Open Access Original Research Article

Utilization of Tax Reliefs among Workers in Ghana: A Case Study of University Hospital, Legon

Freda Asantewaa Omane, Frederick Affum

Asian Journal of Economics, Business and Accounting, Page 1-16
DOI: 10.9734/ajeba/2020/v18i230277

The study examined the reasons why public workers do not utilize Ghana’s tax relief scheme and its associated challenges with the University Hospital, Legon as the case study. The mixed method approach was adopted thus using both qualitative and quantitative method of collecting data. Questionnaires were distributed to and responses obtained from 174 staffs of the University Hospital, Legon selected using the stratified random sampling and the simple random sampling method whereas four (4) purposively selected officials of the Ghana Revenue Authority were also interviewed. Majority of respondents had no information or knowledge about the tax relief scheme in Ghana and this is largely attributable to inadequate seminars organized by Ghana Revenue Authority in creating public awareness on its benefits to taxpayers in Ghana. Furthermore, complex procedures or processes coupled with inadequate knowledge regarding how to apply are major reasons why tax reliefs are not utilized. To others, the subject of tax reliefs was not very necessary as they do not have much information on its existence, benefits and how to access it. The study recommended vigorous and regular symposiums to educate the public on the benefits accruing to utilizing tax reliefs extending this publicity among the various social welfare departments and the physically challenged groups in Ghana. The study also recommended a more simplified application process and forms to be put in place but the Ghana Revenue Authority to eliminate the discouraging factor taxpayers have whenever tax reliefs and its application is cited.

Open Access Original Research Article

Board Membership Diversity and Earning Management: A Cross Country Analysis

Ejezie Sabina

Asian Journal of Economics, Business and Accounting, Page 17-28
DOI: 10.9734/ajeba/2020/v18i230278

The aim of this paper is the effect of board membership diversity on earnings management among listed non-financial firms in three selected Sub-Sahara African countries (Nigeria, Kenya and South Africa) were used for the period of ten years spanning 2009 to 2018. The study employed ex-post facto research design. The secondary sources of data were collected from annual reports of the selected non-financial firms quoted in their respective stock exchange and three specific objectives and hypotheses were tested and analyzed using descriptive statistics, Pearson correlation analysis and panel regression analysis. Using some selected Sub-Sahara African countries a sample of 470 observations were used, the result revealed that board membership diversity has positive influence on earnings management, the influence is effective in driving the level of manipulated earnings among firms in Sub-Sahara Africa because the result was found to be statistically significant, therefore the researcher rejects the null hypothesis and accepts  the alternatives hypothesis which states that foreign board membership diversity has significant effect on earnings management among non- financial firms in Sub-Sahara African countries with a high significant value of 0.005 indicated using hypothesis testing tool. The research concludes that foreign board membership diversity is very influential on earnings management of non-financial firms in Sub-Sahara African countries.

Open Access Original Research Article

The Role of Human Resource Information System on Operational Efficiency: Evidence from MNCs Operating in Bangladesh

Md Sajjad Hosain, Abu Hena Mohammad Manzurul Arefin, Md Altab Hossin

Asian Journal of Economics, Business and Accounting, Page 29-47
DOI: 10.9734/ajeba/2020/v18i230279

The study made an attempt to reveal the role of human resource information system (HRIS) on the operational efficiency (OE) of selected multi-national corporations (MNCs) in Bangladesh. For due purpose, five components of HRIS (Job analysis, e-recruitment & selection, e-compensation & benefit, e-performance appraisal and e-communication) have been selected based on literature as the independent variables while OE has been considered as the dependent one. The study was conducted based on a sample size of 256 top & 308 mid level managers of 11 MNCs operating in Bangladesh. The respondents were selected through convenience sampling technique and the data was collected using a detailed structured survey instrument. The authors utilized Pearson’s correlation coefficient for testing the relationship between the variables; and, linear and multiple regression analysis for testing the validity of assumed hypotheses. After utilizing the specified statistical tools, the results indicated that all the five components of HRIS had positive relationships with operational efficiency while the relationship is strongest for e-recruitment & selection followed by e-communication. The findings of this study are expected to be valuable for HR managers in adopting and understanding the conductive results of HRIS applications at organizations as well as for academicians to study the contribution of HRIS to a further extent.

Open Access Original Research Article

Determinants of Banks’ Financial Stability in Kenya Commercial Banks

Loice Koskei

Asian Journal of Economics, Business and Accounting, Page 48-57
DOI: 10.9734/ajeba/2020/v18i230281

Introduction: The collapse of several banks in Kenya followed by a possibility of acquisition of struggling banks led to bank runs in Kenya causing customers to withdraw their deposits from stressed banks and taking them to financially stable banks.

Aim of the Research: The paper investigated the determinants of Bank’s stability as proxied by asset quality in the Kenyan banking sector.

Data Collection: Monthly secondary data spanning from the period January 2015 to December 2019 was collected from central Bank of Kenya and Kenya National Bureau of Statistics.

Methodology: A multiple regression model with the help of SPSS statistical software was employed to address the objective of this study.

Main Results: The multiple regression model results indicated that liquidity ratio; inflation rate and lending rate results presented a negative but statistically significant relationship with banking stability indicating that a decrease in liquidity ratio, inflation rate and lending rates affect banking stability respectively. The results for loan growth and return on equity exhibited a positive but statistically significant relationship with banking stability indicating that an increase in growth of loans and returns on equity diminishes and enhances banking stability in Kenya respectively. Exchange rate results had a positive and statistically insignificant relationship with banking stability implying that exchange rate does not affect banking stability. Return on assets and public debt results indicated a negative and statistically insignificant relationship with banking stability implying that return on assets and a country’s public debt has no effect on banking stability respectively.

Recommendation: Banking financial stability is fundamental in reducing the far-reaching social and economic effect that could occur due to challenges facing the banking industry. The study recommends adoption of policies that minimize the negative effect of microeconomic and macroeconomic factors in the banking industry in Kenya.

Open Access Original Research Article

Econometric Study of the Impact of Public and Private Investment on Economic Growth in Algeria during the Period (1970-2017)

Hadjoudj Abdallah, TchiKo Faouzi

Asian Journal of Economics, Business and Accounting, Page 58-69
DOI: 10.9734/ajeba/2020/v18i230282

This article examines the impact of public and private investment on economic growth in Algeria covering the period from 1970 to 2017. By applying the Auto-Regressive Distributed Lag model (ARDL)-(bounds testing approach).

The key findings of the study concluded that there is a long-run relationship between public and private investment and economic growth in Algeria.

The result of the Augmented Dickey Fuller unit root test (ADF) showed that the variables are stationary at the level and at the first difference. In addition, the results of the cointegration test indicated that the variables are cointegrated and therefore have the ability to move together over the long term.

The parsimonious error correction mechanism showed that private investment is significantly related to economic growth. The result indicated that a 1 percent increase in the present value of private investment, on average, stimulates economic growth by 0.09 percent. Similarly, the value of public investment is positively related to economic growth. On average, a 1 percent increase in public investment stimulates growth in Algeria by 0.05 percent.

the results of short-run dynamics reveal that, the error correction term (ECM) is negative and significant (-0.54), which means that 54% of the disequilibrium will be adjusted annually.