Abstract: Publication year: 2020Source: International Journal of Finance and Accounting , Volume 9, Number 3Edwin Izueke, Fab Onah, Christopher Ugwuibe, Felicia Okwueze, Sylvia Agu, Chuka Ugwu, Christian EzeibeThe utility of International Public sector accounting Standards (IPSAS) in achieving transparency and accountability in the public sector accounting has been established. The motivation for the study was that in Nigeria, transparency and accountability of public sector officials have been seriously lacking and IPSAS was seen as a panacea to achieving the twin virtues. This study examines whether the implementation of International Public Sector Accounting Standards (IPSAS) has achieved public sector transparency and accountability in Nigeria since its adoption in 2014. A qualitative survey of the agencies in the 5 states of south east Nigeria was carried out and analysis done using analytical discourse technique. We found out that the extent of the implementation of IPSAS in Nigeria has not achieved transparency and accountability in the public sector, in Nigeria. We find that political will, use of accrual bases of accounting and internet facilities are the underlying factors for a full implementation of IPSAS and that they were all lacking in our study area. The framework of analysis was principal -agent theory, which explained that the agents, the public sector officials pursue their interest first before those of their principals-the citizens.. The lack of political will stems from the agents not wanting to be transparent and held accountable for their actions. Regulatory agencies should penalize the officials lacking the political will.
Abstract: Publication year: 2020Source: International Journal of Finance and Accounting , Volume 9, Number 3Ewa Uket Eko, Adesola Wasiu Adebisi, Eseneyen Jacob MosesThe study evaluated the application of forensic accounting techniques in preventing/detecting fraudulent practices in commercial banks in Nigeria by specifically assessing the impact of commercial data mining, ratio analysis and trend analysis techniques in fraud detection/prevention. With the aid of descriptive statistics and Ordinary Least Square (OLS) model, the result revealed the application of forensic accounting techniques significantly enhanced detection/ prevention of fraud in the banking system. The study further revealed the importance of ratio analysis as well as trend analysis techniques in fraud detection/prevention. Also the study revealed the importance of commercial data mining software in fraud detection/prevention and the lack of capacity and awareness of most staff of the workings of data mining technology as well as the use of trend analysis technique in detecting/preventing fraud in the banks. It was recommended that commercial banks should mandatorily be required to acquire robust data mining software facilities as well as enhanced training on the application of data mining and its usefulness in the banking sector. Also, use of anonymous response hotlines be encouraged as well as extensive awareness put in place for the attention of the public as well as quick responses from the banks to queries.
Abstract: Publication year: 2020Source: International Journal of Finance and Accounting , Volume 9, Number 3Theophilus Aguguom A., Ademola AjayiGlobal discontentment resulting from a widening gap in reported earnings and the underlying economic realities on the ground is increasingly disturbing. These inaccuracies create uncertainties and loss of confidence making many financial executives believe that financial reporting has degenerated into an ever-more burdensome compliance exercise rather than precise facts for investment decisions. In addressing the concern, this study investigated the effects of quality of accounting numbers on shareholders’ wealth maximization. This study adopted an ex post facto research design, using a population consisted of all the 173 listed companies on the Nigeria Stock Exchange (NSE) as at 31st December 2018 as contained in the NSE Factbook. A stratified and purposive random sampling technique was employed to select 10 companies for a period of 10 years (2010-2019), where companies with incomplete data from their published audited financial statements were not selected. Diagnostics tests of a correlation matrix, normality, and Breusch-Pagan/Cook-Weisberg test for Heteroscedasticity were conducted. Panel data regression was used for the data analysis. The result revealed that the quality of accounting numbers (QAN) had a statistically positive significant effect on economic value added (EVA), while QAN exerted a statistically positive effect on earnings per share. With introduced control, QAN exhibited stronger statistically positive significant effect on EVA, while QAN revealed a strong statistical effect on EPS. Based on the findings, the study recommended that the monitoring functions of the board be intensified to enhance more accurate and transparent accounting numbers in financial reporting, towards building up confidence in investors investment decisions.
Abstract: Publication year: 2020Source: International Journal of Finance and Accounting , Volume 9, Number 2Toyin E. Olatunji, Owoola R. Ibukun-FalayiThis article was reviewed with the aim of examining the concept of EV, the implications of voluntary disclosure and the adoption of the concept in financial reporting of life insurance companies. It is also aimed to evaluate the effects of this concept on capital market perception of such firms and hence the market value of their securities. The metrics of valuation applying this concept were also considered with the aim to confirm the applicability for all similar cases. To achieve this, the objectives of the authors were highlighted and the theoretical bases adopted examined. The methodology adopted was reviewed to assess suitability and likely effectiveness for the subject under review. Findings of the authors were evaluated in terms of how well they resolved the identified problems and stated objectives. This review adopted a descriptive cum narrative approach. The conclusions of the reviewed were assessed in terms of universal application by accounting standard setting bodies.
Abstract: Publication year: 2020Source: International Journal of Finance and Accounting , Volume 9, Number 2Adebisi Adesola, Uket EwaThis study examined the impact of deposit money banks services on the growth of the Nigerian economy. The study was specifically meant to examine the impact of aggregate banks credits, aggregate banks deposits and effect of interest rates spread on the growth of the Nigerian economy. To achieve these objectives, Time series data were collected from the CBN statistical Bulletin using the desk survey method from 1984 to 2017. The data were analyzed using various econometrics techniques such as the descriptive statistics test, the augmented Dickey-Fuller (ADF) unit root test, correlation matrix, and Autoregressive Distributive Lag (ARDL) Model. Findings from the analysis showed that, there is an insignificant short and long run effects of aggregate banks credits on the growth of the Nigerian economy. It also revealed insignificant short and long-run effects of aggregate banks deposits on the growth of the Nigerian economy and furthermore, insignificant short and long-run effects of interest rates spread on the growth of the Nigerian economy. We recommend that deposit money banks should intensify efforts on deposits mobilization to enhance the availability of loanable funds for on-lending, as this will promote productivity of businesses and increase the economic growth of Nigeria and lastly, Interest rates should be set as low as possible to enhance and motivate investors to source for loans and depositors to increase their deposit for business expansion and growth in Nigeria.
Abstract: Publication year: 2020Source: International Journal of Finance and Accounting , Volume 9, Number 2Bijiga Gerba KennoThe perception of Taxpayers towards the seriousness of tax evasion is influenced by several factors such as tax fairness and equity, probability of being audited, culture, and the understanding (perception) towards the government and taxation. Thus, the objective of this study is to investigate taxpayers’ perception on the seriousness of tax evasion in Bale-Robe Town Administration. The target population for this study incorporated tax authority and self-employed taxpayers of category “A”, category “B”, and category “C” in Bale Robe town administration. A total sample of 358 taxpayers was randomly taken from the total 4,160 taxpayers that have made registration. Tax officers were purposively selected by the researcher with the intention of collecting sufficient and relevant data for this study. This study has used both primary and secondary data. Primary data were gathered through structured questionnaire and interview with officers and taxpayers authorities. Secondary data were also collected by reviewing of related published and unpublished materials. It is indicated that tax evasion has been widely practiced in the study area. The result of the study revealed that tax evasion stemmed from lack knowledge about taxation, perceiving tax evasion as culture, trend of tax audit and the degree of detection, perceiving tax evasion as a minor crime and issues related to tax fairness and equity. Lastly, the findings of the study recommend tax authorities and policy makers continuously work hard in creating awareness and tax knowledge through the provision of trainings and education to taxpayers and improve unfairness and inequitable trends of tax payment. In doing this it is possible to reduce tax evasion and consequently raise the required tax revenue to foster the economic development of the region in particular and the country at large.
Abstract: Publication year: 2020Source: International Journal of Finance and Accounting , Volume 9, Number 1Settimba Muhamad, Wataba Pryor, Qiao Yue, Patrich Miguel AjosInvestigation on the role of the Monetary authority on the economic growth in Uganda from 1986-2016. Cryptocurrency urbanization has a theoretical measurement between Bitcoin and Ripples on Economic growth throw incorporations. We find that an exchange's transaction volume indicates whether or not it is likely to close. Less popular exchanges are more likely to be shut than popular ones. In the long-run analysis, the results confirm the direction of relationship from economic growth to fiscal consumption which defines causality from the service sector to economic growth.
Abstract: Publication year: 2020Source: International Journal of Finance and Accounting , Volume 9, Number 1Alimi A. A., Adeoye M. A.Financial intermediation activities are germane to economic growth and development through the financial services they render. This paper specifically evaluated the effect of financial intermediation activities on the growth of Nigeria's economy. Secondary data were used and sourced through the Central Bank of Nigeria Statistical Bulletins within 1983 and 2018. Descriptive statistics such as mean, median, skewness, and mode, etc. and econometric statistics like Ordinary Least Squares (OLS) were used to analyze the data obtained. The multiple regression results showed that the computed F-statistic with corresponding probability value (F (8, 28) = 464.23, Prob> F = 0.0003) and adjusted R2 (0.832), indicated that broad money supply (β =0.661791), size of credit (β =4.337539), and credit delivered to the private sector (β =4.31341) have a positive effect on economic growth at p≤0.05. The result of the co-integration test using trace statistics suggests a long-run relationship among the variables (Ho:n=4 that is, 32.9048
Abstract: Publication year: 2020Source: International Journal of Finance and Accounting , Volume 9, Number 1Meshack Aggreh, Charles A. Malgwi, Mercy S. AggrehInvestment, irrespective of the level of risk, generate a return (positive or negative). ICT investment in the banking industry in Nigeria has increased geometrically over the years with mixed performance outcomes. The objective of this study is to ascertain the longitudinal nature, extent and magnitude of the return on ICT investment in the banking industry in Nigeria. The study utilized a longitudinal research design, covering all the 15 Deposit Money Banks (DMBs) listed on the Nigerian Stock Exchange with secondary data for the period 2010-2017 financial years. The effect of ICT investments on Bank performance was analyzed using panel regression. In conducting the analysis, the study adopts a dynamic framework in the analysis by the estimation of lead variables of ICT investment. The findings of the study reveal that ICT investment does not always result in instantaneous positive effects on financial performance in the immediate period. However, the result shows evidence of a dynamic pattern in the response as positive effects of ICT investment is observed to begin from the following year (ICT +1) and significant at 10% and is even stronger the year after (ICT +2) and significant at 5%. The study recommends that banks should improve their ICT investments while engaging a quality staff training.
Abstract: Publication year: 2019Source: International Journal of Finance and Accounting , Volume 8, Number 3Perdana Wahyu Santosa, Pramesti Wulandari SantosoThis article analyzes whether a market overreaction hypotheses imply short term abnormal return at the Indonesia Stock Exchange (IDX), during the high volatility of the IDR-USD exchange rate period. This study focuses on examining events relating to a dramatic substantial event about one year. Overreaction indicates a form of market efficiency, where the more frequent overreaction, the market tends to weaken or anomaly. During this period March 2018-March 2019, the value of IDR to the USD fluctuated by 7.78%, which caused the IDX Composite Index to meltdown (bearish) by 6,582 to 5,731 (-12.9%) and, reversed back an increase (bullish) until it hits 6,525. The research method used was quantitative research with purposive sampling. The sample used is LQ45 equity index stocks (blue chips). Overreaction analysis is grouped into two phases: (i) formation of a winner-loser portfolio; and (ii) testing portfolio overreaction. The findings obtained are that there are significant differences in all testing periods of 10 weeks, 20 weeks, 30 weeks, 40 weeks and 55 weeks. Conclusion: there is no overreaction at the beginning of the bearish and the end of the bullish period, however, it is found the consistency of investor behavior in momentum transactions when the market experiences both bearish and bullish condition. Throughout observation, the equity market shows a form of efficiency that is getting stronger and indicated that the momentum strategy more useful than a contrarian strategy to generated abnormal trading profit at IDX.
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