Open Access Original Research Article

Is Living in Mwanza Region More Economically Better and Happier than Living in Kagera Region? Finite Mixture (FIMIX) Approach

Ntogwa N. Bundala, Deus Dominic P. Ngaruko, Timothy M. Lyanga

Asian Journal of Economics, Business and Accounting, Page 12-26
DOI: 10.9734/ajeba/2021/v21i630387

The study aimed to uncover the unobserved heterogeneity of the population in Mwanza and Kagera regions. The study examined if living in Mwanza region is more economically better and happier than living in Kagera region. The cross-sectional survey research used with the cross-sectional data from 211 individuals sampled randomly from 4 districts, Nyamagana and Misungwi from Mwanza region, and Bukoba and Muleba from Kagera region. The FIMIX-PLS used to analyse the data. The study found that the population of Mwanza and Kagera regions can be grouped into two mains classes which are class one with a lower annualised income below 1.5 TZS millions per capita and a lower mean score of fundamental psychological factors for happiness (FPFH) in comparing to the class two. The class two is characterised with a higher annualised income about 2.45 TZS millions per capita and a higher mean score of FPFH in comparing to class one. The study evidenced that respondents of Mwanza region have a higher annualised income and FPFH scores than respondents of Kagera region in each class. Therefore, the study concluded that living in Mwanza region is more economically better and happier than living in Kagera region. The study recommended the immigration to seek the economic opportunity and happiness, for example immigration from Kagera region to Mwanza region or nation to nation is encouraged. Moreover, further study recommended by using a panel data to attest the posed facts because this study limited to the cross-sectional data.

Open Access Original Research Article

IFRS 4 Disclosure and Firm Performance of Insurance Companies in Nigeria

Hadiza Ahmed Suleiman, Abdulraham Bala Sani

Asian Journal of Economics, Business and Accounting, Page 27-38
DOI: 10.9734/ajeba/2021/v21i630388

IFRS 4 is an International Accounting Standard Board providing guideline for the accounting of insurance contract. This paper therefore, examined the compliance of IFRS 4 and performance of quoted Insurance Companies in Nigeria. The study further  investigate the extent of compliance with disclosure requirements of IFRS 4 and determined the relationship between ROA, liquidity, ROE, leverage and firm size with compliance of IFRS4 disclosure. Quantitative grading system was used to investigate the extent of compliance. Multiple regression analysis was further used to find out the relationship between ROA, liquidity, ROE, leverage and firm size with compliance of IFRS 4 disclosures. The study found that the sampled companies complied at 90% which suggest a strong compliance. ROA, ROE, and Liquidity have a positive significant relationship with compliance with a p-values of 0.0324<0.05, 0.01<0.05, and 0.0247<0.05 respectively. The study also found that leverage is negative but has a significant relationship with compliance. Therefore, the study recommends that, the Inspectorate unit which is the monitoring and enforcement mechanisms need to be improved upon. Although, the level of compliance is good, but mandatory disclosures are meant to be fully complied with 100%.

Open Access Original Research Article

Impact of Corporate Governance Mechanism in Mitigating Creative Accounting Practice of Listed Conglomerate Companies in Nigeria

Abdulrahman Bala Sani, Ruth Oluwayemisi Owoade

Asian Journal of Economics, Business and Accounting, Page 39-50
DOI: 10.9734/ajeba/2021/v21i630389

This study examined the impact of corporate governance mechanism in mitigating creative accounting practice of listed conglomerate companies in Nigeria. The study used Secondary data obtained from the company’s annual reports and accounts for the period 2013 to 2020. The population of the study includes six conglomerate companies listed on the Nigeria Stock Exchange and the entire population was used for the study. The dependent variable creative accounting was measured using discretionary accruals as estimated by modified Jones model. The independent variable corporate governance mechanism was proxied by audit committee, board size, board independence, managerial ownership. Multiple regression technique was employed for the panel data analysis using Stata version 13 statistical tools. Findings of the study revealed that audit committee has negative significant impact on creative accounting practice. Managerial ownership has significant positive impact on creative accounting practice. Board size and board independence has no significant impact on creative accounting practice of listed conglomerate companies in Nigeria. The study concludes that good corporate governance have impact on creative accounting practice. Based on these findings, the study recommends that companies are to effectively apply good corporate governance mechanism. They should have an independent audit committee, so as to minimize creative accounting practice.

Open Access Original Research Article

Study of Factors Influencing on the Brand Availability at Stores in Sri Lankan Cables Firm

Treshalin Sellar

Asian Journal of Economics, Business and Accounting, Page 51-60
DOI: 10.9734/ajeba/2021/v21i630391

In the view of the availability of the selected brand cables at the stores, it is a vital aspect that the decision-makers will have to consider that the product and services of the internal aspects will have to synchronize with the external aspects in order to gain the advantage of the brand, competition as well as the marketing channels. Prime objective of the research is to identify and understand the factors that affect the availability of the selected cables at the stores in Sri Lanka in absolute and relative terms in order to provide effective recommendations to increase the product reachability. The research has been considered at all the stores as well as the distributor who sell the cable products all around the selected region. The participants were taken from the Colombo district, and the sample has been considered as a hundred. The study has been designed in a quantitative manner where the research instrument has taken to collect the data was a structured questionnaire. The research has attained the outcomes as there is a relationship among competitor cable products, brand awareness, intermediaries’ activities with the dependent variable of availability of the selected brand cables at the stores. The researcher has figured out the aspects which could motivate the consumers to make the purchasing decisions with regards to the selected variables of the cable products.

Open Access Original Research Article

International Tourism and Economic Growth in Zimbabwe: An ARDL - Bounds Testing Approach

Thabani Nyoni, Naftaly Mose, John Thomi

Asian Journal of Economics, Business and Accounting, Page 61-81
DOI: 10.9734/ajeba/2021/v21i630392

This study investigated the effect of international tourism development on economic growth in Zimbabwe, using time series data spanning over the period 1980 to 2017. The main aim of the study was to examine whether international tourism is a pathway to economic recovery in Zimbabwe. The study adopted the tourism growth model proposed by Balaguer and Cantavella-Jorda [1] and applied the Autoregressive Distributed Lag (ARDL) bounds testing approach and its associated Error Correction Model (ECM). The direction of causality between international tourism and economic growth was examined using the Granger causality test in an error correction framework. The findings of the study show that the Tourism-led Growth Hypothesis (TLGH) is valid both in the short-run and long-run while the Economic-Driven Tourism Growth Hypothesis (EDTGH) is valid in the long-run only. This implies that the resource allocation strategy for the Government of Zimbabwe should prioritize both international tourism and economic expansion. The study, therefore, recommends that the Government of Zimbabwe should allocate resources towards supporting the tourism sector to stimulate economic growth in the country. On the other hand, the study, guided by the validity of the EDTGH in the long run, suggests that the Government of Zimbabwe should also consider allocating resources to other sectors currently driving the economy, for example, the agriculture and manufacturing sectors; as this will stimulate economic expansion in the long run.

Open Access Original Research Article

Analysis of Profitability and Market Outlets of Smallholder Garri Producers in Ondo State, Nigeria

O. A. Aturamu, A. E. Akinbola, O. O. Omosehin, D. T. Oguntuase

Asian Journal of Economics, Business and Accounting, Page 82-91
DOI: 10.9734/ajeba/2021/v21i630393

Aims: To ascertain the socio-economic characteristics of the respondents, identify the market outlets available in the area, estimate the profitability of garri processors, determine factors influencing the choice of market outlet employed by the processors, and identify the main constraints faced in processing garri in the area.

Study Design: Primary data were used for this study and sourced through a well-structured questionnaire.

Place and Duration of Study: The study was carried out among garri producers in Ondo State, Nigeria, between June and November, 2020.

Methodology: A multistage sampling procedure was used to select 120 respondents, while descriptive statistics, budgetary technique, and multinomial logit (MNL) regression were used for the data analysis.

Results: The results revealed that female (63.3%) dominated the enterprise, and about 81.6% of them were married. The average age was 49 years old, and many (80%) of them were literate. The result established three main market outlets and they are: producer gate (43.3%), open market (20.0%), and middlemen (36.7%). The result of budgetary technique revealed that the venture is profitable given the values of gross margin and profit as 82,972.58 and 71,694.68, respectively. The value (2.37) of return on investment, indicating that about 2.37 was realized for every naira spent. The result of MNL affirmed that marital status, education, experience and profit accrued were the significant factors influencing the choice of market outlet in the area. It was unveiled that price fluctuations, poor road network and high cost of transportation were the main constraints faced by the garri processors in the area.

Conclusion: The policy implication is that garri production business is viable, therefore it is capable to reduce hunger and poverty if properly managed with functioning and organized market outlets and structure.

Open Access Original Research Article

The Determinants of Capital Structure Choice: Evidence from Bangladeshi FMCG Companies

Kh Khaled Kalam, An-Nisha Khatoon

Asian Journal of Economics, Business and Accounting, Page 92-106
DOI: 10.9734/ajeba/2021/v21i630394

This paper offers empirical proof of Bangladesh's theories of capital markets and analyses the effects of the failure to introduce a secondary capital market in relation to Bangladesh. The findings from the cross-sectional OLS regression demonstrate that both the static deal theory and the cost theory of the organisation are applicable to the capital structure of the Bangladesh Fast-moving consumer goods (FMCG) companies. The lack of a secondary market will affect the costs of an entity because shareholders unable to decommission their shares may place pressure on management to behave in their best interests. We analyse in this paper, using a sample of 5 Bangladeshi FMCG companies for the period from 2014 to 2019, the determinants of Bangladesh's Debt to Total Asset. This study reveals that Bangladesh's listed Food and Allied company's average leverage ratio is close to that of other countries in the growth of the economy. The study also shows that the Company's Profitability is strongly and positively linked to the asset structure, Size, Profitability, growth and business risks. A firm's Size has a statistically significant negative impact on Debt to Total Asset.

Open Access Original Research Article

Poverty, Unemployment and Food Insecurity: Empirical Evidence from Nigeria

Onime, Bright Enakhe, Stephen Tamuno

Asian Journal of Economics, Business and Accounting, Page 107-123
DOI: 10.9734/ajeba/2021/v21i630395

The high incidence of poverty in Nigeria coupled with the alarming rate of unemployment has raised concerns among experts as to their likely relationship with food insecurity. This study examined the nexus between poverty, unemployment and food insecurity using the Johansen cointegration test and the vector error correction model. The result from the Johansen cointegration test suggests a long-run relationship between food insecurity, poverty and unemployment. Findings from the vector error correction analysis showed a positive but insignificant relationship between poverty and food insecurity such that a percentage change in poverty in the current period is associated with a 0.09 per cent increase in food insecurity on average, ceteris paribus. Besides, a positive and significant relationship subsists between unemployment and food insecurity where an increase in unemployment exacerbated the latter. Clearly, a 1 per cent deviation in the previous period unemployment level is associated with a 1.2 per cent degeneration of the food insecurity position in the short run. In the same vein, a 1 per cent change in unemployment in the current period causes a 1.5 per cent aggravation of food insecurity. Following the findings, this study recommends a multi sector-specific approach to solving the issue of poverty in Nigeria targeting agriculture and its employment generating capacity, creating the enabling environment through infrastructure development and improving the ease of doing business for the private sector to strive and enhance its employment generating capacities. The study concludes with a call for the implementation of a holistic food security policy targeting improvement in crop yield, internal security problems and the proper funding of agriculture to be effective.

Open Access Original Research Article

Activity-determined Steps on the Attenuation of Atmospheric PM2.5 Concentration Environmental Kuznets Curve (EKC) at the Country Level: Empirical Evidence in Taiwan

Wu-Jang Huang

Asian Journal of Economics, Business and Accounting, Page 124-129
DOI: 10.9734/ajeba/2021/v21i630396

Finding ways to minimize the atmospheric concentration of PM2.5 is an emergency issue throughout the world. This research has found a method to calculate historical PM2.5 data and to define the PM2.5 environmental Kuznets curve (EKC) pattern in Taiwan. From the analysis of the Taiwan Environmental Protection Agency’s public emission data, results showed that the continuous decay of PM2.5 is mostly contributed by the energy policy, while several short-term regular stepwise fluctuations in PM2.5 concentrations are caused by natural activity. Our study also proved that the linear decay with stepwise fluctuations also exhibits an EKC pattern.

The results herein mean that the continuous decay of PM2.5 is caused by the energy policy, while the regular fluctuation of PM2.5 concentrations is caused by natural activity, like the La Nino phenomena. Based on the viewpoint of this paper, the oil consumption percentage for electricity generation should be first reduced to zero. However, oil-based power plants are an important emergency source of electricity supply. If Taiwan wants to continue the reduction of PM2.5 in the future, then a big capacity electric storage facility should be built as an emergency source of electricity supply. The energy policy in Taiwan at 2025 will be 50% natural gas, 30% coal, and 20% green energy. As oil fuel will reach 0%, PM2.5 will be affected by the energy intensity contributed from coal and natural gas, meaning that PM2.5 will maintain a long-term attenuation trend until 2035.

Open Access Review Article

The Effect of Revenue from Taxation on Gross Domestic Product and Human Development Index in Nigeria

Odogu Laime Isaac, Obalakumo Pereowei Anderson, Odoko Dan, Dadowei Opritari Maxwell

Asian Journal of Economics, Business and Accounting, Page 1-11
DOI: 10.9734/ajeba/2021/v21i630386

Aims: This study investigates the effect of revenue from taxation on gross domestic product and human development index in Nigeria. Secondary data is used from the Central Bank of Nigeria, the World Bank, and Federal Inland Revenue Service for this study.

Study Design: The Ex-post facto research design was used for the study.

Methodology: The study used secondary data and was conducted via the relevant econometric tests.

Result: The study reveals that revenues from taxation have effects on gross domestic product and human development index. Based on the result, the study concluded that taxation is an essential component of fiscal policy that the Nigerian government can use to stimulate economic development. Based on the conclusion, the study made the following recommendations amongst others that, government need to improve on the personal income tax collection process to enable more individuals disclose their income for tax assessment. This is because most self employed (skilled workers such as carpenters, bricklayers, welders, etc) Nigerians don’t pay income tax voluntarily. There should be an improvement in the value added tax administration in Nigeria to reduce the lack of accountability of VAT by the agents. The tax officials and other agents of the relevant tax authorities need to reduce their fraudulent activities with tax payers to increase the amount of tax collected for the economic growth of Nigeria.