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A Comparative Financial Performance Analysis of Some Selected Private Commercial Banks of Ethiopia: A CAMEL Approach
Issue:
Volume 5, Issue 4, December 2020
Pages:
174-183
Received:
22 October 2020
Accepted:
5 November 2020
Published:
19 November 2020
Abstract: This study was aimed at measuring the financial performance of some selected private banks in Ethiopia. The financial performance of selected banks has been measured by using the five too important components of financial measures; those are capital adequacy, asset quality, management capacity, earning capacity and liquidity of banks. To this end necessary audited financial statements and related disclosures of selected private banks, which were prepared in line with international financial reporting standards for three consecutive years from 2017-2019 have been used. The collected secondary data have been analyzed by using a ratio analysis model. In line with comparison of selected private banks each other, the study revealed the following results. When Capital adequacy is used as a performance measure, comparatively Addis international bank is treated as capitally adequate and safe for creditors and depositors in repaying the loan what it is received. Abay bank, Dashen bank and Abyssinia bank jointly treated as relatively safe and capitally adequate next to Addis international bank. In terms of asset quality, awash international bank relatively treated better in managing credit followed by bank of Abyssinia and Addis international bank. When management efficiency is used as a performance measure of banks, Addis international bank is comparatively efficient in utilizing its assets to generate income a lot as compared to the remaining banks under study. In its earning quality, awash international bank has selected as the leader of the remaining banks. The study also concludes the performance of banks in terms of liquidity as one component of CAMEL, based on the analysis Abay bank outperforms the remaining banks.
Abstract: This study was aimed at measuring the financial performance of some selected private banks in Ethiopia. The financial performance of selected banks has been measured by using the five too important components of financial measures; those are capital adequacy, asset quality, management capacity, earning capacity and liquidity of banks. To this end n...
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Assessing the Impact of Interest Rate on Foreign Exchange Rate in Ghana
Issue:
Volume 5, Issue 4, December 2020
Pages:
184-190
Received:
7 September 2020
Accepted:
23 October 2020
Published:
19 November 2020
Abstract: Foreign exchange rates determine the strength of a nation’s currency against other nation’s currency. Determination of foreign exchange rates in Ghana is therefore, of immense importance since the livelihood of many people in the country is tied to the performance of the local currency against the foreign currencies. Data from books and journals were used as the basis for the research; the research result was then compared to the work of earlier writers to ascertain the conformity or otherwise of the Ghanaian situation. The research involved comparing the percentage changes in interest rates of commercial banks in Ghana to the percentage changes in exchange rates for the period 2008 to 2018 to ascertain the relationship between the two variables. Quantitative research design was used for the work. The researcher determined the mean and standard deviation of the distribution and computed the coefficient of correlation for the variables and in addition the regression analysis. The coefficient of correlation was -0.5 and the gradient of the regression line was also -.05. The research showed that interest rates were strongly negatively related to the exchange rates in Ghana for the period 2008 to 2018. This explained why exchange rates in Ghana kept falling while interest rates rose continuously which is contrary to postulates that indicate, a rise in interest rates results in rise in exchange rates. The researcher noted that the great disparity between the lending rate and deposit rate in Ghana is a contributing factor to this anomaly.
Abstract: Foreign exchange rates determine the strength of a nation’s currency against other nation’s currency. Determination of foreign exchange rates in Ghana is therefore, of immense importance since the livelihood of many people in the country is tied to the performance of the local currency against the foreign currencies. Data from books and journals we...
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Quality of Accounting Information Disclosure and Debt Financing Cost: Literature Review
Issue:
Volume 5, Issue 4, December 2020
Pages:
191-194
Received:
8 November 2020
Accepted:
17 November 2020
Published:
23 November 2020
Abstract: This paper mainly summarizes the domestic and foreign literature on accounting information and debt financing to analyze the impact of accounting information disclosure on debt financing cost. In the case of rapid changes in the external environment, it is a critical moment for companies to adapt to the environment and survive. In this context, if an enterprise wishes to survive, it must find a way of survival suitable for its development according to its actual situation. However, the survival of some companies is facing a serious crisis. To stimulate their potential and ensure their long-term progress, companies must seek external help. Therefore, debt financing activities have become the first choice for companies. When an enterprise conducts external financing, it must present the accounting information disclosed by the enterprise to the relevant external creditors. Creditors use this to understand the various conditions of the enterprise and use this as the basis for investment. Only high-quality accounting information disclosure can win the trust of relevant external investors, reduce debt financing costs, and obtain more financing. Based on this, this article combs、summarizes and analyzes the relevant literature on the relationship between the quality of accounting information disclosure and the cost of debt financing, and proposes some shortcomings and prospects.
Abstract: This paper mainly summarizes the domestic and foreign literature on accounting information and debt financing to analyze the impact of accounting information disclosure on debt financing cost. In the case of rapid changes in the external environment, it is a critical moment for companies to adapt to the environment and survive. In this context, if ...
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Human Resource Accounting and Quality of Financial Reporting of Quoted Oil and Gas Companies in Nigeria
Akinlade Olayinka Odunayo,
Adegbie Folajimi Festus
Issue:
Volume 5, Issue 4, December 2020
Pages:
195-206
Received:
26 September 2020
Accepted:
22 October 2020
Published:
8 December 2020
Abstract: Financial reporting is a veritable tool that provides information to all stakeholder’s for the purpose of decision making. The preparation and presentation of the report is done by the human asset. Building public confidence for capital market participants, transparency, and trust are very germane in any capital market. Poor earnings quality, opportunistic earnings and biased financial report portents great fears in the mind of investors and analysts alike in making rational investment decisions. The study investigated the effect of human resource accounting on quality of financial reporting (using earnings quality, accounting conservatism, earnings smoothness and persistence as proxies) of quoted oil and gas companies in Nigeria. The study adopted ex-post facto research design. The population of the study was 12 oil and gas companies in Nigeria. Purposive sampling technique was used and considered 12 oil and gas which had secondary data information that covered a period of 10 years from 2004 -2018. The null hypothesis (H0): Human Resource Accounting does not have significant effect on financial reporting quality in oil and gas companies in Nigeria The empirical findings of financial reporting quality revealed that the human asset provided the basis for these improvement in oil and gas companies with the results F(8.133)=65.13 (P – value=0.000); Adjusted R2=0.315 and F(5.102)=217.6 (P – Value=0.000); Adjusted R2=0.323. The study concluded that human resource accounting has significant effect on financial reporting quality of quoted oil and gas companies in Nigeria. The study recommended that the regulatory bodies should find ways of rewarding companies that comply with the regulatory guiding standards and comply with information disclosure for earnings quality assessment and sanction erring companies that conceal relevant and purposeful information from the stakeholders.
Abstract: Financial reporting is a veritable tool that provides information to all stakeholder’s for the purpose of decision making. The preparation and presentation of the report is done by the human asset. Building public confidence for capital market participants, transparency, and trust are very germane in any capital market. Poor earnings quality, oppor...
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Study on the Tax Enforcement of Deed Tax: From the Perspective of Digital Economy
Jiangyu Huang,
Xue Sheng,
Jing Li
Issue:
Volume 5, Issue 4, December 2020
Pages:
207-212
Received:
5 December 2020
Accepted:
16 December 2020
Published:
22 December 2020
Abstract: The digital economy puts forward new requirements for tax enforcement and risks of deed tax. Scholars rarely study deed tax enforcement from the perspective of taxpayer experience. This study combines the theory of tax compliance and uses questionnaire survey methods to explore the risks of deed tax enforcement under the background of big data and digital economy. Combining the characteristics of the digital economy, the study starts with the deed tax system, personnel, publicity methods, and tax awareness, with the goal of increasing taxpayers’ tax compliance, and proposes suggestions for improving deed tax collection and management. In accordance with the requirements of the digital economy, the government should improve the policy system for the enforcement of deed tax. Governments, enterprises, universities, and individuals should strengthen cooperation and form partnerships, and attach importance to the training of talents that combine tax expertise and big data technology capabilities. Governments, schools, and companies use digital information platforms, artificial intelligence, and blockchain technology to enhance the effectiveness of publicity and implementation of deed tax enforcement. The interconnection of government information is conducive to reducing the digital divide and improving the effectiveness of enforcement. Big data is the basis for tax enforcement. Data governance emphasizes the digital transformation of government departments. Colleges and universities attach great importance to improving the tax data literacy and application capabilities of undergraduates, graduate students, and doctoral students.
Abstract: The digital economy puts forward new requirements for tax enforcement and risks of deed tax. Scholars rarely study deed tax enforcement from the perspective of taxpayer experience. This study combines the theory of tax compliance and uses questionnaire survey methods to explore the risks of deed tax enforcement under the background of big data and ...
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