-
Internal Control Systems and Quality of Financial Reporting in Insurance Industry in Nigeria
Owolabi Sunday Ajao,
Amosun Olayemi Oluwadamilola
Issue:
Volume 8, Issue 5, September 2020
Pages:
212-220
Received:
19 July 2020
Accepted:
17 August 2020
Published:
17 September 2020
Abstract: In recent years many organizations have realized the importance of the role of directors, audit committee, internal auditors and external auditors in preparing and presenting quality financial reports to all stakeholders. In Nigeria, the performance and the quality of financial reports of companies in the insurance industry is dependent on the efficiency and effectiveness of the internal control system. This paper studied the impact of internal control systems and the quality of financial reporting in insurance industry in Nigeria. The research employed a survey research design. The study administered 100 questionnaires randomly to respondents, 98 questionnaires were returned and analysed. The data collected were analysed using descriptive and inferential statistics. The research hypothesis were analysed using regression analysis using Statistical Product and Service Solutions (SPSS 26). The results of the findings revealed that control environment, risk assessment, control activities, information and communication and monitoring has a statistical significant positive effect on quality of financial reporting of insurance industry in Nigeria. The study concluded that effective and efficient internal control system can affect the quality of financial reports of insurance industry in Nigeria.
Abstract: In recent years many organizations have realized the importance of the role of directors, audit committee, internal auditors and external auditors in preparing and presenting quality financial reports to all stakeholders. In Nigeria, the performance and the quality of financial reports of companies in the insurance industry is dependent on the effi...
Show More
-
Determinates of Capital Structure in Case of Private Commercial Banks in Ethiopia
Issue:
Volume 8, Issue 5, September 2020
Pages:
221-229
Received:
10 August 2020
Accepted:
24 August 2020
Published:
24 September 2020
Abstract: This study was conducted on the title determinants of capital structure; evidence from private commercial banks in Ethiopia. To find out what determines capital structure, seven bank specific explanatory variables (Profitability, tangibility, growth, age, tax shield, size and liquidity) was selected and regressed beside the suitable capital structure measure (Debt to Equity Ratio). Fourteen private commercial banks, which had minimum of seven years life were selected for the study. Their audited financial statement from 2013 to 2019 was used as major source of data. Before the analysis of regression model test of CLRM assumptions such as normality, multicollinearity, heteroscedastcity and autocorrelation tests were conducted on the data. After these tests, Hauseman model specification test conducted and its result indicated that Fixed Effect Model was better to test hypotheses that emerge through the review of existing literature. Then inferential statistics regression was done by Fixed Effect Model (FEM). The regression result reveled that profitability, age, tax shield and size had significant effect on leverage. However, among the hypothesized capital structure determinants growth, asset tangibility and liquidity had insignificant effect on capital structure of Ethiopian private commercial bank. In addition, trade-off theory and the pecking order theory explained the capital structure behavior of banking industry in Ethiopia.
Abstract: This study was conducted on the title determinants of capital structure; evidence from private commercial banks in Ethiopia. To find out what determines capital structure, seven bank specific explanatory variables (Profitability, tangibility, growth, age, tax shield, size and liquidity) was selected and regressed beside the suitable capital structu...
Show More
-
Effect of Environmental Fairness on Assets Utilization in the Nigerian Oil and Gas Companies: An Empirical Analysis
Olubunmi Ogunode,
Folajimi Adegbie
Issue:
Volume 8, Issue 5, September 2020
Pages:
230-237
Received:
9 September 2020
Accepted:
21 September 2020
Published:
28 September 2020
Abstract: Protection of environment and evidence of such efforts by companies sensitive to the environmental issues have not been convincingly clear. The attitudinal landscape of insensitivity and unfair treatment of environmental protection by the environment sensitive establishments in the downstream activities have become worrisome, particularly where expected returns from assets utilization now overrides concern the planet protection and fair treatments of the host communities where they operate. Consequently, an examination of environmental fairness and its effects on assets utilization. The population consisted of 12 oil and gas companies engaged in the downstream activities. Selection of companies using a purposive sampling technique for a period of 16 years 2003-2018 was explored. Inferential statistics was adopted in the data analysis and multicollinearity test carried out to determine the presence or absence of multicollinearity, showed no negative effect, while Breusch-Pagan / Cook-Weisberg test for heteroscedasticity was carried out for residual constantans. Environmental fairness had a statistically and positively significant impact on asset utilization (Adj R2=0.30; F-statistics(3, 44) =226.3; p-value=0.00 < 0.05). The study recommended that management of oil and gas companies should also ensure adequate support to the community through corporate social responsibility by implementing policies that reflect their environmental consciousness as well as ensuring full disclosure of all such activities in their published annual reports.
Abstract: Protection of environment and evidence of such efforts by companies sensitive to the environmental issues have not been convincingly clear. The attitudinal landscape of insensitivity and unfair treatment of environmental protection by the environment sensitive establishments in the downstream activities have become worrisome, particularly where exp...
Show More
-
Investor Attention and Growth Anomalies in NASDAQ Stocks-Evidence from Google Trend Volume
Ya Li,
Raymond Chan,
John Tsang
Issue:
Volume 8, Issue 5, September 2020
Pages:
238-245
Received:
24 September 2020
Accepted:
15 October 2020
Published:
26 October 2020
Abstract: We study the effects of investor attention on the capital investment anomaly on NASDAQ stocks. Based on total asset growth, researchers find firms that substantially increase capital investments subsequently achieve negative benchmark-adjusted returns. On one hand, some scholars propose that investors incorrectly underreact to the empire building behavior of managers who aggressively increase investment expenditure. On the other hand, some scholars argue that investors appear to overreact to past firm growth rates. We aim to determine whether the growth anomaly is due to underreaction or overreaction in this research. We apply Google Search Volume Index as a new direct measure of investor attention to provide empirical evidence for under-reaction and over-reaction explanations of the total asset growth anomaly on NASDAQ stocks. We adopt double sorting and Fama-MacBeth regression and find the stock prices rise up when investors search actively of the underlying stock tickers. The anomaly is stronger when investors are extremely overreacting and underreacting. When investors are rational or calm down, this total asset growth effect disappears. Our empirical design disentangles the dilemma that whether the strand of growth anomalies is due to risk or mispricing. Within proponents of mispricing, our research innovatively tease out of the opposing explanations of under-reaction and over-reaction as the relevant driver of the growth anomalies.
Abstract: We study the effects of investor attention on the capital investment anomaly on NASDAQ stocks. Based on total asset growth, researchers find firms that substantially increase capital investments subsequently achieve negative benchmark-adjusted returns. On one hand, some scholars propose that investors incorrectly underreact to the empire building b...
Show More
