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Effect of Corporate Governance on Asset Quality: Performance Evaluation of the Nigerian Banking Sector in the Post Consolidation Era
Sani U. Gorowa,
Ali Jude Igyo
Issue:
Volume 2, Issue 1, February 2017
Pages:
1-9
Received:
31 July 2016
Accepted:
9 November 2016
Published:
27 December 2016
DOI:
10.11648/j.ijafrm.20170201.11
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Abstract: The study examined the effect of corporate governance on the performance of asset quality of Deposit Money Banks (DMBs) in the post 2004 banking sector reforms. The population of study consists of the twenty four (24) deposit money banks. Time series data for the post-reform period (2006-2014) were generated from the Central Bank of Nigeria (CBN) Statistical Bulletin and annual financial reports of the various banks in Nigeria and was analyzed with descriptive and inferential statistical tools. Multiple Regression analysis was used to test the hypothesis with the aid of Eview. Jacbera test was used to test for data stationarity, while Variance Inflation Factor (VIF) and Heterosckedasticity white Test were used for data diagnosis. The findings of the study revealed that the 2004 reforms caused an improvement on Bank Asset Quality (BAQ). However the improvement is not significant at 5% level. The study consequently concludes that despite the reforms, Deposit Money Banks were still faced with post reform challenges of non-performance. The research therefore recommended that more efforts should be made to ensure adequate compliance with corporate governance provisions in improving performance. Frantic efforts should be made to improve on the huge non-performing loans and management of assets quality, which to a large extent, contribute to bank failures.
Abstract: The study examined the effect of corporate governance on the performance of asset quality of Deposit Money Banks (DMBs) in the post 2004 banking sector reforms. The population of study consists of the twenty four (24) deposit money banks. Time series data for the post-reform period (2006-2014) were generated from the Central Bank of Nigeria (CBN) S...
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Financial Cataclysm of Terror
Issue:
Volume 2, Issue 1, February 2017
Pages:
10-13
Received:
27 July 2016
Accepted:
5 November 2016
Published:
5 January 2017
DOI:
10.11648/j.ijafrm.20170201.12
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Abstract: The article is talking about terror and specially its catastrophic effects on economy and financing process across the globe. Here in the article is given examples of different countries where one may see rise of terror every passing day. With statistical data and proven disadvantages, the article is by and large touching upon post terror effects on economy and how its effects extend throughout time.
Abstract: The article is talking about terror and specially its catastrophic effects on economy and financing process across the globe. Here in the article is given examples of different countries where one may see rise of terror every passing day. With statistical data and proven disadvantages, the article is by and large touching upon post terror effects o...
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Application Research of Management Accounting in Science Institute
Issue:
Volume 2, Issue 1, February 2017
Pages:
14-20
Received:
13 November 2016
Accepted:
8 December 2016
Published:
14 January 2017
DOI:
10.11648/j.ijafrm.20170201.13
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Abstract: In order to improve the management level of scientific research and development (R & D) funds in scientific research institutions, this paper explores the ways and methods to optimize the management of R & D funds of scientific institutions by using management accounting. According to the scope and characteristics of the factors influencing the management of R & D funds, the evaluation index of R & D funds management is defined as four secondary indexes and 14 third-level indicators. The four secondary indexes are R & D funds management organization, management system, management information and management process. Then fuzzy comprehensive evaluation method is adopted, and an evaluation example named M is chosen to carry on the empirical analysis, the appraisal grade is calculated finally. The evaluation results are in good agreement with the actual situation of the R & D funds management of the evaluation example M. At last, this paper puts forward the measures to improve the R & D funds management of scientific research institutions, and provides the basis and reference for strengthening the overall planning and optimizing allocation of R & D funds.
Abstract: In order to improve the management level of scientific research and development (R & D) funds in scientific research institutions, this paper explores the ways and methods to optimize the management of R & D funds of scientific institutions by using management accounting. According to the scope and characteristics of the factors influencing the man...
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Portfolio Optimization Using Matrix Approach: A Case of Some Stocks on the Ghana Stock Exchange
Abonongo John,
Anuwoje Ida Logubayom,
Ackora-Prah J.
Issue:
Volume 2, Issue 1, February 2017
Pages:
21-30
Received:
11 September 2016
Accepted:
25 November 2016
Published:
13 February 2017
DOI:
10.11648/j.ijafrm.20170201.14
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Abstract: Analyzing risk has been a principal concern of actuarial and insurance professionals which plays a fundamental role in the theory of portfolio selection where the prime objective is to find a portfolio that maximizes expected return while reducing risk. Portfolio optimization has been applied to asset management and in building strategic asset allocation. The purpose of this paper is to construct optimal and efficient portfolios using the matrix approach. This paper used secondary data on 13 stocks (ETI, GCB, GOIL, TOTAL, FML, GGBL, CLYD, EGL, PZC, UNIL, TLW, AGA and BOPP) from the Ghana Stock Exchange (GSE) database comprising the monthly closing prices from the period 02/01/2004 to 16/01/2015. The results revealed that, all the portfolios were optimal and that portfolios 1, 2, 4, 5, 6, 9, 10, 11 and 12 with expected return 2.523, 2.593, 2.827, 3.642, 2.405, 2.812, 5.229, 3.559 and 5.928 respectively were efficient portfolios whereas portfolios 3, 7 and 8 with expected return 0.377, 0.699 and 0.152 respectively were inefficient portfolios with reference to the expected return of the global minimum variance portfolio (2.360). GGBL was seen as the stock with the highest allocation of wealth in most of the portfolios. Six out of the 12 portfolios had CLYD exhibiting the least asset allocation.
Abstract: Analyzing risk has been a principal concern of actuarial and insurance professionals which plays a fundamental role in the theory of portfolio selection where the prime objective is to find a portfolio that maximizes expected return while reducing risk. Portfolio optimization has been applied to asset management and in building strategic asset allo...
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Content Analysis of Mission Statements - A Case of Cement Sector Companies of Pakistan
Issue:
Volume 2, Issue 1, February 2017
Pages:
31-38
Received:
11 January 2017
Accepted:
24 January 2017
Published:
27 February 2017
DOI:
10.11648/j.ijafrm.20170201.15
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Abstract: The objective of this study was to investigate the quality of mission statements of the cement sector companies operating in Pakistan. In order to achieve this purpose, mission statements have been analyzed using a Nine Point Scale model given by the Fred R. David. Moreover, number of words and sentences used in the statements were also counted. As per published information of Pakistan Stock Exchange (PSX), a total of 21 cement companies are listed within this sector. In this study 15 companies were selected through convenient sampling to make analysis. Data needed to make comparative analysis of mission statement were collected from their annual reports and websites of these companies. The findings show that most of the cement sector companies of Pakistan are making the average level of score and keen to incorporate their concerns for survival, growth & profitability, product & services and self concept in their mission statements. But they are giving less focus to technology and concern for a public image. The length of a mission statements are (Min. = 15 and Max. = 137) in words and (Min. = 1 and Max = 7) in sentences.
Abstract: The objective of this study was to investigate the quality of mission statements of the cement sector companies operating in Pakistan. In order to achieve this purpose, mission statements have been analyzed using a Nine Point Scale model given by the Fred R. David. Moreover, number of words and sentences used in the statements were also counted. As...
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Mitigating Agency Conflict: A Systematic Review of Literature on Governance Mechanisms
Issue:
Volume 2, Issue 1, February 2017
Pages:
39-44
Received:
29 November 2016
Accepted:
13 February 2017
Published:
2 March 2017
DOI:
10.11648/j.ijafrm.20170201.16
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Abstract: The concern of this paper is to systematically review prior literature and to contribute significantly to the understanding of governance mechanisms in resolving agency conflict between shareholders and managers. Using systematic literature approach, this study presents 123 articles published within 1978-2014 in scholarly articles. The review modified the procedure adopted by [1] and [19]. The results observe that significant body of knowledge on mechanisms to resolve agency conflict exists from different theoretical perspectives. However, combinations of mechanisms and circumstances under which they become effective are yet to be thoroughly explored. This paper attempts to fully understand systematically the effectiveness of governance mechanisms from different theoretical perspectives geared towards resolving agency conflict.
Abstract: The concern of this paper is to systematically review prior literature and to contribute significantly to the understanding of governance mechanisms in resolving agency conflict between shareholders and managers. Using systematic literature approach, this study presents 123 articles published within 1978-2014 in scholarly articles. The review modif...
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