Open Access Case study

The Influence of Corporate Internal and External Factors on Bumn Share Prices: A Case Study in 12 BUMNs

Mohammad Ahsan

Asian Journal of Economics, Business and Accounting, Page 9-21
DOI: 10.9734/ajeba/2020/v19i330305

The Covid-19 pandemic has had a negative impact on the economy and other business sectors including the impact felt by BUMN. Research on the influence of internal and external factors of BUMN on BUMN stock prices was carried out using secondary data and observations on 12 BUMNs consisting of the steel and cement, construction, mining and food and health sectors. According to the data, the BUMN share price experienced a decline during the Covid-19 pandemic where the most affected were BUMN in the construction sector (-128%), mining (-74%), steel and cement          (-60%) and the food and health sector (-15%). This study explores internal and external factors in BUMN that have the potential to influence stock prices by analyzing the quantity using linear regression equations with the help of the SPSS statistical application. Several internal and external factors in SOEs that affect BUMN stock prices are current ratio (CR), return on assets (ROA), debt to equity ratio (DER), foreign exchange rates, inflation, economic growth and and the Covid-19 pandemic. The results show that there is an influence of internal and external factors of BUMN on BUMN stock prices and the most dominant factor affecting stock prices is the foreign exchange rate of 34.36%, economic growth of 32.11% and the Covid-19 pandemic of 1.84%. Meanwhile, the internal factors that have influence are ROA of 0.25% and DER of 0.15.

Open Access Original Research Article

Integrated Personnel and Payroll Information System (IPPIS) and Transparency in Government Payroll Administration in Nigerian Civil Service: A Unique Approach

Abdulsalam Nasiru, Kaoje, Kabir, Nabila, Sani, Idris, Jafaru Abdu, Gambarawa, Lawal Ibrahim Ubandawaki

Asian Journal of Economics, Business and Accounting, Page 1-8
DOI: 10.9734/ajeba/2020/v19i330303

This paper investigates the effect of Integrated Personnel and Payroll Information System (IPPIS) on transparency in Government Payroll Administration in Nigerian civil service. A descriptive cross-sectional survey research design was used in form of questionnaire administered to illicit information from the respondents, which provides generalized opinions/statistics from the number of individual cases. The population of the study covers 100 Treasury Staff of the Office of Accountant General of The Federation Working at Federal Pay Office, Sokoto and Federal Pay Office Birnin Kebbi. Census was adopted, and as such sampling represents the population. Data was collected and analyzed using descriptive and inferential statistics with the aid of Statistical Package for the Social Sciences (SPSS) Version 21. The findings from test of hypothesis of this paper revealed a significant moderate positive relationship between IPPIS, Transparency and Accountability. Hence, the null hypothesis which states that there is no significant relationship between IPPIS and transparency in government payroll administration in Federal Civil Service in Nigeria is rejected and the alternate hypothesis is accepted. The paper recommends that Government should strengthened the internal control mechanism of IPPIS so as to continuously detect and block any loopholes that will give room for fraud as well as carrying out routine Audit and Inspection of the program so as to ensure strict compliance with laid down rules and regulations governing the operation of IPPIS, coupled with compliance with the provisions of Financial Regulations and the Civil Service Rules.

Open Access Original Research Article

A VECM Analysis of the Relations the CPI, PPI, GDP Per Capita, Exchange Rate in the Republic of Azerbaijan

Revana I. Davudova

Asian Journal of Economics, Business and Accounting, Page 22-46
DOI: 10.9734/ajeba/2020/v19i330306

Aims:  The study focuses on an empirical analysis of a macroeconomic indicators system,  that reflect the level and pace of a country's socio-economic development, such as CPI, PPI, GDP per capita, exchange rate, taking into account the consequences of the COVID19 pandemic and oil prices  on the example Republic of Azerbaijan.

Study Design:  The study consists of four sections. It includes Introduction, Literature Review, Methodology, Results and Discussion and Conclusion.

Place and Duration of Study: The study was conducted for 4 months of 2020 in the department of "Mathematical support of economic research" of the Institute of Economics of Azerbaijan National Academy of Sciences.

Methodology: Within the dynamic VEC model, taking into account the COVID19 pandemic and oil prices, the long-run and short-run effects of macro indicators system on each other were studied by means of causality, impulse responses and variance decomposition on the monthly statistics covering the period 2015M01-2020M07 for the Republic of Azerbaijan.

Results: Calculations based on the established stable VEC (5) model revealed that there is a long-term causal relationship from the triad (CPI, PPI, Ex_Rate) to all endogenous variables. There are a short-term bi-directional causal relationship between CPI and GDP_Per_Capita and between PPI and Ex_Rate. From PPI and Ex_Rate to GDP_Per_Capita; from Ex_Rate to CPI, there are a unidirectional short-term causal relationship.

Conclusion: Summarizing the results, we can write the following long-term expressions: the change   a) in the GDP_per_Cap is influenced by the PPI and CPI variables negatively, and Ex_Rate – positively; b) in the CPI is influenced by the GDP_per_Cap and PPI variables negatively, and Ex_Rate – positively; c) in the PPI is influenced by the Ex_Rate and CPI variables negatively, and GDP_per_Cap – positively, so that the negative influence of the CPI is greater; d) in the Ex_Rate is influenced by the PPI and CPI variables negatively, and GDP_per_Cap – positively. Has been also identified that the indicator PPI has a more negative effect on changes in GDP_per_Cap, CPI and Ex_Rate.

Open Access Original Research Article

Assessing Effects of Business Innovations on Financial Performance of Small and Medium-sized Enterprises in Kenya: A Case of SMEs in Garissa County

Muhumed Buthul Shurie, Clement O. Olando

Asian Journal of Economics, Business and Accounting, Page 47-59
DOI: 10.9734/ajeba/2020/v19i330307

Despite the significant positive impact of small and medium-sized enterprises on the economic growth and employment generation, small business enterprises in Kenya are continuously collapsing. The high rate of collapse in threatening their contribution to Kenya’s gross domestic product. Although empirical studies from developed economies have revealed business innovations as the appropriate approach to addressing financial performance of small business, there is scanty documentation on business innovations as being a key determinant of the financial performance of small medium enterprise in Kenya. hence this study which assessed the manner in which the business innovations affects financial performance of Kenyan small medium enterprises. Adopting descriptive research design, the research used the 258 small medium enterprises in Garissa County as its target population from where a sample population of 155 respondents was selected using stratified proportionate random sampling. Data was collected from primary sources using a questionnaire and analysed using quantitative analysis approach to yield descriptive statistics as well as inferential statistics with help of SPSS software Version 21.0. The study concludes that at 0.05 (5%) significance level, each of; financial institutional innovation, financial product innovations has positive and moderate statistically significant effect on financial performance of small and medium-sized enterprises in Kenya while each of; marketing innovation and financial process innovations has a statistically strong positively significant effect on the financial performance of small and medium-sized enterprises in Kenya. The research recommends that the financial performance in Kenya should; actively embark on adopting financial institutional innovations for improving their financial performance, embrace financial product innovations, develop and acquire marketing resources and appreciated and support modern financial process innovations.

Open Access Original Research Article

Time Series Modelling of Academic Employee Commitment of a Sub-Saharan African University

Olukemi Olufunmilola Asemota, Godwin Norense Osarumwense Asemota

Asian Journal of Economics, Business and Accounting, Page 60-76
DOI: 10.9734/ajeba/2020/v19i330308

The study objective is to see how human resource management (HRM) could rely on small data evidence-based analytics to gauge employee commitment in a sub-Saharan African University. A 7-point Likert scale questionnaire on academic employee commitment in Kenya Public Universities was designed, validated and pilot tested. Out of around 60 questionnaires administered, only 31 responses were obtained before the Corona Virus (COVID-19) pandemic lockdowns in Kenya. The responses were subjected to the Modeler analyses using the statistical package for social sciences (SPSS version 21) to generate twelve optimal ARIMA (0,0,0) models for further statistical analyses. Results indicate 46.7% of employees want to spend the rest of their career in the organisation, over 61.2% of employees felt alienated and 34.9% were not emotionally attached. Around 59.3%, 64.0% and almost all employees tested on different metrics have difficulty leaving the organisation now. Although 28.9% of employees could leave abruptly, 64.6% of employees felt acculturated and 29.7% would remain at all costs. Overall, add-on effects of willingness to stay and bear with the organisation, emotional attachment, alienation, moral obligation, beneficial to remain, discouragement levels, organisational culture and being sold out to organisation could influence employee commitment levels. Thus, contributing to the HRM field, especially because the twelve-layered cascade of a series-parallel network made up of ladder and lattice structures of shared human and material resources management was used to deduce the Jackson’s theorem. Future research shall consider larger sample sizes to enable us to confirm or refute the conclusions derived in this study.