Open Access Original Research Article

Audit Committee Effectiveness and Audit Fee among Listed Deposit Money Banks in Nigeria

Abdulrasaq Mustapha, Abdulrauf O. Isiaka, Kudirat A. Babatunde

Asian Journal of Economics, Business and Accounting, Page 1-14
DOI: 10.9734/ajeba/2020/v20i430329

The persistent cases of corporate accounting scandals which have rocked the Nigerian banking sector in spite of auditor certification of financial statements as free from material error have raised concern not only on the effectiveness of audit committees but also on audit services despite the huge amount charged on their clients. Hence, this study examined the effect of audit committee effectiveness on audit fee of listed deposit money banks in Nigeria. Using an ex-post facto research design, the data sourced through the annual reports of twelve (12) banks for the period between 2012 and 2018 were analysed using random-effect regression analysis. The result of the study revealed that audit committee effectiveness proxy with audit committee audit committee expertise (t-value =3.22 & p-value = 0.000), audit committee diligence (t-value = 3.57, & p-value = 0.000) and audit committee gender diversity (t-value = 3.85 & p-value =0.000) has significant positive effect on audit fee of listed deposit money banks in Nigeria. This implies that an effective audit committee would demand for high audit quality service from the auditor, thereby increasing the audit efforts and time which subsequently result to higher audit fee. The study concluded that an effective audit committee would demand high audit service from the external auditor thereby ensuring that the financial statement published is relevant and of faithful representation.

Open Access Original Research Article

The Impact of Strategy, Technology, Size and Business Environment on the Organizational Form of Small Firms in China

Gavin C. Reid, Julia A. Smith, Zhibin Xu

Asian Journal of Economics, Business and Accounting, Page 15-32
DOI: 10.9734/ajeba/2020/v20i430330

Our research tests the hypothesis that the organizational form of a small firm is determined by the contingencies of environment, strategy, size and technology. It was tested on a sample of private firms in Guangdong Province, PR China, notable for its entrepreneurship. Our methodology was novel, involving detailed fieldwork with entrepreneurs for data collection, allied to rigorous econometrics for contingency analysis, using ordered probits. We found that business strategy was the most important determinant of organizational form, followed by new investment, cost leadership, focus strategy and financial aspects (e.g. cash flow, profit expectations). These findings are of interest both to academic researchers and to government bodies responsible for stimulating superior organizational forms in small businesses, like incubator units.

Open Access Original Research Article

Market Orientation on Tourism Service Performance: The Mediating Role of E-Marketing

Chavindi B. Paranage, F. B. Kennedy

Asian Journal of Economics, Business and Accounting, Page 33-43
DOI: 10.9734/ajeba/2020/v20i430331

Aims: In modern turbulent marketplace market orientation is considered a business culture that facilitates firms in achieving sustainable competitive advantage by creating superior customer value and it links to the business performance. With the increasing use of technology in the marketing activities of all types of organizations, it is important to know the extent to which electronic marketing mediates the impact of market orientation in turn, related to firm performance. The aim of this study is to find out “The inter-relationship between market orientation and e-marketing in order to investigate alternative mechanisms through which both contribute to tourism services performance of selected tourist hotels in Badulla area”.

Study Design: Direct and indirect effects of market orientation on tourism service performance are examined using survey method. Primary data were collected from a sample of 156 tourism firms located in Badulla area. Location of those tourists’ firms are mainly falling into four divisional secretariat areas. From 2019 March to July.

Methodology: The collected data has been analyzed by using descriptive statistics, correlation analysis and regression analysis.

Results: The findings indicate that market orientation is found to contribute to performance through a dual mechanism in that it contributes both directly and indirectly, through e-marketing, to the relationship. And there is a high level of market orientation, e-marketing, and tourism service performance of tourist hotels in Badulla area. Results showed that there is strong positive relationship between market orientation, e-marketing and tourism service performance. Further there is a significant positive impact on market orientation, e-marketing and tourism service performance. The mediation effects observed suggests that e-marketing is playing a partial mediating role in the relationship in between market orientation and tourism service performance of tourist hotels.

Conclusion: The results indicate that academics and managers should consider the inter-relationships between multiple sources of competitive advantage when looking for explanations of services performance and particularly, tourism services.

Open Access Original Research Article

Internationalization Issues and Export Performance of Manufacturing SMEs in North Western Province, Sri Lanka

W. K. M. Hashan Vimukthi Fernando, S. M. A. K. Samarakoon

Asian Journal of Economics, Business and Accounting, Page 44-56
DOI: 10.9734/ajeba/2020/v20i430333

Small and Medium sized Enterprises (SMEs) plays a major role in the Gross Domestic Product (GDP), providing job opportunities, reducing poverty etc. Even though they have contributing in large to the economy still they are facing number of challenges when internationalizing their businesses. Since this study focused on the factors influence on SMEs internationalizing their businesses. Based on review literature and discussion of expert in the field, four critical factors were identified namely competition, technology, legal requirements and support from the government. Researches received fifty-five questionnaires from the manufacturing Small and Medium sized Enterprise (SME) owners in North Western Province. Fifty completed questionnaires used to measure the effect of four issues on export performance in Sri Lanka. Descriptive statistics, correlation analysis and regression analysis used to analysis data using SPSS.

The study reveals that out of four critical factors competition, support from the government showed a positive relationship with performance of internationalized Small and Medium sized Enterprises (SMEs) while technology showed a negative relationship and legal requirements showed no relationship. Among these four critical factors most significant factor was competition. Second most significant factor was support from government and technology; legal requirements were at last. This study will give a big support for Small and Medium sized Enterprise (SME) owners, policy makers, researchers and etc. Policy makers and government should encourage internationalization of SMEs to achieve higher performance and give big contribution to the country. Further research needs to conduct on SME internationalization and their issues with massive sample covering both manufacturing and service industries.  

Open Access Original Research Article

Variabel Determinant of Financing Risk, Financing Performance and Zakat in Islamic Banks Indonesia

Riska Uswatun Khasanah, Ahmad Roziq, Agung Budi Sulistiyo

Asian Journal of Economics, Business and Accounting, Page 57-69
DOI: 10.9734/ajeba/2020/v20i430334

This study aims to find out, test, and prove the influence of sharia financing on financing risk, financing performance, and zakat of Islamic Banks in Indonesia. This research uses a form of quantitative research with a type of exoplanet research. The sample of this study was 12 Islamic Banks in the period 2015-2019. The results of this study found scheme financing influence the risk of financing. Buying and selling financing affects the performance of financing, but not profit-share financing and ijarah financing obtained insignificant to the performance of financing. Buying and selling financing is not significant to zakat, while revenue-share financing and ijarah financing are significant to zakat. Financing risk significant to financing performance. Financing performance significant towards zakat. The findings of this study show that management should be able to manage to buy and selling financing, yield share financing, and ijarah financing to minimize financing risk. Management's ability to manage and minimize financing risks can improve financing performance so that increased financing performance will also increase the company's zakat. Management's ability to manage and minimize financing risks can improve financing performance so that increased financing performance will also increase the company's zakat.

Open Access Original Research Article

A Study on Essential Aspects of Human Resource Management Curriculum in Universities: Stakeholders' Expectations

W. S. K. Fernando, H. B. M. C. Senevirathne, M. K. V. R. Jayasekara, W. G. G. M. J. Sumanarathne, G. Y. Pathirana, R. S. Weerarathne

Asian Journal of Economics, Business and Accounting, Page 70-80
DOI: 10.9734/ajeba/2020/v20i430343

Selecting a specialization area is the most important and the most difficult decision that undergraduates ever made in their life. It is not only affect to their academic life but also for future personal life. There are number of specializations related to the Business Administration undergraduate degree program and Human Resource Management [1] also one of the significant area which undergraduate can select as their specialization. This paper refers to identify essential aspects of HRM to be included in the curriculum. Data collection was based on primary data which was collected through telephone interview method. The convenience sampling method was used to select eight industrial professionals and lecturers in respective area. The NVivo software have been used to analyze the data gathered from interviews. The findings of the present study suggest that modules in existing HRM undergraduate curriculum should be developed and there is a necessity of adding some new modules/ subjects/ core subjects in practical way. It was significantly identified that modern and digitalized HR practices, some practical sessions should be added to the existing HRM educational curriculum. As an implication of the study, the results will be offered as a guidance for the people who are engaging in HRM education system in order to understand the course content of the degree program and this concept recognized key aspects towards the high quality instruction for the development of HRM curriculum. This study recommends future researchers to increase the sample size and gather data even from HRM undergraduates rather than industrial professionals and lecturers.