Open Access Original Research Article

An Analysis of Financial Performance of the Coal Mining Industries: A Case Study of Raniganj Coalfield of Eastern Coalfield Limited

Gosai Maji, Uma Sankar Malik

Asian Journal of Economics, Business and Accounting, Page 1-16
DOI: 10.9734/ajeba/2021/v21i830407

The leading coalfield of India, the Raniganj coalfield under Eastern Coalfield Limited is recognised as the birth place of the Indian coal mining industry and one of the most prominent coalfields not only in India but also in the world. It is also the second largest supplier of superior quality of coal in the nation at present subsequent to Jharia coalfield. Raniganj and Jharia Coalfields (RCF & JCF) can be recognised as mirror image in the history of coal mining in India.  Both the coal mining areas are witnessing mining of coal for more than 230 years. With the shifting of economic structure of the country, the cold filed region has registered quite a lot of ups and down in its financial performance. From this point of view the current paper is an attempt to assess the financial performance in the field of mining segment of Raniganj Coal Field, the most important coal producer in West Bengal. The whole study is entirely based on secondary data. A period of five year from 2014-15 to 2019-20 has been determined for the study. The data have been tabulated, analysed and interpreted with the help of Z Score Model and Economic Value Added (EVA) based on financial ratios. It is observed from the analysis of various financial ratios that the revenue earning capability, liquidity condition and long-standing solvency situation of RCF, is to a certain extent good during the entire study period and the level of bankruptcy situation is also very low.

Open Access Original Research Article

Assessment of Macroeconomics Determinants on Islamic Banking Profitability and Liquidity in United Arab Emirates and Tanzania

Omar Salim Ali

Asian Journal of Economics, Business and Accounting, Page 17-28
DOI: 10.9734/ajeba/2021/v21i830408

Aims: This paper studies the determinants of Islamic banking profitability and liquidity in the United Arab Emirates (UAE) and Tanzania. It was comparative study. The study gives empirical comparisons between Islamic banks in United Arab Emirates (UAE) and Tanzania in their performance bases.

Study design:   This study covers the samples of five (5) Islamic banks where by two (2) banks from Tanzania that are People Bank of Zanzibar in Islamic branch (PBZIB) and Amana Islamic bank (AIB).  In the side of United Arab Emirates (UAE) three (3) Islamic banks were selected which includes   Dubai Islamic Bank (DIB), First Abu Dhabi Bank (FAD) this is not an IB and Emirates Islamic Bank (EIB).

 The study used secondary data of selected variables which employing panel data for the period of ten (10) years from 2010- 2019. Due to data was on panel bases which includes the two independents variables.

Methodology: To calculate profitability, the Return on Assets (ROA) was used and in liquidity in IBs deposit ratio (LDR) used to measure the liquidity .The study uses descriptive statistical analysis, correlation, multiple regression analysis for two equations according to settled objectives. The three macroeconomic variables were selected that are Gross Domestic Product per capita (GDP), inflation (INF) and exchange rate (EXCH). An autoregressive distributed lag (ARDL) model was applied because the result becomes mixed in the unit root test.

Results: The findings reveal satisfactory evidence that all selected variables are statistical significance in long run relationship except inflation in UAE. The outcomes of the study indicated that selected macroeconomic variables (GDP per capita, Inflation and exchange rates have a major 5% effect on bank profitability and liquidity in Tanzania and the United Arab Emirates.

Conclusion: The study therefore recommends the Tanzania Islamic banks should adopt several policies in order to control the liquidity which is very difference like UAE banks.

Open Access Original Research Article

Government Capital Expenditure and Economic Growth: An Empirical Investigation

David Waweru

Asian Journal of Economics, Business and Accounting, Page 29-36
DOI: 10.9734/ajeba/2021/v21i830409

The purpose of this study was to investigate how capital government expenditure contributes to economic growth in East African countries. Many past empirical studies on the relationship between public capital spending and output growth show inconsistent results and mainly focus on total public expenditure. Hence, this study aims to determine the impact of public capital spending on economic growth using panel data series for East African countries. The secondary data sources were statistical abstracts and World Bank reports. To check if the variables have a relationship, this study used the panel least squares (OLS) estimation technique. The results showed that capital spending has a positive and significant effect on economic growth in East Africa. This research suggests that in East African economies, the strategy and policy of increasing government spending on the capital budget to promote economic growth will be appropriate, but fewer funds should be channeled towards recurrent programs.

Open Access Original Research Article

The effect of Intellectual Capital and Debt Policy on Bankruptcy Predictions and Its Implications on Firm Value

Rieke Pernamasari, . Sugiyanto

Asian Journal of Economics, Business and Accounting, Page 37-49
DOI: 10.9734/ajeba/2021/v21i830410

Aims: This study aims to examine the effect of intellectual capital and debt policy on bankruptcy predictions and its implications for firm value.

Study design: The design used in this research is causal research. Causal research aims to determine the effect or also the relationship between two or more variables.

Place and duration of study: The population of this study consist of mining companies on the Indonesia Stock Exchange, with the observation year 2015-2019. The sampling technique used in this study is the purposive sampling method. After the sampling criteria were carried out, 13 companies met the sampling criteria, so the total number of observation was 52.

Methodology: The analytical method used is path analysis, which is an extension of multiple linear analysis using SPSS 22 analysis tools.

Results: The results showed that simultaneously the intellectual capital and debt policy had an influence on the prediction of bankruptcy and firm value, but partially the debt policy had a direct influence both on bankruptcy predictions and on firm value. The results of this study also prove that bankruptcy prediction indirectly provides a relationship between intellectual capital and firm value, However, debt policy will have a greater relationship if it is directly related to the value of the company without going through bankruptcy predictions, because when debt increases it lowers the zscore, which means the company is in an unhealthy condition so that it can reduce the value of the company.

Open Access Original Research Article

Students' Perceptions of Online Learning and Teaching during COVID-19 pandemic: An Empirical Study in Selected University in Sri Lanka

Shamini Howshigan, Thevanes Nadesan

Asian Journal of Economics, Business and Accounting, Page 50-57
DOI: 10.9734/ajeba/2021/v21i830411

The dramatic transition to online pedagogy in education, as a consequence of COVID19 has shownseveral inequalities and challenges and advantages in education. The epidemic of COVID-19 profoundly changed the global higher education system in 2020, and the crisis has accelerated innovation in the education sector. Anyhow, whatever the situation, high academic standards are required for a university to produce high-quality teaching outputs and graduates, and it should ensure continuously. With this intention, this study conducted to assess the efficacy of online teaching and learning during the COVID-19 pandemic, focusing on the perceptions of undergraduate students from the Selected university.A validated online questionnaire is used among the 171 students from the selected university. The primary goal of this paper is to analyse how the education system adapts to online teaching and learning, identify the preferred mode of study by the students in between face to face interaction and online learning, and identify the advantages and challenges faced by the students in online learning. The paper also aims to make recommendations for improving online teaching and learning through the use of online. The study's findings show that, even though the students are satisfied with the existing online teaching and learning in selected university, they prefer face to face learning than online learning. The study strongly recommends that improving the quality of the online education system and striving to solve students' issues in terms of online learning is required to maintain the standard in education. The study's findings shed light on government and non-government educational institutions, academics, and policymakers to enhance online education and maintain the education standard.

Open Access Original Research Article

Retracted: The effect of Relationship Network and Business Model Innovation on Start-up Performance in Vietnam

Nguyen Manh Thang

Asian Journal of Economics, Business and Accounting, Page 58-69
DOI: 10.9734/ajeba/2021/v21i830412

Aims: It aims to build and verify the theoretical model among the network of relationships, business model innovation and start-up performance of start-up companies.

Methodology: The study employed qualitative and quantitative methods of research in 550 start-up firms in Vietnam. The qualitative method is utilised to adjust and complement the scale (interviews with experts). Utilising the PLS-SEM analysis method with the SmartPLS support tool, the quantitative method is used to assess reliability, permissibility, model testing, and research hypotheses.

Results: Start-up firms' relationship network (with government officials, social contacts, and business partners) has a beneficial effect on their performance. Relations with government officials benefit value creation, value proposition, and value capture innovation. Social relationships have a positive impact on value proposition innovation. Relationships with business partners contribute to the creation of value and the innovation of new products and services. Business model innovation can have a sizable impact on the performance of a start-up. Finally, environmental dynamism has no regulatory effect on the innovation of business models or the performance of start-up firms.

Conclusion: This study has filled theoretical gaps by confirming the results of prior studies that had questioned the connection between the network of relationships, business model innovation, and start-up performance. The findings propose management solutions for start-ups' owners and senior managers, policymakers, and official government entities.

 

Retraction Notice: This paper has been retracted from the journal after receipt of written complains. This journal is determined to promote integrity in research publication. This retraction is in spirit of the same. After formal procedures editor(s) and publisher have retracted this paper on 10th July-2021. Related policy is available here: https://tinyurl.com/ajebaretraction

Open Access Original Research Article

Prediction Bankruptcy of Retail Company: Based on Financial Ratios and Corporate Governance

Sri Purwaningsih

Asian Journal of Economics, Business and Accounting, Page 70-87
DOI: 10.9734/ajeba/2021/v21i830413

Aims: The purpose of this study was to determine the effect of financial ratios and corporate governance on the dependent variable, namely financial distress. Financial distress is measured using the Altman Zscore approach in 1995.

Study Design: The design used in this research is causal research.

Place and Duration of Study: The object of this research is companies in the retail sector listed on the Indonesia Stock Exchange in 2017-2019. The research sample was 22 samples using the purposive sampling method. So the total data was 66 companies.

Methodology: The analytical method used is quantitative, namely the approach to data processing through statistical or mathematical methods collected from secondary data. It is hoped that the conclusions obtained in a study will be more measurable and comprehensive.

Results: The results obtained that the financial ratios proxied through the current ratio and debt-equity ratio influence predicting the bankruptcy of the company, while the Total Assets Turn Over variable, good corporate governance variables such as the number of independent commissioners and the frequency of audit committee meetings are not able to provide an influence in predicting corporate bankruptcy.

Open Access Original Research Article

A Nexus between Capital Adequacy and Profitability in the Nigerian Deposit Money Banks

Aminu Abubakar

Asian Journal of Economics, Business and Accounting, Page 88-108
DOI: 10.9734/ajeba/2021/v21i830414

This paper examines the impact of capital adequacy on corporate profitability of selected Deposit Money Banks (DMBs) listed on the Nigerian Exchange Limited (NGX Limited) from 2005 – 2014. The paper is carried out based on the historical panel data analysis. To achieve this objective; an ex-post factor research design was employed. Descriptive statistics as well as fixed-effect and random-effect Generalized Least Square (GLS) regression techniques were used as tools of data analysis. The paper made a modest contribution to the existing body of knowledge as most of the studies done in Nigeria and at international arena were not looking at the regulatory standards or benchmark to assess the capital adequacy and its impact on the profitability performance of banks. However, the bases used to evaluate the impact of capital adequacy on the profitability at times vary with the regulatory rating standards. The findings established that capital adequacy has insignificant positive effect on the DMBs’ profitability proxies represented by ROA and ROE. It was concluded that capital adequacy does not have significant impact on the profitability of the listed DMBs in Nigeria. The paper recommends that DMBs should ensure strict compliance with the benchmark for capital adequacy set by both the CBN and the Basel since they go a long way in improving their performance.

Open Access Original Research Article

Consumer Financial Knowledge and Retirement Planning Behaviors

Fuzhong Chen, Zijun Sun

Asian Journal of Economics, Business and Accounting, Page 109-123
DOI: 10.9734/ajeba/2021/v21i830417

With the increasingly serious problem of population aging around the world, the issue of consumer retirement planning behaviors has been highlighted in recent years. The purpose of this study is to investigate the effect of consumer financial knowledge on retirement planning behaviors. Utilizing the data from the National Financial Capability Study in 2009, 2012, 2015, and 2018, this study measures consumer retirement planning behavior through the variables of whether consumers have retirement accounts and whether they regularly contribute to their retirement account. To verify the robustness, a series of additional regressions are conducted by replacing the estimation approach and dropping income outliers. The results imply that consumers with a high level of financial knowledge tend to perform desirable retirement behaviors. Based on the results, we recommend that financial education programs should be widely introduced and targeted at those who lack financial knowledge, such as the elderly and the under-educated, to stimulate consumers to improve their retirement planning behaviors.

Open Access Original Research Article

Electronic Banking and Growth of Deposit Money Banks Operations: Nigeria Experience

Victoria Ogochukwu Obi-Nwosu, Onyekachi Chibueze Onuoha, Nonso John Okoye

Asian Journal of Economics, Business and Accounting, Page 124-135
DOI: 10.9734/ajeba/2021/v21i830416

The study examined the Nigeria experience of the influence of electronic banking on the growth of deposit money banks in Nigeria. The research design used for the study was the expost-facto research design. The data used in this study were obtained from the annual reports and statements of accounts of Nigeria deposit insurance corporation. CBN annual report and account, CBN statistical bulletin; various online journals and literature. In order to achieve the objective of this study, a linear regression was adopted on both functional and statistical models. The study found that internet banking has a negative impact on growth rate of total deposit of deposit money banks in Nigeria with a regression coefficient of -10.09143. Automated Teller Machine (ATM) operation                 has a positive impact on asset growth of deposit money banks in Nigeria with a regression coefficient 37.13510 and Point of Sale (POS) transaction has a positive impact on asset growth of deposit money banks in Nigeria with a regression coefficient 1.334829. The study therefore recommends among others that due to the insignificant relationship that exists between internet banking and deposit growth banks that are yet to fully adopt internet banking should do so as a matter of urgency if they must grow, remain relevant, competitive and profitable. Banks that seek to improve their deposit growth performance and offer numerous products / services in an effective, efficient and cost effective manner. There should be increased awareness creation about the use of smart cards for banking operations and banks should also improve the number of services that ATM can offer the banking public. The Central Bank of Nigeria should ensure that guidelines with respect to POS transactions are properly adhered to.