Open Access Short Research Article

Corporate Social Responsibility and Financial Sustainability of Oil and Gas Firms in Nigeria

Orajekwe Jerry Chukwuebuka, Okafor Obumneme Obiora, Okoye Emmanuel Ikechukwu

Asian Journal of Economics, Business and Accounting, Page 46-56
DOI: 10.9734/ajeba/2021/v21i1930505

Aims: The study examined the effect of corporate social responsibility on financial sustainability  of quoted oil and gas firms in Nigeria.

Study Design: The research work adopted for the study ex-post facto research design. Secondary data spanning 2009 to 2020 was sourced and collated from financial statement of oil and gas firms annual report in Nigeria and Nigeria Stock Exchange factbook.

Place of Study: Department of Accountancy, Nnamdi Azikiwe University, Awka, Anambra State, Nigeria.

Methodology: The data was analyzed employing the Pearson coefficient correlation and least square regression technique.

Results: The study revealed that corporate social responsibility has a significant positive effect on net profit margin and return on asset of quoted oil and gas firms in Nigeria at 5% level of significance.

Conclusion: Given the integral role the Oil and Gas sector plays in Nigeria, this paper showed the importance of corporate social responsibility in ensuring the financial sustainability of corporations in the Nigerian Oil and Gas industry.

Open Access Original Research Article

On Exports and Capital Formation in Nigeria

Uzoma Chidoka Nnamaka, Chukwuma-Ogbonna Joyce

Asian Journal of Economics, Business and Accounting, Page 1-10
DOI: 10.9734/ajeba/2021/v21i1930501

One remarkable importance of exports is that it enables countries generate the required foreign capital needed to drive sustainable growth and development. This is to say that export earnings are capable of increasing capital formation through real investment. This study therefore focused on the impact of exports to capital formation in Nigeria for a 40-year time period spanning from 1981 to 2020. Related works on the subject matter were reviewed. The unit root test showed that all the variables attained stationarity after first difference. The Johansen cointegration test result showed that there exists a stable long run relationship between gross fixed capital formation, oil export, non-oil export and exchange rate in the model. Using the ordinary least square (OLS) estimation technique in analyzing the data sourced, the results showed that oil export had a negative and insignificant impact on capital formation in Nigeria. Similarly, non-oil export and exchange rate exerted insignificant negative influences on capital formation in Nigeria for the period covered by the study. Based on the findings from the study, the following recommendations were made. First is that the proceeds from crude oil export should be used to acquire capital assets for investment which will in turn drive growth in the economy. Also the government through the central bank of Nigeria (CBN) and relevant agencies should pay more attention to the non-oil sector in terms of the implementation of favourable policies, grants and loans, tax incentives, research and development, etc. to improve the export of the sector, making it compete favourably in the international market. This is because crude oil is an exhaustible asset that is liable to depletion. Finally, efficient exchange rate policies should be implemented by government through the relevant authorities to protect the value of the naira while ensuring that the products are not too dare in the international market.

Open Access Original Research Article

Reaction of Sharia Capital Market toward Political Events in Indonesia

Sisca Debyola Widuhung

Asian Journal of Economics, Business and Accounting, Page 11-20
DOI: 10.9734/ajeba/2021/v21i1930502

This study aims to examine the reaction of the sharia capital market to political events in Indonesia. The political events referred to in this study are the events of the 2014 and 2019 presidential elections. The market reactions used are abnormal returns and stock trading volume. The sample in this study is stocks included in the Jakarta Islamic Index (JII) during the study period, which are 22 stocks. This study used an event study with an observation period of 21 trading days, namely 10 trading days before, one day of the day event, and 10 trading days after the 2014 & 2019 presidential and vice presidential elections. From the result, it can be seen that both tests are greater than 5%. Therefore, H0(1 and 2) are accepted.

Open Access Original Research Article

The Mediating Role of Customer Satisfaction and Brand Trust between the Relationship of Perceived Value and Brand Loyalty

Ikramuddin ., Mariyudi .

Asian Journal of Economics, Business and Accounting, Page 21-33
DOI: 10.9734/ajeba/2021/v21i1930503

Aims: This study aims to determine the mediating effect of customer satisfaction and brand trust between perceived value and brand loyalty of telecommunications services.

Study design: Research paper.

Place and Duration of Study: This research was conducted on telecommunication service product users in Aceh province, between 2019 to 2021.

Methodology: The population in this study are telecommunication service customers in Aceh Province. Meanwhile, the sampling method used a purposive sampling approach, with a total sample of 304 telecommunication service users. The data analysis method used in this study is a quantitative approach consisting of Structural Equation Modeling (SEM) with Amos 2.2 and Sobel Test for testing the mediating effect.

Results: This study finds that perceived value significantly influences customer satisfaction and brand trust (P-Value 0,000), which means that telecommunications service providers must always provide products with values that exceed customer expectations to increase customer satisfaction and trust. Then, customer satisfaction and brand trust have a significant effect on brand loyalty (P-Value 0,000 and 0,013). It means that telecommunications service providers must always evaluate the conditions of customer satisfaction and increase customer trust in the brands of telecommunications service to increase customer loyalty to the brand. Besides, perceived value also affects directly and indirectly on brand loyalty through customer satisfaction and brand trust.

Conclusion: The results showed that perceived value, customer satisfaction, and brand trust had a significant effect on brand loyalty to telecommunication services in Aceh Province. Furthermore, customer satisfaction and brand trust can mediate the relationship between perceived value and brand loyalty of telecommunication services in Aceh Province.

Open Access Original Research Article

Assessing the Impact of Strategic Management Practices on the Performance of Commercial Banks in Makurdi – Nigeria

David Adugh Kuhe, Victor Utor, Darius Ikyanyon

Asian Journal of Economics, Business and Accounting, Page 34-45
DOI: 10.9734/ajeba/2021/v21i1930504

The aim of this study is to assess the impact of strategic management practices on the performance of some commercial banks in Makurdi – Nigeria. The study utilized primary data obtained through structured questionnaire administered to 160 respondents sampled from seven commercial banks in the study area. The collected data from the study were analyzed using descriptive statistics, percentages, correlation and regression analysis. The correlation results showed that strategic management practices are highly positively and significantly related to organizational performance. The regression result which explains about 99.9% variability in the model revealed that strategic management had positive and significant impact on the performance and profitability of commercial banks. The study recommended among other things that the management of the commercial banks should enhance the strategic management techniques in order to improve performance.

Open Access Original Research Article

Internal Control: Its Role in the Reduction of Fraud and Professional Misconduct among SMEs

Okeke, Stella Ehis, Offor, Stephanie Ifunanya, Chukwunwike, Onyekachi David

Asian Journal of Economics, Business and Accounting, Page 57-66
DOI: 10.9734/ajeba/2021/v21i1930506

The issue of fraud and professional misconduct is a challenge to many organizations. However, the small-scale and medium-scale enterprises (SMEs) are more vulnerable. This study evaluates the role of internal control in the reduction of fraud and professional misconduct among SMEs in the Enugu metropolis. This study adopted survey research design. The research made the following major findings: that internal controls are put in place by SMEs, that internal controls are adhered to in SMEs, and that the internal controls implemented are effective in curbing fraud and professional misconduct in SMEs. Hence, the research recommend that owners and managers of SMEs should evaluate existing internal control systems and continue to implement good internal controls and ensure that proper financial records are kept and statements are prepared periodically, and small-scale enterprises that do not have internal controls should establish such and implement them to curb fraud and professional misconduct and thereby improve efficiency of operations.