Subjects -> BUSINESS AND ECONOMICS (Total: 3570 journals)
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ACCOUNTING (132 journals)                     

Showing 1 - 126 of 126 Journals sorted alphabetically
Accountancy     Partially Free   (Followers: 3)
Accounting Analysis Journal     Open Access   (Followers: 4)
Accounting and Finance Research     Open Access   (Followers: 23)
Accounting and Financial Control     Open Access   (Followers: 4)
Accounting Global Journal     Open Access   (Followers: 3)
Accounting History     Hybrid Journal   (Followers: 10)
Accounting History Review     Hybrid Journal   (Followers: 15)
Accounting in Europe     Hybrid Journal   (Followers: 8)
Accounting Research Journal     Hybrid Journal   (Followers: 19)
Accounting Theory and Practice     Open Access   (Followers: 6)
Accounting, Accountability & Performance     Full-text available via subscription   (Followers: 12)
Accounting, Auditing and Accountability Journal     Hybrid Journal   (Followers: 24)
Acta Marisiensis : Seria Oeconomica     Open Access  
Activos     Open Access  
Actualidad Contable Faces     Open Access   (Followers: 1)
Advances in Accounting     Hybrid Journal   (Followers: 10)
Advances in Accounting Education     Hybrid Journal   (Followers: 12)
African Journal of Accounting, Auditing and Finance     Hybrid Journal   (Followers: 12)
Al-Mal : Jurnal Akuntansi dan Keuangan Islam     Open Access  
Applied Finance and Accounting     Open Access   (Followers: 8)
Apuntes Contables     Open Access  
Asia-Pacific Journal of Accounting & Economics     Hybrid Journal   (Followers: 6)
Asian Journal of Accounting Research     Open Access  
Asian Journal of Economics, Business and Accounting     Open Access  
Asian Journal of Finance & Accounting     Open Access   (Followers: 8)
Berkala Akuntansi dan Keuangan Indonesia     Open Access  
Bulletin of Accounting and Finance Reviews     Open Access   (Followers: 1)
China Journal of Accounting Research     Open Access   (Followers: 3)
China Journal of Accounting Studies     Hybrid Journal  
Chulalongkorn Business Review     Open Access  
Cofin Habana     Open Access  
Comptabilité - Contrôle - Audit     Full-text available via subscription  
Comptabilités     Open Access  
Contabilidad y Negocios     Open Access  
Contabilidade, Gestão e Governança     Open Access  
Contaduría y Administración     Open Access  
Copernican Journal of Finance & Accounting     Open Access   (Followers: 2)
Cuadernos de Administración (Universidad del Valle)     Open Access   (Followers: 1)
Cuadernos de Contabilidad     Open Access  
Current Issues in Auditing     Full-text available via subscription   (Followers: 4)
E-Jurnal Akuntansi     Open Access  
ECA Sinergia : Revista Especializada en Economía, Contabilidad y Administración     Open Access  
EL-MUHASABA     Open Access  
Estudios Gerenciales     Open Access  
Financial Reporting     Full-text available via subscription   (Followers: 4)
Fokus Bisnis : Media Pengkajian Manajemen dan Akuntansi     Open Access  
Indonesian Accounting Review     Open Access  
International Journal of Accounting & Finance Review     Open Access  
International Journal of Accounting and Financial Reporting     Open Access   (Followers: 8)
International Journal of Accounting and Information Management     Hybrid Journal   (Followers: 5)
International Journal of Accounting, Auditing and Performance Evaluation     Hybrid Journal   (Followers: 9)
International Journal of Auditing Technology     Hybrid Journal   (Followers: 4)
International Journal of Business Reflections     Open Access   (Followers: 2)
International Journal of Finance and Accounting     Open Access   (Followers: 7)
International Journal of Finance and Accounting Studies     Open Access   (Followers: 7)
Journal of Accounting and Business Education     Open Access   (Followers: 1)
Journal of Accounting and Investment     Open Access  
Journal of Accounting and Management     Open Access   (Followers: 11)
Journal of Accounting in Emerging Economies     Hybrid Journal   (Followers: 2)
Journal of Accounting Literature     Hybrid Journal   (Followers: 5)
Journal of Applied Accounting and Taxation     Open Access   (Followers: 1)
Journal of Applied Accounting Research     Hybrid Journal   (Followers: 15)
Journal of Applied Sciences in Accounting, Finance, and Tax     Open Access  
Journal of Auditing, Finance and Forensic Accounting     Open Access   (Followers: 5)
Journal of Banking and Financial Technology     Hybrid Journal   (Followers: 1)
Journal of Cost Analysis and Parametrics     Hybrid Journal   (Followers: 5)
Journal of Economics Finance and Accounting     Open Access   (Followers: 1)
Journal of Economics, Business, & Accountancy Ventura     Open Access  
Journal of Economics, Finance and Accounting Studies     Open Access  
Journal of Empirical Research in Accounting     Open Access   (Followers: 1)
Journal of Federation of Accounting Professions     Open Access  
Journal of Finance and Accounting     Open Access   (Followers: 7)
Journal of Finance and Accounting Research     Open Access   (Followers: 1)
Journal of Financial Reporting and Accounting     Hybrid Journal   (Followers: 12)
Journal of Islamic Accounting and Business Research     Hybrid Journal   (Followers: 5)
Journal of Management Accounting Research     Full-text available via subscription   (Followers: 24)
Journal of Public Budgeting, Accounting & Financial Management     Hybrid Journal   (Followers: 3)
Journal Syariah and Accounting Public     Open Access  
Jurnal Akuntansi & Keuangan Unja     Open Access  
Jurnal Akuntansi Aktual     Open Access  
Jurnal Akuntansi dan Keuangan     Open Access  
Jurnal Akuntansi dan Perpajakan     Open Access  
Jurnal Akuntansi Indonesia     Open Access  
Jurnal ASET (Akuntansi Riset)     Open Access  
Jurnal Dinamika Akuntansi     Open Access  
Jurnal Ekonomi KIAT     Open Access  
Jurnal Ilmiah Akuntansi dan Bisnis     Open Access  
Jurnal Ilmiah Akuntansi dan Keuangan     Open Access  
Jurnal Kajian Akuntansi     Open Access  
Krisna : Kumpulan Riset Akuntansi     Open Access  
Maandblad Voor Accountancy en Bedrijfseconomie (MAB)     Open Access  
Management & Economics Research Journal     Open Access   (Followers: 1)
Meditari Accountancy Research     Hybrid Journal   (Followers: 2)
North American Actuarial Journal     Hybrid Journal   (Followers: 1)
Open Journal of Accounting     Open Access   (Followers: 2)
PEKA : Jurnal Pendidikan Ekonomi Akuntansi     Open Access  
Point of View Research Accounting and Auditing     Open Access   (Followers: 1)
Prawo Budżetowe Państwa i Samorządu     Open Access  
Profita : Komunikasi Ilmiah Akuntansi dan Perpajakan     Open Access  
Quipukamayoc     Open Access   (Followers: 1)
RACE - Revista de Administração, Contabilidade e Economia     Open Access  
Research Journal of Finance and Accounting     Open Access   (Followers: 10)
REUNIR: Revista de Administracao, Contabilidade e Sustentabilidade     Open Access  
Revista Catarinense da Ciência Contábil     Open Access  
Revista Contemporânea de Contabilidade     Open Access  
Revista de Administração, Contabilidade e Economia da Fundace     Open Access  
Revista de Análisis Económico y Financiero     Open Access  
Revista de Contabilidad : Spanish Accounting Review     Open Access  
Revista de Contabilidade do Mestrado em Ciências Contábeis da UERJ     Open Access  
Revista de Contabilidade e Organizações     Open Access  
Revista de Derecho Fiscal     Open Access  
Revista de Finanças Públicas, Tributação e Desenvolvimento     Open Access  
Revista de Gestão, Finanças e Contabilidade     Open Access  
Revista Evidenciação Contábil & Finanças     Open Access  
Revista Mineira de Contabilidade     Open Access  
Revista Universo Contábil     Open Access  
Riset Akuntansi dan Keuangan Indonesia     Open Access  
Risk Governance and Control : Financial Markets & Institutions     Open Access  
Science and Studies of Accounting and Finance : Problems and Perspectives     Open Access  
Social and Environmental Accountability Journal     Hybrid Journal   (Followers: 3)
South African Journal of Accounting Research     Hybrid Journal   (Followers: 1)
Spanish Journal of Finance and Accounting / Revista Española de Financiación y Contabilidad     Hybrid Journal   (Followers: 1)
Studia Universitatis Babes-Bolyai Oeconomica     Open Access   (Followers: 2)
Sustainability Accounting, Management and Policy Journal     Hybrid Journal   (Followers: 12)
The Accounting Review     Full-text available via subscription   (Followers: 49)
Universal Journal of Accounting and Finance     Open Access   (Followers: 3)

           

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Journal Cover
Universal Journal of Accounting and Finance
Number of Followers: 3  

  This is an Open Access Journal Open Access journal
ISSN (Print) 2331-9712 - ISSN (Online) 2331-9720
Published by Horizon Research Publishing Homepage  [50 journals]
  • Systematic Review & Implications of FinTech Instruments in Indian Micro
           Small and Medium Enterprises

    • Abstract: Publication date:  May 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  3  Naresh Sachdev   Kawal Nain Singh   Kamal Vohra   and Vishal Vinayak   One of the recent developments taken place due to the evolution of technology is FinTech. The operations of FinTech instruments across various sectors have brought benefits all around. There are several FinTech instruments that have been launched in the market recently. Out of them, two of the most prominent ones involve the use of P2P lending and Crowdfunding as a source of funding among the businesses. Therefore, this study is an attempt to conduct a systematic review on these two FinTech instruments and wants to draw the feasibility of its application into the Medium Small and Micro Enterprises along with the start-ups evolving in a developing country like India. The study considers a detailed review of 40 articles, 20 of which correspond to each type of instrument. The study looks into a number of different aspects to integrate the outcomes. The results of the review show that the use of FinTech instruments successfully causes an increase in the compounded annual growth rates along with providing a hassle-free source of funds to smaller and innovative businesses. The study suggests the extension of use of FinTech instruments such as P2P lending and Crowdfunding in the medium and small size enterprises as well. As in a developing nation, the role of upcoming ventures plays an inevitable role. It can be successfully made to move towards development by including the two Fintech instruments considered in the study. This would help in generating a profitable environment for the MSMEs and make others around aware of these sources of funding especially in a developing country like India. Moreover, it would contribute towards the generation of employment through the optimal funding of the potential MSMEs and start-ups.
      PubDate: May 2022
       
  • The Impact of China's Recent Structural Reforms on Listed Firms' Auditor
           Choice

    • Abstract: Publication date:  May 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  3  Abdulrahman Al Natour   Majed Qabajeh   and Ayman Al-Shanti   This paper studies the tendency towards developing China's national accounting industry against the international Big 4 accounting firms. Studying a Chinese sample from 2003 to 2014, covering the recent structural reforms (i.e., the Split-share Structure Reform (SSSR) in 2005 and the announcement of Document 56 in 2009) the paper concludes that such reforms increased the tendency to hire higher quality national audit firms compared with the international Big 4 audit firms and other small audit firms. This study also highlights the role of market development in improving the likelihood of hiring high quality auditors, and how it counteracts the state influence over the firm's auditor choice. By splitting high quality accounting firms into: the international Big 4 and the Chinese national Big 6, this paper extends the literature on political economy and auditor choice and explains how China is developing its national accounting industry through issuing state policies and restructuring the accounting industry.
      PubDate: May 2022
       
  • Acceptance and Usage Behavior of Bank Syariah Indonesia (BSI) Technology
           with TAM and Spiritual Motivation during the COVID-19 Pandemic

    • Abstract: Publication date:  May 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  3  Muhammad Tho’in   This research was conducted to determine the acceptance and usage behavior of Bank Syariah Indonesia (BSI) technology with TAM (Technology Acceptance Model) and spiritual motivation during the COVID-19 pandemic. The use of technology in this research is focused on mobile banking services. The method in this study uses quantitative methods. The research data uses primary data in the form of a questionnaire given to customers who use mobile banking services at Bank Syariah Indonesia online. The data analysis technique uses SEM-PLS or often called Structural Equation Modeling - Partial Least Square. The results of the study show that customers of Bank Syariah Indonesia (BSI) who use mobile banking services have high trust, so that customers can receive and use the provided mobile banking services. The research findings support the Technology Acceptance Model (TAM) theory, which states that individuals accepting and using the system are influenced by perceptions of ease of use, perceptions of usefulness, attitudes, and behavioral intentions. In addition, there is a customer's spiritual motivation that the use of mobile banking does not violate sharia rules and can achieve personal welfare in various financial transactions carried out.
      PubDate: May 2022
       
  • Effect of Taxation on Financial Performance of the African Aviation
           Industry

    • Abstract: Publication date:  May 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  3  Samuel Adeniran Fakile   Tony Ikechukwu Nwanji   Ben-Caleb Egbide   Stephen Ojeka   and Damilola Felix Eluyela   The African Airline Association recently reported that high airport charges and taxes are responsible for suppressing the evolution, development and growth of the African aviation industry. Therefore, the purpose of the study is to determine whether taxation metrics – tax planning, tax burden and after-tax earnings impact the financial performance of the African aviation industry, using the regression of various financial performance measures – profitability, liquidity, and going concerned. The panel data methodological approach was applied in this study. Descriptive statistics, correlation techniques, Hausman test, regression analysis and Granger Causality test result were presented. The study shows a positive relationship between tax planning and profitability, a positive relationship between tax burden and liquidity, and a positive relationship between tax charge and tax profits. This study concludes that taxation affects firms' financial performance in the African aviation industry.
      PubDate: May 2022
       
  • Internal Audit and Added Value: What is the Relationship' Literature
           Review

    • Abstract: Publication date:  May 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  3  Anouar Faiteh   and Mohammed Rachid Aasri   In the current economic context marked by the relentlessness of the competition, the internal auditor is often called upon to put his skills at the service of organizations in order to control risks and evaluate internal control systems. Consequently, he contributes to the creation of value. The purpose of this paper is to analyze the theoretical foundations of internal auditing and their relationship with the value creation for organizations. Through a literature review on the contribution of internal audit to value creation, we found that the results of the majority of these papers supported a positively significant relationship. However, by conducting a critical analysis of models used, we demonstrated the methodological limitations that may bias these results. As a result, we have listed the limitations of traditional indicators of value creation (Return on Assets, Return on Equity, discounted cash flows, among others); thus, we have argued the superiority of the Economic Value Added (EVA), as a measure indicator of value creation through the inclusion of the cost of capital in its structure. Following these well-founded results, a subsequent study will be conducted to empirically test the contribution of internal auditing to value creation by integrating EVA as a measure of value creation.
      PubDate: May 2022
       
  • Cyber Security and Financial Innovation of Selected Deposit Money Banks in
           Nigeria

    • Abstract: Publication date:  May 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  3  Rufus Akintoye   Olubunmi Ogunode   Modupe Ajayi   and Abimbola Abosede Joshua   This paper examined the impact of cybersecurity in driving the financial innovation of Deposit Money Banks in Nigeria. The rapid growth in population coupled with the challenge of reducing the rate of the financially excluded has made the need for financial innovation by Deposit Money Banks in Nigeria a matter of serious importance. However, due to a mix of factors ranging from poor design, design vulnerabilities to lopsided adoption and implementation of new financial technology products, this need has remained largely unmet with attendant negative consequences on the financial system. The study adopted a survey research design with primary data obtained via a structured questionnaire administered to a sample size of fifty-six (56) Deposit Money Banks Staff purposively selected. The sampled staffs were senior member staff of key impacted departments while the Banks selected accounted for 93% of total market capitalization as on December 31, 2021. The primary data collected were analyzed using descriptive and inferential statistics. The study found that cybersecurity proxied by risk management and bank monitoring had a statistically and positively significant impact on financial innovation of deposit money banks in Nigeria (Adj.R2=0.447, F(2,55)=23.274, p< 0.05). It recommended that deposit money banks should ensure regular review, revision and strengthening of their risk management framework to meet with emerging challenges from the deployment of financial innovative products and services. Additionally, deposit money banks should improve on the level of monitoring of the deployed e-banking channels (Card products, POS, ATMs and other channels) to facilitate greater reliance on them for the consummation of financial transactions.
      PubDate: May 2022
       
  • A Study on Cognitive Factors Affecting Decision-Making of Investors during
           Covid-19

    • Abstract: Publication date:  May 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  3  Stutee Mohanty   B. C. M. Patnaik   Ipseeta Satpathy   and Suresh-Kumar Sahoo   Decisions of an individual or investors' financial decisions are affected by behavioral or cognitive factors and not just knowledge. Decision-making is not in every case rational by nature. Investors make irrational decisions many times due to the influence of various cognitive factors. Moreover, the ongoing Covid-19 pandemic has added to the uncertainty around us. Every possible sector of business has been affected by it including financial markets. Aberration in investor behavior during this phase has also been observed and has led to deterrence in investors' financial decisions. The present study intends to focus on analyzing empirically and ascertain the impact of Covid-19 on the behavioral & cognitive aspects of financial investment. Primary data has been used for the purpose and was collected by distributing a structured questionnaire among the participating investors chosen by using the convenience sampling method. The sample size of the study is 200 practicing individual investors. Statistical tools like Descriptive Statistics, Correlation, Reliability, and Multiple Regression Analysis were employed for analyzing the data. In this paper, it is found that herd behavior lacks consistency and significance with anchoring having the highest impact on financial decisions taken by investors. The framing effect also has a very high influence on the financial decision-making process of investors. This research will be useful for the government and the policymakers in the country, brokerage houses, retail investors, financial analysts, and asset management companies. As Covid-19 is a time-bound phenomenon, financial decisions of investors may change when the situation normalizes.
      PubDate: May 2022
       
  • The Effect of Market Factor on Portfolio Selection

    • Abstract: Publication date:  Mar 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  2  Daniel Arficho Gaenore   M Montaz Ali    and Aduda Jane Akinyi   Investors' attempt is to allocate scarce resources today and receive the best outcome in future. The best outcome in future is not known today. But one can forecast for the best outcome in future today. Markowitz developed mean-variance model to solve portfolio selection problem. This model has two main drawbacks. The first is that the model assumes future expected return is the same as current expected return. In practice, this assumption may not hold in general. The second drawback is that the model requires a lot of estimations when investors consider large number of assets to include in portfolio. Sharpe developed single index model to solve the second drawback of mean-variance model. In this research, we develop future portfolio model to deal with drawbacks of mean-variance model. The objective of future portfolio model is to maximize future Sharpe ratio forecast subject to no short and no leftover constraints. This model is a realistic model because investors would like to consider future outcome instead of current outcome. First, we construct future expected return forecast model to forecast future expected return of securities. Second, we apply capital asset pricing model to estimate variance of portfolio. Third, we build future portfolio model using future expected return forecast model and capital asset pricing model. Fourth, we solve for analytic solution of future portfolio model. Finally, we evaluate the performance of future portfolio model relative to single index portfolio based on Sharpe ratio process metric, diversification ratio process metric and accumulation factor error process metric. The result of this study shows that future portfolio outperforms single index portfolio based on Sharpe ratio process metric, diversification ratio process metric and accumulation factor error process metric except at few instant time points.
      PubDate: Mar 2022
       
  • Construction of Optimal Portfolio Using Efficient Portfolio and Zero
           Opportunity Cost

    • Abstract: Publication date:  Mar 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  2  Daniel Arficho Gaenore   M Montaz Ali    and Aduda Jane Akinyi   In this manuscript, we introduce asset allocation and portfolio selection techniques based on efficiency condition, Sharpe ratio error condition and order three zero opportunity condition. Investors expect the same level of risk and return from alternative investment options unless they want the advantage of diversification for risk. There are two fundamental investment portfolios. The first one is risk free fundamental portfolio, and the second one is risky fundamental portfolio. Investors use zero opportunity cost to select portfolio objective. In this research, mathematical derivation of portfolio construction approach is described in advance. Historical data of this research show that there is a positive linear relationship between natural logarithm of standard deviation of securities’ return and square of co-variance between securities and market return. Furthermore, it shows that there is a positive linear relationship between Treynor ratio of securities’ return and Sharpe ratio of securities’ return. We use global search optimization tool in MatLab and R software to solve empirical portfolio selection and asset allocation problem. Moreover, we apply direct and indirect mathematical proof methods to prove mathematical facts of this study.
      PubDate: Mar 2022
       
  • Towards the Sustainability Enhancement: Identification of Impediments on
           Integrated Reporting

    • Abstract: Publication date:  Mar 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  2  Nawarathna Liyanage Erandi Abeywardana   S.M. Ferdous Azam   and Kevin Low Lock Teng   Integrated Reporting is an emerging corporate reporting model amongst the other voluntary corporate reporting practices. However, the impediments may hinder the adoption of integrated reporting practices, and it may be affected by organizational sustainability. Hence, this study aims to examine impediments that affect the adoption of integrated reporting practice and the impact of the adoption or non-adoption of integrated reporting on organizational sustainability. The study adopted a qualitative research approach. Based on the judgmental sampling method, the data was collected through 15 semi-structured interviews from the responsible officers of integrated reporting in public listed companies in Sri Lanka. Data from interviews was analysed using the directed content analysis. The results showed that impediments to integrated reporting practice have occurred through the international integrated reporting framework, external factors, and organizational factors. Furthermore, IR practices’ adoption reinforces the identification of sustainability issues and strengthens the integration of sustainability issues into strategies. These findings contribute to the literature on impediments of integrated reporting and organizational sustainability in the context of developing countries. These findings could be helpful to professional accounting bodies, regulatory bodies, and firms that need to mitigate the impediments to integrated reporting and enhance organizational sustainability. This paper adds to the limited available literature on the impediments of integrated reporting for the emerging economy. Moreover, this study is the first to reveal the impact of adoption/non-adoption of integrated reporting practices on organizational sustainability.
      PubDate: Mar 2022
       
  • The Weekend Effect Investigation: Evidence from Indonesia Capital Market

    • Abstract: Publication date:  Mar 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  2  Zainal Abidin Sahabuddin   and Bram Hadianto   In the weak-form market efficiency, investors cannot obtain profits by trading stocks through a positive price difference. Unfortunately, this perspective is doubtful because of the weekend effect theory. The highest and lowest return exists on Friday and Monday, respectively, based on this theory. For that reason, this study is presented to prove the weekend effect by statistically checking the return based on the trading days with the variance analysis model and the Tukey Honestly Significant Difference Testing. Unlike the other research, this study utilizes the shares' return to prove this effect in the bullish and bearish markets. Data are collected by archival method from the Yahoo Finance website based on the names of shares chosen as the LQ45 members. The workdays and holidays are obtained based on the information from the Indonesian stock exchange. This finding shows that the lowermost return exists on Tuesday for two markets. Separately, the reverse Monday and the middle-week effects exist in the bearish and the bullish. The return change in the bullish period is more significant than that in the bearish. Therefore, this study is helpful for public investors to transact their shares to gain a positive return by utilizing these daily patterns in these two markets.
      PubDate: Mar 2022
       
  • Global Financialisation, Trade Facilitation and International Flows

    • Abstract: Publication date:  Mar 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  2  Ifeoma M. Ihegboro   Chika Anastesia Anisiuba   Aernan Johnson Emberga   Ofogbe Nyore Sandra   Love Ogochukwu Ude   and Anthony Obiora Ude   This study evaluated global financialisation, trade facilitation and international flows. The study specifically examined the effect of tariffs imposed on export and import, information and communications technology (ICT) development and usage in business, documents to import and documents to export (Numbers) and labour force in the economy on the net national income of Nigeria. Data collected were analysed using the ARDL model. The result of the analysis shows that the tariff imposed on export and import is negative and insignificantly impacted the net national income of Nigeria. It was also observed that ICT development and usage in business has a positive and insignificant effect on the cash flow rate in Nigeria. The study further shows a positive but insignificant impact of documents to import and documents to export (Numbers) on the net national income of Nigeria. It was also observed that the labour force in an economy has a positive but insignificant effect on the net national income of Nigeria. The study clarifies that trade flow is continuously increasing in Asian countries. It benefits all those countries that are actively performing well in international trade. It helps them with economic development and rising living standards. But some trade facilitation determinants need to be improved for a better advantage. Improvement in these determinants will result in an increase in trade volume with faster and cheaper trade flow.
      PubDate: Mar 2022
       
  • Factors Driving the Intention to Pursue Internal Auditing Certification
           and Career among Future Graduates in Malaysia

    • Abstract: Publication date:  Mar 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  2  Azleen Ilias   Nasrudin Baidi   Erlane K Ghani   and Rahida Abdul Rahman   This study aimed to investigate the accounting students' awareness, interest, and intention to pursue the Certified Internal Auditor (CIA) qualification and career. This study examined the driving factors (attitude, social norms, and perceived behavioral control) on the intention to pursue the CIA. This study was based on the Theory of Planned Behavior (TPB) and utilized an online questionnaire to survey 243 accounting students from eleven (11) universities in Malaysia. It found that ACCA, CPA, and CIA are the main qualifications they intend to pursue. This finding showed that most accounting students are aware of the internal auditing (IA) certification. Based on the regression analysis, social norms and perceived behavioral control impact the students' intention to pursue the CIA and IA career. This study could help universities and the Institute of Internal Auditors Malaysia (IIAM) develop interest among accounting students to see the benefits of CIA and career in IA.
      PubDate: Mar 2022
       
  • Multinationality and Financial Performance: The Place of Multinational
           Manufacturing Companies in Nigeria

    • Abstract: Publication date:  Mar 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  2  Theophilus A. Aguguom   Sikiru O. Ashamu   and Ebun Olanipekun   Financial performance which results from the right combination of the sustainable conducive business environment, optimal utilisation of corporate human and capital resources and multinationality of operations by a competent management team, could be restricted due to challenges such as infrastructural deficits and inconsequential regulations. The business landscape in Nigeria is characterised by complexities related macroeconomic uncertainties and vulnerabilities predominant in the Nigerian economy. Multinational manufacturing companies are subjected to challenges which hinder financial performance such as unnecessary harsh conditions. Hence, the effect of multinationality on the financial performance of multinational manufacturing companies operating in Nigeria was examined in this study. An expo-facto research design was adopted as methodology for the study. A population of 22 Nigerian multinational manufacturing companies was selected. Eighteen companies, representing 80% of the population were purposively selected and observed for a period of 20 years. Secondary data were extracted from the audited financial statements of the selected manufacturing companies during the period under consideration. The data were analysed using descriptive statistics and inferential panel analysis. Findings revealed that multinationality exhibits a positive significant effect on the financial performance of multinational manufacturing companies in Nigeria. It is recommended that policymakers create enabling legal and regulatory framework that will ease business operations. Also, infrastructural investment should be provided to reduce the cost of running a business in Nigeria.
      PubDate: Mar 2022
       
  • Operating Performance Analysis for Companies during GST & SST Indirect Tax
           Periods, A Malaysian Evidence

    • Abstract: Publication date:  Mar 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  2  Sitraselvi Chandren   Mohd. Amir Mat Samsudin   Sumaia Ayesh Qaderi   and Santhirasegaran Nadarajan   Companies require a comprehensive plan and controls to support the business operations and revenue management best practises that may influence the operating performance (profitability and liquidity position) during the Goods and Services Tax (GST) and Sales and Services Tax (SST) periods. This paper applied two- sample t-test to analyse the operating performance the profitability and liquidity position for 249 listed companies from manufacturing and service sectors during the GST and SST periods. As a result, the GST has a positive impact on company profitability, whereas the SST has a slightly greater effect on the company liquidity position. In addition, the analysis on three main sectors operating performance results has similar findings with the main analysis where the profitability performance is better in the GST period while liquidity position increases in the SST period. Furthermore, the outcome of the operating performance analysis by company size reveals that small companies perform less successfully than expected for the profitability and liquidity position relative to large companies during the GST and SST periods. In spite of the fact that SST period outperforms the liquidity position for the companies; the companies still have high profitability and a manageable liquidity position during the GST era. This reveals that GST positively influences the operating performance of the companies from the perspective of effective revenue and short-term fund management. The outcome of this study provides a novel contribution to the business leaders, authorities and academics on the effect of two indirect taxes GST and SST on the companies operating performance.
      PubDate: Mar 2022
       
  • Banking Ecosystem: What Do Retail Clients Expect from the Modern Financial
           Services Industry'

    • Abstract: Publication date:  Mar 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  2  Cam-Duc Au   Philippe Krahnhof   and Lars Klingenberger   German banks are experiencing harsh times due to rising costs and declining profits. On the one hand, acquisition costs for new customers are increasing because of the rise of innovative FinTechs, which entered the market with one specific goal: disrupting the whole financial services industry by occupying parts of the value-chain. On the other hand, the Covid-19 pandemic as well as an overall low level of interest rates cause the traditional source of bank income to still drain. Consequently, traditional banks must rethink their strategies or their identity, so to speak, because they go beyond their traditional offering of products and services. Having said that, banks may create new sources of income to stabilize their economic situation and replenish profits. The given paper aims to research the opportunities of establishing an ecosystem model. In doing so, the paper contributes to the current literature debate and provides reference points for traditional banks to start. Firstly, a systematic literature-review introduces a selection of research works the author regards as significant. In the following step, quantitative data from an online survey with bank clients is analysed by means of descriptive statistics to show the perspective of Germans with regards to an ecosystem offering. The final research findings indicate that the surveyed retail banking clients express interest in the new offer, whereas non-financial products and services are of lower interest than their financial pendants.
      PubDate: Mar 2022
       
  • Impact of Financial Technology (Fintech) on Financial Inclusion(FI) in
           Rural India

    • Abstract: Publication date:  Mar 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  2  Shubham Goswami   Raj Bahadur Sharma   and Vineet Chouhan   Transformation towards Financial technology makes possibilities throughout all areas of the economy for growth. Emerging developing economies have seen a fast expansion of financial technology and mobile money services. FinTech projects, which are regarded as some of the most significant advances in the financial sector, have also obviously been driven by the growth of digital transformation, as FinTech Mobile money and digital wallets address the economic infrastructure vacuum with an innovative technology solution and enable customers to conduct financial transactions affordably and dependably by eliminating spatial barriers, and can be used to bridge the gap of banked and unbanked. This paper investigates the critical success factors influencing the adoption of disruptive financial technology for financial inclusion in rural India. Present research empirically measures the impact of technology in promoting entrepreneurship in under-developed regions for future adoption of financial technology in rural areas. The quantitative approach uses inferential statistics for hypothesis testing. Exploratory Factor Analysis is being applied for critical factor identification and Structural Equation modeling for measuring the impact of FinTech in financial inclusion in Rural India. The result indicates that factors constructing the social influence also positively impact behavioural intention to use manager technology in the rural sector in India. An end-user habit of using financial technology systems and services has a positive relationship with behavioural intention. Factors affecting perceived ease of use towards using the financial technology are positively related to the system's usability. Present work provides emerging good practices for policy-makers, regulators, and investors in changing financial environment. It presents empirical findings to identify the critical success factor and another growth driver for FinTech services. The results would help mobile service industry to discover an economy of scope in providing services at low cost and with maximum social benefits. Study will also provide insights to financial institutions for offering banking services via mobile to handle cross-border transactions to low-income customers of remote areas.
      PubDate: Mar 2022
       
  • Portfolio Management Services in India: Returns and Incentives

    • Abstract: Publication date:  Mar 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  2  Vaibhav Aggarwal   and Chintan Vadgama   On the back of booming equity markets and falling interest rates, Indian high net worth investors have flocked to Portfolio Management Services (PMS) funds in India with substantial assets under management of INR 18,07,939 crores. However, there is scant academic literature on the performance of PMS funds in India which charge high fees compared to passive index funds. The purpose of this study is twofold. First, describe the performance of PMS funds in India as compared to their respective benchmark. Secondly, review the incentives fees structure of PMS funds and recommend regulatory changes needed to address the shortcomings. The principal results indicate that majority of PMS funds have failed to outperform the benchmark in the short-term and medium-term periods. In the long-term period, however, largely PMS funds have beaten the benchmark returns. The implications of this study are two-fold in the Indian market context. First, high net worth individuals in India must invest via PMS funds only if their investment time horizon is at least ten years. For the short to medium-term, it will be better to invest in index funds due to their meager expense ratio and returns, which are like the benchmark indices. Second, Indian policymakers must increase the minimum hurdle rate based on which the variable performance fee is charged to ensure portfolio managers are rewarded if they generate abnormal risk-adjusted returns. This study contributes to academic literature by focusing on the performance and incentives of PMS funds market in India, which is largely unexplored till now.
      PubDate: Mar 2022
       
  • The Central Bank Independence in Relation to Inflation and Growth: An
           Empirical Evidence from Vietnam

    • Abstract: Publication date:  Mar 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  2  Van Hung Dao   The Dong Phung   Khac Lich Hoang   Thi Vinh Ha Nguyen   and The Kien Nguyen   Central Bank Independence (CBI) is the ability of a central bank to control monetary instruments. It reflects the set of limits on the Government's influence on managing a central bank's monetary policy. CBI can be restricted or dilated on personnel, objective, policy, and lending aspects. There is quite ample empirical evidence that CBI helps reduce inflation and stimulate growth. However, some countries with high CBI still witness high inflation. This paper seeks to understand when central bank independence would promote inflation control effectiveness. By establishing a mathematical predictive model, the study shows that a certain level of dependence between the central bank and the Government will facilitate the dual goals of price stability and economic growth. The empirical evidence from Vietnam, where the Communist Party leads both entities, reveals the U-shaped relationship between CBI and inflation, but not growth.
      PubDate: Mar 2022
       
  • Determinant of Compliance Perceptions among Bank Officers towards
           Anti-Money Laundering

    • Abstract: Publication date:  Mar 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  2  Nor Balkish Zakaria   Norazida Mohamed   and Nuha Marzukai   The purpose of this study is to investigate the perceptions of determinants of anti-money laundering compliance among banking officers in mitigating money laundering. There are three independent variables that are employed in this study to understand and analyze the level of perceived compliance among the banking compliance officers, which are the regulatory comprehensiveness, training, and awareness. The data were collected through the distribution of questionnaires to 56 banks in Malaysia. The findings of this study show that there is a positive relationship between regulatory comprehensiveness, training, and awareness on the perceived level of compliance. This study recommends that efforts should be made by the banking institution to strengthen the anti-money laundering regulation and policy to improve the efficiency of financial institutions in Malaysia. In addition, the compliance officer's competency should be enhanced to ensure better compliance quality.
      PubDate: Mar 2022
       
  • Capturing Cross-Section of Return on Nifty 100 Companies: CAPM vs
           Fama-French Three-Factor Model

    • Abstract: Publication date:  Mar 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  2  Deepak Sehgal   and Khushboo Sagar   In order to explain the relationship between risk and expected return, different researchers use different asset pricing models. In this research paper, we identify whether Sharpe's single factor model termed Capital Asset Pricing Model or Fama-French three-factor model better explains the expected excess return on portfolio. We used NIFTY INDEX as the proxy market portfolio. For the purpose of FF Model, we used Market Capitalization (MC) as a variable of firm size and Book to Price (B/P) as a variable of firm value. Data are taken from 1st July 2012 to 30th June 2021 for 85 companies forming part of NSE 100. We have used the same portfolio selection framework used by Fama-French (1993 and 1996). 91 days treasury bills (T-bills) have been used as risk-free proxy and taken from RBI website for the given period. We found that Fama-French three-factor model captured better results than the single factor CAPM in explaining the expected returns for all the double-sorted portfolios constructed based on MC (size factor) and B/P (value factor).
      PubDate: Mar 2022
       
  • The Moderating Role of Moral Obligation on the Relationship between Non
           -Economic Factors and Tax Evasion among SMEs: A Conceptual Framework

    • Abstract: Publication date:  Mar 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  2  Nayef Mohammad Al-Rahamneh   and Zainol Bin Bidin   Globally, Tax evasion has always been a continual defiance to policy makers. A developing nation is primarily reliant on tax revenue and foreign aids to keep the country afloat. To provide sufficient tax revenue, efficient tax collection and competent tax administration are required. Understanding the determinants that influence tax evasion, and the proper solutions to address these factors, can help to reduce the negative repercussions of tax revenue loss in both developing and developed countries globally. This is a conceptual paper of a future study based on the survey of previous literatures, particularly the socio-psychological theories. Subsequently, this study debates that integrating non-Economics factors, namely Peer Influence, Tax Fairness and Tax Complexity, together could probably better demonstrate tax evasion determinants. Consequently, the goal of this research is to give a proposed conceptual framework for the role of moral obligation in moderating the relationship between peer influence, tax justice, tax complexity, and tax evasion among small and medium enterprises (SMEs). The current study makes a theoretical contribution by emphasizing the role of moral obligation in moderating the relationship between non-economic factors and tax evasion among SMEs.
      PubDate: Mar 2022
       
  • Taxation Practices and the Survival of Small and Medium-Sized Enterprises
           (SMEs)

    • Abstract: Publication date:  Mar 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  2  Nnam Imaobong Judith   Amara Felix Maduabuchi   Ekete Linus Igwe   Okeke Stella Ehis   and Chukwunwike Onyekachi David   Small and Medium-sized Enterprises (SMEs) serve as vital economic stimulators in developing and developed economies. However, several factors including high energy costs and taxing practices hamper these businesses growth and expansion. Essentially, taxation or taxing practices are those multiple payments obligations placed on SMEs by the state. This study examined the effect of taxation/taxing practices on the growth of SMEs with a specific focus on whether ‘multiple payment obligations placed on SMEs have significant implications on their profitability, investment decisions, and cash flows. The study adopted survey research design. The chi-square and regression analysis were used in testing hypotheses. Results from the chi-square and regression analysis indicated that tax practices significantly affect SMEs profitability and investment decisions. However, on the effect of taxation on the cash flow of SMEs, the chi-square test showed a non-significant effect of taxation on cash flow while the regression analysis revealed a significant relationship between taxation and cash flow of SMEs. This contradiction may be ascribed to bias exhibited by some respondents in answering some questions asked during the survey. Therefore, the study recommended that the government improves on tax incentive already provided, improve infrastructure, and implement tax policies based on the ability to pay and eschew multiplicity of payment by SME owners; these will eventually encourage growth and expansion of SMEs and the economy at large.
      PubDate: Mar 2022
       
  • Fiscal Autonomy and Educational Attainment of the Federating States in
           Nigeria

    • Abstract: Publication date:  Mar 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  2  Nkang Eyam   Peter Ubi   and Bassey Ebi   This study investigates the impact of fiscal autonomy on educational attainment of the states in Nigeria. The focus is on the 36 states in Nigeria. The capability of a state to internally generate revenue is a basic requirement in the provision of social infrastructure. In the context of this research, fiscal autonomy was measured as a ratio of internally generated revenue to federal allocation. To investigate the relationship involving fiscal autonomy and educational attainment in Nigeria, instrumental variable three stage least squares (3SLS) panel estimation framework was adopted by this study. The Hausman's test was used to determine the most robust estimates and the Hansen-sargan test was also used to determine if the instrument used was identified between the two-stage and three-stage least squares. The result from the rigorous estimation technique of 3SLS does not seem to give support to the hypothesis that increase in fiscal autonomy can significantly drive increase in literacy rate vis –a-vis educational attainment across the states and hence economic development in Nigeria. The study therefore strongly advocates that states should tow the middle path of not being completely fiscal autonomous in striving for fiscal autonomy as fiscal autonomy itself does not necessarily guarantee high educational attainment of states in Nigeria.
      PubDate: Mar 2022
       
  • Factors Affecting Audit Quality: The Moderating Effect of Dysfunctional
           Behavior

    • Abstract: Publication date:  Jan 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  1  Aldi Rivaldi   Khoirul Aswar   Taufeni Taufik   Andreas   and Eka Hariyani   This study aims to examine the Machiavellian characteristic, independence, time budget pressure, and dysfunctional behavior as moderating variables on audit quality. Main Auditor of State Finance (AKN) of the Supreme Audit Institution of the Republic of Indonesia (BPK RI) was used as samples in this study. The purposive sampling method was used to select 52 examining auditors from AKN who completed a questionnaire. The hypothesis in this study was investigated using the SmartPLS 3.0 and the Structural Equation Modelling (SEM). This study will provide information to supreme audit institution in order to maintain and improve the quality of BPK RI. The result of this study shows that independence and time budget pressure had a significant effect on audit quality, while machiavellian characteristics had no significant effect on audit quality. The influence of machiavellian characteristics, independence, and time budget pressure on audit quality is not moderated by dysfunctional behavior. This research is expected to be useful for the leadership of the supreme audit agency in reviewing policies related to improving audit quality and paying attention to the condition of the auditor in carrying out audit assignments so that the reliability of the BPK LHP is maintained.
      PubDate: Jan 2022
       
  • Digitalization in Accounting: Technology Knowledge and Readiness of Future
           Accountants

    • Abstract: Publication date:  Jan 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  1  Azuraidah Taib   Yunita Awang   Shazalina Mohamed Shuhidan   Norfadzilah Rashid   and Mohd Sidki Hasan   In the course of digitalization, the accounting industry will adapt to comparable developments. Finance and accounting professionals must embrace the digital shift as the digital world evolves to remain relevant. To flourish in their career, future accountants must be equipped with the most up-to-date technological knowledge. Thus, this study aims to investigate the link between future accountants' technological knowledge and technology readiness for the digitalization of the accounting profession. This study employed a non-probability purposive sampling approach as the research unit with future accountants. Online surveys were used to examine the relationship between technology knowledge and the digitalization of the accounting profession. It was delivered to 546 interns from the top six public universities in Malaysia for accounting and finance. A total of 187 respondents have participated in the survey.This study discovered a significant link between future accountants' technology readiness and the digitalization of the accounting profession. It suggests explicitly that the better-equipped accountants are to use technology, the better their capacity to adapt to technological progress in the industry. However, there is a weak relationship between technological knowledge and digitalization. As a result, an adequate focus must be given to establishing future accountants' qualifications alongside professional degrees. Their tertiary education should include more exposure and practice to digital literacy. Although this study was confined to six public institutions, the findings may not be extrapolated to represent the opinions of all future accountants. As a result, future studies might broaden the sample selection to include private and other universities.
      PubDate: Jan 2022
       
  • Red Flag Effectiveness in Public Sector Audit Using Fraud Pentagon Theory

    • Abstract: Publication date:  Jan 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  1  Magnaz Lestira Oktaroza   Pupung Purnamasari   Rudy Hartanto   and Annisa Nadiyah Rahmani   Auditors in carrying out fraud detection do not always get a bright spot, because the perpetrators have many ways to commit fraud and various underlying motivations. This reason strengthens government auditors, and it is important to understand or recognize indicators or red flags in determining fraud risk assessments. The aim of this article is to gather empirical evidence on how public sector auditors perceive fraud detection. Partial Least Square analysis is the method used. The number of samples in this study was 96 government auditors consisting of 48 BPKP auditors and 48 BPK auditors. The findings demonstrate that gender, duration of employment, and education and training of auditors at BPKB have an impact on the effectiveness of red flags, whereas auditors at BPK have a different impact, with job position, education, and training having an impact on red flag effectiveness. The results of this study give attention to BPKP and BPK to provide opportunities for auditors to participate in continuing education and participate in training that supports auditors in carrying out their work, especially related to training in the use of IT to detect fraud. The perception theory can explain the usefulness of red flags in detecting fraud, according to the findings of this study. This means that in determining the ability to use red flags, it is influenced by individual characteristics (gender, position, length of employment), and the capacity of auditors (education and training).
      PubDate: Jan 2022
       
  • Impact of Financial Knowledge, Financial Attitude and Financial Behaviour
           on Financial Literacy: Structural Equitation Modeling Approach

    • Abstract: Publication date:  Jan 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  1  Dhananjay Banthia   and Sanjeeb Kumar Dey   Financial literacy has gained importance in recent years and has become a major issue all around the world. The financial market offers a wide range of products in a complicated manner and product accessibility has also risen. As a result, it is critical for individuals to have the appropriate financial knowledge and awareness in order to make the utmost use of their financial resources. Due to the massive population, poor literacy levels, poverty, disparities in regional languages, diverse cultures, and wide socio-economic disparities, the path to a financially literate in India is also difficult. Further, the behaviour and attitudes of an individual are influenced by the enormous range of culture, beliefs, religion, and customs found in different states. Under such circumstances, this research is conducted to determine the way financial literacy is linked to financial knowledge, financial attitude and financial behaviour in Odisha, India. It is found that there is a negative effect of "Financial Behaviour" on "Financial literacy level". "Financial knowledge" is found to be positively related to "Financial behaviour" and "Financial attitude". But, "Financial attitude & Financial behaviour" are negatively related.
      PubDate: Jan 2022
       
  • Issues of Sharia Debt-Based Crowdfunding on Regulations in Indonesia

    • Abstract: Publication date:  Jan 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  1  Afif Noor   Dwi Wulandari   Haniff Ahamat   Ismail Marzuki   Akhmad Arif Junaidi   and Mahsun   Sharia debt-based crowdfunding is experiencing good growth in Indonesia. Its existence as a financial service institution based on information technology carries high risks such as default risk, misuse of funds, the potential for shadow banking, personal data misuse, risk of Sharia compliance, and risk of consumer protection and dispute resolution. The purpose of this study is to find issues related to Sharia debt-based crowdfunding as a financial service institution that is subject to Sharia principles in crowdfunding regulations in Indonesia. This research is normative juridical research that uses secondary data as research material, including primary, secondary, and tertiary legal materials. The results show that no regulation specifically regulates Sharia debt-based crowdfunding in Indonesia. Financial Services Authority Regulation number 77/2016 as the legal basis for debt-based crowdfunding in Indonesia does not regulate Sharia debt-based crowdfunding as a financial service institution that is subject to Sharia principles and does not regulate legal protection for its consumers. Sharia debt-based crowdfunding must be regulated to protect consumers, both preventive and repressive protection as a manifestation of the rule of law principle adopted by Indonesia.
      PubDate: Jan 2022
       
  • Determinants of Investment Decision in Cryptocurrency: Evidence from
           Indonesian Investors

    • Abstract: Publication date:  Jan 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  1  Bella Siti Nurbarani   and Gatot Soepriyanto   This study aimed to determine the effect of behavior factors and social demography on the investment decision in cryptocurrency in the Greater Jakarta area. The method used in this study is partial least square (PLS) using the SmartPLS software application. The behavior factor variables used in this study are overconfidence, herd behavior, subjective norm, and awareness variables. This study also used social demography moderating variables in age, gender, occupation, education, and investment experience on 400 respondents in the Greater Jakarta area. The test results show that only overconfidence and awareness variables have a significant positive effect on decisions to invest in cryptocurrency and subjective norms variables that have no significant positive effect but can be moderated by social demographic factors such as age and investment experience. In addition, other variables have no significant positive effect. They cannot be moderated by social demographic factors such as age, gender, occupation, and investment experience on the decisions of cryptocurrency investors in Greater Jakarta area. Our study contributes to developing knowledge, insight, skills and analyzing researchers, especially regarding the influence of behavioral factors and social demography on investment decisions in cryptocurrency.
      PubDate: Jan 2022
       
  • Factors Influencing Auditors' Professional Scepticism: Malaysian Evidence

    • Abstract: Publication date:  Jan 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  1  Razana Juhaida Johari   Tarmizi Mohd Hati   and Sayed Alwee Hussnie Sayed Hussin   The practice of professional scepticism is an essential element to audit quality. An auditor is required to have a sceptical attitude to minimize the mistakes made during the examination or investigation of financial statements. However, the occurrences of corporate scandals among the audited companies had affected the public’s confidence and the blame was shifted on auditors for ineffective application of professional scepticism. Therefore, this study examines the potential factors that influence auditors’ professional scepticism including auditors’ trust, locus of control, and fraud risk assessment. The primary data were collected through the questionnaires given to the auditors from public accounting firms in Kuala Lumpur. The results of this study show that the attitude of professional scepticism has no significant bearing on auditors’ level of competence (knowledge and experience). Whereas, there are positive relationships between auditors’ trust, fraud risk assessment, work internal locus of control and professional scepticism.
      PubDate: Jan 2022
       
  • Taxpayer Perceptions of Tax Awareness, Tax Education, and Tax Complexity
           among Small and Medium Enterprises in Malaysia: A Quadrant Analysis
           Approach

    • Abstract: Publication date:  Jan 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  1  Nadiah Abd. Hamid   Ida Suriya Ismail   Nuridayu Yunus   Muhammad Nizam Jali   and Anwary Syuhaily Rosly   The government's continuous support in ensuring the resilience and development of the small and medium enterprises (SMEs) amidst the COVID-19 pandemic is not open to question, especially considering the huge allocation of funds to SMEs as incentives for sustaining their businesses. To date, the greatest allocation of RM38.7 billion has been made through the 2021 Budget to benefit the SMEs. As such, the obligation of SMEs to contribute to the government by paying taxes voluntarily and accurately is essential. This study examines the perceptions of taxpayers via quadrant analysis to identify organisational strengths and weaknesses based on the ranking between priority and satisfaction towards tax awareness, tax education and tax complexity. A structured questionnaire was developed, validated and distributed to SMEs' owners via an online survey form. A total of 140 respondents completed the questionnaire and they were included in the data analysis. Overall, taxpayers considered paying tax as a burden since it will reduce their income and they also opined that introducing a new digital tax is not compulsory at the moment. In addition, taxpayers were less informed about tax management and services provided by the tax authority. Issues relating to tax complexity and management procedure need to be addressed by the tax authority. These findings could assist tax authorities by focusing on the elements requiring urgent attention to increase tax awareness, especially among SMEs in Malaysia.
      PubDate: Jan 2022
       
  • Transfer Pricing Documentation: Globalization and Regional Optimization

    • Abstract: Publication date:  Jan 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  1  Svitlana Y. Korol   Olena I. Nykyforuk   Ulyana V. Pelekh   Nataliia S. Barabash   and Olha M. Romashko   The study was conducted in order to assess and analyse the impact of globalization and regional optimization on the activities of economic entities that are required to prepare transfer pricing documentation. The methodological background of the study involved the following methods: generalization, explanation, grouping, induction and deduction, as well as analysis and synthesis, which were used to clarify the main scientific categories of research and substantiate the research results. Methods of schematic and graphical representation were used to visualize analytical data, formulate assumptions and substantiate the obtained results. The main focus of the study is on the analysis of the causes of global economic risks and the role of transfer pricing documentation, whose quality will help mitigate the negative consequences of undesirable events for the global economic system. The study found that not all countries apply the international instrument — Multilateral Convention to Implement Tax Treatment Related Measures to Prevent BEPS (MLI). Many countries that have started to use MLI reporting, have no uniform standardized rules for the preparation of transfer pricing documentation. The legislation only defines the list of information to be submitted by taxpayers, provided that the results of their business activities meet certain criteria. The development of a unified methodology for valuing financial assets for tax purposes and preventing their use in illegal financial transactions are the promising areas for further research.
      PubDate: Jan 2022
       
  • Effectiveness of Financial Inclusion and Rural Upliftment: Empirical
           Evidence from Tamil Nadu

    • Abstract: Publication date:  Jan 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  1  Shankar Kumar S   and Jeyaprabha B   Financial inclusion is the process of confirming access to financial services and adequate credit at timely, wherever required by vulnerable groups such as low income groups and weaker sections at a reasonable cost. Financial inclusion programme primarily emphasizes on offering secured financial solutions to the underprivileged segments of India without any signs of inequality and unbiased treatment. The main objective of the study is to examine the effectiveness of financial inclusion and rural upliftment with empirical evidence from Tamil Nadu. This research study is descriptive in nature, and target audiences are residing in Tamil Nadu region. Secondly, the sample size of this study represents 480 citizens, and the sampling method adopted is non-probability sampling using judgmental sampling method which is used for the target population. The Likert five-point rating scale questions are used for collecting the data through structured questionnaire. The findings revealed that the intensity of financial inclusion has improved over the years across different districts of Tamil Nadu but majority of districts still fall under the medium inclusion in rural area category. In this research study, it is suggested that financial inclusion generates economic progress and prosperity that drive activities among standard of living increasing across all segments of the society. This result shows that financial inclusion programme is potential and capable to transform the face of the state Tamil Nadu and it travels continuously towards upliftment of each and every individual without a doubt. The future research may consider more dimensions of financial inclusion like perception, engagement, empowerment of citizens and comparative study on different financial inclusion schemes at different regions, as this study is restricted to only (rural upliftment) financial inclusion.
      PubDate: Jan 2022
       
  • Utilization of Information Technology to Increase Human Resources Capacity
           and Internal Control Systems on Local Government Financial Reporting
           Information

    • Abstract: Publication date:  Jan 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  1  Marsyanda Eka Pratiwi   Muhammad Din   Rahma Masdar   Andi Mattulada Amir   Femilia Zahra   Abdul Kahar   and Lucyani Meldawati   There are increasing demands from the public related to the accountability and transparency in public sector administration. The governments usually respond by providing financial information to the public. In order to fulfill public rights to the information, government is also establishing the efficient way to achieve transparency by utilizing information technology (IT) in both financial management and public administration. This study aims to analyze the effect of human resource capacity and government internal control systems on the value of local government financial reporting information using information technology as a moderating variable. The population in this study is the financial manager in 41 government units in Palu City, Indonesia. The sampling technique uses purposive sampling with analysis tools processing data using WarpPLS. The results showed that human resource capacity had a positive and significant effect on the value of local government financial reporting information. The results also revealed that government's internal control system had a positive and significant effect on the value of local government financial reporting information. In terms of moderating effects, the results found that the use of information technology moderates the relationship between human resource capacity and the value of local government financial reporting information and the relationship of the government's internal control system to the value of local government financial reporting information.
      PubDate: Jan 2022
       
  • Economic versus Non-Economic Factors: Which is More Relevant to an
           Individual's Tax Compliance Decisions in a Developing Economy'

    • Abstract: Publication date:  Jan 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  1  Jones Adjei Ntiamoah   and Joseph Asare   Tax compliance study, which is linked with the study of human behavior, remains complex and evolving. The complex nature of taxpayers who are humans coupled with the inconsistencies in the methodologies and approaches used by tax compliance researchers have added to the complexity. Again, it remains unclear as to what motivates a typical taxpayer in a developing economy to honor their tax obligations voluntarily. To understand this complexity, a survey was conducted using questionnaires containing a list of economic and noneconomic tax compliance factors. A total of five hundred (500) respondents who are taxpayers located in four different developing economies were selected. The study found that understanding tax compliance decisions of taxpayers in developing economies requires at least some appreciation of the underlying factors which influence individual taxpayer's decision about whether to pay or evade taxes. The findings from this study prove that tax compliance decisions of individual taxpayers in developing economies are highly influenced by non-economic factors. However, to achieve improved tax compliance among individuals in a developing country, equal attention would be required for both factors. Further, the study provides some preliminary evidence that paying attention to the noneconomic factors could play a vital role in improving tax compliance level among individuals by up to 89% whereas compliance level could improve by only 11% if attention is paid to only the economic aspects of tax compliance decisions.
      PubDate: Jan 2022
       
  • Analysis of Audit Competencies and Internal Control on Detecting Potential
           Fraud Occurrences

    • Abstract: Publication date:  Jan 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  1  Mochammad Solichin   Zuraidah Mohd. Sanusi   Razana Juhaida Johari   Tri Gunarsih   and Nur Aima Shafie   It is stated that fraud in the government sector includes deceptive acts such as asset misappropriation, loss of state income, falsification of financial records and reports, and mark-ups in government financing. The purpose of this study is to investigate the potential impact of audit competences (professional skepticism and audit experience) and internal control on an auditor's capacity to detect potential fraud occurrences. Primary data were gathered via a printed questionnaire distributed to the 149 government auditors who work at Indonesia's Inspectorate Office. The findings, based on the Partial Least Squares of structural equation modelling, show that both audit competences have a significant impact on the capacity to detect probable fraud. Internal control, on the other hand, has no direct impact on the capacity to detect potential fraud. The findings show that internal control significantly moderates the link between audit competencies (professional skepticism and audit experience) and the auditor's ability to detect potential fraud occurrences. This research offers practical government suggestions for improving government auditors' professional audit competencies and abilities. Audit authorities should be able to create a more effective internal control structure that prioritizes feedback and learning. The limitations of the study as well as future research are highlighted.
      PubDate: Jan 2022
       
  • Application of Clustering in the Dimensionality Reduction Algorithms for
           Separation of Financial Status of Commercial Banks in Ukraine

    • Abstract: Publication date:  Jan 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  1  Halyna Velykoivanenko   and Vladyslav Korchynskyi   The issue of determining the financial condition of commercial banks and separating investment-attractive banks from problem banks on this ground is extremely important for developing countries. The aim of this study is to make sure on the example of Ukraine that commercial banks really form separate clusters, where more reliable, stable and efficient banks are well separable from less successful ones in this regard. The study used the t-SNE and UMAP dimensionality reduction algorithms, and the Ward's Agglomerative Hierarchical Clustering algorithm. The results of visual analysis of two-dimensional t-SNE projections show that banks of different degrees of risk are well separable and have their own specifics. Clustering in the UMAP algorithm allowed distinguishing clusters with banks of Class A, "mid-tier" and problematic banks by different parameters. The t-SNE and UMAP algorithms for solving the problem are compared. The results show that a purely visual analysis of the two-dimensional map for the banks over the last period is best made using the t-SNE algorithm. UMAP, on the other hand, is proved to be excellent when used in tandem with the clustering algorithm.
      PubDate: Jan 2022
       
  • The Zeitgeist of "Financial Reporting Quality" Predictors: An Empirical
           Study among Local Governments (Districts) in Indonesia

    • Abstract: Publication date:  Jan 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  1  Swarmilah Hariani   and A. Fakhrorazi   The research investigated the relationship among FRQ, ICS, RPM, and COR as moderating variables. The research recommends that local governments should improve in the field of financial management and implement an effective internal control system. Aligning the research problem and objectives, this research adopted the agency theory for local government. This theory includes information asymmetry, where the agent has more information and understands more about the actual financial position than the principal. Modern democracies are based on a series of principal-agent relationships, which may lead to problems in the public sector. In this research, 257 qualified questionnaires were collected from local governments in Indonesia, using self-administered surveys. Furthermore, Partial Least Square-Structural Equation Modelling (PLS-SEM) technique was used for data analysis. The results showed that ICS, COR, and RPM have a positive relationship with FRQ, while the hypothesis that COR strengthens the effect of ICS on FRQ was rejected. High COR does not significantly improve the FRQ without being supported by a good ICS. With a high or low COR, the ICS will continue to be carried out properly by leaders and superiors. Therefore, a good COR does not significantly moderate the effect of the ICS on the FRQ. The quality of financial reports is the result of accounting activities that can provide financial information which can be understood by users and be used for decision-making in the future.
      PubDate: Jan 2022
       
  • An Analysis of Malaysian SMEs' Access to Public Financial Assistance

    • Abstract: Publication date:  Jan 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  1  Ijaz Ali   Asma Khatoon   Ashraf Imam   Asif Baig   Odunayo Magret Olarewaju   and Imran Ahmad Khan   The purpose of this paper is to identify the types of firms for which government financial support for SMEs is provided in Malaysia. The financial data of privately held and publicly traded companies are used and a probit model is estimated with qualitative variables as explained variables. The estimation results of the probit model reveal that the more Bumiputras are included as the ethnic composition of the board of directors. The more support they have received, the more fixed assets a company has, and the more support it receives. Firms with poor corporate performance tend to be more likely to receive financial assistance. Since the length of operation and ROE are not statistically significant, length of operation and ROE do not seem to have a significant effect on government financial support. The study finds that government financial support through development finance institutions is related to the ethnic composition of the board members. And the more difficult it is for SMEs to borrow from banks on a commercial basis, the more government financial support they receive.
      PubDate: Jan 2022
       
  • The Performance Measurement of Generalized Sharpe Ratio and Economic
           Performance Measure: A Hedge Funds Example

    • Abstract: Publication date:  Jan 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  1  Pham Ngoc Van   and Khoa Dang Duong   Prior literature documents that the Sharpe ratio (SR) generates biases in performance evaluation if returns distribution deviates from normal distribution because SR is derived under the mean-variance model with the strict assumption of either quadratic preferences or customarily distributed returns. When the return distributions deviate from normality, it may lead to unreasonable results. Therefore, this study examines which performance measurement approaches are efficient for non-normality on the distribution of asset returns. We collect monthly returns of 14 Credit Suisse (CS) hedges fund indexes from April 1994 to June 2021. The hedge fund index returns exhibit high negative skewness or high positive kurtosis, implying non-normal distribution. Then, we employ the Sharpe ratio (SR) and two performance measures, which extend the Sharpe ratio, the generalized Sharpe ratio (GSR), and the economic performance measure (EPM), to evaluate the performances of hedge funds. In addition, both the nonparametric and parametric estimation methods of the GSR and the EPM are utilized. Our findings indicate that the nonparametric GSR and the nonparametric EPM produce more similar rankings than the SR. Among the three parametric estimation methods of the GSR and EPM, only the method proposed by [1] produces similar rankings with the nonparametric GSR and the nonparametric EPM. Finally, our study contributes the practical approach for fund managers to evaluate their fund performance efficiently.
      PubDate: Jan 2022
       
  • Companies' Financial Security Mechanism under Hybrid Conflicts

    • Abstract: Publication date:  Jan 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  1  Lesya Yastrubetska   Ihor Krupka   Viktor Kovalenko   Nataliia Zhmurko   and Olesia Mykuliak   This scientific article is devoted to the development of the mechanism of companies' financial security management and measures to improve it under the hybrid conflict. The study is conducted on the prerequisites of Ukrainian companies operating in the zone of hybrid conflict. The study aims to develop a mechanism for managing the financial security of Ukrainian companies operating under hybrid conflicts. Insufficient scientific research on improving companies' financial security under hybrid warfare and the government's imperfect regulation of financial security makes the topic relevant for scientific research. The academic paper highlights the theory that whilst the hybrid conflict weakens the level of financial security of the company improves. Statistical and mathematical methods of calculations are used to carry out empirical research. The correlation between the peace index and the index of financial security of Ukraine is determined. The article's novelty involves the development of risks classification associated with non-military actions affecting the companies' financial security management. The financial security management mechanism's functional components have been developed in the research; the steps to improve financial security have been outlined. Two directions of development of financial security management, based on changes in the geographical location of the enterprise and the continuation of work in a hybrid conflict, are proposed. Contentious views have confirmed the fact that changing the enterprise's geolocation is less widespread; consequently, the proposed directions for the development of financial security are of practical importance for business in the temporarily occupied territories.
      PubDate: Jan 2022
       
  • The Impact of Blockchain Technology on International Trade and Financial
           Business

    • Abstract: Publication date:  Jan 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  1  Slatvinska Valeria   Demchenko Vitaliia   Tretiak Kateryna   Hnatyuk Rostyslav   and Yarema Oleg   This article examines the impact of blockchain technology in the financial sector and international trade. The aim of the article is to measure the effect of blockchain technology on international trade and financial business. The paper uses methods of analysis and synthesis of information from researched academic articles, government programs, reports, and statistical data. The averages and regression analysis (in particular, the calculation of the Pearson coefficient) are used for getting analytical results. Graphic methods are used to summarize the information and to present the understudy materials. According to the results of the study, it can be concluded that blockchain technology has great potential for the development of international trade and financial business. It is possible by improving the settlement of international trade, applying smart contracts in the formation of the transaction, improving logistics chains, and reducing the speed of information and delivery processing, increasing the economic turnover. Blockchain has a positive impact on reducing costs for merchants and the banking sector, predicted by 2030 to decrease costs by 11% using this technology. The technology will have a very significant impact on the development of intellectual property, which could be particularly activated by the possibility of reducing the impact of pirated copying. It is possible to reduce corruption and fraud by applying blockchain technology in public procurement, which currently accounts for the bulk of international trade. Blockchain technology will add $3 trillion in additional business value by 2030 and $866 bln in international trade, including financial business.
      PubDate: Jan 2022
       
  • A Study on the Perception of SMEs on Foreign Exchange Risk Management

    • Abstract: Publication date:  Jan 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  1  B. Vijayalakshmi   G. Subashini   M. Jayalakshmi   and C. Umayal   The promotion of Small and Medium enterprises (SMEs) has continued to remain an important and integral part of Indian development strategy and is known to play a vital role in the global economic landscape. Despite the fact that Government of India has formulated many policies to promote export expansion of SMEs, they have traditionally focused more on domestic markets and the export performance of this sector in the global market has been unimpressive. Although SMEs want to exploit the international opportunities and want to become more export oriented, many barriers impede the growth performance of Indian SMEs to meet the challenges of emerging trends in globalization. This paper specifically aims at finding the perception of the SMEs in determining their hedging strategies to mitigate the foreign exchange risk. The study is performed by considering primary and secondary data. The primary data were collected from 71 selected export traders through structured questionnaire and analyzed using suitable statistical tools. From the study, it is concluded that the SMEs with high turnover prefer to adopt currency derivatives, especially forward contracts whereas the SMEs with lower turnover prefer natural or non-hedging strategy. It is also recommended that the banking sector can also step forward to give information on currency price movements to their clients as an additional service.
      PubDate: Jan 2022
       
  • Do Narcissistic CEOs Affect Accounting Irregularities' Evidence from
           Indonesia

    • Abstract: Publication date:  Jan 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  1  Engkos Achmad Kuncoro   Gatot Soepriyanto   and Arfian Erma Zudana   Narcissism is related to the need for recognition. Prior studies show that narcissist behavior may influence the CEO's actions engaged in accounting numbers manipulations. This study examines the effect of CEO narcissism on accounting irregularities in Indonesia. Indonesia provides a unique setting to test this issue because narcissistic behavior is an uncommon trait in the country. Consequently, it may influence the motivation of narcissistic CEO to manipulate accounting numbers. We test the issue by measuring CEO narcissism with the characteristics of CEO's photo on the annual report. We then conduct a simple logistic regression on that proxy to the Beneish M-Score as our accounting irregularities measure. In accordance with our expectations, we find no evidence of an association between CEO narcissism and accounting irregularities. This may attribute to the fact that Indonesia's social and cultural aspects lower the incentives for individuals, including CEOs, to engage in narcissistic behavior, thereby decreasing their motivation to use accounting numbers as a venue to get attention and recognition. Interestingly, this study discovered a significant negative relationship between CEO narcissism and accounting irregularities for firms audited by BIG4 auditors. This may indicate that BIG4 auditors can significantly mitigate the intentions and activities of narcissistic CEOs in manipulating accounting numbers to get better publicity.
      PubDate: Jan 2022
       
  • The Effect of Perceived Risk on Intention to Use Online Banking

    • Abstract: Publication date:  Jan 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  1  Reepu   and Rakhi Arora   Online banking is a major service for the contemporary banking sector's expansion plan. Numerous researchers have contributed to the research paradigm the positive aspects of online banking. Consumers sense the interconnectivity due to its presence online. Nonetheless, this service was not extensively utilized due to consumers' remaining afraid of the danger of online transactions. Users fear to use such services online due to the prevalence of different kinds of risks. Thus, the detailed and distinctive risk job in risk awareness for the banking industry is an important and useful task. The influence of perceived risk in online banking use is investigated in this research. As it has been regarded for the majority of times, perceived risk serves as one of the major barriers towards usage of such kind of services. The paper has set out the varied categorical risks like privacy, social risk etc. which influences the usage or intention towards usage of such online banking services. The research model is envisaged on the basis of different theories of information technology acceptance. Questionnaire method was employed to obtain responses specifically from female users of online banking. Data collected were analyzed through Structural Equation Modelling (SEM). Results have been analyzed well. The findings of SEM show risk elements "privacy risk, security risk, social risk, time risk, and financial-performance risk" in perceived risk, which has a negative impact on desire to utilize online banking. Research findings may assist in suggesting ways to improve safety and mitigate online banking risks prevalent among users.
      PubDate: Jan 2022
       
  • Role of Government Policies to Fintech Adoption and Financial Inclusion: A
           Study in Pakistan

    • Abstract: Publication date:  Jan 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  1  Misbah Noreen   M. S. Mia   Zahiruddin Ghazali   and Ferdoushi Ahmed   Purpose- Pakistan is a lower-middle-income country and financial inclusion rate is comparatively lower than other South Asian countries. In this circumstance, Government of Pakistan has implemented various financial inclusion policies and strategies to enhance the rate of financial inclusion in the country. However, a cursory attention has been paid to Government policies by the previous studies. Therefore, the aim of this study is to provide an insight into the current government policies and strategies for fintech adoption and financial inclusion in Pakistan. Design/ methodology/ approach- This study collected and reviewed previous literature that focused on various fintech adoption and financial inclusion policies and strategies by the Government of Pakistan. Literature has been selected from various secondary sources such as journal articles, conference proceedings, annual reports of SBP (State Bank of Pakistan), Global findex report by World Bank and so on. Findings- The study found that Government of Pakistan has successfully implemented a number of financial inclusion policies and strategies during the last decade. A noteworthy innovation approach (i.e. fintech) was applied as a catalyst in order to extend the scope of financial services in Pakistan. The Government also implemented Financial Literacy Programs specifically for youth to create awareness about financial resource management in the country. Very recently, Government of Pakistan launched banking on equality program to enhance gender equality in financial inclusion. Originality/value- The findings of this study might be useful for the decision makers and practitioners to implement the policies and strategies more effectively and efficiently to enhance the rate of financial inclusion in country.
      PubDate: Jan 2022
       
  • Recognition Criteria and Classification of Investment in Tangible Assets

    • Abstract: Publication date:  Jan 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  1  Namig Garib Orujov   The aim of the study is to clarify and arrange the types of investment in tangible assets based on the practice of forming such assets in the world and Azerbaijan in particular. The article involves methods of analysis and synthesis in the development of criteria for attributing costs to investment in tangible assets. The dynamics of the investment in tangible assets of economic entities were analysed through the statistical analysis. The monographic method is applied to a comprehensive in-depth study of the types of investment in tangible assets, and the cause-and-effect relationships of their implementation. An abstract logical method was used to generalise and draw conclusions. The nature of investment in tangible assets was studied, taking into account the provisions of international accounting standards and other regulatory documents. An algorithm for identifying investment in tangible assets was developed, which provides for their consistent recognition from the moment the operation gets the attributes of investment activity and the subsequent distribution of investment by individual groups of assets to their final completion. The usefulness of the identification algorithm in making informed management decisions on the material investment in individual objects was determined. The classification of investment in the tangible assets of the company was determined, and the key types of investment were identified. The dynamics of the volume of investment in the tangible assets of Azerbaijani companies were investigated; an econometric model was developed to predict it, and the amount of investment in the tangible assets of Azerbaijani companies for the next five years was predicted. The prospects for further research include the search for directions for modernising the company's investment policy.
      PubDate: Jan 2022
       
  • Assessment of the Financial and Economic Security Level of the EAEU Member
           States in the Context of Growing Macroeconomic Uncertainty

    • Abstract: Publication date:  Jan 2022
      Source:Universal Journal of Accounting and Finance  Volume  10  Number  1  Galina Ivanovna Osadchaya   Marina Lvovna Vartanova   Igor Aleksandrovich Seleznev   and Evgeniia Evgenyevna Kiseleva   The main factors of macroeconomic uncertainty for the Eurasian Economic Union member states are the threat of a global financial crisis, long-term restrictive measures associated with the spread of the pandemic, trade wars between major states, new sanctions, volatility in commodity prices, growing inflationary pressures, internal risks of tightening monetary policy, volatility of national currencies, as well as an increase in the budget deficit and total debt. There is a need to protect against undesirable external influences and radical internal changes in the conditions of global instability, to assess the socio-economic potential of the Eurasian Economic Union member states on the way to a single integration space, in other words, the need for security is a basic, fundamental need, both for the life of an individual and including society and the state, which makes this study more relevant. The COVID-19 pandemic had a major impact on many economic and social processes. In these difficult conditions of external factors' influence, the system of ensuring financial and economic security acquires significance. The conducted research allows concluding that, firstly, the economic security of the countries of the Eurasian Economic Union is a complex concept that reflects the state of the financial system of countries, their ability to timely and reliably meet needs of the economy in the amounts necessary to provide growth of the economy in the conditions of integration. Moreover, the indicators of budget and stability of investments of each of the countries determine the level of the EAEU member financial security.
      PubDate: Jan 2022
       
  • The Process of Forming Accounting Policies of Ukrainian Enterprises by
           International Financial Reporting Standards

    • Abstract: Publication date:  Oct 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  5  Valentyna Panasyuk   Nina Ovsiuk   Ruslan Volchek   Grygorii Azarenkov   Nataliіa Volenshchuk   and Olena Tyvonchuk   In most countries of the world, business entities independently determine their accounting policies, choose the form of accounting, synthetic and analytical accounts, forms of primary documents, and organize an internal control system. In this case, it is necessary to be guided by the legislation requirements, which is not always perfect and consistent. According to the accounting policy, the consequence of the deficiencies in legislative regulation was its ineffective implementation and use by enterprises in practice. This, in turn, negatively affects the efficiency of business entities as a whole. One way to solve this problem is to consider the organizational and technological features of the activities of enterprises as the basis for their development of accounting policies. The authors investigated when the standards should guide a company and when the creation of an accounting policy is reasonable. The study contains a theoretical and methodological substantiation of the directions, as well as the proposals themselves for the formation of the accounting policy of the enterprise, namely: a possible algorithm for the construction of the accounting policy of the plant by IFRS is presented, which represents the process of forming the accounting policy of the enterprise; the analysis of IFRS norms is clearly shown since this is fundamental in the formation of the accounting; analyzed IFRS, according to which options and/or variability of which are due to the inconsistency of IFRS and justified the choice of one or another option. The proposed recommendations will attract more foreign investment and can facilitate the transition to IFRS for the company.
      PubDate: Oct 2021
       
  • Auditors' Perception on the Impact of Artificial Intelligence on
           Professional Skepticism and Judgment in Oman

    • Abstract: Publication date:  Oct 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  5  Gopalan Puthukulam   Anitha Ravikumar   Ravi Vinod Kumar Sharma   and Krishna Murthy Meesaala   Technology is an inevitable part of businesses and human lives. It has brought about substantial changes in the way businesses and operations are conducted. A business organization has to perform auditing which involves analyzing and testing a large volume of financial transactions. In manual auditing, testing and analyzing the entire transactions in a business are not possible. The usage of artificial intelligence (AI) and Machine Learning (ML) not only allows testing the entire financial transactions in a business but also helps improve audit efficiency. Audit efficiency relates to the professional skepticism and professional judgment demonstrated by the auditors. The core purpose of the research is to understand the perception of auditors on the impact of such technologies on professional skepticism and the judgment of internal auditors in improving audit efficiency. To understand the impact of AI and ML, various factors influencing the use of AI and ML and the challenges were considered. Data were collected from 169 respondents spanning across all sectors in Oman using a structured questionnaire. The collected data were analyzed using correlation to determine the relationship between AI and ML-assisted auditing practices and professional skepticism and professional judgment. Results indicate that AI and ML-assisted auditing practices have a strong positive relationship with professional skepticism and professional judgment. This proves that AI and ML have an impact on professional skepticism and professional judgment. Moreover, it helps in improving the detection of errors and material misstatements. Even though the advantages of AI and ML outweigh manual auditing, the complete replacement of human beings with AI and ML should be considered with caution. Hence, auditing must be carried out with the help of AI and ML along with human intervention in improving auditing efficiency.
      PubDate: Oct 2021
       
  • Evaluation of Financial Condition and Performance Optimization of the
           Petrochemical Industry Organization in the Context of Increased Financial
           Risks

    • Abstract: Publication date:  Oct 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  5  Oksana Savchina   Aleksandr Bratanov   Natalia Konovalova   and Svetlana Saksonova   The global petrochemical industry is one of the most dynamically developing - it is twice as fast as the world GDP in terms of growth rates. Over the past 20 years, significant changes have taken place in this industry. New major players have appeared and the structure has changed. As for Russia, its share in the global petrochemical production is about 2.5%. At the same time, Russia is one of the world leaders in the production and export of hydrocarbon raw materials, where the country's share is about 12 - 19%. Currently, a steady trend in the development of polymer materials science has been observed and it will continue to develop. In the next 15 years, the demand for petrochemical products will grow by an average of 4% per year. The purpose of this study is to analyze the financial standing, assess the prospects for development and optimize the activity of one of the largest systemically important organizations of the petrochemical industry in Russia - PJSC "SIBUR Holding" in the conditions of the macroeconomic instability. To implement the research the authors have collected financial data from the reports of financial results and the balance sheets of the company. They have selected the key performance and solvency indicators in particular, liquidity, business activity, profitability, solvency and investment attractiveness. Particular attention is paid to the factors of financial risk affecting the opportunities for business expansion. Econometric modeling methods were used to determine the company's development prospects that are dependent on the internal policy of cash flow management, accounts receivable, debt, external influence of inflationary risk. Research results suggest that the continuous cash flow, namely, the formation of a policy for managing accounts payable in the crisis, has a significant impact on the further development of the company.
      PubDate: Oct 2021
       
  • Adaptive Portfolio Analysis based on the Trend Decomposition of a
           Financial Time Series: Case Study of the Moscow Exchange

    • Abstract: Publication date:  Oct 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  5  Dmitry A. Endovitsky   Larisa S. Korobeinikova   and Viacheslav V. Korotkikh   Testing an adaptive modification of the portfolio analysis model with a two-level mechanism of return generation is used to identify the temporal structure of efficient frontiers. The stock market is volatile and, although it is consolidated, it follows different trends at different times. Therefore, stock market processes are viewed as multitrend in nature. It particularly applies to the process of generating returns. For the convenience of the analysis, a multitrend process can be presented as a finite decomposition using adaptation principles. As we have already said, adaptive mechanisms are an important factor for the effectiveness of the stock market. Considering these requirements, the most suitable method is adaptive trend decomposition. In our study, we used data analysis and machine learning methods. The article presents a method of portfolio analysis based on the decomposition of efficient sets into temporal components. This allows for a comparative analysis of portfolio sets regarding their efficiency over different time intervals and enables a dynamic analysis of the temporal structure of efficient sets in order to determine the optimal time for holding the portfolio or changing its structure. A family of efficient sets provides a better understanding of investment opportunities. Our calculations also demonstrated that the temporal structure of a family of efficient sets is more likely to remain robust during the prediction period.
      PubDate: Oct 2021
       
  • Africa and Technology Exchange: Is Financial Aid Effective for the
           Development of the Continent'

    • Abstract: Publication date:  Oct 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  5  Sergey V. Rastoropov   Elvira N. Iamalova   Natalia A. Sadovnikova   and Igbal A. Guliev   Africa, despite continued and substantial financial assistance from more developed countries, has not yet achieved significant economic growth. It can be concluded that the assistance format requires adjustment. As a new information society is being formed, it can be supposed that the transfer of many technologies to African countries can significantly improve their situation. Thus, the authors put forward the hypothesis that in order to boost the development of African countries, the transfer of basic industrial technologies is needed. The major challenge of the article was to create a model, incorporating both economic indicators of growth and the volume of aid to the African countries, as the second parameter is hard to estimate. Within the developed hypothesis, proposals are put forward for the formation of technological convergence specific mechanisms through supranational institutions. The main aim of the article is to confirm the hypothesis, and put forward four schemes for the formation of the technological exchange infrastructure on the continent. In addition to that, the article provides basic directions for the institutional cooperation between the international development institutions. The key contribution of the article is the proof that the international development institutions' activity and their aid don't correlate with the economic development of the African countries, thus they don't have a significant economic influence.
      PubDate: Oct 2021
       
  • Map of Changes in Abnormal Return and Trading Volume Activity: Reviewing
           the Effect of Ramadhan in Indonesia

    • Abstract: Publication date:  Oct 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  5  Endang Tri Widyarti   Sugeng Wahyudi   and Hersugondo Hersugondo   Investor assessment of information on the effect of Ramadhan on stock return and trading volume company activities in the capital market is an important phenomenon that always occurs. The purpose of this study was to analyze average abnormal returns and average trading volume activities of stocks before and after the announcement the effect Ramadhan as National Non-Natural Disaster. The method used was an event study with a sample of companies listed in the LQ45, JII, SRI KEHATI, and PEFINDO Indexes. Observations of the 30-day Ramadan event were carried out from April 23 to March 24, 2021, in the month of Sha'ban - syawwal, using 15 samples obtained from IDX (Indonesian Stock Exchange) data. The analytical tool used was regression supported by the SPSS application. The results of the study showed that the Abnormal Returns (AR) was significantly different before (Sya'ban) and after the month of Ramadan (Syawal) for companies on the Indonesia Stock Exchange in 2021, indicating a consistent AR reaction to the Ramadhan Effect. Meanwhile, Trading Volume Activities (TVA) didn't differ significantly before (Sya'ban) and after the month Ramadan (Syawal) at companies on Indonesia Stock Exchanges in 2021. This study updates previous research by including the effect of Ramadan as a research test variable.
      PubDate: Oct 2021
       
  • Factors Affecting Financial Literacy among Budding Entrepreneurs

    • Abstract: Publication date:  Oct 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  5  Aruna Polisetty   Nammi Lalitha   and Hari Babu Singu   An entrepreneur is often driven by a quest for innovation and creativity in a market, thus creating competition. The competition will create wealth, leading to improved living standards for individuals and the economy at large. Moreover, innovation and creation result in new and superior products that enable modern markets to be developed. However, the enthusiasm to become an entrepreneur is not the sole driving factor. One must know the importance of financial literacy. Besides, the negative stigma due to the COVID-19 pandemic ruined many lives and impacted businesses with less money due to the reduction of clientele; also, it had impacted budding entrepreneurs (at early start-up stages, and hardly have had experience between 1-3 years) with fewer opportunities to make money. That reduced the willingness of entrepreneurs to invest capital in the business due to raging losses. The current article presents the importance of financial literacy for budding entrepreneurs. To find and measure the financial literacy among budding entrepreneurs, the data were distributed to 223 entrepreneurs; however, 179 were finally used for analysis due to several reasons mentioned in the research methodology. The data was collected from five districts of the South region of India (Kerala, Andhra Pradesh, Karnataka, Telangana, and Tamil Nadu) and the snowball technique is used in the analysis. The study revealed that most budding entrepreneurs lack proper financial literacy. The study found that Financial Skills, Financial Knowledge, Financial Attitude, Social Interactions & Past Experiences, Financial Support & Guidance directly influenced Financial Literacy levels among entrepreneurs. The study also suggests that aspiring entrepreneurs should be given practical financial training sessions; it should be made mandatory.
      PubDate: Oct 2021
       
  • Improving the Internal Financial Control of Expenditures of the Budgetary
           Institutions under the Influence of the Crisis Caused by COVID-19

    • Abstract: Publication date:  Oct 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  5  Larysa Ivanchenkova   Halyna Tkachuk   Larysa Skliar   Olesia Holynska   Kateryna Stasiukova   and Yuliia Tomchuk   The purpose of this article is to analyze the control of local budget expenditures in Ukraine under the influence of the crisis caused by COVID-19 and to find ways to improve the internal financial control of expenditures of budgetary organizations. The relevance of the study is due to the need to create a system of separation of powers and responsibilities in the public sector on the basis of ensuring economical, efficient, effective and legal use of budget resources to achieve the goals set by the organization. The study was conducted on the basis of data from Ukraine. Expenditures of budgetary institutions as an object of internal financial control are considered. The analysis of control of expenses of local budgets is carried out. It is established that Ukraine needs further reform of the state financial control of expenditures of budgetary institutions - in the direction of decentralized control. It is proved that the creation of a modern information and analytical resource optimizes the accounting and control system, which will lead to the introduction of more effective mechanisms for administration, de-shadowing of the economy and increasing control over budget expenditures. Thanks to digital technologies, the economic activity of budgetary institutions will become more transparent, risk assessment will be optimized and the capabilities and effectiveness of the system of internal financial control of expenditures will increase.
      PubDate: Oct 2021
       
  • The Effects of Covid-19 on Financial Statements: Some Insights from Italy
           through an International Literature Review

    • Abstract: Publication date:  Oct 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  5  Veronica Tibiletti   Pier Luigi Marchini   and Federico Bertacchini   The uncertainty generated by the Covid-19 pandemic has influenced countless aspects of business management. In order to deal with the pandemic, managers had to make particularly complex choices regarding, for example, the cash management activities, investment decisions and workplace safety procedures. At the same time, the instability related to the performance and solvency of companies has made it necessary for companies to have adequate information disclosure, even more than that in the past. The Covid-19 pandemic has in fact increased the need for an effective communication about the main corporate events with all corporate stakeholders. Based on this premise, this study aims to highlight the main scientific contributions regarding the impact that the Covid-19 pandemic has had on accounting and on corporate financial reports. The analysis carried out led to the identification of five thematic areas: Policy, Corporate Social Responsibility, Disclosure, Financial Statements Data and Audit. Moreover, considering the importance of providing adequate disclosure in a period of great uncertainty, this paper proposes an analysis on the disclosure about the Covid-19 pandemic provided by the companies belonging to the FTSE MIB index of the Italian Stock Exchange. Following a preliminary quantitative analysis of the performance of these companies, a content analysis was carried out on the financial statements and the main documents attached to it, in order to verify the presence of references to the Covid-19 pandemic. It will be shown that the companies analyzed have made adequate disclosure of information regarding the emergency situation arising from the pandemic.
      PubDate: Oct 2021
       
  • Two Examples of Inefficient Use of Public Finances in Poland

    • Abstract: Publication date:  Oct 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  5  Valery Okulich-Kazarin   The background of the research is that scientists and practitioners are interested in the efficiency of the use of public finances. There are articles about financial management processes in the form of planning, implementation and reporting as elements of good governance of public finances. The aim of this empirical research was to check: do Polish officials effectively make use of public finances' The author has used justified research methods such as general scientific research methods (methods of analysis and synthesis, induction and deduction, etc.); study of scientific sources and official documents; observation with recording the results using photography; statistical methods, including verification of statistical hypotheses. In the first example, the use of public finance in a state-owned enterprise was carefully studied. In the second example, the author described the use of public finance at the local level. The empirical research had only one limitation: the inefficient use of public finances is usually hidden from citizens. The key hypothesis: the Polish officials effectively use of public finances. These examples did not allow us to accept the Key Hypothesis. The principal result of the empirical research is that the facts of inefficiency of the use of public finance in Poland have become a new scientific knowledge. Modern statistics allow us to attribute the results of the sample to the entire population. The major conclusions and its contributions to the field of public finances are in the facts: A) Polish officials use public finance inefficiently both at state-owned enterprises and at the local level. B) The inefficient use of public finance was five years ago and continues now. The result is highly statistically significant (99.0%). The inefficient use of public finances has serious negative social consequences: economic, budgetary, legal and psychological. The most important aspects of the empirical research are in practical and theoretical significance. In the practical significance, it is necessary to create working bodies for checking the efficiency of the use of public finances. In the theoretical significance, it is very important to create financial mechanisms that stimulate the effective use of public finances.
      PubDate: Oct 2021
       
  • Study of Stock Market Management in Reference to Institutional Investment

    • Abstract: Publication date:  Oct 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  5  Naresh Kedia   and Anil Vashisht   The institutional investors, whether the DII (Domestic Institutional Investor) or FII (Foreign Institutional Investor) contribute to the growth and management of stock market. The stock market is very dynamic in nature and the volatility is prevalent across. It is important to understand the relation of different institutional investors on the stock market. Foreign institutional investors and Domestic institutional investors are two major sources from which the stock market receives its investment. Thereby, it is necessary to understand the cause and effect of these investments on the stock market. The flow of fund from the foreign investors is one of the reasons for the growth of Indian Stock Market. The cause-and-effect study gives us a better picture of the stock market movement and this study focuses on finding the same. The study will help investors and stockbrokers to understand the movement of the stock market in a better way. In this study, cause and effect between the FIIs, DIIs and Stock Market returns is analysed. The statistical tools used for analysis are Granger Causality test and Johansen Co-integration test. Both the statistical tool used are reliable and the expected results will be highly beneficial for the investors at large. The results shows that there is cause and effect relation between the FII and DII, but the co-integration between the FIIs, DIIs and stock market is absent. The study will contribute in understanding the behavior of stock market.
      PubDate: Oct 2021
       
  • The Impact of International and National Credit Rating Level on Capital
           Structure Optimization: Evidence from Indonesia Non-Financial Listed Firms
           

    • Abstract: Publication date:  Oct 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  5  Christina   and Mandra Lazuardi Kitri   Credit rating is a measure of a firm's creditworthiness in financial markets. The cost and benefit given from credit rating is supposed to affect the capital structure decision in the following year. This research examines the effect of each rating level on the capital structure level and examines how credit ratings are substantial for the firms to reach the optimal capital structure. It will also compare the impact of credit ratings from different agencies. Quarterly data of 110 firms that fulfil the requirements are gathered from 2010 until 2021. Panel data analysis using the fixed effects method shows a nonlinear U-shape between Standard & Poor's and Fitch's credit rating on capital structure level and on the distance to optimal capital structure level. Low and high rated firms tend to have higher debt levels in the following year and have a larger distance to the optimal capital structure level. Meanwhile, mid rated firms have lower debt levels and smaller distances. However, the result is opposite using Moody's rating and insignificant using PEFINDO's rating. This research suggests that credit rating is important to the capital structure decisions and other Indonesia firms could acquire credit rating especially from international rating agency.
      PubDate: Oct 2021
       
  • Functions, Assets and Risk Analysis in the Preparation of Transfer Pricing
           Documentation

    • Abstract: Publication date:  Oct 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  5  Mariana I. Muzychuk   and Olena V. Fomina   The topicality of scientific and applied research, which was aimed at developing and improving methods of tax administration of transfer pricing, is the relative novelty of the active use of this tool. It is worth noting that almost all elements of the mechanism for determining the value of the transaction, the operations of which are recognized as controlled, including the procedures for conducting functional analysis for the preparation of transfer pricing documentation. This allowed stating the aim of the publication, which is to identify the features of functional analysis to justify the choice of the comparative side of the controlled operation in Ukraine, as well as the method of ensuring compliance with the arm's length principle and organisation of the reporting process. The organisational and legal support of the functional analysis for the purposes of transfer pricing and the use of its results in the preparation of transfer pricing reports were studied. The study revealed incomplete organisational and legal conditions for preparing a transfer pricing report in Ukraine, in particular, difficulties in obtaining information for comparisons, as well as the lack of a unified methodology for functional analysis to reveal the economic nature of the transaction, which is considered controlled for transfer pricing purposes. Based on a positive and regulatory analysis of the processes of forming the market value of the transaction for tax purposes, the author's vision of the methodological approaches to functional analysis in Ukraine, presented in the Practical Manual on Transfer Pricing for Developing Countries 2021, was proposed.
      PubDate: Oct 2021
       
  • Simulation for Ruin Probabilities in Insurance with Sequence Markov
           Dependence Random Variables

    • Abstract: Publication date:  Oct 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  5  Quang Phung Duy   Thinh Nguyen Huu   and Chien Doan Quyet   The aim of this paper is to calculate ruin probabilities using Monte Carlo method for two models: i) classical risk model with claim amounts are homogeneous Markov chains; ii) generalized risk models with premiums amounts, claim amounts are homogeneous Markov chains. The sequence of random variables in the article is considered as a series of Markov dependent random variables. The main results of this paper are Lemma 3.1, Lemma 3.2 and Lemma 3.3, which have built mathematical formulas for the simulation of the probability of insurance models considered in this paper. From those lemmas, we build algorithms to simulate ruin probability for insurance models considered in this paper. From these algorithms, we build numerical results illustrating the problems posed in the paper. These results all show that when the initial capital increases, the ruin probability will decrease, and when the time increases, the ruin probability will increase. This result is consistent with the theory of the risk problem in insurance.
      PubDate: Oct 2021
       
  • Revenue Recognition Dilemma under International Financial Reporting
           Standard (IFRS 15): Perspectives from Key Impacted Firms in Nigeria

    • Abstract: Publication date:  Oct 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  5  Olubunmi Adewole Ogunode   and Rafiu Oyesola Salawu   This study examined the post -implementation impact of IFRS 15 from the Nigerian perspective and challenges associated with the adoption. Four listed companies operating in IFRS 15 key impacted firms in Nigeria which accounts for 82% of total market capitalization as of April 2021 were selected. The data extracted were analyzed with the aid of tables, charts, ratios, percentages and content analysis. The study revealed that listed firms in Nigeria aligned with the need to adopt and fully implement IFRS 15 in their financial reporting in response to regulatory pressure and increased internationalization of their operations. The study, therefore, concluded that adoption and implementation of IFRS 15 had a positive effect on accounting numbers of listed firms in Nigeria. The study identified the proper identification and treatment of royalties, income taxes, proper delineation of revenues from contractual fees, the need for persistent contract modifications, capitalization of contract costs, and collectability issues, as key challenges of IFRS 15 implementation. The study recommended that the Board and Management of companies operating in the IFRS 15 impacted industries should always provide greater clarity on the basis used for arriving at the significant judgment calls they make. Also, the Financial Reporting Council and external auditors need to develop workable methodologies to monitor and tighten compliance with both quantitative and qualitative IFRS 15 disclosure requirements.
      PubDate: Oct 2021
       
  • Unified Payment Interface (UPI): A Digital Innovation and Its Impact on
           Financial Inclusion and Economic Development

    • Abstract: Publication date:  Jun 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  3  Shailesh Rastogi   Chetan Panse   Arpita Sharma   and Venkata Mrudula Bhimavarapu   UPI (Unified Payment Interface) platform has been used especially in India since 2016. This paper is aimed at exploring how UPI is impacting, financial literacy, financial inclusion and the economic development of the poor in India. Structured equation modelling is applied in the paper to explore the path analysis of the relevant construct to establish the relationship. A structured questionnaire of interval scale was administered to gather the data for the study. It is found that UPI is impacting the financial literacy. In addition to that, it is found that financial literacy is significantly impacting financial inclusion which in turn is significantly causing economic development. Moreover, the significant association of financial literacy to financial inclusion is partially mediated by financial stability and the significant association of financial inclusion to economic development is also partially mediated by trust. The main implication of the study is that UPI is helping people in more than one way. It is not only supporting the financial literacy but also contributing to financial inclusion and economic development of the poor, indirectly. Therefore, policy makers can use the findings of this study to frame policies for UPI more effectively in the future. This study is unique as no other study is observed on the linkage of UPI with financial literacy, financial inclusion and economic development of the poor.
      PubDate: Jun 2021
       
  • Functions of Cost Management Systems in Modern Organizational Management

    • Abstract: Publication date:  Jun 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  3  Marina Evgenievna Ordynskaya   Tatyana Alexandrovna Silina   Lala Eldarovna Divina   Irina Fedorovna Tausova   and Saida Aslanbievna Bagova   The purpose of the study is to analyze the functions of a cost management system in modern organizational management. Based on general scientific research methods and an expert survey, the key functions of cost management are defined. The authors justify the feasibility of developing a cost management system with the determination of cost management functions. The key approaches to cost analysis are formulated. It is important to ensure stable connections between the elements of the management system at the management level of the business hierarchy during the implementation of cost management functions. Moreover, one must build a mutual cost regulation mechanism at the stages of planning, organization, technological process development, and production, i.e. during the creation of the entire business process. There is a need for coordinated work by all the structural departments at the enterprise with strong horizontal and vertical logistical connections and established responsibility centers during the development of the general management system that the cost management system should be integrated into it. The tried and tested communication plan for information transmission and coordination between structural units at an enterprise determines the efficiency of the management and control systems aimed at maximum impact from management at the executive level when management decisions are made. The practical significance of analyzing the functions of cost management systems in a modern organization management system consists in increasing the efficiency of management decisions made based on the data from the analytical assessment of the costs of the enterprise. The theoretical significance lies in the chance to use the study results during the development of a general organization management system.
      PubDate: Jun 2021
       
  • Formation of a Financial Security Management Mechanism Based on the
           Introduction of New Information Technologies

    • Abstract: Publication date:  Jun 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  3  Anzhela P. Lelechenko   Vladyslava V. Iyzefovych   Iryna I. Doronina   Tykhon S. Yarovoi   and Viktoriia V. Tomakh   The article is devoted to the current problem of forming a strategy-oriented mechanism for managing the financial security of Ukrainian enterprises based on the introduction of new information technologies. It was established that transformational processes in the economy of Ukraine create the need to search for modern and effective ways to ensure the sustainable development of economic entities. The approaches to the definition of the financial security category of the enterprise are generalized and provided the author's definition of this category taking into account the strategically oriented approach. The main strategic guidelines are systematized, which are a prerequisite for the formation of an effective and efficient mechanism for managing the financial security of a modern enterprise of Ukraine in the context of the information and digital economy. A financial security management mechanism has been established to solve the problem of ensuring financial security, assess the level of financial security. A set of measures aimed at using the available resources and capabilities of the enterprise are taken. Proposals are presented for solving typical tasks on information and analytical support of the management process of financial security of the enterprise by means of introduction of new information technologies.
      PubDate: Jun 2021
       
  • Financial Decentralization as a Key Factor in the Socio-Economic
           Development of Territorial Entities

    • Abstract: Publication date:  Jun 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  3  Volodymyr I. Kravchenko   Lina V. Bondareva   Roman Yu. Bykov   Larisa V. Danilova   and Olha V. Myrna   The article is devoted to the current problem of introduction and effective functioning of the process of financial decentralization as a key factor in the socio-economic development of territorial entities. It has been found that the problem of creating and implementing effective mechanisms for solving the problem of financial differentiation is one of the most important areas of building effective social and economic policies in the context of the spread of innovative forms of public administration at the local level. There are generalized scientific works on the socio-economic development of territorial entities of Ukraine, given an author's interpretation of this concept in the article. Approaches to the definition of financial decentralization have been systematized and a clarified definition has been provided. The general directions of the introduction and functioning of the institute of financial decentralization are justified. The advantages and disadvantages of the financial decentralization process are identified both for the state as a whole and for a separate territorial entity. A universal system for the functioning of the financial decentralization process has been established, which consists of interconnected subsystems that function on the basis of sustainability and feedback. Quantitative analyses have been performed by the means of constructing an integral indicator. Proposals on directions of improvement of financial decentralization process in modern conditions of Ukraine are presented. It was concluded that the improvement subsystem is a key factor in the success of the entire financial decentralization system by providing continuous feedback for other subsystems for the continuous introduction of new ideas, technologies, and models for managing this process.
      PubDate: Jun 2021
       
  • Certain Aspects of the Management Accounting System for Small and
           Medium-Sized Enterprises

    • Abstract: Publication date:  Jun 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  3  Oleg A. Diegtiar   Oleksandr V. Bezuhlyi   Yuriy O. Tararuyev   Tetiana O. Suslova   and Tetiana V. Romanchenko   The importance of sustaining small and medium-sized enterprises (SMEs) around the world is increasing rapidly each year. In modern days many countries try to develop methods to preserve this type of companies given recent global crisis. SMEs in the Ukrainian economy account for 99.98% of the total business population. Relevance of this study consists in the significant role of the SMEs in the structure of national economy and their importance in development of the modern domestic economic systems. Objectives of the study are to determine prospects, shortcomings and features of establishing management accounting practices (MAPs) in SMEs. The problem of the study consists in fragmentation of the knowledge in the literature relating to management accounting practices in small and medium sized enterprises and problems of establishing them, due to restriction of resources and particularly wide gap between management accounting theory and practice compared to larger companies. Trends in the small and medium-sized enterprises in the structure of the national economy and their role in the development of the domestic economic system can be predicted on the basis of several reviewed cases. This confirms the relevance of the analysis of the management accounting system of economic entities in order to determine financial reserves to ensure economic activity in a crisis. Automated parametric control systems have been developed and proposed for implementation as elements of management accounting in order to provide processes for planning, monitoring and controlling of operational processes, as well as provide information and analytical support for management decision-making as a result of this study.
      PubDate: Jun 2021
       
  • Credit-Investment Activity of Banks of the Ukraine: Financial
           Globalization, Risks, Stabilization

    • Abstract: Publication date:  Jun 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  3  Natalia V. Trusova   Leonid V. Melnyk   Zhanna S. Shіlo   and Oleksandr S. Prystеmskyi   Today the problem of managing credit and investment risk in the bank in the context of financial globalization remains one of the most relevant problems. At the same time, science may not yet explain the answers to some questions and the banker needs to solve them in practice. Therefore, the construction of a comprehensive system of credit and investment risk management in banks is one of the main components of security effective lending activities of banks. The article considers the features of credit and investment activities of banks in the interbank market in the context of financial globalization. The article reveals that the main economic function of Ukrainian banks in the period of accession to the EU is the credit and investment activity of their clients. State of the loan and investment portfolio and dynamics of loans were analyzed. The model and methods of the integrated stabilizer of credit and investment activity of the bank on the interbank market are developed. The authors proposed a list of methods and actions that unify threats, identify risks and improve the credit and innovation activities of the bank in the period of globalization for countries that are in the process of forming the banking infrastructure.
      PubDate: Jun 2021
       
  • Informal Personal Financing of Entrepreneurs: Gender Characteristics

    • Abstract: Publication date:  Jun 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  3  Iuliia S. Pinkovetskaia   Anton V. Lebedev   Olga V. Slugina   Diego Felipe Arbelaez Campillo   and Magda Julissa Rojas Bahamon   The Aim of the article is in the assess indicators characterizing informal personal financing of entrepreneurs in different countries. Initial information used in our research is the data obtained in the course of the survey habitats of various countries (Global Entrepreneurship Monitor). In the course of the study we consider the indicators characterizing investment activity of men and women on three options including financing of the entrepreneurs who are their relatives, colleagues, friends and acquaintances. The assessment of the levels of nine indicators used economic-mathematical modeling based on density functions of normal distribution. The use of these functions allows defining medium values and ranges changes in considered indexes typical for most countries. In addition, the survey identifies the national economies which are characterized by the maximum and minimum data nine indicators. The study demonstrates that there is a gender gap in the data for various states. The scientific novelty and originality of this research are as follows: the indicators of external investment in firms created by entrepreneurs in different countries have been estimated; the assessment of nine indicators characterizing external investments for start-up entrepreneurs has been modeled; presents a high difference in the values of considered indexes in different countries has been shown; countries with maximum and minimum values of each indicator. It has been proven: proportion in a number of involved men in informal financing of created SMEs established by their relatives in most countries is lower than the same indicator of women, and men proportion involved in informal financing of the new SMEs created by their colleagues, as well as friends and neighbors in most countries is higher than the same indicator of women. Further research can be aimed at detailing the structure of informal financing recipients among entrepreneurs.
      PubDate: Jun 2021
       
  • Enterprise's Finances: Possible Customer's Risks when Outsourcing
           Accounting

    • Abstract: Publication date:  Jun 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  3  Marina Evgenievna Ordynskaya   Ruslan Aslancherievich Tkhagapso   Irina Grigorevna Tkharkakhova   and Dana Izmailovna Ponokova   The study aims to determine the essence, classification, reduction methods, and the impact on accounting organization of the risks faced by the customer and the contractor when outsourcing accounting. The article examines the types of risks that arise when outsourcing accounting. Based on the use of such scientific methods as logical generalization and comparison, as well as an expert survey, the following classification criteria and types of risks for the customer have been identified: concerning the customer's activities (operational, financial, control); by the level of loss and distortion of information (risk of disclosure of confidential information, risk of loss of customer documentation, accounting risk); by the aspect of emergence (psychological, moral, loss of reputation); by the source of occurrence (subjective, objective), by the possibility of prediction (predicted, unpredictable); by the possible consequences (risk resulting in loss to the customer; risk resulting in the customer receiving a specified level of income). The reasons and consequences of the proposed types of risks have been determined. The authors also have determined the influence of each of them on accounting organization and the main stages of risk management and methods of risk reduction. The practical importance of improving the classification of risks in outsourcing accounting is to assist parties in contractual relations in developing a strategy and forecasting business activities. The theoretical value lies in the possibility of using the research results to develop new classifications.
      PubDate: Jun 2021
       
  • A Comprehensive Literature Review on Pricing Equity Warrants Using
           Stochastic Approaches

    • Abstract: Publication date:  Jun 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  3  Siti Zulaiha Ibrahim   Teh Raihana Nazirah Roslan   and Ali F Jameel   Prior studies revealed that most researchers tend to employ the Black Scholes model to price equity warrants. However, the Black Scholes model was found deficient by contributing to large estimation errors and mispricing of equity warrants. Therefore, issues involving equity warrants are discussed in this paper, by focusing on specific topics and respective stochastic models to provide a basis for improvements in future research. In recent years, stochastic approaches have been used to a great extent among researchers due to the expansive applications in both theoretical and practical sense. Subsequently, this paper provides the results of a comprehensive literature review on various stochastic modelling methods and its applications for pricing financial derivatives in terms of applications, modifications of methods, comparisons with other methods, and general related researches. Focus is given on two types of stochastic models namely stochastic volatility and stochastic interest rate models, along with the discussions associating these two types of models. This paper acts as a valuable source of information for academic researchers and practitioners not only for pricing financial instruments, but also in various other fields involving stochastic techniques.
      PubDate: Jun 2021
       
  • Risk Management Committee Attributes: A Review of the Literature and
           Future Directions

    • Abstract: Publication date:  Jun 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  3  Abdessetar Bensaid   Suhaimi bin Ishak   and Ifa Rizad binti Mustapa   The aim of this paper is to review existing literature related to the risk management committee attributes (RMC) that can facilitate transactions between board committees and add value to corporations. The emphasis of this study is on RMC as it has become a crucial element, especially after the collapse of large corporations. RMCs have attracted the attention of academics and become one of the important factors that enhance the companies' performance as well as the quality of financial reporting (FRQ), and its demographic attributes are expected to play an important role in corporations. However, prior studies on the area have found inconclusive results and provide several gaps in the literature due to the mixed findings. In addition, prior studies highlight the RMCs attributes that affect corporate's performance and also the reporting quality and provide an urge to conduct more researches in related fields. Taking the period from 2003 to 2021, this paper reviews previous studies and gives a better understanding of RMC's role and future research directions. In addition, this study provides recommendations to the policymakers, regarding the demographic attributes of RMCs that can influence corporate performance and its FRQ. Finally, this review demonstrates that businesses should concentrate on these mechanisms to strengthen their performance and their reporting quality.
      PubDate: Jun 2021
       
  • Integrated Reporting, Sustainable Development Goals and the Role of
           Regional Information System

    • Abstract: Publication date:  Jun 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  3  Syaiful Hifni   Akhmad Sayudi   Atma Hayat   A. Kadir   and Rano Wijaya   Purpose: The purpose of this research article is to assess what information should be connected and how its information can be connected based on integrated thinking fit within integrated reporting into information system of regional investment potential (ISRIP) of regional government. To develop insight into how it can be implemented over changes of investment climate due to the top down pressures to fulfill sustainable development goals (SDGs). Design/methodology/approach: we conducted research for regional governments (province/district/city) in Indonesia with investment characteristics of the potential, priorities and opportunities of regional investment units by taking samples for 100 regional investment units. Measurement used nominal scale with chi-square test for goodness of fit to get the measurement of observation frequency (OF) and compared with the expected frequency (EF). Findings: the measurement results showed observed frequency (OF) with a value of 137.97. Afterwards, for expected frequency (EF), with degrees of freedom (6-1) (7-1) and a significance level of 0.05, within the chi- square showed the value of 43.77. Due to OF> EF, this result indicated for being of corresponding between integrated thinking of regional investment within implementation of information system of regional investment potensial (ISRIP). The level of integrated thinking relationships with integrated reporting in the role of 'ISRIP' has a Pearson contingency coefficient of 0.4057, as a moderate relationship. Originality: This research article contributes to the growing debate about the benefits of integrated reporting as a voluntary reporting initiative, and in which another organization have adopted as a mandatory initiative for the mode of reporting up to date; more specifically, in the efforts of regional governments to adopt an integrated thinking that is in line with the role of an integrated reporting system, in communicating of regional investment units. Practical implications: To be as an early adopter of reporting practices towards the implementation of the information system of regional investment potential (ISRIP). We imply that the six capital with strategic communication will enhance performance of ISRIP, through fundamental way and as regional strategic wisdom. To meet the values of accountable organization within regional investment units' management. In line with national alignment in global megatrends with the sustainable development goals (SDGs) accomplishment.
      PubDate: Jun 2021
       
  • The Nexus between Innovation and Business Competitive Advantage: A
           Conceptual Study

    • Abstract: Publication date:  Jun 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  3  T. T. Onileowo   F. M. Muharam   M. K. Ramily   and Saleh F. A. Khatib   Despite the fierce competition in the business environment, firms accept relatively low innovative solutions in their daily activities and consequently lose competitive advantage, experience creeping growth at a snail's pace directly associated with the firm's inadequate finance and eventual collapse. This study examined the interrelationship between access to finance, innovation, and competitive advantage. Premised on the study findings, results revealed that innovation is an all-important strategy that differentiates the products and services of business firms and consequently sustaining competitive advantage. The results suggest that adequate financing can be a mechanism by which innovation and competitive advantage positively relate to increased performance. The strength between these variables would be heightened as access to finance increased. It was further established that firms with encouraging innovative culture would gain rare core competencies and maintain the position of the market leader while sustaining competitive advantage. Based on these findings, the study recommends that business firms conduct market surveys to determine the need of current and prospective customers. Management should prioritize, invest heavily in research and development, and the government should strive to provide adequate financial support, infrastructural facilities, and incentives for business operations.
      PubDate: Jun 2021
       
  • Linking Institutional Environment to the IFRS and Accounting Quality: A
           Proposed Framework

    • Abstract: Publication date:  Jun 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  3  Fuad   Zulaikha   and Agung Juliarto   Debates on whether the new globally adopted accounting standard outperforms national generally accepted accounting principles have not yet reached the final conclusion. Prior researches were mixed and often yield to contradictory findings. Our study believes that there are numerous institutional backgrounds that contribute to these inconclusive findings. The main objective of this study is to propose a testable framework on the impact of implementation of International Financial Reporting Standards on accounting qualities. The proposed framework based on the assumption that accounting should be linked to its social, political influences and culture. In this regard, we proposed whether the positive effects of IFRS implementation to the increase of accounting qualities may also be enhanced (impaired) by the firms' national culture and corruption at the country level. This study should provide further research some preliminary arguments on how the accounting information quality is not affected by the high-quality accounting standards, per se. Rather, our study conveys worth-looking message that IFRS-accounting quality may also be influenced by those institutional environments. Hopefully, this may provide a way out of the intractable debate of prior research.
      PubDate: Jun 2021
       
  • Budgeting Practices: Its Impact on the Profitability of Small and Medium
           Enterprises in Isabela

    • Abstract: Publication date:  Jun 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  3  Christian Philip A. Fortuna   A budget is an economic tool for realizing and facilitating the vision of an organization. If a budget is to serve as a useful tool, then it is essential that all phases of budgeting are appropriately linked and managed [1]. This study made use of the three types of research by methods: descriptive research to gather the profile of respondents (size and type of business), budgeting practices (manager's participation, linking budget development to strategy, rational allocation of resources, flexibility continuous budget, and reduction of complexity and use of information technology) and level of profitability; causal-comparative research to determine differences between variables; and correlational research to determine the degree of relationship between variables and for hypothesis testing. Primarily, the 331 respondents of the study were from the four-commercial centers in Isabela, broken down as follows, Cauayan City (116), Ilagan City (58), Santiago City (121) and Municipality of Roxas (36). Results of the study showed that test of difference in respondents' budgeting practices regarding managers participation, reduction of complexity and use of information technology significantly differed between small and medium enterprises. Additionally, when the respondents were grouped according to the type of business, merchandising and servicing business varies with manufacturing business budgeting practices regarding managers participation and linking budget development to strategy. Conversely, small-sized and medium-sized businesses significantly differ as regards their level of profitability. Furthermore, the test of the relationship on respondents' perception of budgeting practices is used and their level of profitability reveals a direct and significant relationship.
      PubDate: Jun 2021
       
  • International Development Banks as Centers of Technological Exchange: Is
           Future Here'

    • Abstract: Publication date:  Jun 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  3  Yana L. Gobareva   Olga Yu. Gorodetskaya   Marina V. Karp   and Igbal A. Guliev   The problems of technological exchange and technological development are becoming the most important for all groups of countries. Developed countries want to maintain their dominant position, developing countries try to catch them up, and the least developed countries try not to be a raw materials appendage of both the first ones and second ones. Technological convergence can become the answer to the challenges for all countries. The article's aim is to form theoretical approaches to technological convergence with the development banks participation. The main challenge of the article is the lack of statistical data on the subject, just as the novelty of the scientific field covering technologic convergence itself. The main article's results are the development of a more equitable technological convergence model, the technology exchange model in Asia, the financial mechanism's development for technological convergence through development banks and proposals for development banks entering the suggested technological convergence track. Thus, the answer to the question posed in the title is negative, as modern development banks cannot effectively cope with the technological exchange. The key contribution of the article is the creation of the theoretic model for the Asian international development institutions on the technology exchange mechanisms, just as the model of attracting financial resources to the project in the field of technology, interconnected with each other.
      PubDate: Jun 2021
       
  • Demographic Analysis of Financial Literacy Level in Azerbaijan

    • Abstract: Publication date:  Jun 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  3  Nurkhodzha Akbulaev   and Matanat Mammadova   Financial literacy is knowledge that every person needs in everyday life. Studying theory, mastering practical skills, developing financial thinking - all this will allow each of us to become financially successful. Research Objective: The aim of this study is to ascertain the financial literacy level of individuals living in Baku, The Republic of Azerbaijan. 280 people between the ages of 17-60 were involved in the survey, comprised of public and private sector employees, self-employed, retirees and students to attain this objective. Method: SPSS 25.0 for Windows package program was used to evaluate the research data. First of all, frequency was determined in the research. While testing the hypotheses of the research, t-test was applied for independent samples, and Mann Whitney U test was used for comparison of two nonparametric independent groups in the examination of the differences between more than two groups. In addition, the Chi-Square test was utilized to ascertain the degree and direction of the relationship between the relevant variables. Factor analysis has been practised to reduce the number of basic dimensions or group, the variables to facilitate understanding and interpretation of the relationships between multiple variables. In order to decide on the correctness of the answers given to the questions, reliability analysis was performed. Results: In consequence of research, the average level of financial literacy success is determined to be 75% in Baku. Nevertheless, financial literacy level of the participants differs according to demographic variables such as gender, age, marital status, income, profession, education level. Conclusıon: These results can be used to guide policy makers where to place more emphasis in terms of financial education for Azerbaijans.
      PubDate: Jun 2021
       
  • Practices of Human Resource Accounting Disclosure: A Comparative Study
           across ASEAN Countries

    • Abstract: Publication date:  Jun 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  3  Wiyadi   Sayekti Endah Retno Meilani   Imanda Firmantyas Putri Pertiwi   Rina Trisnawati   and Nor Hazana Abdullah   Disclosure of human resource accounting is an important facet of sound corporate governance to ensure organizational sustainability. However, practices of human resource accounting disclosure (HRAD) have not been made mandatory among Asian countries and therefore to what extend the companies have reported their human resource accounting is not evident. This study aimed to describe HRAD practices among top ranked companies based on ASEAN Corporate Governance Scorecard which include Indonesia, Malaysia, Vietnam, Philippines, Thailand and Singapore. Assessment of HRAD practices was done based on sixteen criteria based on previous studies. A total of 195 companies were assessed based on their annual reports in year 2014 and 2015. The study found that Indonesia has the highest HRAD practices (71%), followed by Thailand (66%), Vietnam (65%), Malaysia (59%), Singapore (43%) and Philippines (40%). It is also found that separate HRAD is almost non-existent except a few companies in Philippines and Malaysia. This indicates that HRAD practices need to be institutionalized for better governance in Asean countries.
      PubDate: Jun 2021
       
  • Changes in Investment Options in OECD Countries and Its Relationship with
           Analytical Tax Burden

    • Abstract: Publication date:  Jun 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  3  Ahmet Niyazi Özker   In this study, we aim to determine the extent to which the average investment limits affect the average tax burden under the OECD. It appears that international investment limits in OECD countries are affected by three components. Undoubtedly, one of these is the average tax burden under the OECD. Other components are the average debt ratios of governments and countries' real growth movements on economic growth, which affect the global average measure of investment services. It is observed that the changes in investment options in OECD countries show significant differences according to the average tax burdens of the countries and affect the investment limits significantly. This phenomenon put forth a significant change effect on investments as an average of criteria effect, and this approach makes it meaningful to conduct a tax burden-based study. Since the tax burden phenomenon in countries varies in terms of domestic and foreign debt of countries and is directly related to growth rates. The fact that changes in the average tax burden of OECD member countries affect investments reveals that it is dependent on the tax burden, the GDP of the relevant countries and the average debt burden of the OECD countries. Domestic and public foreign debt options of these countries directly affect the OECD's average investments. It shows that this influence analytically increases the negative criteria based on investments in these countries concerned.
      PubDate: Jun 2021
       
  • Internal Control System Quality and Decision-Making Success: The Role of
           the Financial Information Quality

    • Abstract: Publication date:  Jun 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  3  Albertina Paula Moreira Monteiro   Joana Andreia Machado Vale   Catarina Libório Morais Cepêda   and Eduardo Manuel de Almeida Leite   This study aims to develop and evaluate a Decision-Making Success contingency model to assess its dependency on Internal Control System Quality and Financial Information Quality. The authors developed a study based on a sample of 381 Portuguese managers. The structural equations model was used in the analysis of causal relationships between different constructs. Results show that Internal Control System Quality contributes directly to Decision-Making Success. Moreover, Internal Control System Quality and Financial Information Quality are determining factors for Decision-Making Success since Internal Control System Quality has a significant direct impact on Financial Information Quality (with a 64% coefficient of determination) and indirect on Decision-Making Success. The model justifies 67% of the variance of the dependent variable. This research covers a literature gap, since it identifies innovatively, two independent variables that are determinant for Decision-Making Success from the Portuguese companies' manager perspective. This study is relevant to literature development, as it develops and evaluates an original model, and to managers, in the sense that it identifies factors that contribute to Portuguese companies' success.
      PubDate: Jun 2021
       
  • Anomalies of the Housing Market in Albania

    • Abstract: Publication date:  Jun 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  3  Bitila Shosha   Armela Anamali   and Alma Zisi   The real estate sector is one of the most important sectors of the economy for developing countries. The housing market is directly related to the performance of economy. The impact of this market is measured through the volume of various transactions, such as real estate sales, lease contracts, construction contracts, import transactions, foreign exchange, transactions of financial intermediaries and real estate agencies, employment contracts, etc. The real estate market is directly influenced by housing policies, the level of financial system development, visible additional costs (tax rates and credit costs) and its invisible costs (which is informality and information asymmetry). Hypotheses: The housing market operates according the rules of the supply-demand and the factors that affect the fluctuation of housing prices. The purpose of the article is to evaluate the demand factors in the performance of house prices in Albania. Methodology: The study employs an exploratory analysis based on the literature review, the secondary data and empirical analysis. The authors make a comparison between the factors identified by the literature review, the analysis of the secondary data for the Albanian real estate market, and statistical relationships of individual factors as well: GDP/capita, Exchange rate, Interest rates in ALL, Interest rates EURO, Remittances and the level of mortgage loans in EURO. In the conclusions of the paper, some of the factors that have directly influenced the fluctuations in real estate prices in Albania are: the demand and the supply of real estate; the change in the value of the functional currency; state intervention through fiscal policies and urban planning; credit financing to businesses and individuals, etc.
      PubDate: Jun 2021
       
  • Accounting Education in the Universities and Structuring According to the
           Expectations of the Business World

    • Abstract: Publication date:  Feb 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  1  Nurkhodzha Akbulaev   Ilkin Mammadov   and Samir Shahbazli   One of the important factors shaping accounting education is the business world. Structuring of accounting education according to the expectations of the business world which will employ the graduates is an important issue and it is especially necessary in our country. Every year, significant numbers of expenditures are provided for education in Azerbaijan. In order to get even more efficiency from these expenditures, education system should be developed, updated and renewed. Developed countries meet the need for labor force by the business world with vocational training methods which are formed according to businesses’ internal dynamics, by taking advantage of international experiences. Countries that implement their education based on university-business cooperation are only those who apply school-based education, and countries that adopt both approaches but are constantly in pursuit of achieving this goal through three different methods. (It needs to indicate the methods) The current education system in Azerbaijan is based on theoretical approach. Due to the expectations of the business world and the importance of modern accounting education, the specialization level of the graduates is expected to be brought to the standards of the business world who will employ them, by restructuring accounting education itself. In this study, we analyzed expectations of the business world from the accounting education in the Universities and Vocational Schools in Azerbaijan and determined main problems they face in this field. For this purpose, a research has been conducted on the expectations of the companies operating in Baku from teaching of accounting. In this research, general information about accounting and educational institutions, the structure of the current accounting training in universities, the perspective of the business world in accounting teaching and their expectations were analyzed. In the technical part, 110 questionnaires collected from various respondents were analyzed with SPSS-25 program package with descriptive statistics and factor analysis methods and the results were interpreted. The vocational courses taken by new graduates during their accounting education are ranked according to their importance by the members of the profession.
      PubDate: Feb 2021
       
  • Directions of Formation of Favorable Competitive Environment in
           Azerbaijan's Leasing Services Market

    • Abstract: Publication date:  Feb 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  1  Sevda Mammad Huseynova   The article is dedicated to investigating existing competitive environment in the Azerbaijani leasing market, analyzing criteria and indicators characterizing it, identifying the ways in which the leasing company's marketing policy will be enhanced, and disclosing directions for the formation of a competitive environment in the country's market. For this purpose, the author has examined the major aspects of theoretical competition in the article, highlighting the competitive advantages of the leasing services market as well as the elements of the marketing mechanism that effectively operates in the market (price policy, frequency of services provided by leasing companies, intensity of consideration of initial leasing documents and claims) , terms and conditions of leasing deals, advanced information technologies, corporate information systems, including the use of the Internet), the features of price formation for leasing services were disclosed, and SWOT analysis of Azerbaijani leasing market was conducted. In addition, the article highlights the importance of choosing the main strategic directions and competitive methods in the leasing services market, and has made relevant proposals to improve the leasing company's marketing policy as well as the formation of a favorable competitive environment in the leasing market of Azerbaijan as a whole.
      PubDate: Feb 2021
       
  • Do Intangible Assets and Innovation Orientation Influence Competitive
           Advantages' A Case Study of SMEs in Indonesia

    • Abstract: Publication date:  Feb 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  1  Setia Iriyanto   Suharnomo   Muhamad Taufik Hidayat   and Muhammad Anas   Competition in small and medium-sized businesses (SMEs) is growing in the era of transition. As a result, these advances are putting pressure on the retail sector to find new and efficient solutions to boost retail and customer experience. Meanwhile, in Central Java, Indonesia, there is one specific SME type that is part of the nation's cultural heritage, namely Batik SME. This study aims to determine the effect of Intangible Assets and Innovation Orientation on the Competitive Advantages of Batik SMEs in Central Java, Indonesia. This study's method was an explanatory survey method with a type of decompression-verification study from primary data obtained from Batik SMEs and using PLS SEM in analyzing the data of the book. The results of this study indicate that Intangible Assets with Path coefficient (β) = 0.320, P value
      PubDate: Feb 2021
       
  • Multi-Product Economic Inventory Policy with Time Varying Power Demand,
           Shortages and Complete Backordering

    • Abstract: Publication date:  Feb 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  1  Sandeep Kumar   Mukesh Kumar   and Manoj Sahni   The present article elaborates a multi-product economic inventory model in which multiple items are considered with demand, which depends on time, abides power law, shortages, and complete backordering. The rate of production is greater than the rate of demand for each item. This type of demand pattern is accessible to various kinds of practical problems in the present modern era. In this paper, the production rate is assumed to be directly proportional to the rate of demand. In real situations, demand is always dependent on the price of any product, so it is also assumed that demand is depleted linearly with the price. This paper aims to fulfill the requirement of products and maximize the overall profit in any organization. Optimal values of involved costs, price, re-order point, and scheduling period are also calculated. In this work, the objective is to maximize the total profit and optimize production quantity. Optimization methods are used to obtain the maximum profit. Shortages are permitted and completely backordered. Total cost and production quantity models for deteriorating items have been developed. The study is validated with a numerical example, and sensitive analysis of the optimal solutions concerning main parameters is carried out using the software Mathematica. The tables are also shown for optimal values of the present model.
      PubDate: Feb 2021
       
  • Financial Convergence as a Mechanism for Modifying Sectors of the Global
           Financial Services Market

    • Abstract: Publication date:  Feb 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  1  Vitalii Rysin   Oksana Galenko   Nina Duchynska   Nataliia Kara   Oleksii Voitenko   and Alla Shalapak   The relevance of the topic of financial convergence considered in the article is primarily dictated by the intensifying processes of globalization, which generate an increase in competition between participants in the financial market. An essential global trend in the development of the financial services industry has also become the process of increasing interpenetration by different participants of various sectors of the financial market into its other segments due to competition - financial convergence. The processes of financial convergence and the formation of new institutional forms of financial associations (financial conglomerates) in the world economy already have a significant impact on the real and financial sectors, public finance and other spheres of the economy. The article examines the prerequisites for the emergence and use of financial convergence by participants in the global financial services market to provide additional competitive advantages and stable development by modifying the established order in the sectors of the financial market. On the example of financial convergence between companies in the insurance and pension sectors, through the creation and participation in financial conglomerates, the main problems of the current state of the global financial market are considered. The article discusses practical ways to determine the presence of financial convergence, based on a modern approach using the methodology for calculating sigma convergence.
      PubDate: Feb 2021
       
  • Improved Methodology of Accounting and Audit of Payments to Employees in
           Ukraine

    • Abstract: Publication date:  Feb 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  1  Halyna Kuzmenko   Kateryna Yahelska   Oksana Artyukh   Iryna Babich   Nataliіa Volenshchuk   and Larisa Sulimenko   The issue of organization of payments to employees at the enterprise is the basis of social and labour relations of employees, employers and the state, affecting the effectiveness of labour management in general, they are one of the most critical and complex areas of work, occupying a central place in the accounting system. The authors analyzed the theoretical and methodological basis of payments to employees, compared to international and domestic standards for employee benefits.
      Authors also analyzed the dynamics of average and minimum wages over the past 10 years, and revealed the features of the organization of wages and the general scheme of accounting for wages. The authors demonstrated the essence of the concept of "payments to employees" and its components, analyzed in detail the features of the existing practice of accounting and audit of settlements with employees. A thorough theoretical and methodological analysis of the study allowed the authors to propose improvements in accounting for settlements with employees on practical examples, namely the detailed structure of account 66 "Payments to employees". The authors also proposed an improved audit methodology that will allow the auditor to cover all aspects of payroll accounting, investigate the correctness, timeliness, legality of reflection in payroll, cover all aspects of payroll accounting, identify violations promptly, conduct a quality audit.
      PubDate: Feb 2021
       
  • Minimum Wages, Relative Wages, and Productivity: An Empirical Analysis on
           Indonesia Food and Beverage Industry

    • Abstract: Publication date:  Feb 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  1  Ibnu Nur Hamzah   Firmansyah   and Andi M. Alfian Parewangi   Background of the research: Previous study on minimum wages policy in Indonesia mostly focused on employment and welfare effect, while its relationship with productivity is lack. Purpose: This study tends to study the wages and productivity relationship using minimum wages increase information in Indonesia. This paper aims to calculate the time varying productivity using one step production function then implements difference-in-difference technique to measure the productivity changes due to the implementation of minimum wages policy. Methodologies: We choose the case of food and beverage industry in Indonesia and find a strong support for efficiency wages theory. This research takes information from medium to large firms within food and beverages industry in several region in Indonesia as a sample. The reason why this research used this sample is the importance of food and beverages industry in Indonesian economy. Principal results: Using standard panel regression, this paper also find evidence on positive relationship between relative wages and productivity. Major conclusions: The findings showed that firms adopting minimum wages policy show higher changes in productivity compared to firm that is already above the minimum wages. Contributions to the field: the study made a good attempt to examine a critical issue of relationship between minimum wage policy and total factor productivity changes for food industry in the context of Indonesia. Important aspects of the study: The important aspects of the study lie in the analysis of food demand as the indicator of agricultural markets.
      PubDate: Feb 2021
       
  • Predictive Modeling of Insurance Claims Using Machine Learning Approach
           for Different Types of Motor Vehicles

    • Abstract: Publication date:  Feb 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  1  V. Selvakumar   Dipak Kumar Satpathi   P. T. V. Praveen Kumar   and V. V. Haragopal   The main objective of this research paper is to build an appropriate mathematical model that helps in forecasting third party claim amount for different categories of vehicles based on the chosen characteristics of the data. In actuarial research, predicting the insurance claim amount for different vehicle categories is a challenging task, and minimal empirical research studies were done to forecast the claims. In the present study, the annual time series historical data were collected for a period of 34 years. We had built the machine learning predictive models to modeling the claim amount with different categories of vehicles effectively. In this context, we exhibited the feasibility of using a statistical machine learning approach such as Linear regression Model, the Exponential Smoothing Model, autoregressive integrated moving average (ARIMA), artificial neural network (ANN), and hybrid ARIMA-ANN models to predict the various categories of vehicles claim amount. The data were analyzed, compared, and the empirical analysis showed that Artificial Neural Network is a better predictive model among the other time series models based on performance evaluation metrics RMSE and MAPE with lesser variance. Therefore, the machine learning approach for forecasting third party claim amounts will help the Insurance Companies in India to provide a better predictive model, which ensures better claims settlement and management for different categories of vehicles.
      PubDate: Feb 2021
       
  • Governance Issues on Earning Management: A Case of Manufacturing Industry

    • Abstract: Publication date:  Dec 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  6  Halil Paino   and Tjut Intan Teuku Iskandar   Earnings management is a technique used by the management of an organization to intentionally manipulate a company's profits in such a way that the figures suit the agreed target and to generate financial results that provide an excessively optimistic view of the company's operation and finances. Due to poor performance, companies are using different strategies to exploit and provide a positive picture of financial and management profitability to look better in the eyes of shareholders and stakeholders, and this is generally referred to as earnings management. This study aims to examine the potential factors of pressure (financial stability and financial target), opportunity (board independence and audit committee), and arrogance (CEO duality and the CEO's picture) that cause earnings management in manufacturing companies in Malaysia. This study used organizations as the unit of analysis while manufacturing companies from the Public Listed Companies (PLCs) were chosen as the research sample. This study found that the proxies of board independence, audit committee, and CEO's picture have a positive relationship with earnings management. Adversely, the indicators of financial stability, financial target, and CEO duality have negative effects on the incidence of earnings management.
      PubDate: Dec 2021
       
  • Predicting Income-Decreasing Forced Financial Restatement

    • Abstract: Publication date:  Dec 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  6  Intan Waheedah Othman   Richard Slack   and Rebecca Stratling   This study explored the varied characteristics of misstatement firms, which serve as the foundation to develop a model that predicts income-decreasing forced restatement (IDFR). Multivariate logit regression was performed on 4,698 firm-years of Malaysian listed firms from 2002 to 2012. The results were tested for robustness using a stepwise logit model and a penalised likelihood logit model. Several factors, such as share price volatility, independent board of directors, company's internal fund, and political connection, emerged as the main predictors for IDFR. This study proposes a prediction model that synthesises financial and non-financial aspects in terms of scaled probability (F-score), which may function as a red flag of income-increasing misstatement firms that warrant further investigation.
      PubDate: Dec 2021
       
  • Role Ambiguity, Role Conflict, Auditor Competence on Audit Quality: The
           Mediating Effects of Auditing Planning and Independence

    • Abstract: Publication date:  Dec 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  6  Jamaluddin   Masruddin   Indra Basir   Rahma Masdar   and Lucyani Meldawati   The purpose of this study was to determine and analyze the effect of role ambiguity, role conflict and auditor competence on auditor independence and internal audit quality as well as the effect of auditor independence and audit planning on internal audit quality. It is also to empirically analyze the mediating effects of auditor independence and audit planning in the relationship between independent variables to dependent variable of internal audit quality. The population of this research is auditor inspectorate in Central Sulawesi Province. Sampling used purposive sampling technique with a total of 202 samples. The data were analyzed using the Structural Equation Model (SEM) technique. The results showed that role ambiguity and role conflict had a significant negative effect on auditor independence, but did not significantly affect the quality of internal audit. Auditor competence has a positive effect on auditor independence and internal audit quality. The findings also pointed out that auditor independence and audit planning have a significant positive effect on internal audit quality. Statistical testing of mediating variables showed that auditor independence mediates the relationship between role ambiguity and role conflict and the quality of internal audit. Likewise, mediating variables of auditor independence and audit planning have empirically proven to strengthen the effect of auditor competence on the quality of internal audit.
      PubDate: Dec 2021
       
  • Introduction of NSFR Ratio in the Activities of Commercial Banks in
           Ukraine

    • Abstract: Publication date:  Dec 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  6  Mykola Dziamulych   Tetiana Shmatkovska   Mykhailo Krupka   Lesya Yastrubetska   Bohdana Vyshyvana   and Svitlana Derevianko   The main purpose of the research is to study changes in the methodology of formation and regulation of liquidity of commercial banks in Ukraine, as well as to study changes in the structure of bank assets that will result from the use of new approaches. For data collection, the following analysis methods were adopted: a semantic analysis of the traditional and new approach to determining the regulatory liquidity ratio, structural and dynamic analysis of assets and income of commercial banks, as well as a method of logical generalization in drawing conclusions about the analysis. The results of the research show that the introduction of new approaches to determining the liquidity of commercial banks on the basis of the Basel III agreement requires banking institutions to increase the general requirement for the principles of formation of their assets. There is also an objective need to develop new approaches to ensure the proper effectiveness of current liquidity control and ensure the stability of cash flows as well as an overall reduction in banking risks. Based on the analysis of the banking system of Ukraine, it is established that the introduction of the NSFR ratio instead of the regulatory ratio N6 provides for commercial banks a general reduction of the risk of banking operations and helps to expand sources of financing active operations. The study found that one of the key consequences of the introduction of the NSFR ratio in the activities of banking institutions in Ukraine will be a decrease in their net interest margin in lending operations. As a result, commercial banks will be forced to limit lending activities mainly by limiting the issuance of riskier loans. However, another consequence of the use of the NSFR standard will be the differentiation of active operations of banks, which will reduce the dependence of their operating activities purely on lending, which will also result in an overall increase in the financial stability of banking institutions.
      PubDate: Dec 2021
       
  • Empirical Relationship of Company's Intangible Resources and Corporate
           Financial Performance- A Panel Data Approach

    • Abstract: Publication date:  Dec 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  6  Vikram Jeet   and Parvesh Kumar Aspal   The present analysis proposed a model to explain the impact of corporate intangible resources, such as research & development (R&D), human capital, and corporate reputation on corporate financial performance. The corporate financial performance was measured with two determinants, return on assets (ROA) & return on equity (ROE). The data had been collected from 81 different manufacturing and consumer goods companies for three years from 2014 to 2016. To investigate the association considering the intangible resources and control variables, the panel data regression is applied. For the descriptive analysis, the mean, dispersion, and correlation among all the variables are examined and the redundant fixed effect test is applied to choose an appropriate model between panel data regression and pooled OLS regression. The study results highlighted that the intangible resources human capital and research & development have significantly and positively impacted the financial performance indicators ROE and ROA. However, the intangible resource corporate reputation significantly, but negatively affects the corporate financial performance ROE and ROA. Likewise, the control variable leverage has a significant impact, but the size has an insignificant effect on corporate financial performance. The study highlights the importance of a firm's intangible recourse in the organizational performance and gives a wider scope to investigate the influence of other intangible resources on organizational financial performance.
      PubDate: Dec 2021
       
  • The Financial Factors Affecting the Financial Performance of Philippine
           MSMEs

    • Abstract: Publication date:  Dec 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  6  John Guay Pagaddut   Micro, small and medium enterprises (MSMEs) are considerably contributory to social and economic progress and prosperity through their entrepreneurial capacities and capabilities. However, they experience constraining challenges that importunately impair their abilities, failing to optimally engage themselves in the privileging opportunities around, particularly in the financial aspect. This paper aims to establish the financial factors affecting the financial performance of Philippine MSMEs whose audited financial statements are utilized to extract financial ratios needed for the study. It also aims to determine the factor structure that can explain the variation among these financial factors and to determine the cohesive cluster that can separate these financial factors. It employed multiple linear regression, factor analysis and cluster analysis in order to respectively achieve its objectives. It establishes that debt ratio, asset turnover and gross profit margin have a significant effect on return on assets. It further establishes that there are two significant factor structures, namely "Sustainability" ratios and "Efficiency" ratios, explaining the variation among these financial ratios. It furthermore establishes that there are two cohesive clusters, namely "good" ratios and "poor" ratios, separating these financial ratios. It suggests that MSMEs should remain self-sufficient and self-reliant, without unreasonably depending on debts, hence should adequately afford capital to finance their businesses. Further, they should optimally operate to generate sales by efficiently employing their resources. Furthermore, they should judiciously control costs, without compromising quality of their products and services, in order to increase their margin. They should reinforce their performance by regularly advancing their efficiency and sustainability. They should work well to sustain good ratios and improve poor ratios. Notably, this paper suggests that stakeholders sustainably support MSMEs in light of creativity and collaboration.
      PubDate: Dec 2021
       
  • Fiscal Deficit, Economic Uncertainty and Macroeconomic Performance in
           Nigeria

    • Abstract: Publication date:  Dec 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  6  Peter Ubi   Bassey Ebi   and Enang Udah   Fiscal deficit, economic uncertainty and macroeconomic performance have gained currency in recent public discussion among policy analysts and economists. The scale of the debates raises a question of whether or not economic uncertainty dampens the ability of deficit financing to achieve its desired objectives. This paper investigated the impact of budget deficit in an uncertain economic environment on gross domestic product (GDP) and inflation. Measures of macroeconomic performance are real GDP and inflation. Other explanatory variables include credit to financial sector (proxy for financial sector development), fiscal deficit, capital and recurrent expenditure. The paper measures economic uncertainty using exchange rate volatility through GARCH model and adopted the Auto-Regressive Distributed Lag (ARDL) bounds methodology. This approach allows the splitting of the variables into expected and unexpected variations which could be estimated using VAR. The results showed that economic uncertainty has an adverse effect on economic performance by creating passive expectation about the future. Uncertainty erodes the confidence of both foreign and domestic investors about future cash-flows and the stability of the economic environment as well as the safety of investors' assets. This impact would be visible in the existence of substantial sunk cost. The results approximate the submission that conducive economic environment along with appropriate mix of fiscal policy promotes real economic activity and stabilizes the price level. Improved economic conditions builds confidence in economic agents to invest in real productive activity, enables fiscal deficit to achieve its desired objective of stimulating economic activity and signals great optimism in the financial transaction system leading to improved funding of the private sector.
      PubDate: Dec 2021
       
  • Is the Market Efficiency Hypothesis Applicable in the Czech Republic
           – FOREX Case

    • Abstract: Publication date:  Dec 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  6  Petr Makovský   The Efficient Market Hypothesis (EMH) is the generalization of the so called perfect competition for the financial markets. Sometimes the financial markets are assumed to be the markets most similar to the perfect competition. So, every test of the EMH theory is the test about the perfect competition approach and then its conclusions are about the market mechanisms and potential regulation and policy. Even though, discussions about the financial capital regulations, free movements of financial capital and taxing are widespread, not only in economic theory scientific conferences, but anywhere. The FOREX market is the financial market, in which there is the highest amount of trading, so that we assume the feature analyzed be the most visible. More in the Czech Republic there is permanent question about the pros and cons of the national currency. The EHM theory concluded remarks also influence the discussion. The problem is not so simple. The conclusion is not about the purity of the efficient or inefficient financial markets. The conclusion must be about the level of the market efficiency, which is moreover variable in the different time periods. More we analyzed the effects of the great financial crisis in 2008.
      PubDate: Dec 2021
       
  • Intellectual Capital as a Moderating Effect between Corporate Governance,
           and Firm Performance: A Conceptual Review

    • Abstract: Publication date:  Dec 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  6  Firas N. Mardan   Noriah Che-Adam   and Zaimah Abdullah   This research hypothesized that intellectual capital had a moderating impact on the connection between corporate governance and company performance. Researchers and investors have been investigating, monitoring, and analyzing firm performance in light of the serious consequences of many corporate accounting scandals, such as Toshiba 2015, as well as the occurrence of numerous nations. After the economic crisis, the deterioration in corporate governance has shown that this lack of governance could have long-term macroeconomic consequences. As a result, good corporate governance practice is important to improve organizational efficiency, secure investor rights, strengthen investment climate, and promote economic development. The investment in expertise and intellectual capital has become one of the most significant assets required to increase its value, create a competitive advantage, and improve its performance. Along with corporate governance, intellectual capital is a key to business growth and can better explain disparities in the firm's financial performance. The findings of this study indicate that the role of intellectual capital as a moderator variable is designed to improve firm performance in combination with the structure of corporate governance, thereby promoting economic growth. Therefore, this study recommends that future research be conducted as a moderator of firm performance with the integration of corporate governance and intellectual capital. It may improve corporate governance practice, thus enhancing firm performance.
      PubDate: Dec 2021
       
  • Behavioral Responses of Households to Tax Reforms

    • Abstract: Publication date:  Dec 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  6  Ivan Kirsanov   and Lyudmila Parfyonova   Over the past 10 years, significant reforms have taken place in the Russian tax area. Households are under the influence caused by the following changes: the rules for property and land tax recalculating according to the cadastre data including summer cottages and garages in the list of taxable objects, the transport tax on luxury cars, and the introduction of a progressive personal income tax scale. Accordingly, the purpose of this article is to examine the response of households to changes in tax policy and to interpret this response using behavioral approach. The key hypothesis of the study is that households demonstrate varying degrees of reaction to any changes in tax legislation. Likewise, in the context of the deteriorating fiscal environment, households seek to optimize the tax burden. The authors analyzed the theoretical and methodological basis of this topic, which allowed the authors to propose improvements in methods of studying households. The study was conducted on the basis of data on payments of taxes by the Russian households. The authors revealed the features of the relationship of tax payments and different economic indicators. It is established by the Pearson correlation coefficient that there are varying degrees of households' reaction to changes in tax legislation, and households' responses are not uneven for all types of taxes.
      Authors also calculated the coefficient of elasticity of tax payments depending on various factors. The approach given in the article is needed for a more complete understanding of how effects of tax changes to households may be used to create effective techniques and measures in tax policy. This study makes unique contributions to further researches in the area, which will lead to the introduction of new mechanisms for state programs in tax area and forecast their implementation for the medium- and long-terms.
      PubDate: Dec 2021
       
  • The Effect of SAK EMKM-Based Accounting Implementation, Accounting
           Knowledge, Education Level, and Revenue on MSME Taxpayer Compliance in
           Reporting its Tax Obligations during the COVID-19 Pandemic

    • Abstract: Publication date:  Dec 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  6  Ida Kristiana   Nurkatik   and Nurcahyono Nurcahyono   This study aimed to analyze the effect of SAK EMKM-based accounting implementation, accounting knowledge, education level, and revenue on MSME Taxpayer Compliance in reporting its tax obligations during the COVID-19 pandemic. The population of this study was the MSMEs registered in the Department of Cooperatives and SMEs of Semarang City. The sample was taken by using simple random sampling with survey technique. A set of questionnaires were distributed to 100 respondents which mainly focused on SMEs around Tembalang. The data was then analyzed by using multiple linear regression with the assistant of SPSS software. This study showed that SAK EMKM-based accounting implementation, education level, and revenue variable positively affect MSME Taxpayer's Compliance in reporting its tax obligations during the COVID-19 pandemic. Meanwhile, the education level variable did not significantly affect MSME Taxpayer's Compliance in reporting its tax obligations.
      PubDate: Dec 2021
       
  • Output Indicators of Audit Quality: A Framework Based on Literature Review

    • Abstract: Publication date:  Dec 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  6  Amine El Badlaoui   Mariam Cherqaoui   and Omar Taouab   The purpose of this paper is to review the research literature dealing with output indicators that indicate the level of audit quality: Auditor's report, bankruptcy, client satisfaction, auditor litigation and expectation-gap. This paper reviews a total of 89 papers authored post-2012, which relates to output indicators of audit quality, using a Systematic Literature Review. For each study, we demonstrated the methodology used (Archival/ Experimental), the sample chosen and the main results. Based on our findings, studies on the audit report state that it should contain more information and detail. For bankruptcy, researchers find that going concern opinion is an essential element in predicting bankruptcy, and that the auditor becomes more conservative after a bankruptcy. Through experimental studies on client-satisfaction studies, researchers have ruled on the elements that can satisfy clients on the audit work. The research on auditor litigation state that auditors being sued provide higher audit quality because they have more wealth at risk in case of litigation. The common cause of audit expectation-gap is the misperception of the auditors' responsibility to detect and prevent fraud. We contribute to the literature in the following aspects. First, we propose an audit quality framework that includes all the factors indicating the level of the external audit's quality (Auditor-related indicators; Audit-process indicators; Output indicators). Second, we present a review on the output indicators of audit quality (auditor's report, bankruptcy, client satisfaction, auditor litigation and expectation-gap). Thirdly, we draw on the results of previous literature and provide suggestions for future research.
      PubDate: Dec 2021
       
  • The Role of MSME Growth as a Mediation Variable in Financial Inclusion:
           Evidence from Indonesia

    • Abstract: Publication date:  Dec 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  6  Endang Tri Widyarti   Idris Idris   Irene Rini Demi Pangestuti   and Hersugondo Hersugondo   Financial inclusion as the goal of the countries in the world has been considered important by international policymakers even though every country has its specific development models. The MSME sector can encourage economic growth and create jobs so that the MSME sector can stabilize the economy. The development of MSMEs in Indonesia also shows growth every year. Based on these data, the government must continue to increase the growth of MSMEs, because, with the increase of MSMEs, the number of workers will also increase. This research is quantitative, meaningful research that describes conditions of financial inclusion in Central Java and Indonesia. The data in this study used secondary data. Secondary data obtained were from supporting data through literature studies, journals, mass media articles, and books related to this research topic. The purposes of this study are to map the growth of MSME's Supporting Model in Financial Inclusion and determine the level of financial inclusion in the regional scale of Central Java by developing a model at the level of financial inclusion in Indonesia for a national scale.
      PubDate: Dec 2021
       
  • Causality Analysis of Non-oil Tax Component of Government Revenue, Company
           Income and Transaction Taxes: Evidence from a Third World Developing
           Economy

    • Abstract: Publication date:  Dec 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  6  Orits Frank Ebiaghan   Edirin Jeroh   and Abel Oghenevwoke Ideh   Overtly, the colossal infrastructural deficit occasioned by the ever increasing population of Nigeria requires sizeable revenue strings if they must be copiously addressed. Largely, the country has over time relied on oil revenue to carry-out her sacred duty of welfare and security provision along with efforts targeted at guaranteeing freedom of her citizenry amongst others. With the recent global drop in oil prices, there has been a general call for government to reinforce other channels of revenue generation so that the country can weather the tides of economic turmoil. This however calls for an understanding of the interrelatedness of various components of accruable revenue to the government through a causality study of such revenue components. This study thus focuses on a causality analysis of non-oil tax component of government revenue, company income and transaction taxes by obtaining empirical evidence from a third world developing economy – Nigeria. Time series data for 15 years were analysed based on the study's intent and with the use of relevant statistics like the unit root tests, chow test, granger causality test, least square and auto regressive regression analysis. Our study's outcome proved that while federally generated revenue proved to have been significantly improved by revenue from income taxes and stamp duties, the tax policies and their subsequent amendments could not exert significant influence on non-oil tax revenue of government during the period. On this note, we recommend the need for effective policy pertaining to Stamp Duties and Companies' Income Tax (CIT) along with a marginal reduction in tax holidays of companies to the extent that the Stamp Duties' Act (SDA) is fully enforced/implemented vis-à-vis strict penalties for non-compliance. Outcome from this research has policy implications which stand to benefit regulatory bodies/policy makers, tax consultants, academics and key stakeholders as it presents key issues relating to CIT, SDA, and non-oil revenue of Nigeria's government.
      PubDate: Dec 2021
       
  • Zimbabwean Stakeholder Perceptive of How Mandatory Audit Firm Rotation
           Contribute to Audit Quality

    • Abstract: Publication date:  Dec 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  6  Olubukola Adegbola Otekunrin   and Kudzanai Matowanyika   There is a consistent debate in the literature on how mandatory rotation of audit firms (MAFR) contributes to audit quality (AQ). For a reason, some have adopted MAFR while others did not. This study examined MAFR to AQ based on stakeholder perceptions. Theoretical insights were established to explore on existing evidence. A descriptive survey design was carried out with a triangulation approach. Interviews were conducted while at the same time questionnaires were administered to accountants, auditors, investors, and management. A population of 71 listed and audit firms were chosen, of which 29 firms were selected using simple random, systematic and purposive sampling. Correlation and regression analysis were used to examine and interpret the quantitative data. The study's findings indicated that MAFR has a positive relationship with AQ from the linear logistic regression computed; therefore, the null hypothesis is rejected. Meanwhile, having firm audit rotation is compulsory for all listed firms, which increases competition and improves independence and new idea development which ultimately results in improved audit quality. The study, therefore, concludes that MAFR is essential. The study recommends that a further study must be done to address other factors that can enhance AQ constituting 67% shown by the ANOVA test results.
      PubDate: Dec 2021
       
  • Modeling Euribor Rates Volatility: Application of the GARCH Model

    • Abstract: Publication date:  Dec 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  6  Llesh Lleshaj   and Dorina Kripa   Euribor (Euro Interbank Offered Rate) is considered to be the most important base rate for all types of financial products like interest rate swaps, interest rate futures, saving accounts and mortgages. Euribor rates turned negative for the first time in January 2015 and have been negative ever since. In recent years, several European central banks have imposed negative interest rates on commercial banks, which is the only way to stimulate their nations' economies. Under these circumstances, the purpose of this study is to estimate the optimal equilibrium of the negative rates which are still increasing constantly. This fact raises doubts about the financial stability in many countries and the effect of monetary policy in stimulating economic growth in European countries. This study has analyzed the volatility of the Euribor rates related to the daily time series 2015-2021. Advanced volatility econometric methods are applied to GARCH models and volatility forecasting in the long-run equilibrium. The optimal model for the weekly and monthly maturity rates is identified; however, the larger the ARCH(p) and lag-variance(q) value we test, the poorer the performance of the obtained model is. Practical implications ought to be taken into consideration by the banking sector and other financial institutions.
      PubDate: Dec 2021
       
  • Corporate Social Responsibility, Firm Value, and Financial Constraints: A
           Signal of Corporate Liquidity

    • Abstract: Publication date:  Dec 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  6  Maria Yosaphat Dedi Haryanto   Anis Chariri   and Etna Nur Afri Yuyetta   The concept of corporate social responsibility (CSR) has gained much attention and has been currently practiced by many companies. This study examined the role of CSR disclosure as a signal on the corporate liquidity in creating value for the firms. We examined the effects of moderation using subgroup analysis on a sample of 77 manufacturing sector firm that listed on IDX with three years data observations. By using the Chow test, the results show that CSR disclosure is related with firm value in non-financial constraints (NFC) firms compared to financial constraints (FC) firms. However, the two groups of companies have opposite effects. Companies with non-financial constraints have a positive direction while the other group has no specific pattern for the FC sample. The empirical evidence showed that firms with financial constraints report less information about their CSR activities than firms with non-financial constraints. Our findings suggest that company with non-financial constraints can confidently and strategically increase CSR investment to enhance firm value. However, the company with financial constraints needs to carefully examine the effects of CSR on firm value when making CSR-related decisions.
      PubDate: Dec 2021
       
  • The Role of Intellectual Capital on Financial Performance of SMEs

    • Abstract: Publication date:  Dec 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  6  Sylvia Christina Daat   Mariolin A. Sanggenafa   and Rudiawie Larasati   The purpose of this study was to obtain empirical evidence of the influence of components of intellectual capital, namely human capital, structural capital, and relational capital on the financial performance of small medium enterprises or SMEs in Jayapura City and Jayapura Regency, West Papua, Indonesia. Respondents in this study consisted of 54 respondents who had business fields, consisting of culinary businesses, fashion, daycare services, lodging services, and futsal fields. In addition, respondents are selected based on ethnicity, namely, Papuan as many as 26 people or 51.8% and non-Papuan as many as 28 people or 48.2%. The analytical tool is used in SmartPLS 3 by looking at the measurements of the outer model and inner model. The results show that the components of human capital and relational capital significantly affect the financial performance of SMEs with a significance value of 0.042 and 0.044, respectively. Meanwhile, the hypothesis of the influence of the structural capital component on SME financial performance is not statistically supported with a significance value of 0.569. The results theoretically provide empirical evidence for studies on the importance of intellectual capital on the financial performance of SMEs in particular with the context of SMEs in Papua that has not been studied. The main findings of this study highlight the development of intellectual capital in SMEs. The limitations of this study lie in the effect of structural capital components on financial performance which is not empirically supported. Thus, further research needs to examine the effect of structural capital interaction with other components of intellectual capital to improve MSME financial performance.
      PubDate: Dec 2021
       
  • Black-Litterman Model with Views Prediction Using Elman Recurrent Neural
           Network

    • Abstract: Publication date:  Dec 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  6  Dhoriva Urwatul Wutsqa   Martina Ayun Pamungkas   and Retno Subekti   The Black-Litterman model is a portfolio model that considers investor views. The purpose of this study is to develop the Black-Litterman (BL) portfolio model with views prediction using Elman Recurrent Neural Network (ERNN) on LQ-45 stocks. The ERNN model is one of the neural network models that adjusts the input using the output feedback from the hidden layer. The BL portfolio is generated based on the capital assets pricing model (CAPM) excess return equilibrium. The data used in CAPM model must fulfill the normality assumption which is checked by using Jarque Bera test. The selected stocks for the portfolio are the member of LQ-45 stocks which meet the normality assumption and have the highest expected excess return CAPM value, those are AKRA, BBNI, INCO, and JSMR stocks. The ERNN model is employed to those stocks to obtain the views prediction. Then, the Black-Litterman portfolio is constructed by combining the ERNN views of the stock returns and the expected equilibrium return yielded by the capital assets pricing model. Three designs of relative views are considered, each design is distinguished from the percentage of each stock return prediction. The simulation shows that the best portfolio is constructed based on the design of the first views due to the most accurate views prediction.
      PubDate: Dec 2021
       
  • Determinants Influencing the Audit Quality: Empirical Evidence from
           Indonesia

    • Abstract: Publication date:  Dec 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  6  Theresia Prima Risanti   Khoirul Aswar   Jumansyah   and Wirman   In producing a reliable audit quality, it requires the quality of the auditors themselves. The Financial and Development Planning Agency (BPKP) is a state institution that is part of the Government Internal Supervisory Apparatus (APIP). This study aims to determine the effect of auditor skepticism, understanding of information systems, auditor education, and audit motivation on audit quality and the effect of time budget pressure in moderating the effect of audit motivation on audit quality. This research was conducted at BPKP DKI Jakarta with a questionnaire instrument and processed using SEM-PLS. The results of this study indicate that auditor skepticism has a significant effect on audit quality. Meanwhile, understanding of information systems, auditor education, and audit motivation doesn't have an effect on audit quality. Time budget pressure also does not moderate the effect of audit motivation on audit quality. This research is expected to be an additional understanding and knowledge about the effect of auditor skepticism, understanding of information systems, auditor education, and audit motivation on audit quality.
      PubDate: Dec 2021
       
  • Pre- and Post-Merger Financial Analysis of Banks

    • Abstract: Publication date:  Dec 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  6  Divyesh Khushalani   and Manish Sinha   This work intends to inspect the financial performance of our country's banks before and post the merger. Acquisitions or mergers have been implemented as a tool these days as a respite for distressed banks. By Mergers and Acquisitions, banks are restructured to increase shareholders' value and competitiveness by increasing efficiency. For this work, a specimen of four bank mergers that happened after liberalization was taken and they were analyzed based on financial parameters, for example, Net Profit Margin (NPM), Dividends per Share (DPS), Capital Adequacy Ratio (CAR), Return on Assets (ROA), and Credit Deposit Ratio. This set of parameters chosen is unique when compared to past works. Paired t-test was implemented to identify a substantial change between the financial particulars before and after the merger. The paper also looks at the study's future scope, such as analyzing the stock price movements before and after the merger. This study then can conclude whether the merger of the banks involved was beneficial for the banks and the Indian banking industry or not.
      PubDate: Dec 2021
       
  • Effect of Economic Variables on the Financial Performance of Listed Firms
           Manufacturing Consumers Goods in Nigeria

    • Abstract: Publication date:  Dec 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  6  Idaka Sunday Egbe    Ugwoke Robinson Onuora   Ajuh Ali Iteh   and Edith O. Onyeanu   The study analyzes the effect of economic variables on the financial performance of listed firms manufacturing consumer goods in Nigeria. The researchers adopted the Ex-post facto research design and Ordinary Least Square multiple regression analysis for estimation of the equations. The population comprises 20 listed consumer goods manufacturing companies, and total sample of 13 firms, the data covered 17 years' financial reports. The sample was determined using the elimination method and purposive sampling techniques. We found strong correlation between CPI, interest, exchange rates and net asset per share. CPI has significant effect on NAPS and there is short run relationship based on the coefficients ARDL, exchange and interest rates showed no significant effect on NAPS. The economic implication of the result based on the CPI is that consumers are paying more due to the rise in the level of inflation, firms adjust their profit margin to cushion the effect, and 1% rise in interest and exchange rates result to decline in NAPS. The researchers recommended that government should provide enabling environment for business to thrive by providing moderate interest rate to manufacturing firms, and encourage the demand for made-in-Nigeria to strengthen the value of the Naira to compete well with foreign currencies in the international market.
      PubDate: Dec 2021
       
  • Innovative Instruments of Monetary and Fiscal Policy

    • Abstract: Publication date:  Dec 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  6  Bohdan Danylyshyn   Maksym Dubyna   Maksym Zabashtanskyi    Natalia Ostrovska   Kateryna Blishchuk   and Ivanna Kozak   Any economic system can be identified as cyclical fluctuations: ups and downs in the economy, which are caused by shocks of aggregate demand and aggregate supply and called business cycles, economic or business cycles. The phases of business cycles are the rise, "peak", recession (or decline) and "bottom", i.e. the crisis. Often such fluctuations in business activity are unpredictable and irregular. At the present stage of development, the state of Ukraine is unstable and characterized by significant crisis processes and phenomena, including critical growth of debt, devaluation of the national currency and limited reserves of the National Bank, reduced lending by banks to the real sector, low financial stability and more. These challenges are exacerbated by the impact of modern global external factors destabilizing financial systems at various levels and financial and economic relations, including the COVID-19 pandemic, which raises the issue of justifying the development and implementation of effective innovative monetary and fiscal policy instruments. The authors explored the nature, components and objectives of monetary and fiscal policy. The authors analyzed the challenges of stabilizing the monetary sector and fiscal policy and developed improving tools. The authors proposed an algorithm for assessing the effectiveness of the monetary policy, where the main criteria for the effectiveness of monetary policy are the criteria that contribute to macroeconomic stability. Regarding innovative fiscal policy instruments, the authors proposed to provide targeted support for industries or projects, namely, the algorithm for determining targeted support for sectors, which implies the creation of clusters of industries and considers the possible negative consequences of the COVID-19 pandemic. The proposed instruments will allow stabilizing the economy to a greater extent, as well as to ensuring more excellent price stability, maintaining a stable exchange rate and promoting balanced economic growth.
      PubDate: Dec 2021
       
  • US Policy on Dollarization of the World Economy

    • Abstract: Publication date:  Aug 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  4  Chuvakhina L.   Nasirbeik A.   and Ivanovskaya   In its essence and content, dollarization is one of the keys and most significant phenomena of modern dynamically developing international monetary and financial relations. There are different theoretical approaches to determining the economic essence and content of the complex and contradictory phenomenon of dollarization. Different scientists have investigated the monetary nature of this phenomenon and have given a comparison of the concepts of official and partial dollarization, based on the degree of economic coverage of dollarization. In this research the process of official dollarization is considered on the example of Eurasian Economic Union (EAEU) member states. The paper examines the scale of financial dollarization in the EAEU member states, where, due to the loss of residents' confidence in the monetary policy and the national monetary unit, the functions of the national currency are partially replaced by the US dollar. Furthermore, the role of the US Federal Reserve in the implementation of dollarization of the foreign economies is analyzed. The article substantiates the intention of the US Federal Reserve to take steps to dollarize the foreign countries' economy in the context of the started process of de-dollarization of the world economy. The most active supporters of de-dollarization are Russia, China, and Iran. Their efforts are aimed at weakening the dominant position of the dollar as a key reserve currency, the currency of international settlements. In the current condition of the world economic development, it is unlikely to expect a weakening of the position of the US dollar, given the role of the US dollar in the trade of oil and petroleum products. The petrodollar system is the basis of the US dominance in the global financial system and the key to the stability of the US dollar. As a result, countries are forced to buy dollars in order to be able to purchase oil on the open market. While the demand for the US dollar will remain at a high level, it is not necessary to talk about the success of de-dollarization and the transition from an American-centered monetary and financial system to a polycentric one in the near future.
      PubDate: Aug 2021
       
  • Transformation of Household Savings into Investments: The Country's Credit
           Potential

    • Abstract: Publication date:  Aug 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  4  Molchanova L. A.   Khokhlova S. V.   Basova N. V.   Makarova E. B.   and Gyunther I. N.   The Russian economy's long-term growth is inextricably linked to an appealing and efficient investment process, without which it is impossible to upgrade output structurally and qualitatively, build market infrastructure, and boost local competitiveness. The pressing issue of adequate investment tools necessitates an active search for viable sources for domestic economy demands, which concretizes the problem of mobilizing the state's internal resources - the population's savings. According to the experience of countries with a high degree of economic development, population savings are the primary source of establishing the resource basis for ensuring long-term economic growth and development. The function of the domestic financial market in the process of converting savings into investments is examined in this article. It has been established that there is a link between the financial market and the investment process. Theoretical components of the essence of savings and how they are transformed into investments are exposed. The impact of household financial investment volumes on the country's economic development indicators is studied and the dynamics and structure of population savings in Russia. The issues surrounding the conversion of savings into investments are recognized and the directions for intensifying it to maximize the financial potential of savings for the implementation of investment programs.
      PubDate: Aug 2021
       
  • Ensemble Forecasting Methods in DCF Modelling of the Fair Value of
           Enterprises

    • Abstract: Publication date:  Aug 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  4  Volodymyr A. Viedienieiev   The purpose of this study is to improve the methodology for assessing the fair value of enterprises based on the DCF model with the use of ensemble methods for predicting the selling price of their products. The study compares the fair values of three Ukrainian agricultural enterprises. The value of each company was calculated in several ways: using forecast data from statistical agencies, calculated forecast values, and real indicators. The methodology is based on the use of methods and models for forecasting time series. The study uses neural networks, as well as prediction methods such as linear regression, FB Prophet model, Holt-Winters exponential smoothing method, SARIMA, XGBoost, which are combined into a single ensemble with the use of the stacking method. The study employed such general scientific methods as analysis, synthesis, abstraction, and comparison. Also, methods of graphical and tabular presentation of materials were applied. Statistical modelling was used to determine the parameters of the model. The study found that the DCF model can potentially be improved by using ensemble methods when predicting metrics such as inflation, exchange rates, and the selling price of goods and services. These metrics have a significant impact on the final result of the model and therefore the slightest changes in these input data can lead to significant deviations in the result. It was demonstrated that the use of ensemble methods only at the selling price can increase the accuracy of the model by 5-15%. It is advisable to use the results of the study in the investment activities of companies, in mergers and acquisitions of companies, as well as in measuring the fair or investment value of companies.
      PubDate: Aug 2021
       
  • Financial Support of Passenger Transportation in the Regional Road
           Transport System of Ukraine

    • Abstract: Publication date:  Aug 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  4  Natalia V. Trusova   Oleksandr M. Petruk   Andrii Yu. Polchanov   Iryna M. Tsaruk   and Tatiana O. Bilіak   The article considers the forming resource elements of financial support of passenger transportation in the regional road transport system of the state, taking into account the impact on their structure of interdependent basic parameters of financial flows of public-private partnership. A methodological approach to assessing the formative resource elements of financial support for passenger transport in the region, which is based on the concept of developing the financial potential of the road transport industry, which determines the interaction of various factors under the general financial mechanism and aims at ensuring target parameters of profitable activities is developed. The mechanism of redistribution of own and credit resources between separate objects of the regional road transport system is substantiated, as it is a vector of integration direction of movement of the financial streams arising between the road transport enterprises in the sphere of passenger transportations. Changes in the basic parameters of financial flows of road transport enterprises in the cycle of financial support of passenger traffic in the region have been formalized. The analysis of the species structure of the road transport system and the volume of passenger turnover of Ukraine is carried out. The conditions of redistribution of financial resources by the State Road Fund of Ukraine between the regions and the share of implemented public-private partnership projects in the field of road transport of the country are determined. The scenario of the optimal market value of road transport enterprises in the cycle of financial support of passenger transport of the region is offered.
      PubDate: Aug 2021
       
  • Derivatives as Technological Disruption: A Conceptual Approach on Complex
           Global Financial Instrument Innovation and Related Tax Policy Tool
           Responses

    • Abstract: Publication date:  Aug 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  4  Jasper Kim   Derivatives can be embedded in financial engineered structures involving one or more conduit entities and jurisdictions. Increased innovation led to an emergent market view that assets can be both de- and re-composable, with each iteration version being tradable "aspect[s] of assets" in the marketplace. Conceptual methodology of this article provides a conceptual tax policy analysis arguing that derivatives instrument innovation poses several significant challenges to the traditional tax system. Such factors must be carefully weighed by policymakers, given their respective specific market dynamics and tax objectives, leading to the conclusion that not one approach represents a policy panacea to derivatives financial instruments. This article provides a conceptual tax policy analysis arguing that derivatives instrument innovation poses several significant challenges to the traditional global tax system, which has been traditionally predicated on a clear-cut demarcation regarding: (1) asymmetric tax treatment between debt and equity; (2) the timing rule in terms of income recognition for tax purposes (e.g. accrual versus realization); and (3) income characterization (e.g. ordinary income versus capital gains). The conceptual tax policy responses, including anti-avoidance measures, mark-to-market, bifurcation, integration, and various information-sharing regimes, have their benefits and weaknesses.
      PubDate: Aug 2021
       
  • Factors Contributing to Financial Literacy and Financial Inclusion among
           Women in Indian SHGs

    • Abstract: Publication date:  Aug 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  4  Dharmesh K. Mishra   Sushant Malik   Asmita Chitnis   Dipen Paul   and Subham Sushobhan Dash   The purpose of the study is to analyse the factors contributing to financial literacy and financial inclusion among women of self-help groups (SHGs) of Sisilo village in Balianta block of Bhubaneswar, India. A survey questionnaire was designed and administered to a sample of 100 women respondents in the age group of 18 to 59 years. The survey data were analysed using factorial analysis. Factor extraction was done by the method of principle component analysis. The three factors extracted which influenced financial literacy were identified as education level, awareness of bank and insurance products and household income. The four factors extracted which influenced financial inclusion were identified as product knowledge, risk level of products, insurance schemes for security, and availability of bank branch. A few of the factors are hindrances to financial literacy and financial inclusion which are gender difference, access to education, ethnicity, personal finance, lack of trust in financial institutions, distance and lack of proper guidance. The study will help bankers and policymakers to be aware of the factors that influence financial inclusion and financial literacy amongst women, and incorporate the same for implementing successful interventions for women SHGs in India.
      PubDate: Aug 2021
       
  • Development of Poverty Index for Districts in Kedah by Using CRITIC and
           Simple Additive Weighting Methods

    • Abstract: Publication date:  Aug 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  4  Nuril Asyikin Mohamad   Nor Hasliza Mat Desa   and Maznah Mat Kasim   Poverty is a major problem either in this country or globally as it is like a vicious cycle that is endless. In Peninsular Malaysia, there are four states: Kelantan, Terengganu, Perlis and Kedah that still recorded higher incidences of poverty than the national average. The differences in development among regions, states and rural-urban areas maintain a wide gap even though the economic growth was reported by all the states. This might be attributed to some key factors that could have effects on poverty in a smaller region. It is argued that the factors prescribing the index have different levels of importance or weights towards the poverty incidence. Hence, this paper aims to determine the weightage of poverty indicators that affect the poverty rate in smaller area in Kedah and to develop the corresponding poverty index in Kedah. This paper used the CRiteria Importance Through Intercriteria Correlation (CRITIC) weighting method to determine the importance of five indicators. It is revealed that the most important indicator is the size of household followed by income, expenditure, head of household, and residence. Moreover, the poverty index was also developed for 12 districts in Kedah by using Simple Additive Weighting (SAW) method. Results showed that the district with highest poverty index value is Kuala Muda while the lowest is Bandar Baharu district. This paper contributes to changes of poverty information so that the government and Non-Governmental Organizations (NGO) can design appropriate policies to reduce higher poverty rate in Kedah and plan on providing more aids for the targeted group especially in districts with higher poverty index values. Consequently, it is hoped that these governmental and non-governmental initiatives could help poor people to motivate themselves to have a better education so that they can enhance their economic productivity for the betterment of their lives.
      PubDate: Aug 2021
       
  • Theory for Financial Controlling in Corporations in the Modern Environment

    • Abstract: Publication date:  Aug 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  4  Viktoriya Valeryevna Manuylenko   and Marianna Aslanbekovna Shebzukhova   Lack of theoretical and methodological grounds to formulate essential characteristics of "financial controlling" in corporations makes it difficult to efficiently conduct it in practice. It is believed that the conceptual terminology and definitions should be reflected in the methodological toolkit that determines corresponding values. Accordingly, determination of the economic content, classification of the types, forms and methods of financial controlling in corporations are the necessary elements for building methodological basis for its conduct. In this regard, it is important to correctly formulate theoretical and methodological provisions of the financial controlling in corporations and take into account development of economy. All this underlines relevance of this study. The purpose of this study is to substantiate potential development areas for the existing methodological tools related to "financial controlling" in corporations revealing economic, essential and substantial characteristics of the concept. Based on the general scientific and special methods, such as inductive, deductive, analysis, synthesis, system thinking, detailing, generalization, grouping, formalization, abstract-logical, the essence of the concept of "financial controlling" in corporations was identified considering theoretical and methodological approach. The theoretical provisions are expanded and improved for classification and interconnection of different types and forms of financial controlling. The theoretical and methodological synergetic links of the concepts related to the financial controlling, as well as its types, forms, and methods are characterized, which will provide the ground for development of methodological toolkit for its successful implementation in the future.
      PubDate: Aug 2021
       
  • The Performance of Sharia Financing Amid the COVID-19 Pandemic in
           Indonesia

    • Abstract: Publication date:  Aug 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  4  Muthoifin   The spread of the coronavirus in various countries has brought many changes in various sectors, including the financing sector, many people are doing re-credit, asking for leniency in installments due to limited access, income, employment, and others due to the implementation of the lockdown. Likewise, what happened in Indonesia was that many people panicked about financing at banks and BMTs. The purpose of this research is to analyze the performance of sharia financing in sharia financing institutions and cooperatives amid the Covid-19 pandemic. The method used is field research using the qualitative paradigm with the phenomenological approach. Primary data were collected from observations and direct interviews, while secondary data were obtained through books, journals, articles related to Islamic financing. Following the data processing, analysis was carried out using data validity techniques and data reduction, thus conclusion could be drawn. The research was conducted in three sites; BMT (Baitul Mal wa Tamwil) Amanah Ummah, BMT Kube Colomadu Sejahtera, and BMT Wanita Mandiri. The results of the study showed that sharia financing activities at those BMTs decreased due to the impact of the Covid-19 pandemic. Likewise, the level of customer ability fell due to the physical distancing in some of the customer's residences, reduced income, and increased consumptive costs, which led to default in customers at three different BMT locations. The implications of this research are expected for the customer to be more cooperative in fulfilling obligations in paying installments and being more committed to fulfilling mutual agreements. For BMT managers to be more careful in choosing customers and make better efforts to resolve customer's defaults in a family way. For the Government to be able to make policies related to customers and BMTs, so that they do not feel disadvantaged by the current pandemic conditions and can feel more secure and comfortable in any conditions.
      PubDate: Aug 2021
       
  • Banking Service in Albania: Satisfied… from what'

    • Abstract: Publication date:  Aug 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  4  Armela Anamali   Alma Zisi   and Bitila Shosha   Purpose-This article examines the relationship between service quality and customer satisfaction from the banking service in Albania. Design/methodology/approach-For the realization of this study, the authors relied on primary data. The population, taken in the study, are the clients of a commercial bank operating in the city of Durrës. The questionnaire is structured with questions on a five-point psychometric scale, grouped for each dimension of quality and the dependent variable of customers' satisfaction. To prove the consistency of the indicators within each factor, the Cronbachs' alpha test was performed, while for the analysis of the functional relationships between the dimensions of service quality and customers' satisfaction, the correlations were tested and the Enter/Stepwise methods were used. The software used for data processing is SPSS V.21. Findings-Customers' satisfaction for the sample taken in the study is dependent on two factors, assurance and responsiveness. Other factors do not directly affect customers' satisfaction with banking services, but are statistically significant related to the independent variables included in the study. Originality/value-This paper tests previously found relationships, but the socio-economic developments, the level of financial culture, and the extent of banking sector in Albania, seem to affect consumers' perceptions of quality and what makes them satisfied. Passing two major financial crises (pyramid schemes in 1997 and the 2008 financial crisis) with a poor financial culture, the Albanian customers expect a quality service in a service that makes them feel safe and is being offered specifically to their expectations.
      PubDate: Aug 2021
       
  • Making Environmental Accounting Work: Case of the Zimbabwe Mining Industry

    • Abstract: Publication date:  Aug 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  4  Otekunrin Adegbola Olubukola   Samu Tafadzwa   Sifile Obert   and Matowanyika Kudzanai   The research sought to find out how environmental accounting can work in Zimbabwean Mining Companies. Descriptive research design was used and mixture of qualitative and quantitative data was collected using questionnaires and interviews. Stratified purposeful sampling of 52 respondents was made up of 16 Mining Companies' executives which are dominant companies in mining gold, nickel, asbestos, coal, copper and chromite, 20 government organisations representatives and 16 mining communities’ heads (8 Chiefs and 8 Headmen) were done. Community heads were interviewed and questionnaires were sent to Mining Companies' executives and government organisations representatives who were also interviewed two months after. The research reveals that government is not doing enough in fostering the implementation of environmental accounting in Zimbabwe. There is no commitment of enough resources by the government towards adoption of environmental accounting. The mining sector has been politicized, making it difficult to enforce environmental laws in this sector whilst on the other hand there are no effective laws and policies that regulate environmental accounting issues. The core existences of economic instability and political upheavals in the nation have forced firms to concentrate on their continued economic existence, doing almost nothing on environmental accounting. It was also noted that there is no proper monitoring and controlling of mining activities by law enforcers, leaving the natural environment subjected to unsustainable mining activities. There are no environmental accounting guidelines. The research recommended that government organisations monitor and control mining activities independent of politics and commit both human and financial resources towards researching on how best environmental accounting can be implemented.
      PubDate: Aug 2021
       
  • Does the Independent of Supreme Audit Institutions Matter on Good
           Governance' An Insight from Nigeria Auditor General for the Federation
           

    • Abstract: Publication date:  Aug 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  4  Saheed Ademola Lateef   Norfadzilah Rashid   Abubakar Umar Farouk   and Wahid Damilola Olanipekun   The Supreme Audit Institutions (SAI) are required to act as a corner stone in the public financial management system to prevent and discourage corruption by enhancing transparency, accountability and good governance. However, the executives and legislative arms of government in most of the African countries have reportedly overpowered the independence of SAI due to certain factors. Therefore, this study examines the factors hindering the independence of SAIs towards good governance in the Nigerian public sector. The primary data were collected from senior and management officers in the office of the Auditor General for the Federation and Public Account Committees of the National Assembly through self-administered questionnaire. One hundred and fifty (150) questionnaires were distributed to the respondents. The statistical analysis tool employed in this study is Structural Equation Modeling. The two hypotheses developed for this study were tested through regression analysis which indicated that both negatively affect good governance in the Nigerian public sector. The study revealed that the independence of SAIs in Nigeria was impaired in two critical areas; deliberate under-funding of SAIs and the quality of external auditor hired to perform the task. The study recommends that the constitutional provision that impairs the independence of SAIs should be repealed to ensure their financial autonomy. Finally, the study suggested that the Nigerian government should allow the SAI to independently determine the appointment of experienced external auditors and their fees.
      PubDate: Aug 2021
       
  • Comparative Analysis of the Use of Kanban and Scrum Methodologies in IT
           Projects

    • Abstract: Publication date:  Aug 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  4  Evgeniy Vladimirovich Orlov   Tatyana Mikhailovna Rogulenko   Oleg Alexandrovich Smolyakov   Nataliya Vladimirovna Oshovskaya   Tatiana Ivanovna Zvorykina   Victor Grigorevich Rostanets   and Elena Petrovna Dyundik   Modern businesses throughout the world operate in a market characterized by constant changes. These changes are becoming more dynamic from year to year. It is the project-based approach that will allow one to solve problems and ensure high efficiency of project-oriented operations. The purpose of the study is a comparative analysis of the impact of the use of IT project management methodologies of Kanban and Scrum on a company's financial performance. The authors identify the essence of the agile methodology, its conceptual foundations, and explore the key aspects of its efficient implementation. The popularity of the practical application of the agile approach in various business areas is analyzed. The authors also choose the best methodology for a particular IT project for the optimization of such economic and financial indicators as project cost, profit from project implementation, and implementation time. The key differences between the most popular agile technologies are identified. The requirements for forming an agile team are examined considering the main issues during the implementation of agile management technologies. The primary stages in the implementation of an IT project using the Scrum methodologies are defined.
      PubDate: Aug 2021
       
  • Determinants of Volatility of the Derivative Financial Instrument in
           Ukraine

    • Abstract: Publication date:  Aug 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  4  Oleksandr M. Petruk   Oksana S. Novak   Anastasiia O. Petruk   and Nataliia H. Radchenko   The article discusses empirical calculations of sustainable development and volatility of derivative financial instruments in the banking system. The methodical approach to forecasting the index of the first stock trading system (FSTS) for sustainable market development is presented, considering the lack of normal distribution of financial resources in the banking system. It is substantiated that when choosing the volatility model and setting the option price, it is important to consider the theoretical generality and composition of the volatility structure, which is able to effectively and accurately estimate the parameters. It is proved that the rate of average volatility variable for modeling, analysis and stable assessment of important market parameters (i.e., local volatility) is determined using the moments of past periods. The real and forecast value of FSTS volatility at different values of the model parameter is developed. A model of implied volatility for the FSTS index is built. It is substantiated that the formulation of stable market development of derivative financial instruments takes into account all its semantic and financial features of resisting the influence of external and internal factors (shocks, imbalances) and maintaining dynamic equilibrium to ensure parameters of the entire financial system needed to form positive feedback between financial and real sector of the economy. The ratio of world GDP and the nominal value of derivative financial instruments were estimated. Maps of the market value of over-the-counter DFI, gross risk exposure in the over-the-counter DFI market and the nominal value of exchange-traded PFI are presented. The factor models of influence on the development of the exchange-traded and over-the-counter PFI market of world and national levels are constructed.
      PubDate: Aug 2021
       
  • The Risks of Payment Systems of Banking Institutions of Ukraine

    • Abstract: Publication date:  Aug 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  4  Natalia V. Trusova   Oksana V. Hryvkivska   Leonid V. Melnyk   Olena V. Gerasymova   and Maksym A. Tereshchenko   Risks of payment system of banking institutions of Ukraine are considered in this study. Risk events clearly correlate to the effectiveness of network interaction of banking institutions to adapt information technology of payment systems in the payment portfolio of banks when changing operating environment, so mechanism for minimizing their probability has been developed. Economic elements of the mechanism of minimizing the risks of payment systems are identified, which allow forming the planned level of profitability, risk and liquidity of institutions (organizations) within the relevant principles, methods, levers, cash flows in order to respond and adapt to changes in the environment. A methodical approach to assessing the effectiveness of risk management of payment systems of banking institutions, which is from the standpoint of multivariate structuring and a list of their indicators of the microeconomic level, forms an optimal set of tools to minimize the set of risks. Indicators of payment systems of Ukraine are determined, according to the net level of credit risk, liquidity risk, business risk, investment risk, legal risk, operational risk, systemic risk, technological and information security risk. The impulse index of functioning of payment systems of Ukraine is calculated. A neuro-fuzzy model for assessing the individual credit risk of participants – legal entities (users-borrowers) of card payment scoring of a banking institution is developed. The basic criteria for assessing the individual credit risk of a participant-legal entity (user-borrower) by card payment scoring are determined.
      PubDate: Aug 2021
       
  • Stimulators of Credit Activity of Banking Institutions

    • Abstract: Publication date:  Aug 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  4  Nataliia H. Vyhovska   Oleksii V. Lysenok   Viktoriia H. Hranovska   and Viktoriia M. Krykunova   The functioning of the banking system, in the face of financial and economic shocks, is gaining global scale, and requires banking institutions to guarantee financial stability. The aim of the article is to consider the regulators of credit activity of banking institutions in the interbank market and the debt obligations of Ukrainian borrowers. A comprehensive methodological approach to assessing the stimulators of credit activity of banking institutions, which allows to model macroeconomic and local factors of credit risks of borrowers, scenarios for servicing their debt, given the safe level of profitability, liquidity in the interbank market in the current period is implemented. A comprehensive methodological approach to assessing the stimulators of credit activity of banking institutions on the basis of cognitive analysis and modeling of factors of the banking system, which are determined by stress testing when the exchange rate is changing. Interest rate fluctuations in the interbank market and liquidity in the country is proposed. The model of a complex assessment by a banking institution of the credit risk of a debtor-financial company when servicing its debt on the interbank market is presented. The cognitive analysis is carried out and the cognitive map of stimulators of crediting of the economy of Ukraine by banking institutions is constructed. Optimistic and pessimistic scenarios for changes in the lending activity of the banking system were identified, the growth of loans to residents was chosen as a desirable situation, taking into account the impact of inflation and devaluation of the hryvnia, as well as the growth index of the banking system. The integrated indicator of creditworthiness of borrowers and the relationship between quantitative and qualitative indicators of credit risk with a factor load on debt service by financial companies of Ukraine are calculated.
      PubDate: Aug 2021
       
  • Improvement of Methodological Approaches to Determining Directions of
           Financial Security of Ukraine

    • Abstract: Publication date:  Aug 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  4  Nataliia M. Ridei   Nataliia M. Tytova   Valentyna I. Tymoshenko   Volodymyr V. Moroz   and Natalya V. Bibik   The article is devoted to the problems of improving methodological approaches to determining the directions of financial security of Ukraine in the modern conditions of globalization and the hidden of the financial sector of the economy. It has been found that people's interests and public institutions, which are not reflected in official regulatory documents and acts, often have a decisive impact on the economy. There were generalized studies of economists regarding the interpretation of the category "financial security". Under these interpretations, main components of the financial security of the state are identified. Relevance of this study in the analysis of the tense and unstable political and socio-economic situation in the country and development of theoretical, methodological, and practical proposals for improving methodological approaches in various areas of ensuring the financial security of Ukraine in the modern conditions of globalization of the economic sector. The author's definition of the category "financial security" in the context of research problems was provided. The theoretical and methodological content of the concept of financial security of Ukraine has been developed and it has been proved that the content of such a document should not be dogma, but should be constantly and systematically updated. A universal and effective institutional and legal mechanism has been established for the monetary policy of ensuring the financial security of the state, aimed at developing an effective system of public administration bodies with the involvement of central entities for the formation of financial security - territorial communities. An organizational and economic mechanism has been developed for a monetary policy to ensure the financial security of Ukraine, the key element of which is the implementation of strategic goals and directions for the development of this policy. Methodological approaches have been improved in the sectoral areas of financial security of Ukraine, namely, the banking system, financial and credit infrastructure; non-bank financial and credit organizational and legal institutions. It was concluded that the implementation of the presented theoretical and methodological measures will strengthen the financial security of Ukraine in various sectoral areas, reduce the level of hidden of the monetary sector, eliminate the threat of a decrease in the potential of the country's general financial system and introduce modern mechanisms for managing financial security at the macroeconomic and microeconomic levels.
      PubDate: Aug 2021
       
  • The Effect of Aggregating Bootstrap on the Accuracy of Neural Network
           System for Islamic Investment Prediction

    • Abstract: Publication date:  Aug 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  4  Siti Fatihah C. O.   Hila N. Z.   Shaharudin S. M.   Tarmizi R. A.   Mohamed N. A.   Romli N.   Muhamad Safiih L.   Sri Andayani   and Hafizulddin W. M. W. H.   Accurate prediction of the stock price is necessary for efficient financial decision making and reconstruction planning, especially during the COVID-19 crisis. Meanwhile, the ARIMA model with neural network approach is a hybrid statistical model that has been used widely in finance and statistics. It could solve the non-linearity problem in ARIMA. However, based on the unreliable sampling variation, the unbalance between the linearity and nonlinearity parts in the hybrid model could lead to inaccurate prediction. This matter motivates the purpose of this study, where the authors aim to balance the linearity and nonlinearity of the hybrid model towards predicting the Islamic investment during the Malaysia Movement Control Order (MCO). In this study, Islamic investment is analyzed using statistical based model of ARIMA. In order to balance linearity and nonlinearity parts of ARIMA which is outperforming the unreliable sampling variation, the aggregating bootstrap approach is used on ARIMA. The resampled linearity and nonlinearity parts will be declared as inputs of neural network system in order to predict the Islamic investment. Resampled nonlinearity part will be generated in this system and its sampling variation is examined. In addition, the performance of model procedure is estimated. It shows that the aggregating bootstrap gives smaller bias values and generates small weights in neural network system. In terms of prediction, applying the resampled procedure in neural network system eventually increases the precision of prediction estimation where it reduces the error estimation of MAE and MSE. Also, the prediction values continually align with actual values of investment at MCO phase. Balancing the linearity and nonlinearity part using the aggregating bootstrap in major procedure of prediction field contributes to high precise prediction of Islamic investment return estimation. The uncertainty of investment returns during MCO phase is a challenging phase and affects Malaysia financial trading. By considering using alternative procedure proposed in this study, i.e. helps in providing accuracy of investment prediction returns, a well-construct financial decisions and plans could be structured during MCO. However, this study limits to examine the effect of aggregating bootstrap. For further research, it is suggested to apply prediction on 10 years returns of Islamic investment using the proposed method.
      PubDate: Aug 2021
       
  • Triangulation between Bernoulli Distribution and Laplacian Autoregressive
           Model to Predict Probability of Increase in Stock Price

    • Abstract: Publication date:  Aug 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  4  Suparman   A. M. Diponegoro   Mahyudin Ritonga   Yahya Hairun   Tedy Machmud   Idrus Alhaddad   Mustafa A. H. Ruhama   and Safiuddin   Stocks are one of the aspects that affect the economy in the world. In the stock market, the price of a stock changes every time. Investors who are able to predict the increase in stock prices will tend to get profit, but investors who are unable to predict the increase in stock prices will tend to experience losses. This study aims to find statistical models and use them to predict the probability of an increase in the price of a stock in the stock market. The method used in this study is a literature study regarding stochastic models and selected suitable stochastic models. This study finds stochastic models and uses them to predict the probability of an increase in stock prices. The novelty in this research lies in the stochastic model triangulation. The increase in stock prices is predicted using two stochastic models, namely: Bernoulli and autoregressive. The decision on stock prediction is determined by the results of the triangulation of the two methods. The proposed method in this study has the advantage that decision making is based on more than one stochastic model. The results of this study can be applied to the financial sector, especially in the stock market.
      PubDate: Aug 2021
       
  • Accounting Practices and Its Effects on the Growth of Micro and Small
           Scale Enterprises: Analysis from Nigeria

    • Abstract: Publication date:  Aug 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  4  Uche Peter Nsoke   Ndu Marvis Okolo   and Grace N. Ofoegbu   This paper examined the effect of accounting practices on the growth of micro and small enterprises (MSEs) in Nigeria. The study specifically examined the influence of book-keeping and accounting knowledge on the growth of micro and small enterprises as well as the effect of financial management practices on the growth of MSEs in Nigeria. The study adopted survey research design. Micro and small scale enterprises in South-East and South-South geopolitical zones in Nigeria formed the population of the study. The study made use of primary data. Questionnaire was the instrument for data collection. A sample size of 384 was adopted using Bill Godden sample size formula. Proportional stratified random sampling technique was employed to distribute this 384 to MSEs. The data were tested using percentages, mean, and standard deviation, while the hypotheses were tested using regression analysis and analysis of variance. Multicollinearity test was conducted to determine the collinearity of the two independent variables. According to the findings, book-keeping and accounting knowledge as well as financial management practices have significant effect on MSE growth in Nigeria. This finding implies that MSEs will experience continuous growth if they acquire accounting knowledge and apply such knowledge in financial management practices in their business operations. This study will be beneficial to researchers, readers of this work, investors, and intending investors in MSEs in Nigeria. The limitations experienced in the course of this research were the reluctant attitude of some respondents who felt that they might be revealing business secrets to free-riders but later showed full cooperation when convinced it was purely for critical examination of problems of accounting practices affecting MSEs growth in Nigeria and the ability to find out solutions. It recommends government and MSE owners/managers to focus greater attention on the acquisition of book-keeping and accounting knowledge and financial management practices that can constantly lead to MSEs' growth.
      PubDate: Aug 2021
       
  • Financial Deepening and Sustained Economic Growth in Nigeria

    • Abstract: Publication date:  Aug 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  4  Inim Victor Edet   The growth-finance nexus in Nigeria is investigated in this research. Prior studies used time-series data and classical linear regression mainly, as well as various financial deepening indexes and methodologies. These studies produced a mixed bag of results. This study is unique as it adopts quarterly data from the three arms of the financial industry (banks, stock markets, and insurance companies) which most previous studies neglected to focus solely on the banking sector. The Autoregressive Distributed Lag (ARDL), Error Correction Model, and the Granger causality test were used to examine the convergence and divergence technique. Prior researches overlook a variety of pre-and diagnostic tests. The findings revealed a long-short run co-integrating nexus. Financial indices respond to economic growth in a linear fashion. The insurance industry has a 28% impact on economic growth. The short-run finding demonstrates a 74% speed of convergence from explanatory variable-induced disequilibrium to long-run equilibrium. Economic growth reacts more quickly to the financial climate's shocks and dynamics. A bi-directional association was discovered using causality testing. Recapitalization of the banking and insurance sectors, as well as a review of the Monetary Policy Rate to enhance lending to the private sector and boost savings and investment, is among the recommendations.
      PubDate: Aug 2021
       
  • Innovative Paradigm of Management Accounting and Development of
           Controlling in the Entrepreneurship

    • Abstract: Publication date:  Aug 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  4  Alina Zh. Sakun   Iryna V. Perevozova   Olha H. Kartashova   Oleksandr S. Prystеmskyi   and Andrii S. Mokhnenko   The article considers a comprehensive methodology of innovative paradigm of management accounting, which takes into account the functional design of information and analytical support of the innovation process that is the foundation for expanding tools and determinants of controlling in the socio-ecological and economic space of entrepreneurship. The maximum possible amount of organized information data is substantiated. It considers the individual features of the management accounting model for decision-making to form the determinants of controlling development with the probability of turning it into a strategic resource aimed at ensuring a stable business, taking into account socio-environmental and economic factors. The model of development of the innovative theory of the administrative account from a position of meaningful enrichment is presented. It is proved that the subject of management accounting with an innovative aspect is the process of managing transaction and innovation costs, which strengthen the development strategy of business entities. Indicators of management accounting, which is formed into a three-component part of business development – social, environmental, economic – as a basis for an integrated assessment of the level of activity of entities in a particular area or industry. A detailed veil of monetary and natural innovative components of management accounting with a focus on the past and future is presented. The intellectual resource and its derivative benefit - intellectual rent is proposed to study in the plane of the philosophy of human-centeredness and with an emphasis on professional knowledge in time, which is obtained by a person. The method of controlling effectiveness is substantiated, which forms a synergistic effect of interaction of functional components of controlling and coherence of their goals.
      PubDate: Aug 2021
       
  • Interest Rates and Inflation as Determining Factors of Saving in Central
           Sulawesi Banks

    • Abstract: Publication date:  Aug 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  4  Andi Herman Jaya   Tasrina Sari Tolla   Ahmad Syatir   Anwar Nasruddin   Novita Sari   and Haerul Anam   This study aims to analyze the effect of the Central Bank, which is in Indonesia presented by Bank Indonesia (BI) Rate and inflation rate on the savings rate at commercial banks in Central Sulawesi by using the analysis tools of autoregressive conditional heteroscedasticity (ARCH) and generalized autoregressive conditional heteroscedasticity (GARCH). The results of the analysis show that the BI Rate and inflation have significant effects on saving rate at commercial banks in Central Sulawesi. The importance of being a source of investment funds to support development activities can be a consideration for the government to formulate a policy for allocating investment from these savings funds for productive sectors. Practically, it is hoped that the distribution of savings through investment activities can encourage economic growth and increase economic development in Central Sulawesi.
      PubDate: Aug 2021
       
  • Islamic (Partner) Accounting and its Comparison with International
           Financial Accounting Standards (IFRS)

    • Abstract: Publication date:  Apr 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  2  Ekaterina Yu. Voronova   and Husan Sunatullaevich Umarov   Accounting information systems are evolving along with modern information technology, which opens up countless opportunities to expand the intellectual, scientific and professional potential, contributing to the culture and "language" of accounting, professional principles extend beyond one country. However, differences in national and regional accounting systems still persist and reflect not only a diversity of accounting policy views but also deeper structural differences rooted in legal, financial and social systems. The Islamic (partner) accounting model appears to be the least studied and, at the same time, the most different from other accounting models. The economy of Islamic states is an important part of the world economy, so Islamic and other companies operating or investing in an Islamic institutional environment have a direct interest in proper disclosure of accounting information. The major goal of the research is to find similarities and differences between the IFRS and Islamic banking and to prove that it's beneficial in the modern Islamic countries. In order to assess and compare the IFRS and the Islamic banking practices the authors used comparative analysis and empirical study of the major parts of the both accounting systems. The major findings include the proof of the positive role of Auditing Organization for Islamic Financial Institutions (AAOIFI) which develops norms of convergence of International financial accounting standards (IFRS) and AAOIFI, and the proof that Islamic banking is based on the Sharia and Islamic ethics, but can be based on other principles that are not contrary to Sharia. The authors have come to a conclusion that zakat (religious tax for the poor and needy) is a positive social external effect, and that Islamic accounting is characterized by greater disclosure than traditional accounting.
      PubDate: Apr 2021
       
  • Assessment of CES Function Parameters in Oil-Rich CIS Countries

    • Abstract: Publication date:  Apr 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  2  Yadulla Hasanli   Turac Musayev   Gunay Rahimli   and Simrah Ismayilova   The article analyses balance between the capital and labor market in the CIS countries rich in hydrocarbon resources – Azerbaijan, Kazakhstan and Russia. For this purpose, the impact of capital (fixed assets) and labor (employed population) on the production volume (on GDP) was estimated based on the relevant statistical data from these countries using production function analysis. The parameters of CES production function were determined in the Mathcad system by the nonlinear least-squares method. The subject of the research has enhanced relevance due to the lack of extensive research of the problem posed in the oil and gas-rich countries of the CIS, and the research evaluates the balance between capital and labor markets for the first time in resource-abundant countries. From the results, it can be seen that for each of these three countries the distribution coefficient for capital is significantly higher than that for the labor factor. This means that there is an excess of capital that cannot be started. This is typical for the countries rich in natural resources. The main reason for this process is the complex structure of increasing capital with oil revenues and low level of specialization of the existing labor force to launch this capital. Moreover, according to the results obtained from the CES production function, the substitute elasticity coefficient in oil-rich countries of the CIS is less than one. The study summarizes the current problem as an imbalance between the capital (fixed assets created using modern technology) and the labor market (labor to leverage key assets using potential opportunities). Based on the analysis, the results obtained from modeling is formulated and scientifically grounded recommendations have been provided for the improvement of education and its quality in these three countries, especially in Russia and Azerbaijan.
      PubDate: Apr 2021
       
  • Investment Management in Early-Stage Entrepreneurship in Modern National
           Economies

    • Abstract: Publication date:  Apr 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  2  Iuliia Pinkovetskaia   Irina Gruznova   Anton Lebedev   and Larisa Tsybina   The purpose of the paper is to evaluate indicators describing the participation of men and women in external financing of new small and medium businesses in different countries. As the initial information in our study, we used the data obtained from the implementation of the Global Entrepreneurship Monitoring Project. The study evaluated the indicators that characterize the participation of men and women in investments in emerging businesses, and the average values of the corresponding contributions. The scientific novelty and originality of our study are as follows: indicators on external investment in SMEs by men and women in different countries have been assessed; six indicators describing external investments for start-up entrepreneurs were modelled; males' participation in external financing of SMEs has shown to be higher in most countries than in women, and there is a gender gap in external funding; average values of deposits in investments for start-up entrepreneurs have been established; significant differences in the values of the six indicators under consideration by country are shown; countries with high and low values of each of the six indicators are represented. The results are of theoretical and practical importance for government bodies and entrepreneurs. The methodological approach to assessing external financing of new SMEs proposed in the article can be applied in further studies. The new knowledge gained is of interest and can be used in the educational process in universities. Further research may aim at detailing the structure of external financing recipients among entrepreneurs.
      PubDate: Apr 2021
       
  • IAS/IFRS in Jordan: Adoption, Implementation and Determinants

    • Abstract: Publication date:  Apr 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  2  Fawzi A. Al Sawalqa   and Atala Qtish   This study examines the current status of accounting standards among Jordanian firms. In particular, it examines the adoption level of IAS/IFRS. In addition, it examines the implementation process in terms of difficulties and challenges. Further, the study tests empirically the effect of international institutional pressures, local legal enforcement bodies and accounting education level on accounting standards adoption level. The results of the study are based on the descriptive and multiple regression analysis technique. Based on 62 usable responses, the study reveals that the adoption level of IAS/IFRS among Jordanian firms is moderate. For example, IFRS 7 (Financial Instruments: Disclosure) is the most adopted standard. This is followed by IAS 32 (Financial Instruments: Presentation) and IFRS 15 (Revenue from Contracts with Customers) respectively, while IFRS 2 (Share-based Payment) is the least adopted standard. In general, the study reveals that the implementation process of some standards is easy such as IFRS 7 (Financial Instruments: Disclosure), while others such as IAS 36 (Impairment of Assets) and IFRS 13 (Fair Value Measurement) need additional efforts to properly implement. In addition, several challenges were detected, which could prevent the proper implementation of some accounting standards such as the shortage in the governmental and IT supports. Further, the study shows that international institutional pressure and local legal enforcement bodies have a positive and significant relationship with the adoption level of accounting standards, while the effect of accounting education level is insignificant. JACPA should coordinate and collaborate with IASB and the government to offer all the necessary financial, technical and legal support for Jordanian firms to fully adopt and apply accounting standards. Several recommendations were offered for future research to enrich this vital topic in Jordan and other developing countries.
      PubDate: Apr 2021
       
  • Impact of COVID-19 News on Performance of Indonesia Stock Market

    • Abstract: Publication date:  Apr 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  2  A. Mulyo Haryanto   and Wisnu Mawardi   This research tries to show that information about COVID-19 affects market arousal indicated by the frequency of transactions, and the market performance shown by Jakarta Composite Index (JCI). The theory used for analysis is the prospect theory and efficient market hypothesis (EMH). The results of statistical analysis indicate that information about COVID has a negative effect on JCI, as well as trading volume the previous day. The evidence can briefly prove that there is an effect of COVID-19 and weakening daily transactions on JCI. The research findings show that the JCI market uncertainty is in line with the VUCA and Prospect theory. In this case, it occurs that uncertainty affects the behavior of investors' decision making. Investors' decision-making behavior is accumulated in market behavior, and is subsequently manifested in index changes in accordance with the efficient market hypothesis. The contribution of this research to the study of financial market behavior is that uncertainty and uncertainty faced by investors affect market behavior and changes as measured by the index.
      PubDate: Apr 2021
       
  • Dynamics of the Delayed Business Cycle Model with Expectation and General
           Saving Function

    • Abstract: Publication date:  Apr 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  2  Ratchata Utama   and Ekkachai Kunnawuttipreechachan   In this paper, we study a class of business cycle models related to the relationship between the gross product and the capital stock. The model is extended by adding general terms of the investment and the saving functions. In addition, a time delay which is represented an expectation and time lag for investment is also added into the model. The aim for this work is to find the sufficient conditions in which the model's solution is periodic. We study the existence of unique positive equilibrium. Next, the linearization method is used to analyze local behavior of the model. In addition, by considering time delay as a bifurcation parameter, we investigate sufficient conditions for the existence of a Hopf bifurcation of the model. Our results are applied to represent conditions for an occurrence of business cycles, which can happen in many business situations. Finally, some numerical simulations are illustrated to support our theoretical results.
      PubDate: Apr 2021
       
  • Equity Valuation with Heterogeneous Beliefs

    • Abstract: Publication date:  Apr 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  2  Niu Weining   Residual income model in equity valuation has emerged as a useful reference for investment decisions on account of its theoretical foundations for analytical accounting research and also the basis of modelling for empirical study on value relevance. However, since investors have disagreement on firm's future earnings, it may have an effect on firm's evaluation and hence affect stock price. The paper extends the residual income model by incorporating investors' heterogeneous beliefs on the persistence of residual income, and then tests the theoretical findings through numerical simulation. The model implies that the relation between stock price and heterogeneous beliefs depends on the sign of residual income, and the impact of informed traders on stock price relies on the interaction effect of heterogeneous beliefs and residual income. The numerical simulation results prove that under the circumstance of positive heterogeneous beliefs, if residual income is also positive, stock price has a positive relation with heterogeneous beliefs and amount of informed investor; while if residual income is negative, stock price has a negative relation with heterogeneous beliefs and informed trading. The findings of the paper provide some useful theoretical implications on the effect of heterogeneous beliefs on equity valuation via residual income framework. Research limitations mainly exist in the strict theoretical assumptions, which can be loosen in further researches to make the model closer to real market.
      PubDate: Apr 2021
       
  • Service Quality of CRM: With Reference to Public and Private Banks in
           Nagpur City

    • Abstract: Publication date:  Apr 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  2  Gangu Naidu Mandala   Meenakshi Verma   Anuj Verma   and Pushpanatham Arumugam   Purpose: The banking business is significant for each country yet with the extreme rivalry between the public and private area banks, it is the service given that surprisingly recognizes the banks. The bank's execution relies upon how they fulfill and draw in their modern clients. Deals are straightforwardly identified with consumer loyalty. As the deals are expanding there is a necessity of improving the quality of services they conveyed. The item is utilized by the client and the abundance expansion is relying upon their fulfillment level. Design/methodology/approach: The examination broke down the public and private area bank clients' conclusions on CRM concerning service quality and furthermore analyzed their assessment on it. The examination likewise attempts to establish the general correlation of the clients' insight. For the investigation, 240 clients were chosen as a respondent from public and private area banks. Findings: The examination found the view of clients and attempts to advise the path to the banks that how they can hold the old ones and pull in the new ones (clients). Originality/value: The examination demonstrated that in the assessment of public bank clients they scarcely have service quality in their bank and the private bank clients indicated that their bank has better service quality. It very well may be deciphered that in the event that there is an absence of service quality, at that point long-haul relationship with the client may influence. It is inferred that banks need to reinforce their services to satisfy their prerequisites to profit the advantage over the long haul.
      PubDate: Apr 2021
       
  • The Role of Islamic Microfinance Institution in Empowering Indonesian
           Fishing Communities

    • Abstract: Publication date:  Apr 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  2  Azhar Alam   Renaldi Sahrul Nizam   and Muhamad Taufik Hidayat   There are still many fishing communities in Indonesia that live in poverty. That situation happens because they have been depending on moneylenders who provide high-interest rates. This study's focuses were: First, to reveal the role of Baitul Maal wa Tamwil (BMT) or Islamic Microfinance Institution (IMFI), which embrace fishermen by implementing the free late interest system. Second, to reveal the products of IMFI for the fishing community as a form of empowerment. This study was a descriptive qualitative with a case study method. Informants of this study consist of employees and clients of BMT Mandiri Sejahtera Jawa Timur in Blimbing (BMSB), Lamongan, Indonesia. Data collection techniques used were interview, observation, and documentation. The data analysis technique was interactive analysis consisting of data reduction, data presentation, and concluding. This study showed that: First, BMSB had a pretty good role, but not effective yet in empowering fishing communities. Second, BMSB only offered savings and mortgage financing products with Islamic principles. Third, BMSB did not foster a productive attitude toward fishermen in providing additional income.
      PubDate: Apr 2021
       
  • Statistical Study of Current Trends in Mortgage Lending in Russia

    • Abstract: Publication date:  Apr 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  2  Svetlana G. Babich   Mikhail V. Karmanov   Natalya N. Toropova   Elizaveta S. Sokolova   and Elnur T. Mekhdiev   Mortgage lending is one of the most important and most socially significant sectors of the national economy. Today, mortgage in Russia is rather underdeveloped and has a significant impact only on the economy of large cities. The development of mortgage in the Russian regions is hampered by the non-diversified approach to this issue. The article presents the results of analysis of housing mortgage loans dynamics in Russia. The number and volume of mortgage loans issued to individuals were assessed by regional structure. The Russian federal entities were grouped by the main indicators that affect the housing mortgage market. This allowed forming a basis for creating a strategy for the development of mortgage in Russia in the long term. Given the lack of a close relationship between mortgage lending and the situation in the housing market (in Moscow and St. Petersburg the demand for mortgage is higher than in other regions), the author has formed a more complex diversified model of regional distribution of mortgage lending. The author has also measured the dependence of the volume of housing mortgage loans on the main socioeconomic factors. The key finding of the article is that the most serious factors affecting mortgage lending in Russia are the factors that need to be influenced, specifically the volume of wages, housing prices at current prices, as well as the level of employment in the economy.
      PubDate: Apr 2021
       
  • Financial and Economic Risk: Empirical Evidence from the Spanish
           Construction Sector from 2003 to 2013

    • Abstract: Publication date:  Apr 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  2  Juan Antonio Torrents Arévalo   Risk is an important factor in the business environment. Decisions have a risk associated with them, and the importance of this risk depends on the environment. Investing in the construction sector is not the same as investing in the banking sector. The possibility of loss requires one to know the maximum risk of sector each type and the implications for this on making the investment. In accordance with this, the objective of this report is to apply the economic and financial risks, which are more important from the business point of view in the construction sector from 2003 to 2013, which allows us to assess whether the risks in the years of growth in this sector are excessive. The data used to carry out this study come from the Bank for the Accounts of Companies Harmonized (BACH) and the methodology will be the formulas for economic and financial risk. The main results of this report are that the risk could advance the future problems of the construction sector while the report also enables an improvement in the risk management in different sectors. Furthermore, this concept ensures that the companies or the sectors could advance measures to optimize the management risk of these areas, especially the economic and financial areas. However, this methodology should be applied in other sectors during the same crisis period in Spain, since this would increase the performance of future studies.
      PubDate: Apr 2021
       
  • Problems and Constraints Faced by Farmers in Financing and Marketing of
           Agricultural Produce in India

    • Abstract: Publication date:  Apr 2021
      Source:Universal Journal of Accounting and Finance  Volume  9  Number  2  Gangu Naidu Mandala   Pallawi Baldeo Sangode   S. Anjani Devi   and Venkata Ramakrishna Rao Gandreti   Purpose: In this study, the main aim is to know farmers' problems in the agricultural sector. Food products are the primary good to ensure the quality of life and health. In the world, many countries are depending on the agricultural sector and farmers are the backbone of the economy. Design/methodology/approach: In this study, the main aim is to find what are the challenges faced by the farmers in Andhra Pradesh State. The present paper attempts to spell out some of the constraints like production, and marketing, and finance-related problems faced by the farmers. Primary data were collected from the farmers to investigate the aim and applied a convenient sample technique to collect opinions from the respondent. Findings: To find out production, marketing, and finance-related problems have been faced by the farmers. This study helps to encourage farmers to produce more goods and to increase productivity. Originality/value: It was concluded that a spellbinding report utilizing essential information would be fitting to explore the destinations. The essential information was gathered from the farmers by utilizing a meeting plan explicitly intended for the reason. Most extreme consideration was taken to give essential explanations in vernacular to empower the respondents to reply as precisely as conceivable with no uncertainty.
      PubDate: Apr 2021
       
 
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