Open Access Case study

Factors Affecting the Profitability Management of Indonesian State-Owned Enterprises: Cash Flow from Operating as a Moderating Variable

Syarifa Yunindiah Lestari, Etty Murwaningsari, Sekar Mayangsari, Vinola Herawaty

Asian Journal of Economics, Business and Accounting, Page 43-56
DOI: 10.9734/ajeba/2020/v18i130275

This research aims to analyze the phenomena of the factors affecting the profitability management of state-owned enterprises. The purposive sampling method was used in data collection by selecting seven state-owned enterprises during the last eleven years and using multiple regression analysis techniques. The findings of this study are that subsidy has a negative and significant effect on profitability management, which means that the more it is subsidized, the lower the profitability management indicator will be, mainly because of the decreasing motivation and challenges with profitability orientation. The firm size variable has a negative and significant effect, which means that the larger the company scale, the lower the profitability of management because the task for services requires economic orientation or not financial-based.

Open Access Original Research Article

Informal Sector’s Structural and Demographic Fundamentals against the Efficacy of Monetary Policy in Nigeria

Emeka Osuji, Stanley Emife Nwani

Asian Journal of Economics, Business and Accounting, Page 1-18
DOI: 10.9734/ajeba/2020/v18i130270

The informal sector is globally significant because it accounts for much of the job placements, especially in the developing economies. About 99 per cent of the 37million enterprises in Nigeria are microenterprises, most of which are financially excluded. This study examined the structural and demographic features of Nigeria’s MSMEs, from the stand point of the efficacy of monetary policy. The study employed survey research design using structured questionnaire administered on 282 microenterprises in Lagos. The results indicated that the MSME sector suffers significantly from limited access to finance and banking services. Operators in the sector placed little or no reliance on commercial banks for both start-up and additional working capital. They, therefore, operated largely outside the banking system thereby acting, at best, as passive observers of government’s monetary policy actions. The study recommended the vigorous pursuit of financial inclusion, as a strategy for enhanced monetary policy effectiveness.

Open Access Original Research Article

Leading for Innovation: A Case Study of Financial Services Organization in Sri Lanka

L. A. Pavithra Madhuwanthi

Asian Journal of Economics, Business and Accounting, Page 19-26
DOI: 10.9734/ajeba/2020/v18i130271

Leadership is a crucial determinant of Innovative Work Behavior (IWB) of employees in an organization. Many researchers have found the linkage of the leadership and IWB in various industries, yet very little attention has been paid on the financial services sector, particularly in Sri Lanka [1]. Hence, this study intends to examine how leadership affects employees’ IWB in the financial services sector in Sri Lanka. It is a qualitative study, which adopted a case study approach. The study used a purposive sample of 10 innovative employees in the organization, based on the recommendation of the management and in-depth face to face interviews were carried out with those employees. A thematic analysis was employed for data analysis. The findings of the study were the characteristics of transformational leadership predominantly made impact on promoting IWB among the employees in the chosen financial services organization. Further, IWB of the employees are encouraged if the leader provides more autonomy, resources, constructive feedback, recognition to the employees and the leader being a role model for the employees. The implications of the study suggests insights to the organizational leadership to foster IWB among the employees.

Open Access Original Research Article

Public Accounting Firm Switching: Empirical Study on Manufacturing Companies Listed in Indonesia Stock Exchange

Mukhtaruddin ., Yulia Saftiana, Tiara .

Asian Journal of Economics, Business and Accounting, Page 27-42
DOI: 10.9734/ajeba/2020/v18i130272

Public Accounting Firm (PAF) switching in companies follows the regulation number 17/PMK.01/2008 article 3 of the Minister of Finance Republik Indonesia, which is in a period of 6 years or voluntarily.

The purpose of this research is to analyze the effect of the size of PAF, financial distress (FD), firm size of client (FSC), client management switching (CMS), audit comitee switching (ACS) to PAF switching voluntarily on manufacturing companies listed in Indonesia Stock Exchange (IDX) in 2010-2014. The population in this research are manufacturing companies listed in IDX in 2010-2014. The sample in this study were taken by purposive sampling method and 21 companies are selected as the sample by criteria. These variables are then tested using logistic regression at a significance level of 5 percent.

The result showed that the size of PAF, FD, FSC, CMS does not affect PAF Switching and ACS has affect PAF Switching. The limitations of this research, the variables used only five independent variables, the research period only five years, and sample selection is only based on a purposive sampling.

Open Access Original Research Article

Assessment of the Effectiveness of Internal Control Systems of Adamawa State Ministries, Departments and Agencies in Adamawa State, Nigeria

Ahmed Adamu Ishaku, Mohammed Mahmud Kakanda, Sagir Danladi

Asian Journal of Economics, Business and Accounting, Page 57-71
DOI: 10.9734/ajeba/2020/v18i130276

Aim: This study examines the effectiveness of internal control systems (ICS) of Adamawa state Ministries, Departments and Agencies (MDAs).

Study Design: Survey research design.

Place and Duration of Study: Sample: Ministries, Departments and Agencies in Adamawa State in 2019.

Methodology: The sample size of the study was one hundred and sixty-five (165) target respondents which consist of all heads of MDAs, Directors of Finance, internal auditors’ and two key staff from accounts and audits of the ministries, departments and agencies. The study used primary data and questionnaire was used in collecting data used for analyses. The effectiveness of the internal control systems under four dimensions: control environment (CE), control activities (CA), information, and communication (IC), and monitoring of controls (MC) were analyzed using descriptive statistics while ANOVA test was used to test the hypothesis of the study.

Results: The study found that the effectiveness of ICS for the MDAs in Adamawa state was good. The Departments category generally had the highest rating for CE, CA, IC and MC. This is reflected in their overall effectiveness. However, other categories (Ministries & Agencies) had moderate ICS effectiveness, particularly the Agencies that recorded the lowest rating in concerning to CE and CA.

Recommendation: The study recommends that Departments should maintain their level of internal control systems through effective monitoring and separate evaluations of their systems of control. This will help enhance or maintain the current level of their internal control systems. Ministries and Agencies should strengthen their Control Environment through mechanisms such as a commitment to integrity, ethical values, and competence, and Control Activities by ensuring that unauthorized transactions are not processed and more controls are put in place to avoid overspending. This will render the other components of internal controls more effective.