Open Access Original Research Article

Corporate Governance Mechanisms and Value Creation: An Empirical Evidence

Musa Usman Kabir, Norhani Binti Aripin, Redhwan Ahmed Ali Al-Dhamari

Asian Journal of Economics, Business and Accounting, Page 1-14
DOI: 10.9734/ajeba/2019/v11i430134

The study examines the perceived effects of corporate governance mechanisms on the value of manufacturing firms in Nigeria by adopting economic value added as the measure of firm value. Corporate governance mechanisms such as concentrated ownership, managerial ownership, the board size, board independence, and foreign ownership as they influence corporate valuation were empirically investigated. 89 listed manufacturing firms in Nigeria were selected for 5 years (2012-2016) for the analysis. The study utilized different tests such as OLS panel data regression and multiple regression model to establish the relationship with panel corrected standard error (PCSE). The study is guided by resource enrichment theory and agency theory. The finding of the study shows that ownership concentration, the board size, and board independence positively impacted on firm value as measured by economic value added. However, managerial ownership and foreign ownership reported negative and insignificant impacts on the value of Nigerian manufacturing firms.

Open Access Original Research Article

Interplay of Knowledge Creation Capability and Organizational Forgetting on Absorptive Capacity and Innovation Performance among SMEs: A Symmetrical Approaches

Ismail Raisal, Arun Kumar Tarofder, Athambawa Haleem

Asian Journal of Economics, Business and Accounting, Page 1-12
DOI: 10.9734/ajeba/2019/v11i430135

Organizations needs knowledge creation capability and organizational forgetting to enrich their innovative performance in ever-changing business setting.The purpose of this article is to explore the influence of knowledge creation capability, organizational forgetting and absorptive capacity on Firm’s innovative performance. We test the model using Partial least squares structural equation modeling (PLS-SEM) to analyze empirical data collected from 194SMEs listed in Sri Lanka inventors’ commission.The findings of the study show that in addition to their individually positive impact of knowledge creation capability and organizational forgetting on firm’s innovative performance, the absorptive capacity mediates the relationship between knowledge creation capability, organizational forgetting and innovation performance. As one of the first studies to integrate the  capabilities of creating internal new knowledge and unlearning outdated knowledge for advancing firm innovativenessthrough the mediating effect of absorptive capacity. A major implication of this finding is that absorptive capacity enhances the effect of knowledge creation capability and organizational forgetting on firm's innovativeness and affects the types of innovation strategies adopted by firms.

Open Access Original Research Article

Customer Satisfactions on Islamic Banking Services in Almadinah City, Saudi Arabia

Wesal M. Aldarabseh

Asian Journal of Economics, Business and Accounting, Page 1-8
DOI: 10.9734/ajeba/2019/v11i430136

Providing quality services is a key element to compete in the banking industry. Islamic banks showed significant expansion in the past decades worldwide.  In the current study, customer satisfaction towards services provided by Islamic banks in Almadinah city, Saudi Arabia was investigated. A total of 292 customers of full-fledged Islamic banks were recruited in the study. Customer satisfaction was measured using a self-administered questionnaire. The results showed acceptable levels of customer satisfaction toward Islamic banking services (85%). In addition, personnel, image, reliability, and compliance with Islamic law were the most important service dimensions that affect customer satisfaction. Finally, gender differences were noticed with respect to customer satisfaction with females seemed to be less satisfied than males. The present findings provide positive feedback to the Islamic banking sector in Almadinah city to improve customer satisfaction of their services.

Open Access Original Research Article

The Impact of Corporate Social Responsibility on Employee Satisfaction in an Insurance Industry in Trincomalee District

S. Kumuthinidevi, F. A. Shamila

Asian Journal of Economics, Business and Accounting, Page 1-9
DOI: 10.9734/ajeba/2019/v11i430137

The current research is intended to identify the impact of Corporate Social Responsibility on Employee satisfaction in an insurance industry in Trincomalee district. The concept of Corporate Social Responsibility (CSR) has gained much attention in recent years. It provides companies with a significant approach for achieving employee satisfaction and considered a source for enhancing competitive advantage.

Data was collected using a research method, questionnaire survey. This research found that, the majority insurance Industries consider their CSR to society and CSR to their working environment undertaking various measures to conserve resources as well as satisfied their employees within the organization. Insurance Industries provided little support to most internal CSR practices identified in this study. The conceptualization of the study demonstrated independent variables (Corporate Social Responsibility) of Economic responsibility, Ethical responsibility, Legal responsibility and Philanthropic responsibility how to effect on dependent variable of employees satisfaction in an insurance Industries. A quantitative analysis was conducted with 100 of sample. The data was collected though distributing questionnaire among respondent. Further, univariate analysis and bivariate analysis were carried out through SPSS (21.0).

The findings revealed that corporate social responsibility and satisfaction is in high level and corporate social responsibility moderately and positively influence on satisfaction. Furthermore, study found that there was positive and significant relationship between corporate social responsibility and employee satisfaction in an Insurance Industry in Trincomalee district. The recommendations were provided, in order to further improvement in highest returns to their stakeholders, comply with all state laws and regulations, be compromise ethical norms of the society to achieve corporate goals, Strive to provide community betterment. This study will be more beneficial both existing insurance industries and newly joint who will be doing the business in insurance industry in Sri Lanka.

Open Access Original Research Article

Time Series Analysis on Monthly Stock Market Returns of the Nigerian Stock Exchange: An Arima Modeling Approach

Eke, Charles N.

Asian Journal of Economics, Business and Accounting, Page 1-9
DOI: 10.9734/ajeba/2019/v11i430138

This research work studied the autoregressive integrated moving average (ARIMA) model that best fitted monthly stock market returns of the Nigerian Stock Exchange between January, 2008 to September, 2018. The study collected secondary data from Central Bank of Nigeria (CBN) Statistical Bulletin 2018 on monthly stock market index of NSE to compute the monthly stock market returns. The Box-Jenkins ARIMA modeling was adopted for this work. The series was tested for stationarity using Augmented Dickey Fuller test. Several ARIMA (p, d, q) models were applied to the monthly stock market returns to ascertain the best fit model for the series. The ARIMA (2, 0, 3) model was selected as the best fit for the data since it has minimum values of Akaike Information Criteria and Mean Squared Errors. The forecasted period showed a market with an unstable monthly stock market returns. Therefore, investors were advised to weigh the risks before venturing into the market to invest.