Accounting and Finance Research

Journal Information
ISSN / EISSN : 1927-5986 / 1927-5994
Current Publisher: Sciedu Press (10.5430)
Total articles ≅ 529
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Latest articles in this journal

Rafiqul Bhuyan, Mohammad Sogir Hossain Khandoker, Noshin Tasneem, Mahjuja Taznin
Published: 28 December 2020
Accounting and Finance Research, Volume 10; doi:10.5430/afr.v10n1p36

Abstract:
We examine the impact of efficient working capital management on market value and profitability. Using secondary data on selected firms from Dhaka Stock Exchange we explore the effects of various working capital components (i.e. cash conversion cycle (CCC), current ratio (CR), current asset to total asset ratio (CATAR), current liabilities to total asset ratio (CLTAR), debt to asset ratio (DTAR), siz,e and growth) to the firm’s performance by looking firm’s value i.e. Tobin’s Q (TQ) and profitability i.e. return on asset (ROA) and return on invested capital (ROIC). Our results show that, for both food and overall manufacturing sectors, there is a significant association between working capital variables and firm’s value & return on assets, but an insignificant association with return on invested capital.
Vahid Gholampour
Published: 28 December 2020
Accounting and Finance Research, Volume 10; doi:10.5430/afr.v10n1p11

Abstract:
The paper examines the effect of monetary policy statement shocks on exchange rates. I use Google's Natural Language tools to measure and track changes in the sentiment of FOMC and ECB post-meeting statements. The results reveal a negative relationship between the dollar's value and FOMC statement shocks. Investors sell (buy) the dollar when the sentiment of the FOMC statement is more positive (negative) than the previous one. This negative relationship could be explained by the special status of the U.S. dollar as a safe-haven currency and the significant effect of U.S. monetary policy on other countries' macroeconomic fundamentals. The value of the euro is positively related to ECB statement shocks. The size of the exchange rate response to statement shocks is comparable to that of term structure shocks. There is no material difference between the response of exchange rates in conventional and unconventional times. Statement shocks affect the exchange rates through the information channel.
Rashid Khan, Akash Dania, Dialdin Osman, Dexter Gettins
Published: 28 December 2020
Accounting and Finance Research, Volume 10; doi:10.5430/afr.v10n1p1

Abstract:
The market for the next-generation learning management system (LMS) for higher education is poised to grow by the US $3.04 billion during 2020-2024 (MarketWatch, 2020), creating technological opportunities in the higher education learning landscape particularly due to growth in remote learning due to COVID-19 pandemic. This rapid growth necessitates an urgent need to integrate technology with the instructional design in academic programs at the Higher Educational Institutes (HEIs) globally. The existing literature on the LMS suggests a considerable resistance among the instructor group towards technology adoption in pedagogic strategy. LMS has been in existence for almost two decades, however, they have not been leveraged to their full potential. An understanding of the nature of technology adoption among instructor group is even more pronounced for the HEIs of emerging market economies (EMEs). An efficient and technology-inspired educational construct will boost the overall competitiveness of the EME's in their respective population skill development and attracting foreign investments for industrial growth. Moreover, given the lessons learned from the epidemiological uncertainties, such as most recently, the COVID-19 pandemic, educators should be prepared to utilize LMS to their full potential. The purpose of this study is to investigate the barriers and motivators in LMS adoption among emerging market economy HEIs and to propose a technology adoption model based on the Unified Theory of Acceptance and Use of Technology (V. Venkatesh et. al., 2012). The results of this study suggest implementing a dynamic feedback mechanism of technology adoption by instructors, and the need for HEIs to articulate strategic plan goals that focus on faculty professional development in the use of technology to build confidence among instructor group to enable the adoption of technology for instruction.
Dejene Debebe Kibret
Published: 28 December 2020
Accounting and Finance Research, Volume 10; doi:10.5430/afr.v10n1p58

Abstract:
Factors affecting turnover tax collection performance. A case of West Shoa Zone selected districts. In 2017/18 the targeted revenue was 9041224 birr with the actual revenue being 7888536 birr (equivalent to 87.25% or a difference of 1152688) was existence of turnover tax collection gap. This study used mixed research approach and sampling (Systematic random, purposive sampling). Sample sizes 373 respondents selected and distributed questionnaires and interview. Data analyze by SPSS version 20 and factor analysis. Findings revealed that; employee qualification and manpower, taxpayer registrations, technology and information system, management commitment level and tax knowledge affects turnover tax performance positively. It was revealed that perpetuation tax fairness affects negatively where as compliance cost has a negative statistically insignificant. They concluded that the problems facing revenue administration office while collecting turnover tax. Based on the study recommended that revenue authority need to develop strategic management commitment, recruit sufficient number of employees and continues training qualification, maintaining tax fairness and equity, improve taxpayer identification and registration, increase number of users of Electronic Tax Register, extensive tax knowledge (awareness) creation programs update and maximize frequency tax audit effective on field compromising a priority task.
Alem Gebremedhin Berhe
Published: 28 December 2020
Accounting and Finance Research, Volume 10; doi:10.5430/afr.v10n1p48

Abstract:
The rationale of this paper is to measure the productivity change of commercial banks in Ethiopia based on DEA-based Malmquist productivity index approach. For this purpose, this study employed a balanced panel data of eight commercial banks operating from 2006 to 2017. The result shows that the banks under study were found to have reported a slight productivity progress of 0.4% over the whole study period. The productivity improvement is accredited to the technological progress (0.9%) rather than the efficiency loss (0.5%). Meanwhile, the finding suggests that the decline in the technical efficiency of the banks was caused both by pure technical efficiency and scale efficiency. Alternatively, the finding of the study indicates that the productivity performance of all the banks under study, with the exception of AIB and CBE, remain almost constant in spite of their size during the period. AIB and CBE have exhibit an average productivity progress of 2% and 1.4% respectively during the study period. In the study period, AIB was found to be the most inefficient (2.4%) and the most productive one (2%) comparing to other banks in the study due to retrogress in scale efficiency change (2.1%) as well as technical progress (4.5%) in that order. Further, the paper suggests that the productivity performance of the banks under study was not significantly different in the period. So, the banks have to move forwards their technology to increase productivity more and more, while improving the resource utilization efficiency by up grading their managerial practices and scale operations (optimum size)
Yiannis K. Yiannoulis
Published: 28 December 2020
Accounting and Finance Research, Volume 10; doi:10.5430/afr.v10n1p75

Abstract:
The scope of this paper is to provide a synopsis of the accounting research in the Hellenic corporate environment. In addition, we will examine the quality of audit in publicly listed companies, as prescribed by the term “audit gap”; this term specifies and characterizes the growing public concern regarding the audit report credibility and efficiency.These two topics (Hellenic accounting and auditing environment) have been isolated and examined from the previous researchers in depth; however, the novel think of this study is that it examines this “audit gap”, which is the gap between the expectations the public has from the auditors and what auditors actually do in their reports (Caramanis, 2008). This research is useful for capital market and audit authorities as they should focus more on improving audit work and preparing accounting and auditing standards that prevent earnings management. However, our study has the limitation that it examined the capital market, audit and accounting environment of a single country, i.e. Hellas/Greece.
Prince Acheampong, George William Earl
Published: 19 October 2020
Accounting and Finance Research, Volume 9; doi:10.5430/afr.v9n4p85

Abstract:
Doubts remain among stakeholders in academia and the housing industry about the potential success of build-to-rent to generate positive outcomes for institutional investors and affordable dwellings for low- and moderate-income households. However, a systematic study on the viability of build-to-rent to deliver affordable housing in Australia is largely rare and non-existent in the literature. We fill this gap in the literature by investigating the financial viability of build-to-rent and its potential to generate affordable rental housing outcomes in Brisbane, Australia. Using rental prices from CoreLogic (Formerly RP data) and construction-related costing data from WT Partners Australia for 2019, we apply the whole-life costing approach to investment analysis and confirm that build-to-rent can be feasible in Australia under equity financing. Also, we find that under the current regulatory regimes and market structure, build-to-rent will fail to deliver affordable housing outcomes. Moreover, providing free land alone cannot help to make build-to-rent affordable. Thus, significant public subsidy and tax concessions, particularly on Goods and Services Tax (GST) on construction-related costs, may be required if build-to-rent developments are to generate affordable housing outcomes in Australia.
Osman Nal, Andrew Cai
Published: 19 October 2020
Accounting and Finance Research, Volume 9; doi:10.5430/afr.v9n4p17

Abstract:
In this study we provide a practical framework and methodology for analyzing the effects of banking shocks (economic or financial in nature) on bank fundamentals, that avoids the use of complicated econometrics methods. For this, we focus our attention to the effects of the 2007-2008 global financial crisis on the four largest US banks and examine the variation of trends in the select financial ratios for those institutions using quarterly regulatory data running from 2002-Q4 to 2020-Q2. We start by plotting time series charts of those financial ratios for each bank and compare the before-crisis, transition and after-crisis periods. For this, we simply fit trend lines with three parameters of shift, slope, and volatility to the banking data. The shift parameter describes the level change of the variable when before- and after-crisis periods are compared. The slope parameter pronounces the difference in steepness of the trend lines, while the volatility parameter is associated with all three periods and describe the variation in the data during each period. Our results indicate that capital ratios, an important regulatory financial ratio, are higher across the board in the after-crisis period compared to before-crisis period, suggesting a positive shift. We don’t see significant changes in slope parameter for the capital ratio series leading us to suggest the use of dummy variable regression model where slope is treated as a fixed constant. We further show that pre-crisis and transition periods are characterized by higher volatilities that ultimately subside in the after-crisis period. Lastly, we conclude by suggesting that financial practitioners use the shift, slope and volatility parameters in understanding trends in financial time series data since it is easy to implement and interpret the results compared to more sophisticated econometric models.
Sabrina Severini
Published: 19 October 2020
Accounting and Finance Research, Volume 9; doi:10.5430/afr.v9n4p32

Abstract:
The aim of this paper is to offer a comprehensive review of Initial Public Offering literature on the pricing and interactions that occur in the IPO primary market. Among the multitude of variables that might affect the way shares are priced and sold in new offerings, the role of previous relationships between issuing firms, investment banks, and institutional investors, i.e. key participants in the listing process, is the object of analysis in the present paper. Existing mixed evidence suggests that repeated interactions among the major players could influence the IPO results in two ways: either by reducing asymmetric information problems or by determining opportunistic behaviours which can be seen in well-known secondary market price anomalies. The originality of the paper lies in the fact that it is the first to provide a review of literature on IPO primary market dynamics, thereby highlighting the way in which relationships between key parties of an IPO shape the entire pricing process. Moreover, this study points out the importance of shifting attention to this market in order to better understand IPO pricing dynamics.
Afnan Alturiqi, Khamoussi Halioui
Published: 19 October 2020
Accounting and Finance Research, Volume 9; doi:10.5430/afr.v9n4p44

Abstract:
The purpose of this study is to empirically investigate the relationship between intellectual capital (IC) measured by the value-added intellectual coefficient (VAIC) and firms’ performance (FP) in the Saudi context. Data are drawn from a sample of 25 Saudi firms listed on the Saudi Stock Exchange (Tadawul) for the period 2015-2018. Using the VAIC model, the multiple linear regression models were constructed to examine the relationship between intellectual capital (IC) and firms’ performance (measured in terms of financial and market performance). The findings indicate that there is a positive association between overall intellectual capital efficiency as well as each of its three components (human capital efficiency, structural capital efficiency, capital employed efficiency) and the firms’ financial performance. Additionally, there is a positive association between human capital efficiency(HCE), structural capital efficiency (SCE), and the firms’ market performance. Overall, the findings suggest that human capital efficiency (HCE) has a significant and positive impact on firms’ financial and market performance in Saudi Arabia. The VAIC method may be a useful tool for managers and investors in their decision process. This is the first study about the impact of intellectual capital on firms’ performance in four industry groups in Saudi Arabia using the VAIC model.
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