Open Access Original Research Article

IFRS Adoption and Reporting Quality: An Assessment of User’s Perception in Nigeria

Aminu Abdullahi, Hadiza Ahmed Suleiman

Asian Journal of Economics, Business and Accounting, Page 1-9
DOI: 10.9734/ajeba/2021/v21i930415

The study assessed the perception of financial statement users on the extent of reporting quality following IFRS adoption in Nigeria. A comparative approach was utilized, where users’ (investors)opinions on reporting quality between the Statement of Accounting Standards (SAS) regime and the International Financial Reporting Standards regime were sought and compared. The results obtained from the structured Likert scale questionnaires were analyzed using the T-Test. It was found that all the qualitative characteristics of financial reporting which were used as reporting quality variables in the study have improved with the adoption of IFRS except for the extent of the ability of financial reports to confirm or correct prior user’s expectation which was discovered to be better during SAS regime. It was recommended that the Financial Reporting Council of Nigeria (FRCN) should embark on advocacy aimed at educating investors’ especially, institutional on the issue of prediction and assessment of IFRS-based financial statements.

Open Access Original Research Article

The effect of Leverage and Profitability on Corporate Value with Dividend Policy as Moderating Variables (Manufacturing Companies in the Consumer Goods Industry which were Listed on the Indonesia Stock Exchange (Idx) for the Period 2016 – 2018)

Sely Megawati Wahyudi

Asian Journal of Economics, Business and Accounting, Page 10-21
DOI: 10.9734/ajeba/2021/v21i930418

This study aims to examine and examine the effect of Leverage dan Profitability on Firm Value with dividend policy as moderating variables. The data used in this study are secondary in the form of financial statements of each sample company reported to the IDX from 2016-2018, sourced from the Indonesia Stock Exchange (IDX) website, namely www.IDX.co.id

The sample used in this study were 13 companies from 43 manufacturing companies in the consumer goods industry which were listed on the Indonesia Stock Exchange (IDX) for the period 2016 - 2018. The sample was performed using a purposive sampling method. The data analysis used in this research is multiple regression analysis.

This study produces Leverage that has no significant effect on firm value, while profitability has a significant effect on firm value. Dividend policy can moderate the effect of profitability on firm value and dividend policy can moderate the effect of leverage on firm value.

Open Access Original Research Article

Assessing effects of Interest Rates Spread on Non-Performing Loans: A Case of Commercial Banks in Trans-Nzoia County, Kenya

Lewis Agwata, Peter Simotwo, Martin Onsiro Ronald

Asian Journal of Economics, Business and Accounting, Page 22-36
DOI: 10.9734/ajeba/2021/v21i930419

In the spike of increasing occurrences of non-performing loans among commercial banks in Trans-Nzoia County, Kenya, interest rate spread should be given serious consideration through more empirical research.  This study therefore sought establish the relationship between the interest rate spread and occurrence of non-performing loans among commercial banks in Trans-Nzoia County. It specifically; looked into the credit risk management impacts non-performing loans, bank regulation impacts non-performing loans, and the capital sufficiency impacts non-performing loans. Adopting descriptive research design, the study used the 78 employees of commercial banks in Trans-Nzoia County as its targeted. The entire population participated in the study as respondents. Data, which was gathered using a questionnaire, was using quantitative approach to yield descriptive and inferential statistics. Multiple regression analysis was used to draw inferences from the findings. All factors were found to be statistically significant (p,0.05). Thus, credit risk management, bank regulation impacts, and the capital sufficiency have a positive significant effect on non-performing loans among commercial banks in Trans-Nzoia. The study recommended for; credit staff training programmes, applying strict interest rate rules and strict lending advances policies.

In the spike of increasing occurrences of non-performing loans among commercial banks in Trans-Nzoia County, Kenya, interest rate spread should be given serious consideration through more empirical research.  This study therefore sought establish the relationship between the interest rate spread and occurrence of non-performing loans among commercial banks in Trans-Nzoia County. It specifically; looked into the credit risk management impacts non-performing loans, bank regulation impacts non-performing loans, and the capital sufficiency impacts non-performing loans. Adopting descriptive research design, the study used the 78 employees of commercial banks in Trans-Nzoia County as its targeted. The entire population participated in the study as respondents. Data, which was gathered using a questionnaire, was using quantitative approach to yield descriptive and inferential statistics. Multiple regression analysis was used to draw inferences from the findings. All factors were found to be statistically significant (p,0.05). Thus, credit risk management, bank regulation impacts, and the capital sufficiency have a positive significant effect on non-performing loans among commercial banks in Trans-Nzoia. The study recommended for; credit staff training programmes, applying strict interest rate rules and strict lending advances policies.

Open Access Original Research Article

The Benefit of Microfinance Bank in Poverty Alleviation: A Case of Selected Micro, Small and Medium Enterprises in Anambra State

Ifeoma C. Nwakoby, Ogochukwu Okanya

Asian Journal of Economics, Business and Accounting, Page 37-47
DOI: 10.9734/ajeba/2021/v21i930420

Poverty is an endemic problem that affects not just the individual or his or her immediate family, but the entire state, and eventually the nation. Poverty causes anger and hunger and this leads to violence in turn leads to reduction in economic growth and development. Through the utilization of descriptive survey involving questionnaire and microfinance banks’ directory, and Pearson Product Moment of Correlation Coefficient at 0.05 significant level, the study reveals that microfinance deal with the provision of financial services to SMEs who are traditionally not served by the conventional financial institutions in the country. The study also reveals that Micro Finance Banks have made a lot of impact in alleviation of poverty, thereby increasing the living standard of the people. More so, Micro-Finance Institutions throughout the developing world are providing small loans to the poor for self-employment and proving to be sustainable enterprises in the sight against poverty. The study recommended that federal government should put in place policies and programs that support the existence of Micro finance banks across the country so as to help the SMEs to growth and at the long run, alleviate poverty within the country.

Open Access Original Research Article

A Study on the Relationship between Earnings Quality and Capital Cost-Takes the China Listed Companies as a Sample

Chih-Yi Hsiao, Hui-Hui Kuang, Hui-Ling Li, Jia-Li Liu

Asian Journal of Economics, Business and Accounting, Page 48-56
DOI: 10.9734/ajeba/2021/v21i930421

The phenomenon of false financial statements still exists. However, in addition to the risk of being punished, what kind of price do companies have to pay? In recent decades, with China's rapid progress in economic, the relevant accounting system and corporate governance standards are actively improving, and the earnings quality is improving. This paper takes China's listed companies from 2015 to 2019 as samples, and adopts quantile regression supplemented by ordinary least square method to explore the relationship between earnings quality and capital cost. The research findings show that the higher the earnings management, the higher the capital cost, especially for the company with low capital cost. Nevertheless, for the extremely company with high capital cost, earnings management can reduce the capital cost. The research results can provide the focus of regulators of listed companies and reference for the revision of relevant accounting system.

Open Access Original Research Article

Investigate the Effect of Ownership Diversity on Earnings Management of Listed Non-Financial Firms in Nigeria

Ifeoma C. Nwakoby, Ogochukwu Okanya

Asian Journal of Economics, Business and Accounting, Page 57-65
DOI: 10.9734/ajeba/2021/v21i930422

The research work aims to investigate the effect of ownership diversity on earnings management of listed non-financial firms in Nigeria. Several reviewed works was revealed in the study of this work, specifically on earnings management and ownership diversity. The research founds that no literature has studied the effect of ownership diversity and earnings management of the listed non-financial firms in Nigeria. This research makes use of secondary data as its main source of data collection. The method of data analysis applied is Hausman effect test and panel data regression. The result shows that ownership diversity has positive and significant effect on earnings management of non-financial firms in Nigeria which was statistically significant at 1% level of significance.

Open Access Original Research Article

Relationship between Corporate Social Responsibility Performance and Systematic Risk—A Case Study of A-share Listed Chinese Companies

Chih-Yi Hsiao, Xue Lin, Ke-Ke Cen, Wan-Ping Zheng

Asian Journal of Economics, Business and Accounting, Page 66-76
DOI: 10.9734/ajeba/2021/v21i930423

Taking the A-share listed companies in the 2018-2019 Environment, Social and Governance (ESG) rating by the China Alliance of Social Value Investment (CASVI) as samples, we analyze the impact of Corporate Social Responsibility (CSR) performance on the current systematic risk and its deferred effect. By using quantile regression and the ordinary least squares (OLS) for cross-comparison, we find that 1) for high-risk companies, the current performance of CSR can help reduce systematic risks, and 2) for low-risk companies, the more progress they make in CSR performance but do not disclose social responsibility information according to the global reporting initiative (GRI) guideline, the more systematic risks they will encounter; if they proactively disclose such reports, however, they may reduce systematic risks. Based on our findings, we propose the following measures: 1) the government should properly guide economic development; 2) companies should actively disclose CSR reports so as to achieve a win-win result for both the companies and their stakeholders; 3) investors should consult social responsibility information to make rigorous investment plans, before making investment decisions.

Open Access Original Research Article

The Relationship between Corporate Governance Characteristics and Earnings Quality---Takes the IT Industry of China Listed Companies as a Sample

Chih-Yi Hsiao, Qing-Yuan Zhang, Hao-Nan Huang, Wei-Xun Xi

Asian Journal of Economics, Business and Accounting, Page 77-86
DOI: 10.9734/ajeba/2021/v21i930424

Since the meeting of China Securities Regulatory Commission in 2020 once again emphasized the issue of earnings quality of corporate governance, this paper intends to study this issue from different perspectives. This study takes the IT industry of China's A-share listed companies from 2015 to 2019 as the sample, and makes an empirical analysis with the fuzzy set/ Qualitative Comparative Analysis (fs/QCA). The results show that the companies with large scale and good corporate governance concept, poor financial structure but with the assistance of external experts, high salary and high proportion of independent directors have relatively high earnings quality. According to the above research results. According to the findings, we put forward the following suggestions. For enterprises, good corporate governance concept and the concept of integrity are very important, but there must be efficient operation of the board of directors in order to play the role of corporate governance. Therefore, the size of the board of directors should not be too large, but it can be adjusted flexibly depends on whether the required professionals are enough. In addition, enterprises with poor financial structure should rely on the assistance of professional managers, rather than using earnings manipulation to obtain short-term benefits. For the regulators of listed companies, the procedures of independent directors’ selection should be more strictly supervised, so as not to make the setting of independent directors become mere formality. For investors, we should always pay attention to the corporate governance, and announce the disclosure of real-time information about directors, supervisors and senior executives, to prevent losses caused by investment misjudgment.

Open Access Original Research Article

The Impact of Viewers’ Behavior and YouTubers’ Credibility in Advertainment on Building Consumer Trust

S. P. Wickramasinghe, S. D. Welgama, R. P. M. L. Rajapakse, N. Jayasuriya, A. A. S. N. Munasinghe

Asian Journal of Economics, Business and Accounting, Page 87-97
DOI: 10.9734/ajeba/2021/v21i930425

Advertainment is an upcoming concept in the current scenario combining two concepts called Advertising and Entertainment. This concept has helped modern day YouTubers to reach maximum customers within a short period. This study can facilitate spotting the factors of advertainment that have influenced on building client trust by YouTubers in Sri Lanka. In the recent years, YouTuber advertainment has become a trending advertising concept in Sri Lanka to grab the viewer’s attention as people are extremely tired of TV commercials and they tend to ignore them. However, the TV commercials were able to build the consumer trust by showing them repeatedly on traditional media. Therefore, will the YouTuber’s advertainment would also help to build consumer trust. In order to measure the impact of YouTuber advertainment on building consumer trust, viewers’ behavior and YouTubers credibility were selected as two variables. A quantitative approach was used as the research approach and data were collected via internet questionnaires and snowball sampling was used as the sampling method. The target population will be the young adults in Sri Lanka age 15 to 34 year olds who follow YouTubers content online. The results of this research revealed that viewers’ behavior has no impact on building consumer trust whereas YouTuber’s credibility has an impact on building consumer trust. Therefore, the YouTubers in Sri Lanka should maintain their Credibility among the community when creating their content of advertainment

Open Access Original Research Article

The Impact of Trade Openness on Trade and Tax Revenues in Nigeria (1981-2018)

Abaneme, Arthur Anyalewechi, Onakoya, Adegbemi

Asian Journal of Economics, Business and Accounting, Page 98-112
DOI: 10.9734/ajeba/2021/v21i930426

The challenge to provide enough resources to fund infrastructure development has been the bane of most developing countries like Nigeria. The appropriate economic and trade policies to deploy to increase revenue generating capacity of the government become compelling. This study examined the impact of trade openness on trade and tax revenue in Nigeria between 1981 and 2018. The study employed Augmented Dickey Fuller and Phillip Peron tests to conduct the stationarity tests. Akaike Information Criterion and Final Predictor Error provided the best lag lengths. Johansen cointegration test was used to determine the long run relationship. The study employed Vector Error Correction Model for the regression analysis while T- test and F test were also done to confirm the statistical significance of the variables and the models. For autocorrelation problem, Breusch-Godfrey serial correlation LM test were conducted and other post- estimation tests were also used. The result of the study showed that trade openness was negatively related with total tax revenue and with trade tax revenue (CED). The results indicate that a unit increase in trade openness leads to 11.58% decrease in trade revenue from CED and 13.69% decrease in total revenue. Trade openness as a policy to increase tax revenue was not beneficial to the country. Trade openness should be adopted with manufacturing and productive sector orientation in mind. In addition, tariff rates should be reviewed, and the tax structure should be transparent, and judicious use of tax resources should be implemented by government.