Journal of Economics, Finance and Accounting Studies

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EISSN : 2709-0809
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Articles in this journal

, Bambang Mulyana
Journal of Economics, Finance and Accounting Studies, Volume 3, pp 13-22; doi:10.32996/jefas.2021.3.2.2

Abstract:
The change in the Allowance for Impairment Losses calculation method from FASS 55 to FASS 71 in Indonesia requires banks to consider macroeconomic variables as variables in calculating Allowance for Impairment Losses. This research has an objective to study and analyze the effect of macroeconomic proxied by GDP, inflation, exchange rate, unemployment rate, BI rate, and loan growth on NPL and its implications for Allowance for Impairment Losses. The population of this research was issuers of foreign exchange banks in 2011-2019, with a total sample of 26 issuers of foreign exchange banks. This research uses the panel data regression method to analyze the data. The research results found that macroeconomic variables proxied by GDP, inflation, exchange rates, unemployment rate, BI rate, and loan growth did not significantly affect NPL. In contrast, NPL had a significant effect on Allowance for Impairment Losses. This research implies that banks are expected to improve credit quality management against the effects of macroeconomic fluctuations. As a result, the NPL ratio remains under control and does not increase the burden of Allowance for Impairment Losses.
M. Noor Salim, Dhermawan Ismudjoko
Journal of Economics, Finance and Accounting Studies, Volume 3, pp 01-12; doi:10.32996/jefas.2021.3.2.1

Abstract:
The purpose of this research is to determine companies financial distress base on Altman, Springate, Zmijewski, Ohlson and Grover Models and to assess the accuracy of those five prediction models in coal mining sector firms listed in Indonesia Stock Exchange (IDX) for the period 2015 – 2019. This research has 22 samples of 23 coal mining firms listed in IDX base on the purposive sampling technique. This study is a descriptive design using quantitative and panel data. The research data is analyzed using the Kruskal Wallis test because there are more than two prediction models to compare and the data are not normally distributed. The result indicates that the Modified Altman and Ohlson Models are the most accurate predictive models because these models have the highest accuracy rate of 90.91%, followed by Zmijewski Model, which has an accuracy rate of 86.36%, then Grover Model has 81.82% accuracy rate, and the lowest prediction rate is Springate Model with the value of 63.64%.
, Dauda Olalekan Yinusa
Journal of Economics, Finance and Accounting Studies, Volume 3, pp 72-80; doi:10.32996/jefas.2021.3.1.7

Abstract:
More recently, there has been increasing recognition of gender perspective to achieve economic growth and sustainable development. Although the nexus between gender equality and economic growth has enjoyed sizeable consideration in the literature, empirical evaluation of the economic growth effect of female economic participation is few. Hence, this study seeks to examine the relationship between female economic participation and the economic growth process of the sub-Saharan African region. In particular, the study tests whether there is an economic growth premium due to female participation in economic activities using data for a sample of 35 sub-Saharan African economies. Employing the Prais-Winsten regression, the findings suggest the existence of a significant positive effect of female economic participation on economic growth in the region. Specifically, a per cent increase in female employment rate and female labour force participation leads to a 0.028 per cent and 0.021 per cent increase in economic growth. Also, the share of working population, domestic credit to the private sector and urbanization rate are positively correlated with economic growth during the study period. The findings imply that female economic empowerment is important for achieving economic growth in the region; hence empowerment of women and girls should be made focal in national and regional development plans as stipulated in goal 5 of the Sustainable Development Goals (SDG) plan.
Journal of Economics, Finance and Accounting Studies, Volume 3, pp 33-38; doi:10.32996/jefas.2021.3.1.3

Abstract:
This study investigates the impact of financing decision on investment decision of 198 non-financial companies listed on the Colombo Stock Exchange of Sri Lanka, eight years period from 2011 to 2018. This study employed the Generalized Method of Moments (GMM) model to estimate the regression models on panel data study. The major contribution of this study shows that the impact of financing on investment decisions of listed companies. The results of the study revealed that, the impact of total debt on changes in total asset and Tobin’s Q was insignificant negative and significant negative respectively. However, the impact of long term debt on changes in total asset and Tobin’s Q was significant negative and insignificant negative respectively. Therefore, the impact of financing decision is significantly negative on investment decision.
Herath Mudiyanselage Kasun Salitha Bandara, Ahamed Lebbe Mohamed Jameel,
Journal of Economics, Finance and Accounting Studies, Volume 3, pp 65-71; doi:10.32996/jefas.2021.3.1.6

Abstract:
This paper aims to investigate the impact of credit risk on the profitability of the banking sector in Sri Lanka. The profitability is measured with and Return on Assets. At the same time, credit risk is quantified with four indicators: Non-performing loan Ratio (NPLR), Loan to Deposit Ratio (LDR), Net Charge off Ratio (NCOR), and Capital Adequacy Ratio (CAR). Data from thirteen banks over eight years from 2010 to 2017 was analyzed using panel data regression analysis. The finding shows that the Profitability of the Banking Sector in Sri Lanka has been determined by important determinants such as credit risk. The study further finds that non-performing loans have negative and significant return on assets. However, the net charge-off ratio and the loan to deposit ratio are not important variables for expanding the bank's profitability. On the other hand, the CAR positively impacts returns on assets. The study suggested the need to strengthen the management of credit risk in order to preserve Sri Lankan banks' current profitability.
Musthapha Mufeeth, A.M. Nihab, Noordeen Nusrathali
Journal of Economics, Finance and Accounting Studies, Volume 3, pp 58-64; doi:10.32996/jefas.2021.3.1.5

Abstract:
The study was carried out to find the factors affecting commercialization of vegetable that produced from the home garden and its average level of commercialization. A structured questionnaire and field observation techniques were used to collect data from 232 randomly selected home gardeners in the South East part of Sri Lanka. The Tobit regression model was applied to study the significant factors that influenced home garden vegetables' commercialisation. The present study found that the average home garden vegetable commercialization level was 32.3 per cent. Further, the commercialization significantly (p<0.05) had a negative impact on the farmer’s level of education, family income, size of the family, health consciousness of home gardener, and losses by the pest and disease whereas the marital status, the number of family labours involved in home gardening and institutional supports significantly increase the commercialization. The research recommends that public and private sector involvement is needed to support through the training program and advisory services to control pest and disease attack. Further, the study area needs to be appreciated and promoted via appropriate policy intervention strategies to develop a good structure value chain and market.
Eitedal M. S. Alhelou, Abdel-Rahman M.S. Rashwan,
Journal of Economics, Finance and Accounting Studies, Volume 3, pp 11-32; doi:10.32996/jefas.2021.3.1.2

Abstract:
The study mainly aimed at identifying the role of using cloud computing in improving the quality of accounting education in Palestinian universities in light of the Covid-19 pandemic, and to answer research questions and test the study hypotheses, the researchers adopted the descriptive and analytical approach, and the questionnaire was used as a study tool, and the study community is formed of the (63) members of the teaching staff working in the accounting departments in the faculties of commerce in the Palestinian universities in Gaza Strip, and due to the small size of the community, the method of comprehensive community enumeration was used. The results of the study also found that the use of cloud computing in accounting education helps faculty members and students to access and retrieve their files and applications at any time and from anywhere in light of the Covid-19 pandemic and it also helps develop students' technological skills to suit the requirements of the labor market. The study also recommended the necessity of using cloud computing in accounting education in Palestinian universities for its role in developing the professional and technological skills of students, and improving their educational attainment by obtaining the largest amount of useful information, especially in light of the Covid-19 pandemic.
, M.M Siyam, Mca. Nazar, Macf. Aroosiya
Journal of Economics, Finance and Accounting Studies, Volume 3, pp 81-88; doi:10.32996/jefas.2021.3.1.8

Abstract:
The COVID-19 has redefined the world operation. Specially COVID-19 pandemic shows a higher impact on the business field. Accordingly, this study aims to find the impact of corporate governance on firm performance during the Covid-19 pandemic in Sri Lanka. The quantitative methodology deployed and secondary data was collected from 27 companies listed in Colombo Stock Exchange (CSE) for 209 and 2020. The results depicted that pandemic has affected the Corporate Governance (CG) measures unfavorably. Further, board size and qualification of director’s show a positive association between firm performance meantime, NED proportion, Gender diversity, Board meeting, Audit committee size and Audit committee meeting show a negative association between firm performance. It clearly reveals that COVID-19 severely impact the corporate governance attributes and firm performance. The corporate management, regulators, and investors must consider the board’s board size and qualification to recover the corporate sector in any crisis. This study provides a unique contribution to the literature of COVID-19 and firm performance in emerging economies.
, Kitsali Katungo Jean-Hélène, Mushagalusa Balasha Arsène
Journal of Economics, Finance and Accounting Studies, Volume 3, pp 01-10; doi:10.32996/jefas.2021.3.1.1

Abstract:
La République démocratique du Congo figure parmi les plus grands pays bénéficiaires de l'aide publique au développement (APD) au monde et est comptée simultanément parmi les pays les plus pauvres du globe avec l'indice de développement humain et le revenu national brut par habitant les plus bas. Cela soulève de sérieuses questions sur l'efficacité de l'APD à promouvoir la croissance économique et à réduire la pauvreté dans le pays. Pour ce faire, les données relatives à l'APD de près de trois décennies (1990 à 2018) ont été triées de bases de données de la Banque Mondiale et de la Banque Centrale du Congo et ces dernières ont été soumises à une analyse économétrique par la méthode de moindre carré ordinaire pour comprendre l’impact de l'APD sur la croissance économique et la réduction de la pauvreté en RD Congo. Les résultats ont montré qu’après l’an 2000, l’aide publique a connu une reprise fulgurante après une tendance de vache maigre (1990-2000) et celle-ci a contribué à la croissance économique et à la réduction de la pauvreté. Cependant, l’effet de l’aide sur le niveau de pauvreté ne passe pas par le canal de croissance économique. La croissance ne contribue pas à la réduction de la pauvreté en RD Congo. En réalité, si la croissance peut se réaliser sans forcément entrainer la réduction de la pauvreté, ce qu’il s’agit d’un partage inégalitaire de richesses et/ou de la captation des fruits de la croissance par une élite au détriment du reste de la population. Ces résultats sont bel et bien un signal que le régime de croissance de l’économie congolaise reste fondamentalement non inclusif et masque de profondes disparités et de la misère au sein de la population. Les pistes d’amélioration de la gestion de l’aide publique sont proposées.
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