Open Access Original Research Article

Assessment of the Methods Employed in the Valuation of Intellectual Property in Lagos State, Nigeria

Olaoluwaniyi Ebenezer Eburu, Victoria Amietsenwu Bello

Asian Journal of Economics, Business and Accounting, Page 1-10
DOI: 10.9734/ajeba/2020/v17i430265

The study investigated the methods employed in the valuation of IP in Lagos State, Nigeria; examined the relationship between method of intellectual valuation and academic qualification of estate surveyors and valuers. We adopted a quantitative survey and questionnaire as instrument for gathering relevant data from stakeholders in the study area. The findings revealed that the traditional method; cost method (M = 1.99, SD = 0.108; market method (M = 1.96, SD = 0.186) and income method (M = 1.86, SD = 0.350) are the most commonly used methods for valuing IP in the study area. The result also shows a significant relationship between traditional methods of IP valuation and academic qualification of estate surveyors and valuers; cost method ( = 1.377, p = 0.013), market method ( =1.367, p = 0.033), income method (  = 15.073, p = 0.002), profit/account method (  = 13.467, p = 0.004) and discounted cash flow (  = 1.595, p = 0.024). The study thereby conclude that estate professionals are more aware and conversant with the traditional method than the advanced method of valuation. Therefore, estate professionals will need to ensure clear understanding of the various methods of valuing intellectual property and their application.

Open Access Original Research Article

Exploring the Relationships among Exchange Rate, Foreign Investment and Economic Growth Using Time Series Econometric Approaches: The Case of China’s Guangdong Province

Ming-Lu Wu

Asian Journal of Economics, Business and Accounting, Page 11-23
DOI: 10.9734/ajeba/2020/v17i430266

As the Chinese government has been trying to promote the Belt and Road Initiatives and enhance the openness of its economic development, it is important to study and understand the depreciation/appreciation mechanism of Chinese yuan (CNY), especially how this affects or is affected by some key economic growth and openness measures like gross domestic product (GDP) and foreign direct investment (FDI). This paper is just to examine the short-run dynamics and long-run equilibrium relationships among the three important macroeconomic time series of CNY exchange rate, FDI and GDP. Twenty-year annual data from 1996 to 2015 for the top ten cities (in terms of GDP) in Guangdong, one of the economically influential provinces in China, are specifically collected for the study. The panel unit-root test, Johansen-Fisher cointegration test, Granger causality test, and vector autoregression (VAR) model are applied to analyze the data for exploring long-run relationships. Vector error correction (VEC) model and block exogeneity Wald test are also adopted to examine the short-run dynamics. Key research results include that, there is a long-run cointegration relationship among exchange rate, FDI and GDP, FDI and GDP are the long-run Granger causes of exchange rate such that FDI positively affects exchange rate whle GDP negatively influence exchange rate, and FDI is also the short-run Granger cause of exchange rate but the short-run relationship is negative. Discussions, and policy implications and future research directions are presented finally.

Open Access Original Research Article

Effect of Foreign Direct Investment, Inflation, Real Exchange Rate and Transfer Payments on Trade Deficit in Kenya

Eric Oduor Ochieng, Destaings Nyongesa, Nelson Obange

Asian Journal of Economics, Business and Accounting, Page 24-40
DOI: 10.9734/ajeba/2020/v17i430267

Across all the countries, the balance of trade has remained a key indicator of economic activities as it shows a country’s level of competitiveness in the world market. Economists are divided on whether a persistent trade deficit is good or bad for a developing country like Kenya. Contrary to most of the similar previous studies, this study included trade in services as well as some of the key factors affecting trade balance such as inflation and transfer payments and sought to establish the nature and strength of their connection with the trade deficit in Kenya as well as their respective impulse responses. This study adapted a reduced form of the balance of trade model by hypothesizing that balance of trade is a function of FDI, inflation, real exchange rate and transfer payments. The study embraced an ex post facto correlational research design to gauge the elements and earnestness of synergy between the variables and used time series data obtained from the World Bank ranging from the year 1978 up to the year 2014 with annual frequency. This study also employed use of descriptive statistics, Cointegration, Vector Error Correction Model, Granger causality, impulse response function tests as well as a range of other diagnostics tests. This study concluded that in the long-run, only inflation and transfer payments have positive and negative significant effects respectively on both trade deficit and also foreign direct investments through there is no respective causality. This study also established that trade deficit has positive significant short-run effects on transfer payments while real exchange rate has positive significant short-run effects on inflation though there is also no respective causality. This study found that any shocks need to be addressed within the shortest possible timeframe as the impulse response functions indicate the effects being adverse within the first few years as effects only begin to die out from the fourth year. The study therefore concluded that trade deficit is not really bad for Kenya as measures that should reduce it actually reduces foreign direct investments which are really important for a growing economy like Kenya.

Open Access Original Research Article

Profitability, Liquidity, Leverage Ratio Analysis of Internet Financial Reporting

Diah Iskandar, . Istianingsih

Asian Journal of Economics, Business and Accounting, Page 41-49
DOI: 10.9734/ajeba/2020/v17i430268

This study examines the effect of Profitability, Liquidity, Leverage on Internet Financial Reporting and Company Size as Moderating variables. The population in this study were various industrial sub-sector manufacturing companies listed on the Indonesia Stock Exchange for the period 2016-2018, totaling 23 companies. The design in this study uses causal research, namely research that aims to determine the effect of the Profitability Ratio, Liquidity, Leverage, on Internet Financial Reporting and Company Size as moderating variables. The results of this study indicate that Profitability, Liquidity to Internet Financial Reporting cannot be moderated by Company Size, while Debt To Equity Ratio to Internet Financial Reporting can be moderated by Company Size. The effect of Profitability, Liquidity, and leverage on the Internet Financial Report, moderated by Company Size, produces different assessments. Partially, company size can strengthen the relationship between profitability, liability, leverage, and Internet Financial Reporting. And profitability and liquidity on Internet Financial Reporting cannot be moderated by company size, while leverage on Internet financial reporting can be moderated by company size.

Open Access Original Research Article

The Influence of Credit Interest Rate and Credit Risk on Market Performance

Sely Megawati Wahyudi

Asian Journal of Economics, Business and Accounting, Page 50-57
DOI: 10.9734/ajeba/2020/v17i430269

This study aims to analyze the effect of credit interest rates and credit risk on market performance. Non Performing Loans (NPL) reflect bank credit risk, where the higher the NPL level, the greater the credit risk borne by the financing party. Due to high NPLs, financing will be more careful (selective) in channeling credit. This is due to the potential for uncollectible credit. The high NPL will increase the risk premium, which will lead to higher loan interest rates. Credit interest rates that are too high will reduce public demand for credit. The high NPL also resulted in the emergence of larger reserves, so that in the end bank capital was also eroded. Thus, the amount of NPL is one of the obstacles to the channeling of financing credit. The research method used is quantitative research. The sampling technique used was purposive sampling. The study was conducted on finance companies with a research period of 2015-2018. The analytical method used is the multiple regression test using SPSS.22 analysis tools, namely with a descriptive test, a classic assumption test, a model suitability test, and a regression test. The results of credit interest rates have no significant effect on market performance, and credit risk has a significant effect on market performance. This shows the interest of inventors to invest in shares of companies whose non-performing loans are not high even though the interest rates on these companies increase.