JournalTOCs

Afro-Asian Journal of Finance and Accounting
Journal Prestige (SJR): 0.195

Number of Followers: 9

Hybrid journal (It can contain Open Access articles)
ISSN (Print) 1751-6447 - ISSN (Online) 1751-6455
Published by Inderscience Publishers

[450 journals]

Audit committee and financial reporting quality: the mediating effect
of audit price in Nigeria
- Authors: Hussaini Bala, Noor Afza Amran, Hasnah Shaari
  Pages: 167 - 197
  Abstract: This study examines the mediating effect of audit price on the link between the audit committee and financial reporting quality. The model was developed based on a complementary hypothesis and employs a panel dataset comprising 440 firm-year observations. We found that a larger audit committee comprising directors and shareholders is more likely to reduce earnings manipulation in the form of artificial smoothing and managers' discretion on earnings. The study also establishes that larger audit committee size is linked to an increase in audit price. Interestingly, we found that an increase in the price of auditing services minimises the likelihood of earnings manipulation. Also the audit price partially and significantly mediates the link between the audit committee and financial reporting quality. This study also informs regulators and policy makers of the importance of audit price in limiting earnings manipulation and boosting audit quality, which, in turn, enhances financial reporting quality.
  Keywords: audit committee; audit price; income smoothing; financial reporting quality; Nigeria
  Citation: Afro-Asian J. of Finance and Accounting, Vol. 11, No. 2 (2021) pp. 167 - 197
  PubDate: 2021-03-11T23:20:50-05:00
  DOI: 10.1504/AAJFA.2021.113554
  Issue No: Vol. 11, No. 2 (2021)
The effect of financial leverage on banks' performance: empirical
evidence from a frontier market - the Amman Stock Exchange
- Authors: Ahmad Abu-Alkheil, Mohammad Alomari, Balkis Set-Abouha
  Pages: 198 - 221
  Abstract: This paper examines the effect of financial leverage (FL) on a bank's performance by adopting the dynamic generalised method of moments (GMM) estimator over the period 2004-2016. Also, it examines the impact of the recent financial crisis of 2008 on the Jordanian banking industry. The study sample is based on a comprehensive list of listed banks in Amman Stock Exchange (ASE). Findings show that a bank's leverage is a significant determinant of its performance. FL has negative effects on banks' performance. Mainstream and pure Islamic banks were not immune to the crisis. Yet, Islamic banks seem to show positive signs of recovery from the crisis. Converted Islamic banks did not have better immunity to the global shocks than mainstream banks. Large banks had better financial performance than small banks, and new banks are better able to recover from the adverse effects of the crisis than old ones.
  Keywords: generalised method of moments; GMM; banks performance; financial leverage; financial crisis; frontier market
  Citation: Afro-Asian J. of Finance and Accounting, Vol. 11, No. 2 (2021) pp. 198 - 221
  PubDate: 2021-03-11T23:20:50-05:00
  DOI: 10.1504/AAJFA.2021.113553
  Issue No: Vol. 11, No. 2 (2021)
Managerial entrenchment hypothesis and dividend payout policy
- Authors: Raheel Gohar, Ayesha Rashid
  Pages: 222 - 236
  Abstract: The influence of managerial entrenchment on dividend payout policies is studied for the period 2006 to 2014. The results of the study indicate that the ratio of the sum of shares owned by the CEO, the Chairman and the directors (i.e., insider ownership) is negatively related to both the likelihood and the payment of dividends. Even when controlling for firm size and leverage, it is found that the ratio of shares owned by the block holder shows negative and significant results (for both the logit and the tobit regression). This study proves that either the block holders are part of the management or they have strong board representation, so they do not consider dividend payouts as a disciplining and monitoring mechanism. Investment opportunities and leverage have a negative and significant relationship with both the likelihood and the level of payouts.
  Keywords: managerial entrenchment; dividend payout policy; logit and tobit regression; Pakistan
  Citation: Afro-Asian J. of Finance and Accounting, Vol. 11, No. 2 (2021) pp. 222 - 236
  PubDate: 2021-03-11T23:20:50-05:00
  DOI: 10.1504/AAJFA.2021.113551
  Issue No: Vol. 11, No. 2 (2021)
Factors influencing the application of fair value of Vietnamese
enterprises: an extension study of the theory of planned behaviour
- Authors: Nguyen Ngoc Lan, Vu Thi Kim Anh, Nguyen Thi Thanh Phuong
  Pages: 237 - 265
  Abstract: This study is based on theory of planned behaviour to understand how the factors of awareness of businesses influence support applying fair value (FV) in Vietnamese businesses. Based on the data collected from 558 managements and accountants, we performed the data analysis process. The methods of descriptive statistics, Cronbach's alpha, exploratory factor analysis to find the convergence of observed forming new factors and correlation analysis with binary logistic regression model were used in this study. The article result shows that: the factor of 'awareness of challenges in business environment and legal environment' has the greatest influence and negative effects on support applying FV in accounting at Vietnamese businesses whereas the factor of 'awareness of the benefits of improving financial statement quality' has the second influence and positive effects on this issue. On the basis of research results, we will propose some recommendations for promoting the application of FV in Vietnam.
  Keywords: behaviour awareness; fair value; support; Vietnam
  Citation: Afro-Asian J. of Finance and Accounting, Vol. 11, No. 2 (2021) pp. 237 - 265
  PubDate: 2021-03-11T23:20:50-05:00
  DOI: 10.1504/AAJFA.2021.113556
  Issue No: Vol. 11, No. 2 (2021)
The effect of tax and economic freedom on capital investment and foreign
direct investment: empirical evidence from a panel of countries around the
world
- Authors: Nguyen Ngoc Lan, Vu Thi Kim Anh, Nguyen Thi Thanh Phuong
  Pages: 266 - 289
  Abstract: Investment in the home country or abroad has become an important strategy for companies to survive and grow. It exposes these companies to several financial and economic hazards. This paper employs cross-country tax rates and economic freedom regressions for a sample of 82 countries to examine the determinants of investment and foreign direct investment (FDI) between 2010 and 2016. Besides, it analysis the role of economic freedom factors (legal system, sound money system, regulations, and trade freedom) and economic factors [gross domestic product (GDP) growth, trade level, inflation, and GDP per capita]. While the results of the study agree these factors are important to investments, FDI reflects a higher sensitivity to these factors. A sound money system and trade freedom have a high influence on FDI. The results also show that companies are eager to expand their investments wherever they find welcoming markets, financially and economically. This can benefit policymakers in home or host countries to increase investments and FDI.
  Keywords: capital investment; foreign direct investment; FDI; corporate tax; indirect tax; economic freedom; trade-off-theory; investment theory; inflation; regulations; money system; legal system
  Citation: Afro-Asian J. of Finance and Accounting, Vol. 11, No. 2 (2021) pp. 266 - 289
  PubDate: 2021-03-11T23:20:50-05:00
  DOI: 10.1504/AAJFA.2021.113561
  Issue No: Vol. 11, No. 2 (2021)
Impact of crude oil price shocks on industrial output, inflation and
exchange rate: evidence from five emerging Asian economies
- Authors: Shekhar Mishra, Naliniprava Tripathy, Sathya Swaroop Debasish
  Pages: 290 - 308
  Abstract: The present study estimates the long-run relationship and impact of oil price shock on industrial production, inflation, and exchange rate of the selected fast-emerging Asian economies namely China, India, South Korea, Singapore and Japan. The study employs auto regressive distributed lag model, structural vector auto regression model, variance decomposition and impulse response function to examine the same. The ARDL model revealed the presence of cointegrating relationship between the macroeconomic variables of Asian economies and the global crude oil price. The impulse response function and variance decomposition analysis indicates the oil price fluctuations not having a significant impact on the given macroeconomic variables of the Asian economies taken under study. The study suggests that the Asian economies should implement policies to attract more FDI and promote the foreign sector. The governments should be more watchful while regulating the price level that may arise with a surge in oil price.
  Keywords: crude oil price; ARDL; structural vector auto regression; SVAR; impulse response function; IRF; variance decomposition
  Citation: Afro-Asian J. of Finance and Accounting, Vol. 11, No. 2 (2021) pp. 290 - 308
  PubDate: 2021-03-11T23:20:50-05:00
  DOI: 10.1504/AAJFA.2021.113557
  Issue No: Vol. 11, No. 2 (2021)