The Journal of Accounting and Management

Firm Characteristics and Non-financial information Disclosures of Elite issuers firms in Nigeria Exchange Group

Tue, 30 Apr 2024 00:00:00 +0000

The study examined the effect of firms’ characteristics on non-financialinformation disclosures of Elite issuers in Nigeria Exchange Group. It used eight (8) Elite Issuers firms as classified by the Nigeria Exchange group for 2021 financial period, spanning a period of ten (10) years (2012-2021), utilizing annual reports obtained from the firms in Nigerian Exchange Group. Panel least square regression model was used to test the perceived effect. The study used simple regression model and employed longitudinal survey research design. Hausman and Heteroskedasticity tests were respectively employed to determine appropriate effect of each variable as well as to ensure the reliability of results. Fixed panel estimator and Panel least regression analysis was employed to examine effect of firms’ characteristics on non-financial information disclosures of the studied firms. The findings revealed that: Elite Firms’ size has negative significant effect on non-financial information disclosures at 5% level of significance, and that firms’ age has positive and significant effect on non- disclosures. The study recommended among others that: Large firms should give reasonable attention to non-financial information disclosures in order to avoid negative spillover and reputational effects associated with inconsistency of non-financial information disclosures, as nondisclosure of nonbinding information poses a risk and speaks loudly against such firms. Therefore, all listed firms in Nigeria Exchange Group are encouraged to engage sincerely in non-financial information disclosures to maximize the antecedent benefits that are linked with non-financial information disclosures practices.

Effects of Enterprise Resource Planning (ERP) on the Financial Performance of WADE Funeral Services

Newman Wadesango, Clemence Karaga , Lovemore Sitsha — Tue, 30 Apr 2024 00:00:00 +0000

The research sought to determine the effects of enterprise resource planning (ERP) on the financial performance of WADE Funeral Services. Furthermore, those charged with the governance of WADE Funeral Company averred that the rampant changes in the digital environment with the introduction of Artificial intelligence, (AI), internet of things (IOT) and crypto services such as block chains is compromising the effectiveness of ERPs. The entity has been facing financial woes as it strives to keep pace with system upgrade costs, system updates, system maintenance and training costs. The financial performance of the entity has reached a milestone between the past 3 successive years from 2020 to 2022 as far as decreasing financial trajectories are concerned. The study adopted a mixed research approach. Data were collected using questionnaires and interviews. The study targeted 73 participants working at WADE Funeral Company’s head offices. It emerged that Adopting ERP affects the financial performance of WADE Funeral Company. Enterprise resource planning helps to corroborate resources and effectively optimize data management thereby improving the performance of corporate entities. WADE Funeral Company does not have the requisite technological infrastructure so embracing ERP can expose these firms to marginal costs. ERP help in streamlining administration and automating resource management, through ERP help to enhance efficiency and effectiveness. WADE Funeral Company is struggling to embrace and harness proceeds of ERP software due to political interference, economic oscillations, legal regulations, technological dynamism, illiteracy levels and poor management and leadership styles. There is a raft of factors which affects the implementation of ERPs in funeral services companies, and these can be internal or external factors.

Exploring the Conceptual Relationship between Motivation and Employee Optimal Performance in the Manufacturing Industry in South Africa

Sinekaya Jam-Jam, Ifeanyi Mbukanma — Tue, 30 Apr 2024 00:00:00 +0000

Abstract: The objective of this study was to explore the conceptual relationship between motivation and employee optimal performance in a manufacturing industry in South Africa. To achieve this objective, an exploratory literature review approach to research was employed, where information and deliberations on employee motivation, optimal performance, and the manufacturing industry were obtained from journals and publications of previous scholars, both local and international. This study’s findings revealed a significant positive impact of financial motivation, which includes salary increases, cash allowance, bonuses, and retirement benefits, with employees’ optimal performance in South Africa. Similarly, non-financial motivations such as position promotion, the award for recognition, training, and development, and involvement in decision-making were also ascertained to significantly positively impact employees’ optimal performance in manufacturing industries in South Africa. Previous literature was also found to agree that many employees agreed that award of recognition can stimulate employees to perform optimally in their job deliverables. It was recommended that organisations such as manufacturing industries should employ both financial and non-financial motivations as identified in this study to enhance employee optimal performance.

The Impact of Financial Globalization on Financial Development in Nigeria (1981 – 2021)

Dorothy Ivie Okoduwa — Tue, 30 Apr 2024 00:00:00 +0000

Financial globalization has been predicted to facilitates capital inflows and enhance the internationalization of financial services. Despite various financial liberalization policies, the performance of the Nigerian financial sector has been unimpressive. This study analyzed the impact of financial globalization on financial development in Nigeria. The study covered the period 1981 to 2021 and employed the Auto-regressive Distributed lag (ARDL) technique. The result from the study showed that financial globalization significantly enhanced financial development (proxied by banking sector development and enhanced stock market development). Thus, the study concluded that financial globalization is a significant driver of both banking sector development and stock market development. The study recommended the need for more active financial globalization reforms that can enhance the growth of the banking sector and the stock market.

Tax audit and its effect on tax compliance of MSMEs in Nigeria

Tue, 30 Apr 2024 00:00:00 +0000

The self-assessment regime comes with a lot of challenges in the tax system. One of the problems is tax compliance problem. This study, therefore, investigated the effect tax audits have on tax compliance of MSMEs in Nigeria. 500 MSMEs were selected for the study and the regression method through Statistical Package for Social Sciences (SPSS) was used for the analysis. The study found that tax audits do have a significant effect on the tax compliance of MSMEs in Nigeria. Also, intentional tax fraud investigation and enterprise tax return verification both have a significant effect on the tax compliance of MSMEs in Nigeria. Most of the local government revenue collectors or their agents have little or no adequate technical know-how to carry out tax audits on the businesses when the integrity of the books of account of the businesses is in doubt. To improve the tax base of the country, the government should train and retrain the tax authority staff and their agents to enhance their capacities in carrying out their assignment of collecting revenue and tax audits when the need arises.

International Corporate Strategic Alliances: Mergers & Acquisitions and Financial Value Creation

Collins, C Ngwakwe — Tue, 30 Apr 2024 00:00:00 +0000

Mergers and acquisitions are important financial and economic strategic alliance tools of the modern corporation. Objective: this paper aims to analyse the value creation implication from global strategic mergers and acquisitions. Prior work: the paper inclines on the synergy theory of mergers and acquisitions. Method: reliant on the synergy theory, the paper is quantitative to examine the effectiveness of the number of global alliances on the financial value from mergers and acquisitions. Data were collected from the Institute for Mergers, Acquisitions and Alliances for thirty-nine years (1985 - 2023). The data were analysed with the aid of OLS regression statistics. Results: tested at an alpha value of 0.05, the results show positive and significant effect at a p-value of P<0.0001, which confirms that global mergers and acquisitions produce a highly significant and positive financial value even after a long-term period of thirty-nine years. Implication: the paper has implication for business executives on the value of international alliance; and for business schools as a case that bolsters the synergy theory of merger and paves a new agenda for future research. Value: the paper applies a unique model by using global data on strategic alliances for an extended period of over three decades and debunks uncertainties in research to show that mergers and acquisitions can produce significant financial value into the future when done rightly, which is across international boundaries.

Conceptual Interface between Sensory Marketing and Impulsive Buying Behaviour of Millennials in South Africa

Thandazile Samukelisiwe Ntobela , Ifeanyi Mbukanma — Tue, 30 Apr 2024 00:00:00 +0000

Millennials in recent times has increase percentage participation in the retail market, which has been informed by diverse factors attributed to their socioeconomic exposures. It is also evident that the pattern of purchasing behaviour of millennials has its own consequences, which include buying out of their budget, making unplanned purchases, and even deviating from their fashion sense. These consequences engineered the objective of this study to systematically reveal the conceptual interface between sensory marketing and impulsive buying behaviour of millennials in South Africa. To achieve this objective, an exploratory literature review approach to research was employed, where information and deliberations on impulsive buying behaviour, millennials, sensory marketing were obtained from journals and publications of previous scholars both local and international. The findings of the study revealed that store environment, floor merchandising, and sales promotions significantly influence the pattern of purchasing behaviour of millennials, which triggers impulsive buying. It was recommended that marketers who focus on millennial goods and services should employ the findings of this study to increase impulse purchases. On the side of the millennials, they should familiarise themselves with different marketing strategies to critically manage their buying pattern.

Corporate Characteristics and International Financial Reporting Standards (IFRS) Compliance among Family-owned Listed Firms in Nigeria

Muyiwa Alade, Adeparubi Olateru-Olagbegi — Tue, 30 Apr 2024 00:00:00 +0000

The study investigated the effect of corporate characteristics on the International Financial Reporting Standards (IFRS) compliance of listed family-owned businesses in Nigeria. Secondary data were used to achieve the objective of the study. The population comprised thirty-seven family-owned firms listed in Nigeria Exchange Group as at 31^st December, 2021. The study adopted purposive sampling technique to select thirty-three listed family-owned businesses based on at least 5 percent voting right, and data availability. Unbalanced panel data covering 2012 – 2021 were drawn for the purpose of analysis. The collected data were analyzed using descriptive and inferential statistics such as panel regression technique. The results showed that board gender diversity had positive effect on the level of IFRS compliance among the family-owned listed firms in Nigeria, and auditor-type significantly influence level of compliance with IFRS by the firms. Also¸ leverage of the firm had negative effect on the family-owned businesses’ extent of compliance with IFRS in Nigeria. The study concluded that corporate characteristics present significant effect on the IFRS compliance of family owned businesses in Nigeria. The study has policy implication for the accounting standard setters in Nigeria and globally, that is Financial reporting Council of Nigeria and International Accounting Standards Board (IASB).

Managerial Particulars of Marketing Research for Companies Producing White Sea Buckthorn

Sergiu Mirza, Igor Balan, Constantin Lupu — Tue, 30 Apr 2024 00:00:00 +0000

One of the most important characteristics of any agricultural enterprise concerns the enormous number of decisions it faces on a daily basis. In this way, decisions are made related to the activity of the research and development department, of the marketing, production, financial, human resources, etc. Strategic decisions are taken - of long-term scope and impact, or tactical decisions - narrower in terms of time horizon and complexity. In this complex gear of decisions, those regarding marketing particularly attract attention; through its own philosophy, marketing aiming not only at the simple attraction of customers, but - and only here begins the difficulty of its conception and practice -, ensuring their satisfaction after consumption. The solution of the difficult problems that the agricultural enterprise faces in the implementation of the marketing spirit in a scientific, modern way is carried out on the basis of a complex set of information, which allows it to correctly orient itself on the market and make the decisions that are optimal for it . Having valuable information, managers make marketing decisions burdened by the lowest dose of risk possible under the given conditions. Marketing research therefore provides precisely the information necessary for the organization to practice the modern marketing concept in its businesses.

Exploring the Influence of Forensic Accounting Techniques on the Market Value of Selected Deposit Money Banks in Nigeria

Muyiwa Dagunduro, Olayinka Boluwaji, Joseph Ajayi, Gbenga Falana — Tue, 30 Apr 2024 00:00:00 +0000

Abstract: Market value, a key indicator of investor confidence, reflects not only the financial performance but also the broader sentiment within the financial market. By examining how forensic accounting techniques influence market value, this study aims to unravel the nuanced impact of these practices on the banking industry's standing and investor perceptions. Data were sourced from annual records of deposit money banks listed on the Nigerian Exchange Group (NGX). The study focused on a population of ten (10) selected deposit money banks listed on NGX. The study employed a census sampling technique and the total population was investigated. The collected data in this study underwent analysis using both descriptive and inferential statistical methods. This study revealed that forensic accounting techniques exhibit a positive and significant effect on the market value of deposit money banks in Nigeria. This implies that the application of forensic methods holds meaningful influence, garnering positive responses from investors and the market at large. It was concluded that the positive and significant impact of forensic accounting techniques underscores their meaningful influence on market value, emphasizing their importance in financial practices. This study therefore recommends that banks should consider investing in forensic accounting techniques to bolster their financial practices and enhance market value.

Management Aspects of the Quality of Auditing Services through the Prism of Philosophical and Economic Concepts

Igor Balan, Constantin Lupu, Mirela Moldovan — Tue, 30 Apr 2024 00:00:00 +0000

Currently, the problems that arise in the audit activity not only in individual countries, but also in the world as a whole, are of an institutional nature and are associated with the inefficiency of the functioning of the audit institution as a whole. The most important function of the audit institution is to establish the quality of published financial information of socially significant economic entities, and one of the possible dysfunctions is to confirm poor-quality financial information on the performance of such economic entities. The elimination and prevention of this dysfunction in the future is possible only with the introduction of an effective mechanism for ensuring the quality of the audit. In this paper, the authors reveal some aspects of quality, as one of the most ancient categories, through the prism of philosophical and economic concepts.

Insolvency Prediction of Georgian Construction Sector Companies

Tatuli Dushuashvili — Tue, 30 Apr 2024 00:00:00 +0000

Insolvency prediction is one of the critical issues for a company’s financial health analysis. It allows revealing the factors affecting a company’s financial state and foresee conditions threatening its financial health. Consequently, numerous research was done in bankruptcy/insolvency analysis. However, no unique model predicts the insolvency of any type of firm. Models differ according to industry-related features and country-specific characteristics. The paper aims to evaluate the financial health of the construction companies operating in small and developing countries like Georgia and predict their future insolvency. The analysis of companies’ individual financial statements was conducted to determine financial health, based on which the insolvency prediction model of construction companies was created. The model applied logistic regression and used key financial ratios to predict insolvency probability. According to the results, the model accuracy reached 90%, meaning that the model predicts insolvency by 90%. The study is one of the first attempts to predict the insolvency of Georgian companies by using financial ratios, as the publicly accessible data on financial statements recently became available. The model developed in the paper will help researchers predict the insolvency of the construction sector in countries with similar characteristics to Georgia.

Comparative Analysis of the Role and Functions of Public Accounts Committees (PACs) & Accountability Mechanisms in Nordic Countries

Junaid Butt — Tue, 30 Apr 2024 00:00:00 +0000

A Public Accounts Committee (PAC) is an essential parliamentary bodies within a legislature found in many countries around the world to oversee the spending of public funds and ensure that the funds are used efficiently and effectively and ensures transparency and accountability within the government. Public Accounts Committees (PACs) play a crucial role in ensuring transparency and accountability in government spending and also in holding the executive branch accountable for its use of public funds. This research conducts a comparative analysis of the role and functions of Public Accounts Committees (PACs) across Nordic countries (Denmark, Finland, Iceland, Norway, and Sweden), aiming to provide insights into the variations and commonalities within these parliamentary oversight bodies. The analysis encompasses factors such as legal frameworks, parliamentary procedures, institutional relationships with audit offices, and the level of public engagement. By examining the structure, mandate, powers, and operational mechanisms of PACs in Denmark, Finland, Iceland, Norway, and Sweden, this study seeks to identify similarities and differences in their approaches to financial oversight. It will explore how these variations are shaped by factors like the specific institutional design of each Nordic parliament, the historical development of their public finance systems, and the cultural emphasis on transparency and good governance within these countries. Additionally, the research evaluates the effectiveness of PACs in fulfilling their oversight responsibilities and highlights potential challenges faced by these committees in the Nordic context. Ultimately, this comparative study aims to contribute to a deeper understanding of parliamentary financial oversight mechanisms in Nordic countries and offer valuable insights for enhancing the accountability and transparency of public financial management systems.