor efficiency.

Open Access Original Research Article

Challenges Faced by Petty Traders in Accessing Loans from Financial Institutions: Evidence from the Upper West Region of Ghana

Charles Adusei, Festus Adu Attafuah, Isaac Tweneboah-Koduah

Asian Journal of Economics, Business and Accounting, Page 1-10
DOI: 10.9734/ajeba/2019/v11i330132

Access to finance is a key determinant for business start-up, development and growth for small businesses. This paper focused on the challenges faced by petty traders in accessing loans within Wa Central in the Upper West Region of Ghana with a sample of eighty-one respondents for both the questionnaire and the interview.  The data collected was analysed using descriptive statistics, Pearson correlation matrix and Kendall’s coefficient of concordance. The study showed evidence that high interest rate charged; demand for collateral and poor records keeping by petty traders were the challenges of accessing loans. The paper suggests that petty traders must keep proper records and the need for financial institutions to reconsider its stringent eligibility criteria for petty traders, Finally policy makers must create an enabling operating environment for micro enterprises to flourish.

Open Access Original Research Article

Board Independence and Financial Performance of Deposit Money Banks in Nigeria and Canada

Ajibade Ayodeji, Richard Adeleye Okunade

Asian Journal of Economics, Business and Accounting, Page 1-9
DOI: 10.9734/ajeba/2019/v11i330133

Introduction: In current eras, supervisory bodies have interceded in the operations of Deposit Money Banks. This is because they are confronted with plethora of problems such as overexpansion; corruption of bank officers, inappropriate risk management and these resulted to poor financial performance.

Aims: The present study aims to focus on the link amid board independence and financial performance of Deposit Money Banks as well as providing a comparative view by focusing on Nigeria and Canada.

Methods: This study seeks to observe the association amid board independence and corporate financial performance of Deposit Money Banks in Nigeria and Canada. The panel data methodology is widely recommended for it is useful when data is a blend of time-series and cross-sectional features. The study applied secondary data extracted from annual financial statements of Deposit Money Banks quoted on the Nigerian Stock Market and in the Canadian stock market between the ten years period of 2008 and 2017.

Results: The variables considered in this study are return on asset (ROA) (dependent variable), proportion of independent non-executive directors on board (BIND) and audit committee independence (ACI) (independent variables), earnings per share (EPS) and firm size (FSIZE) which are control variables. From the findings, it is revealed that there exists a significant relationship between board independence and profitability of deposit money banks in Nigeria and Canada.

Conclusion: Empirical results obtained reveal that audit committee independence promoted financial performance of the deposit money banks in Nigeria while in Canada it was positive and insignificant. Thus, a greater proportion of audit committee independence would bring about a greater level of financial performance in deposit money banks in Nigeria and Canada.  The aspect of corporate governance implies that banks will profit by increasing the number of its independent directors and independent audit committee members.