Applied Finance and Accounting

Published by Redfame Publishing
Online ISSN: 2374-2429
Publications
Population of the Study
Descriptive Statistics of the Variable
Correlation result
The study aimed at examining the financial statements of Companies in the Nigerian petroleum industry in other to determine their level of transparency which is a function of their level of compliance with the provisions of Statements of Accounting Standards (SAS) 14 in the upstream sector. Data were collected from annual reports and accounts of the 14 listed oil companies for the period of five years 2013 to 2017. They were analyzed using compliance index, descriptive statistics, correlation and regression. The result reveals that oil and gas companies in Nigeria strongly complied with the requirements of SAS14 with 92.44%. It also shows that the age, size of assets, ROA and Leverage of the companies have insignificantly effect on SAS 14. The study recommends that International Accounting Standard Board, Financial Reporting Council and other relevant regulatory bodies to, as a matter of urgency, commission additional and effective follow up campaigns and supervision aimed at enlightening not only corporate bodies but also individual stakeholders on the benefits derivable from compliance with requirement of SASs.
 
Represents the result of Model 2 in section V:
Represents the result of Model 4 in section V:
Represents the result of Model 5 in section V
This paper addresses the impact of different factors that are theoretically believed to have significant impact on the status of the balance of payment. The paper applies those theoretical concepts on the status of the balance of payment of Saudi Arabia from 1981 to 2007. The paper gives interesting implications in that regard for decision makers so they can address different implications on the status of the balance of payment of the country by incorporating endogenously different macro-variables addressed by the current paper while they take decisions regarding the improvement of the status of the balance of payment economically.
 
Foreign Direct Investment and Determinants of Stock Market Performance in Nigeria (1985-2014)
The study examined the impact of Foreign Direct Investment (FDI) on the stock market performances in Nigeria, from 1985 – 2014. The secondary data used were collected from IMF, International Financial Statistics (2015), CBN Statistical Books (2015). Multiple regression of least square estimation was the tool used to analyze the data in this study. In the model, the FDI was regressed on RGDP, Consumer Price Index, Real effective exchange rate, Money supply (M2), Share price index, Treasury bill, Nigerian stock exchange transactions. The study revealed that FDI has an insignificant and negative impact on the economy and the macroeconomic variables that determine the performances of the Nigerian stock market. The paper therefore recommends policies that would encourage foreign firms operating in the oil and gas including the telecommunication and agricultural sectors to be listed since it would go a long way in attracting more FDI, leading to improvement in the stock market performances.
 
This paper examines issues related to executive compensation in the nonprofit sector for the period since the last recession, 2010-2017. We explain why nonprofit executive compensation matters in terms of charitable giving in the United States. We discuss what is meant by the terms “nonprofit” and “tax-exempt”; the requirements that an entity must meet in order to achieve each respective designation; and why the two terms are not interchangeable. We examine different types of tax-exempt entities and how tax-exempt status aids organizations in raising funds from the donating public. We focus on the requirements for obtaining, and maintaining that status as a regulatory tool. We review the significant expenses for a tax-exempt non-profit and note how commercial entities face similar expenses. We illustrate how the particular expense of executive compensation is inherently different for a tax-exempt non-profit than for profit-making enterprises. We explain the factors that determine executive salaries in the former and the components of this compensation. We review the federal and state regulations governing tax-exempt nonprofit executive salaries and guidelines offered by non-governmental entities. We note that research (Balsam and Harris 2014) indicates a negative correlation between the level of disclosed executive compensation and the percentage of donations that a tax-exempt nonprofit receives. We discuss and analyze the compensation for chief executives at certain such nonprofits which have been highlighted by the mainstream media, the source of nonprofit information most easily accessible to the vast majority of donors to such entities. We conclude by highlighting why donors should have a voice in the determination of a tax exempt’s nonprofit executive compensation.
 
Variable Definitions Variables Definitions í µí° ¶í µí°´í µí± A firm's 5-day market-adjusted stock return around the date around the yearly earnings announcement. í µí±ˆí µí°¸the µí°¸the difference between actual yearly EPS and the previous yearly EPS í µí±ƒí µí±‚í µí±†í µí±‡ an indicator variable which equals zero in the year of 2015 and 2016, and one in the year of 2017 í µí±‡í µí± í µí°¸í µí°´í µí±‡ an indicator variable which equals one if firm i has government subsidy reflected in -other income‖ in earnings announcement, and zero if firm i only have government subsidy reflected in -Non-operating income‖
We examine whether the quality of information in earnings reports, as indicated by the earnings response coefficient (ERC) decreases when the measurement and disclosure of government subsidy has been changed by revising accounting standards. According to the old accounting standards in China, the gains from government subsidy should be reflected in “non-operating” income. However, the newly revised accounting standards regulates that a part of government subsidy can be reflected in the report item of “other income” in under the operating income item. We use 2017 revisions of accounting standards in China as an instrument to capture a change in the position of financial statements where the government subsidy is revealed. Employing a difference-in-differences design and exploiting the adoption of the new accounting standards, we find a statistically and economically significant decrease in ERC for treated firms relative to controlled firms. Our findings represent the first empirical evidence that the change of government disclosures can negatively affect the information content of earnings report.
 
50ETF appears on the Chinese stock market on 9th February,2015, the contracts are European Options and the options are priced by B-S model.50ETF is the only one option that can be traded, there are no American Options in Chinese stock market. This paper studies 50ETF pricing analysis in accordance with the way of American Option. We use Least Squares Monte Carlo Simulation to price 50ETF and analyze them, give the numerical results by matlab program. This issue is worth studying, because the paper studies 50ETF, and price it in the way of American Options, we try to employ Monte Carlo Simulation to solve this problem in china and the results of the paper can enrich the option products in the stock market of China.
 
Composition of audit irregularities from 2007 to 2011 Source: Auditor General " s annual audit reports of the Malawi Government 2007-2011  
Trend for Unrecorded/unaccounted for transactions 2007-2011  
Composition of the Cashgate Scandal
Misallocated Funds  
Growth of Irregularities Overtime  
The accountancy profession subscribes to the values of accountability, integrity, honesty, accuracy among others and that is the reason accountants are required in any field of work to provide an independent report of how the resources are deployed to bring the outcome and assess if indeed the outcome from the use of such resources is as it had been expected by all the stakeholders. This requirement is common to all sectors of the economy, whether in the public or private sector. The paper discusses the changing role of the accountant in the public sector in response to the growing concerns of public resource abuse. Africa, Malawi in particular, has been a victim of gross resource abuse by public officers through among others fraud, corruption, theft and gross mismanagement. Malawi has recently been rated highly in terms of corrupt practices with the public sector taking a leading position leading to gross mismanagement of public resources since the dawn of democracy in 1994. The study takes a look at the changing roles of an accountant in the public sector where the control environment in the financial management system, and the political will of those in charge of the public sector, are not the same as those in the private sector. The accounting weaknesses or challenges as revealed by the reviewed audit reports are scrutinised and the role of the accountant with respect to each challenge is reviewed and recommendations suggested which if implemented, may block the future recurrence of such weaknesses in the financial management systems in the public sector.
 
The financial information through internet is called IFR (Internet Financial Reporting) which is a combination between the internet multimedia capability and capacity to communicate the financial information interactively. This study is aimed to compare the quality of financial reporting disclosures based on the accessibility of IFR on government website (e-government) by using Accessibility Index Value between two groups of samples. The study looks at Indonesia local government’s use of the internet both in provincial and municipal government. The provincial government must be more highlighted by the public so it is hypothesized it will disclose information in its e-government with better format and quality than the municipal government measured by the index which shows the ability of some citizens to access the data provided in e-government. Based on the testing results with Mann Whitney Test, the results are not significant. The majority has not emphasized the importance of increasing accountability and widening the scope of measurement and reporting systems.
 
Figure1. Basel III new ratios
Results of the Provisions for financing Asset ratio with Capital to Assets ratio for Islamic banks of Pakistan
Banks and bank regulatory authorities are vital players for the stability of economy and financial system in potential way. Basel III and its related to capital’s requirement obligations have been effective useful tool for the banking system. Since, this is tough job for the bankers to maintain the liquidity for hedging the future risk but it also been expensive for bankers to keep the extra capital and become more liquid since this discourage the provision of loans but promote the credit ratings. However, it has become necessary to investigate the impact of Basel III on Islamic banking system and analyze the trade off. The study analyzes empirically on the (Financial) anomalies in term of three factors (i) Financial size (ii) Spread and (iii) Provisions for non performing financing. The study also discusses the impact of Basel III on Islamic banking performance if applicable, in context of trade off and impact on country’s economy. We can ask that Basel III framework is difficult to be consistent for conventional banks; we can also realize that either new regulation will be flexible for Islamic banks under Basel III while Islamic and Conventional banks are totally different. Further, we shall estimate if the Basel III is more or less important in Islamic banks of Pakistan than conventional banks. At the end, we shall see from theoretical framework either the impact of Basel III is important for Islamic banks if and only if Islamic banks adopt to follow Basel III regulations and analyzing the potential influence on conventional banks.
 
International accounting standard 12-Income tax – regulates accounting methodic of profit tax and demands that the enterprises must account the deferred tax asset and the deferred tax liability. For this reason, the net profit indicator published in the financial statement of the enterprises is unrealistic which in one hand contradicts to requirements of basic qualitative characteristics a financial statement such as Relevance and Faithful Representation and in another hand, it allows of fraud in the financial statement.The aim of this study is to substantiation necessity of simplification of the IAS 12 – Income Tax. In the article is affirmed that accounting of the deferred tax asset and deferred tax liability derives many problems for the enterprises and the investors. They also have not an analytical role in the financial analysis of the enterprises. That is why, the leadership of the enterprises avoids to using mentioned standard 12 – Income Tax - in Georgia. This study gives the recommendation that in the IAS 12 - Income tax – bring in the changes, which will be simplified by the method of profit tax accounting in the enterprises and it will eliminate the existing problems of accounting the profit tax.
 
Manufacturing Overhead Costs -Traditional Cost System
Manufacturing and Non-Manufacturing Overhead Costs -Activity-based Cost System
This case is about a fictitious office workstation manufacturing company “Skylar Inc.” and their implementation of the traditional cost system and the activity-based cost system (ABC, hereafter) when allocating product costs. The case focuses on the application of activity-based costing in assigning costs to activity cost pools, calculating activity rates, and assigning activity costs to cost objects. It also highlights the difference between the traditional cost system and ABC in regards to allocating manufacturing and non-manufacturing overhead costs and assigning direct costs to products. This case is designed to provide students with both number crunching exercises and theoretical discussions of the topics.
 
1 Data trend of water resources in Nigeria from 1981-2017 Source of data: CBN Statistical Bulletin, 2017 1 represents the trend of water resources contribution to real gross domestic accounted for from 1981-2017. The trend shows that in 1985 the activity of water supply, sewage and waste management was at the lowest level while the trend kept rising until it got to its peak at 2017. This implies that the water resource accounting and management for economic sustainability are gaining ground in Nigeria and the awareness is increasing in a manner that data capturing of the water resources is becoming more efficient and effective.
1 Summary table of ADF unit root test and order of integration
2 Johansen cointegration test
3 Regression result Dependent Variable: LOGRGDP Method: Least Squares
Water resources accounting is presently a universal challenge due to the high rate of water contamination and other discharges that put nations at risk of water scarcity if precautionary measures are not taken on time. All needed government interventions to reduce the risk of water scarcity is dependent on the extent of water resource accountability available in the country. This paper examines the contribution of water resources accounting to Nigeria’s economic advancement. The data employed spanned from 1981-2017 and were collected from the CBN Statistical Bulletin, 2017 edition. Ordinary Least Squares technique was used to analyze the date and the result indicates that water resources accounted for, have strong and significant positive impact on the RGDP. The findings also revealed that water resources are estimated to contribute a total of 72.6% variation in the RGDP between the periods from 1981 to 2017 in Nigeria. Therefore, the study recommends sufficient training and empowerment for all agencies responsible for data gathering of water resources. This will enhance quality water resources’ accountability. Policy makers should encourage all forms of water resources accountability and management to sustain the economy by liaising with international bodies and getting updates on global best practices in this area.
 
Financial institutions need to provide technology-based services that facilitate access to information for communities in remote areas. This research aims first, reviewing the use of mobile banking in improving the quality of reporting and expanding the reach of financial services; second, the practice of utilizing mobile banking for Islamic microfinance institutions in Indonesia; third, evaluating the implementation of the Islamic microfinance information system in Indonesia. The research method used in this study is descriptive quantitative, with a sample of 100 accountants. Descriptive analysis was aided by SPSS 21.0 software for Windows. The results of this study indicate that; first, Mobile banking is the right mechanism to improve the quality of reporting and make the services of Islamic microfinance institutions accessible to the poor in remote areas of Indonesia. Second, the practice of utilizing accounting information systems in Islamic microfinance institutions is already good. Third, Overall, the application of accounting information systems at Islamic microfinance institutions in Indonesia can have a positive effect on improving the services of Islamic microfinance institutions both individually accountants and organizations.
 
This study was aimed to empirically evaluate the impact of adoption of IFRS on accounting quality in Nigeria using the money deposit banks. The study utilized the annual reports and accounts of 15 banks listed in the Nigerian Stock Exchange for the period of 2011 to 2014 (that is two years before and two years after adoption); using liner regression analysis was employed in analyzing the data generated for the study. Based on the data analyses, the study found that large loss recognitions have increased in the post adoption period. Based on the research findings, the researcher recommends that developing nations should adopt IFRS as their financial reporting standard as it is capable of increasing their accounting quality. The researcher also recommends that research should be conducted to analyze why IFRS improves the accounting quality based on standard by standard, not the whole package.
 
Final table for CFROI ® calculation (Investment Model)
The work considers essential matters of cash flow return on investments. The basic of CFROI® methodology is the idea of a company as the integrity of projects. Those projects have different moments and terms of development and effect as well as the various rates of payback. Subject to the goals of the analysis, they are represented as a single consolidated project, which generates cash flows within the term of useful life of those assets to which the investments are aimed. The CFROI ® is based on the main idea – to determine the inflation-adjusted cash flows in favor of every capital owner and to compare them with the inflation-adjusted historical investments which have been put in the business in consideration of the depreciated cost of non-depreciable assets according to the internal rate. The work focuses on the detailed analysis of the CFROI ® components. All components are considered separately and in connection with each other that makes the single chain determining the cash rate of return on investments. Within the analysis of cash rate of return on investments it is important to determine the duration of life cycle of strategic investments that is directly related to the establishment of the average age of the fixed depreciated tangible assets. When determining the average asset age noteworthy is by what formula it will be calculated. Based on the practical examples the work presents the cases of “artificial rejuvenation” of depreciated assets and “artificial aging” of assets. The work also determines the values of total investments and total cash flows, their effect on calculation of the cash rate of return on investments. Parallel with investments and cash flows there is also considered the role of IRR and MIRR for calculation of CFROI. Together with the investment model of calculation there has been applied calculation with CFROI coefficient which is based on the use of data of the economical depreciation of total investments. Therefore, the operating cash flows are recurrent and reiterated and they create the necessary idea of the profit to be received from a business in future. CFROI ® value is measured on the annual basis. It may be subject to modification. Noteworthy is to determine the internal rate of return (IRR) of a business in the current conditions. CFROI ® is of analytical predictable nature. However, it shall be applied with a particular caution. In the final analysis, the purport of the company existence is to return all investments deposited in it and to receive the adequate revenue which will compensate alternative expenses and bring profit to the company.
 
Applied Finance and Accounting (AFA) would like to thank the following reviewers for reviewing manuscripts from August 30, 2014, to January 30, 2015. Their comments and suggestions were of great help to the authors in improving the quality of their papers. Many authors, regardless of whether AFA publishes their work, appreciate the helpful feedback provided by the reviewers. Redfame Publishing appreciates the following reviewers’ rigorous and conscientious efforts for this journal. Each of the reviewers listed below returned at least one review during this period. Abdelaziz HAKIMI Adam Zaremba Anastasia, Kopaneli Aneta Karina Bernat Feng Jui Hsu Florin Peci Gheorghe Morosan Haitham Nobanee Hong Bo Kesseven Padachi Lee Kian Tek Luca Sensini Luo Yongli Marco Muscettola Mohamed Jalloh Nikolay Patonov Noriaki Okamoto Odumeso-Jimoh M I John Peibiao Zhao Rui FERNANDES Shahram Fattahi Vineet Chouhan Wei-Bin ZHANG Yao Zheng Yu Peng Lin Angelia Eve Editorial Assistant On behalf of, The Editorial Board of Applied Finance and Accounting Redfame Publishing 9450 SW Gemini Dr. #99416 Beaverton, OR 97008, USA E-mail: afa@redfame.com URL: http://afa.redfame.com
 
Applied Finance and Accounting [AFA] would like to acknowledge the following reviewers for their assistance with peer review of manuscripts for this issue. Many authors, regardless of whether AFA publishes their work, appreciate the helpful feedback provided by the reviewers. Their comments and suggestions were of great help to the authors in improving the quality of their papers. Each of the reviewers listed below returned at least one review for this issue. Reviewers for Volume 2, Number 2 Anastasia, Kopaneli Arash Riasi Ejaz Gul Florin Peci Gheorghe Morosan Ioan Bogdan Robu James Estes Juan Fernando Henao Duque Luo Yongli Marco Muscettola Mawih Kareem Al Ani, Meri Boshkoska Mohamed Jalloh Nicoleta Radneantu Noriaki Okamoto Odumeso-Jimoh M I John Peibiao Zhao Vineet Chouhan Angelia Evelyn Editorial Assistant On behalf of, The Editorial Board of Applied Finance and Accounting Redfame Publishing 9450 SW Gemini Dr. #99416 Beaverton, OR 97008, USA E-mail: afa@redfame.com URL: http://afa.redfame.com
 
Applied Finance and Accounting [AFA] would like to acknowledge the following reviewers for their assistance with peer review of manuscripts for this issue. Many authors, regardless of whether AFA publishes their work, appreciate the helpful feedback provided by the reviewers. Their comments and suggestions were of great help to the authors in improving the quality of their papers. Each of the reviewers listed below returned at least one review for this issue.Reviewers for Volume 4, Number 1 Anastasia Kopaneli, University of Patras, GreeceVineet Chouhan, Sir Padampat Singhania University, IndiaYu Peng Lin, University of Detroit Mercy, USAMarco Muscettola, Independent researcher, ItalyWilson E. Herbert, Federal University, Otuoke, Bayelsa State, NigeriaMohamed Jalloh, Economic Community of West African States (ECOWAS), NigeriaHaitham Nobanee, , UAENikolay Patonov, European Polytechnical University, BulgariaPeibiao Zhao, Nanjing University of Science and Technology, ChinaMojeed Idowu John Odumeso-Jimoh, Noble Integrated Resources & Management, NigeriaFeng Jui Hsu, National Taichung University of Science and Technology, TaiwanFlorin Peci, University of Peja, KosovoGheorghe Morosan, Stefan Cel Mare University Suceava Romania, RomaniaLuca Sensini, University of Salerno, ItalyMeri Boshkoska, Faculty of Economics - Prilep, Republic of MacedoniaNicoleta Radneantu, Romanian – American University, RomanianMazurina Mohd Ali, Universiti Teknologi Mara, MalaysiaAndrey Kudryavtsev, The Max Stern Yezreel Valley Academic College, IsraelIoan Bogdan Robu, Alexandru Ioan Cuza University of Iasi, RomaniaSawsan Saadi Halbouni, Canadian University Dubai, UAEIzidin El Kalak, Kent University, UKFabio Rizzato, University of Turin, ItalyAmira Houaneb, University Ibn Khaldoun, TunisiaLingesiya Kengatharan, University of Jaffna, Sri LankaMohammad Sami Ali Al-Dahrawi, Zarqa University, Jordan Angelia EvelynEditorial AssistantOn behalf of,The Editorial Board of Applied Finance and AccountingRedfame Publishing9450 SW Gemini Dr. #99416Beaverton, OR 97008, USAE-mail: afa@redfame.comURL: http://afa.redfame.com
 
Applied Finance and Accounting [AFA] would like to acknowledge the following reviewers for their assistance with peer review of manuscripts for this issue. Many authors, regardless of whether AFA publishes their work, appreciate the helpful feedback provided by the reviewers. Their comments and suggestions were of great help to the authors in improving the quality of their papers. Each of the reviewers listed below returned at least one review for this issue.Reviewers for Volume 6, Number 2Anastasia Kopaneli, University of Patras, GreeceAndrey Kudryavtsev, The Max Stern Yezreel Valley Academic College, IsraelAnna Viktorovna Kravchuk, Academy of the State Penitentiary Service, UkraineAnthony Okafor, University of Louisville, USADapeng Zhu, Shanghai Lixin University of Accounting and Finance, ChinaFabio Rizzato, University of Turin, ItalyGheorghe Morosan, Stefan Cel Mare University Suceava Romania, RomaniaJayendra S. Gokhale, Embry-Riddle Aeronautical University, USALuca Sensini, University of Salerno, ItalyLuo Yongli, Houston Baptist University, United StatesMarco Muscettola, Independent researcher, ItalyMohammad Sami Ali Al-Dahrawi, Zarqa University, JordanNicoleta Radneantu, Romanian – American University, RomanianRui Fernandes, Porto Accounting and Business School, PortugalShahram Fattahi, Razi University, Iran Angelia EvelynEditorial AssistantOn behalf of,The Editorial Board of Applied Finance and AccountingRedfame Publishing9450 SW Gemini Dr. #99416Beaverton, OR 97008, USAURL: http://afa.redfame.com
 
Applied Finance and Accounting [AFA] would like to acknowledge the following reviewers for their assistance with peer review of manuscripts for this issue. Many authors, regardless of whether AFA publishes their work, appreciate the helpful feedback provided by the reviewers. Their comments and suggestions were of great help to the authors in improving the quality of their papers. Each of the reviewers listed below returned at least one review for this issue.Reviewers for Volume 4, Number 2Amira Houaneb, University Ibn Khaldoun, TunisiaAnastasia Kopaneli, University of Patras, GreeceAndrey Kudryavtsev, The Max Stern Yezreel Valley Academic College, IsraelAugustine Akhidime, Benson Idahosa University, NigeriaDesti Kannaiah, James Cook University, SingaporeFabio Rizzato, University of Turin, ItalyGheorghe Morosan, Stefan Cel Mare University Suceava Romania, RomaniaIoan Bogdan Robu, Alexandru Ioan Cuza University of Iasi, RomaniaJayendra S. Gokhale, Embry-Riddle Aeronautical University, USALingesiya Kengatharan, University of Jaffna, Sri LankaMarco Muscettola, Independent researcher, ItalyMohammad Sami Ali Al-Dahrawi, Zarqa University, JordanMojeed Idowu John Odumeso-Jimoh, Noble Integrated Resources & Management, NigeriaNikolay Patonov, European Polytechnical University, BulgariaPeibiao Zhao, Nanjing University of Science and Technology, ChinaRui Fernandes, Porto Accounting and Business School, PortugalSawsan Saadi Halbouni, Canadian University Dubai, UAEVolodymyr Vysochansky, Uzhhorod National University, UkraineAngelia EvelynEditorial AssistantOn behalf of,The Editorial Board of Applied Finance and AccountingRedfame Publishing9450 SW Gemini Dr. #99416Beaverton, OR 97008, USAE-mail: afa@redfame.comURL: http://afa.redfame.com
 
Applied Finance and Accounting [AFA] would like to acknowledge the following reviewers for their assistance with peer review of manuscripts for this issue. Many authors, regardless of whether AFA publishes their work, appreciate the helpful feedback provided by the reviewers. Their comments and suggestions were of great help to the authors in improving the quality of their papers. Each of the reviewers listed below returned at least one review for this issue.Reviewers for Volume 3, Number 1 Abdelaziz Hakimi, University of Jendouba, TunisiaAdam Zaremba, Poznań University of Economics, PolandAnastasia Kopaneli, University of Patras, GreeceAndrey Kudryavtsev, The Max Stern Yezreel Valley Academic College, IsraelArash Riasi, University of Delaware, USAAugustine Akhidime, Benson Idahosa University, NigeriaDesti Kannaiah, James Cook University, SingaporeFeng Jui Hsu, National Taichung Univ. of Sci. & Tech., TaiwanGheorghe Morosan, Stefan Cel Mare Univ. Suceava Romania, RomaniaIoan Bogdan Robu, Alexandru Ioan Cuza University of Iasi, RomaniaJames Estes, California State University San Bernardino, USAKesseven Padachi, University of Technology, MauritiusLasse Oulasvirta, University of Tampere, FinlandLuca Sensini, University of Salerno, ItalyMarco Muscettola, Independent researcher, ItalyMazurina Mohd Ali, Universiti Teknologi Mara, MalaysiaMohamed Jalloh, Eco. Community of West African States, NigeriaMojeed Idowu John Odumeso-Jimoh, Noble Integrated Resources & Management, NigeriaNicoleta Radneantu, Romanian – American University, RomanianNikolay Patonov, European Polytechnical University, BulgariaNoriaki Okamoto, Rikkyo University, JapanPeibiao Zhao, Nanjing University of Science & Technology, ChinaSawsan Saadi Halbouni, Canadian University Dubai, UAEVineet Chouhan, Sir Padampat Singhania University, IndiaWilson E. Herbert, Bingham University, NigeriaYu Peng Lin, University of Detroit Mercy, USA Angelia EvelynEditorial AssistantOn behalf of,The Editorial Board of Applied Finance and AccountingRedfame Publishing9450 SW Gemini Dr. #99416Beaverton, OR 97008, USAE-mail: afa@redfame.comURL: http://afa.redfame.com
 
Applied Finance and Accounting [AFA] would like to acknowledge the following reviewers for their assistance with peer review of manuscripts for this issue. Many authors, regardless of whether AEF publishes their work, appreciate the helpful feedback provided by the reviewers. Their comments and suggestions were of great help to the authors in improving the quality of their papers. Each of the reviewers listed below returned at least one review for this issue. Reviewers for Volume 2, Number 1 Aneta Karina Bernat Augustine Akhidime Feng Jui Hsu Florin Peci Gheorghe Morosan Hajar Jahangard Hong Bo Iulia Lupu Kesseven Padachi Mazurina Mohd Ali Nicoleta Radneantu Noriaki Okamoto Odumeso-Jimoh M I John Professor Wilson E. Herbert Rui FERNANDES Vineet Chouhan Ms. Angelia E. Editorial Assistant On behalf of, The Editorial Board of Applied Finance and Accounting Redfame Publishing 9450 SW Gemini Dr. #99416 Beaverton, OR 97008, USA E-mail: afa@redfame.com URL: http://afa.redfame.com
 
Applied Finance and Accounting [AFA] would like to thank the following reviewers for reviewing manuscripts from February 1, 2015 to July 31, 2015. Their comments and suggestions were of great help to the authors in improving the quality of their papers. Many authors, regardless of whether AFA publishes their work, appreciate the helpful feedback provided by the reviewers. Redfame Publishing appreciates the following reviewers’ rigorous and conscientious efforts for this journal. Each of the reviewers listed below returned at least one review during this period. Abdelaziz HAKIMI Adam Zaremba Ana Iglesias-Casal Anastasia,Kopaneli Aneta Karina Bernat Augustine Akhidime Desti Kannaiah Feng Jui Hsu Florin Peci Ghazi Alassaf Gheorghe Morosan Haitham Nobanee, Hajar Jahangard Hong Bo Kesseven Padachi Lee Kian Tek Luca Sensini Luo Yongli Marco Muscettola Mazurina Mohd Ali Meri Boshkoska Mohamed Jalloh Nicoleta Radneantu Nikolay Patonov Noriaki Okamoto Odumeso-Jimoh M I John Peibiao Zhao Wei-Bin ZHANG Wilson E. Herbert Rui FERNANDES Shahram Fattahi Vineet Chouhan Yao Zheng Yu Peng Lin
 
Reviewer AcknowledgementsApplied Finance and Accounting [AFA] would like to acknowledge the following reviewers for their assistance with peer review of manuscripts for this issue. Many authors, regardless of whether AFA publishes their work, appreciate the helpful feedback provided by the reviewers. Their comments and suggestions were of great help to the authors in improving the quality of their papers. Each of the reviewers listed below returned at least one review for this issue.Reviewers for Volume 5, Number 1 Anastasia Kopaneli, University of Patras, GreeceNoriaki Okamoto, Rikkyo University, JapanVineet Chouhan, Sir Padampat Singhania University, IndiaYu Peng Lin, University of Detroit Mercy, USAMarco Muscettola, Independent researcher, ItalyZi-Yi Guo, Wells Fargo Bank, N.A., USALektore Oltiana Muharremi, University of Vlora, AlbaniaJayendra S. Gokhale, Embry-Riddle Aeronautical University, USAMohamed Jalloh, Economic Community of West African States (ECOWAS), NigeriaRui Fernandes, Porto Accounting and Business School, PortugalNikolay Patonov, European Polytechnical University, BulgariaMojeed Idowu John Odumeso-Jimoh, Noble Integrated Resources & Management, NigeriaFlorin Peci, University of Peja, KosovoGheorghe Morosan, Stefan Cel Mare University Suceava Romania, RomaniaNicoleta Radneantu, Romanian – American University, RomanianAugustine Akhidime, Benson Idahosa University, NigeriaHajar Jahangard , Central Bank of Iran(CBI), IranHassan Rkein , Al Maaref University , LebanonAndrey Kudryavtsev, The Max Stern Yezreel Valley Academic College, IsraelIoan Bogdan Robu, Alexandru Ioan Cuza University of Iasi, RomaniaLingesiya Kengatharan, University of Jaffna, Sri LankaMohammad Sami Ali Al-Dahrawi, Zarqa University, Jordan Angelia EvelynEditorial AssistantOn behalf of,The Editorial Board of Applied Finance and AccountingRedfame Publishing9450 SW Gemini Dr. #99416Beaverton, OR 97008, USAE-mail: afa@redfame.comURL: http://afa.redfame.com
 
Applied Finance and Accounting [AFA] would like to acknowledge the following reviewers for their assistance with peer review of manuscripts for this issue. Many authors, regardless of whether AFA publishes their work, appreciate the helpful feedback provided by the reviewers. Their comments and suggestions were of great help to the authors in improving the quality of their papers. Each of the reviewers listed below returned at least one review for this issue.Reviewers for Volume 3, Number 2 Adina Criste, “Victor Slavescu” Centre for Financial and Monetary Research, Romanian Academy, RomaniaAmira Houaneb, University Ibn Khaldoun, TunisiaAnastasia Kopaneli, University of Patras, GreeceAndrey Kudryavtsev, The Max Stern Yezreel Valley Academic College, IsraelDesti Kannaiah, James Cook University, SingaporeFabio Rizzato, University of Turin, ItalyFeng Jui Hsu, National Taichung University of Science and Technology, TaiwanFlorin Peci, University of Peja, KosovoGheorghe Morosan, Stefan Cel Mare University Suceava Romania, RomaniaIoan Bogdan ROBU, Alexandru Ioan Cuza University of Iasi, RomaniaIulia Lupu, “Victor Slavescu” Centre for Financial and Monetary Research, Romanian Academy, RomaniaIzidin El Kalak, Kent University, UKJózsef Móczár, Corvinus University of Budapest, HungaryLuca Sensini, University of Salerno, ItalyLuo Yongli, United StatesMarco Muscettola, Independent researcher, ItalyMawih Kareem AL ANI, Dhofar University, OmanMazurina Mohd Ali, Universiti Teknologi Mara, MalaysiaMohamed Jalloh, Economic Community of West African States (ECOWAS), NigeriaMojeed Idowu John Odumeso-Jimoh, Noble Integrated Resources & Management, NigeriaNicoleta Radneantu, Romanian – American University, RomanianVineet Chouhan, Sir Padampat Singhania University, IndiaVolodymyr Vysochansky, Uzhhorod National University, UkraineWei-Bin Zhang, Ritsumeikan Asia Pacific University, JapanWilson E. Herbert, Bingham University, NigeriaYu Peng Lin, University of Detroit Mercy, USA Angelia EvelynEditorial AssistantOn behalf of,The Editorial Board of Applied Finance and AccountingRedfame Publishing9450 SW Gemini Dr. #99416Beaverton, OR 97008, USAE-mail: afa@redfame.comURL: http://afa.redfame.com
 
Applied Finance and Accounting [AFA] would like to acknowledge the following reviewers for their assistance with peer review of manuscripts for this issue. Many authors, regardless of whether AFA publishes their work, appreciate the helpful feedback provided by the reviewers. Their comments and suggestions were of great help to the authors in improving the quality of their papers. Each of the reviewers listed below returned at least one review for this issue.Reviewers for Volume 6, Number 1Adina Criste, “Victor Slavescu” Centre for Financial and Monetary Research, Romanian Academy, RomaniaAnastasia Kopaneli, University of Patras, GreeceAndrey Kudryavtsev, The Max Stern Yezreel Valley Academic College, IsraelAnthony Okafor, University of Louisville, USAAugustine Akhidime, Benson Idahosa University, NigeriaDesti Kannaiah, James Cook University, SingaporeFeng Jui Hsu, National Taichung University of Science and Technology, TaiwanGheorghe Morosan, Stefan Cel Mare University Suceava Romania, RomaniaHajar Jahangard , Central Bank of Iran(CBI), IranJayendra S. Gokhale, Embry-Riddle Aeronautical University, USALektore Oltiana Muharremi, University of Vlora, AlbaniaMarco Muscettola, Independent researcher, ItalyMawih Kareem Alani, Dhofar University, OmanMohammad Sami Ali Al-Dahrawi, Zarqa University, JordanNicoleta Radneantu, Romanian – American University, RomanianNikolay Patonov, European Polytechnical University, BulgariaNoriaki Okamoto, Rikkyo University, JapanRui Fernandes, Porto Accounting and Business School, PortugalShahram Fattahi, Razi University,, IranVolodymyr Vysochansky, Uzhhorod National University, UkraineZi-Yi Guo, Wells Fargo Bank, N.A., USA Angelia EvelynEditorial AssistantOn behalf of,The Editorial Board of Applied Finance and AccountingRedfame Publishing9450 SW Gemini Dr. #99416Beaverton, OR 97008, USAURL: http://afa.redfame.com
 
Applied Finance and Accounting [AFA] would like to acknowledge the following reviewers for their assistance with peer review of manuscripts for this issue. Many authors, regardless of whether AFA publishes their work, appreciate the helpful feedback provided by the reviewers. Their comments and suggestions were of great help to the authors in improving the quality of their papers. Each of the reviewers listed below returned at least one review for this issue.Reviewers for Volume 7, Number 1Aderaw Gashayie Ayaliew, Higher institution, EthiopiaAnastasia Kopaneli, University of Patras, GreeceAndrey Kudryavtsev, The Max Stern Yezreel Valley Academic College, IsraelFahri ÖZSUNGUR, Adana Science and Technology University, TurkeyGheorghe Morosan, Stefan Cel Mare University Suceava Romania, RomaniaHaitham Nobanee, Abu Dhabi University, UAEHajar Jahangard , Central Bank of Iran(CBI), IranJayendra S. Gokhale, Embry-Riddle Aeronautical University, USAMarco Muscettola, Independent researcher, ItalyMawih Kareem Alani, Dhofar University, OmanShahram Fattahi, Razi University,, IranYu Peng Lin, University of Detroit Mercy, USA Angelia EvelynEditorial AssistantOn behalf of,The Editorial Board of Applied Finance and AccountingRedfame Publishing9450 SW Gemini Dr. #99416Beaverton, OR 97008, USAURL: http://afa.redfame.com
 
Applied Finance and Accounting [AFA] would like to acknowledge the following reviewers for their assistance with peer review of manuscripts for this issue. Many authors, regardless of whether AFA publishes their work, appreciate the helpful feedback provided by the reviewers. Their comments and suggestions were of great help to the authors in improving the quality of their papers. Each of the reviewers listed below returned at least one review for this issue.Reviewers for Volume 5, Number 2Adina Criste, “Victor Slavescu” Centre for Financial and Monetary Research, Romanian Academy, RomaniaAndrey Kudryavtsev, The Max Stern Yezreel Valley Academic College, IsraelAnna Viktorovna Kravchuk, Academy of the State Penitentiary Service, UkraineFabio Rizzato, University of Turin, ItalyFeng Jui Hsu, National Taichung University of Science and Technology, TaiwanFlorin Peci, University of Peja, KosovoGheorghe Morosan, Stefan Cel Mare University Suceava Romania, RomaniaHajar Jahangard, Central Bank of Iran (CBI), IranIoan Bogdan Robu, Alexandru Ioan Cuza University of Iasi, RomaniaJayendra S. Gokhale, Embry-Riddle Aeronautical University, USALingesiya Kengatharan, University of Jaffna, Sri LankaLuca Sensini, University of Salerno, ItalyLuo Yongli, Houston Baptist University, United StatesMarco Muscettola, Independent researcher, ItalyMawih Kareem Alani, Dhofar University, OmanMohamed Jalloh, Economic Community of West African States (ECOWAS), NigeriaNicoleta Radneantu, Romanian – American University, RomanianNikolay Patonov, European Polytechnical University, BulgariaNoriaki Okamoto, Rikkyo University, JapanPeibiao Zhao, Nanjing University of Science and Technology, ChinaShahram Fattahi, Razi University,, IranVineet Chouhan, Sir Padampat Singhania University, IndiaVolodymyr Vysochansky, Uzhhorod National University, UkraineYu Peng Lin, University of Detroit Mercy, USAZi-Yi Guo, Wells Fargo Bank, N.A., USA
 
Concerns to setting an appropriate overall macroprudential policy framework have taken shape at local, regional, and global level since the onset of the global financial crisis. At regional level, a particular case is that of the European Union, given the national-supranational relationship specific to this economic region. The article aims to identify the macroprudential policy condition of the Euro Area candidate countries, by using an index built on some criteria that describe on the one hand, the capacity of macroprudential policy governance and the “activism” of macroprudential authority, and, on the other hand, the degree of compliance with the European Systemic Risk Board (ESRB) recommendations for national macroprudential authorities, given that the countries under review are member states of the European Union. Our findings show that the Euro Area candidate countries have quite different macroprudential policy features, both in terms of its governance and in terms of the “convergence” towards ESRB recommendations. Although the analysis should be extended by adding other relevant criteria, we can assert that it offers an overview of the potential role of the national macroprudential policy as a shock-absorber instrument in the perspective of a future accession to the Euro Area.
 
This study examines the effect of ownership characteristics and activities of the audit committee to audit fee. This study also uses control variables which include free cash flow, liquidity ratios, profitability ratios, solvency ratios, firm size, market -to-book value of equity, and audits quality of manufacture companies in Indonesia Stock Exchange in the year 2010 - 2012 are used as the population in this study. Data collection method used was purposive sampling. The statistical methods used to analyze the data are the multiple linear regression and results obtained indicate that managerial ownership, audit committee activity, firm size, liquidity ratios, profitability ratios affect audit fees. Meanwhile, institutional ownership, free cash flow, solvency ratio, and market -to-book value of equity do not affect the audit fees significantly.
 
Rate of change in per capita nominal insurer expenditures 
Equation 3 for stocks 
Long-term health insurance provides consumers with protection against persistent, negative health shocks. While the stochastic rise in medical spending growth may make some health risks harder to insure, financial assets could act as a hedge for medical spending growth risk. The purpose of this research was to determine whether such hedges exist. The results of this study were two-fold. First, the asset classes with the strongest statistical evidence as hedges were bonds, not stocks. Second, any strategy to hedge medical spending growth involved shorting assets i.e. betting against the bond or stock market. Health insurers writing long-term contracts should combine the use of hedges in the bond market with of portfolio diversification, and may benefit from health policies to moderate the uncertainty of medical spending growth.
 
The study analyzed the effects of strategic issue diagnosis process (SIDP) on the profitability of the Catholic University of Eastern Africa (CUEA). The study used a census survey design of the fifty members of the top management team (TMT) of the University. The survey data was analyzed using factor analysis and regression analysis. Factor analysis using principal components and varimax (orthogonal) rotation (to maximize variable loadings to each factor) was conducted to reduce the dimensionality and identify the factors (latent variables) and labels (constructs) of both the SIDP and profitability of CUEA. The regression analysis results showed that the joint effect of the six factors of the SIDP accounted for about 30 per cent of the total variance of the profitability of CUEA, implying that about 70 per cent of the variance could be attributed to excluded university specific, higher education industry and external factors. However, the joint effect of the factors of the SIDP on the institution’s profitability was statistically significant (p<0.05). Although all the factors of the SIDP had theoretically expected signs, not all had statistically significant individual (partial) effects on the profitability of CUEA. The results show that all but the null hypotheses on communication systems and personality profile of the members of the TMT were rejected at p<0.05. The study recommended conduct of additional studies with a larger sample of universities, inclusion of the excluded variables and use of structural modeling approaches.
 
The global competitive retail space is challenging and the retailers are experimenting with different strategies to gain competitive advantage in the market. Retailers are developing and designing new and improved store formats to mirror the customers’ expectations by using distinctive benefits. Thus attracting and retaining customers by creating store brand loyalty is every retailer’s dream and they are spending a huge amount of time and money in developing these uniquely attractive retail store formats. However, limited academic research is available to help retailers understand the most profitable and popular retail store format in South Africa.This empirical research paper is an attempt to investigate the influence of the design, type and size of the retail store on the customer buying behaviour in the consumer durables market by examining a random sample of respondents from Gauteng, South Africa. The research findings, indicates that there is a varying degree of effect of retail store formats on the customer buying behaviour. Most of the variables have a positive correlation with other variables of customer behaviour. However in some cases, variables have significant inverse relationship with each other.
 
According to international standards, performance audit is an independent and objective process for reviewing the economy, efficiency and effectiveness of a government’s program, organization, and/or activity in order to evaluate public management’s performance. The relevance of the matter prompted the present study, which aims to inquire if, when conducting performance audits, Supreme Audit Institutions analyze a procedure’s effectiveness, that is to say, the impact that determined government spending had on the program’s target population. In order to do so, a questionnaire was applied to auditors of Public Audit Institutions from several countries. As a preliminary result, our research concluded that the majority of auditors conduct economy, efficiency and efficacy analyses, but rarely assess the effectiveness of government spending.
 
In this paper, we investigate the effect of the 2008 global financial crisis on the agency cost (AC) of Islamic banks (IBs) and conventional banks (CBs). Many pioneering scholars (see, for example, Archer et al., 1998) have recognized fundamental differences in the capital structures and risks of IBs compared to CBs and called for more empirical testing of these issues. This effort is in response to those calls. Focusing on AC, we collected data for all Gulf Cooperation Council (GCC) banks satisfying the period from 2001-2014. The data was split into “before” and “after” the 2008 crisis. Although statistically insignificant, the analysis shows higher AC for IB compared to CBs before and after the crisis. However, we provide evidence of significant differences in AC causal models for the two types of banks. For conventional banks, only profitability factors explain variability in AC before and after the crisis. For Islamic banks, however, in addition to profitability, liquidity, deposits and financing facilities matter depending on the status of the economy. We provide further discussions, implications, and recommendations.
 
Services sector is an important component of the world trade and production networks. With the opening up of world economy, the role of services in the global value chain and value added has expanded. Services liberalisation is becoming a crucial component of free trade agreements. This is particularly true for trade agreements between South and Southeast Asia. Given this background, the objective of this paper is to understand the scope of establishing services value chain between two countries in South and Southeast Asia - namely India and Thailand - by integrating the two markets through trade agreement. The analysis is based on secondary data, in-depth interviews with policy makers and stakeholders in India and Thailand and an examination of the existing trade agreements of the two countries. The paper found that the present level of integration between the two markets is low due to the existence of market access barriers and regulatory bottlenecks. The paper makes recommendation on how the two countries can reduce barriers to trade in services, thereby fostering greater integration and leveraging the development of a global value chain.
 
Risk-free and risk-bearing term structures
Risk-free and risk-bearing term structure forward rates
Interval default probability
Net change in future value
The study examines rating migration, and default probability term structures obtained from rating migration matrices. It expands on the use of rating migration matrices with reduced form bond valuation models, by formally delineating the probability of default according to the likely rating paths of a bond, as implied by the rating migration matrix. Further, two alternatives are also considered. First, the cost of default is stipulated as the recovery of par according to the exit rating upon default. Also, in addition to stating the value of a bond in terms of expected cash flows, when considering the probability of default, the value of a bond is alternatively stated as the present value of all likely rating paths of the bond, discounted against the market risk-bearing bond forward rates of the different rating categories. The impact of term structure volatility and rating migration uncertainty on bond valuation is also considered.It is shown that the relationship between rating migration and default probability is complex, and the default probabilities of different rating categories are time-dependent and not isolated from each other. Also, rating migration resembles a delayed default process that influences default probabilities of subsequent intervals. The implications of a rating migration matrix may perhaps only be fully understood through simulation. This form one of the first points by which to evaluate rating migration matrices. The results of the valuation model show that historical rating migration matrices may not be optimal for pricing bonds ahistorically. A principal premise of the study is the dichotomy between historical values and ahistorical estimates, particularly with regards to rating migration. It is argued that historical estimates face two key shortcomings: they must be able to accurately forecast future rating migration and rating category intensities as a result, and they must specify a method to include rating migration uncertainty. An optimization model is delineated to extract ahistorical rating migration matrices from market prices. This too has implications that should be considered. In light of the above, reduced form models may have an advantage over structural models, in their ability to portray a far more sophisticated default process.
 
Despite increases in foreign aid inflow to Haiti, the country remains one of the poorest in the world. Findings regarding the benefits of foreign aid have been inconsistent. The purpose of this quantitative, archival study was to examine the extent to which total foreign aid explained gross domestic savings, gross domestic investment, and GDP growth rates in Haiti from 1975 to 2010 after 3-year, 4-year, and 5-year time lags. Foreign aid was disaggregated into grants and concessional loans. Data were drawn from the World Bank, the International Monetary Fund, and the Organization for Economic Cooperation and Development from 1970 to 2010. To analyze the extent to which total foreign aid predicted gross domestic savings and gross domestic investment, weighted least squares regression analyses were conducted, with per capita income, interest rates, and inflation rates as covariates. To examine the degree to which total foreign aid predicted GDP growth rates, multiple linear regression analyses were conducted, with consumption, government spending, gross domestic investment, and net trade balance as covariates. Foreign aid did not predict gross domestic savings for 3-year time lag, F (5, 30) = 1.32, p =.28; 4-year time lag, F (5, 30) = 1.24, p =.32, or 5-year time lag, F(5,30) = 1.30, p =.15. Foreign aid did not predict gross domestic investment for 3-year time lag, F(5, 30) = 1.49, p =.22; 4-year time lag, F(5,30)= 1.73, p =.16, or 5-year time lag, F(5, 30) = 2.29, p =.07. Foreign aid did not predict GDP growth rates for 3-year time lag, F(6, 29), p =.44; 4-year time lag, F(6, 29) = 1.11, p =.38, or 5-year time lag F(6, 29) = 0.83, p =.56. Findings showed that foreign aid inflows to Haiti have not predicted improved economic development. Future research should focus on determining the relationship between foreign aid and government investment in infrastructure, education, health, and social projects. The discussion should shift from whether foreign aid flows to developing countries are effective to how to make the allocation of foreign aid inflows more effective. The result would be improved use of the inflow of foreign aid and improved economic and social progress in developing nations.
 
Federal Airports Corporation (FAC): Operating Profit before Income Tax 
Federal Airports Corporation (FAC): Dividends Paid or Provided For and Income Tax Expense Source: Productivity Commission (1998) Figure 8.24 3.1 Financial Performance of Sydney Airport In June 2002 the Southern Cross Airports Consortium won the bidding process for the sale of Sydney‟s Kingsford Smith 3 airport (Sydney airport). The consortium paid approximately AUD$5.6b for a 50-year lease with an option to renew 
Passenger flows 1985-2010
This article addresses the performance of three Australian airports since they were privatised by divestment. They represent cases of divestment in a monopoly environment, with ownership arrangements for each airport varying markedly. The performances of the divested airports are considered using both financial and non-financial data. There are significant implications for future divestment policies, including the value of divestment as a policy response of governments in less competitive environments, the use of particular infrastructure investment models, and the nature of the linkage between ownership structure and financial performance.
 
2. Volatility Estimation
The article investigates the benefits of incorporating corporate real estate management (CREM) in the main business units of the company. Prior studies have illustrated that CREM unit in major companies is treated as a separately entity with less focus on its contribution to maximization of shareholders’ wealth. This article uses real option approach, specifically Samuelson-McKean (1965) model to extrapolate the value of CREM of listed South African insurance company. The results show that when CREM is insourced and treated as a significant part of the main insurance, shareholders’ wealth is maximised-value of the company increases, total costs are managed and financial parameters increase investment value-volatility can be as high as 100%. Although, the data is on financial services, the results can be replicated in other industries given that the analysed company has exposure to a number of industries.
 
Whether for the sake of trying to make a fortune or for the sake of knowledge, both practitioners and academicians have had interests in studying the behavior of financial time series data since the existence of financial markets. Academicians contributed equilibrium models that aim to describe the process of price formation in capital markets. Over time, two schools of thoughts were established: the efficient markets school and the behavioral finance school. Proponents of the former believed in the Efficient Markets Hypothesis (EMH), whereas the latter brought evidence from behavioral finance and neurosciences showing that investors, especially retail traders, exhibit irrational behavior, which can explain the observed violations of the EMH in financial markets. Practitioners were not interested in developing models of price formation; rather they were interested in developing techniques to analyze and predict the price movements of financial assets. Same as academicians, practitioners can also be grouped into two schools of thought: the fundamental analysis school and the technical analysis school. Although both schools of thought share the same objective, which is to give advice on what and when to buy and sell assets for the sake of making profit, they differ in their ways of analysis. The significant role played by academicians and practitioners in the finance industry and the interconnection between both schools and the approaches followed within each of them are best perceived in the way financial assets are allocated and portfolios are constructed. In an attempt to cross that bridge between the theory of price formation in financial markets and its practical implementations, this paper aims to survey the literature on both the theoretical and the practical frontiers of asset allocation and portfolio construction, and the best way of carrying on this task is through a thorough description of the portfolio management process (PMP). To this end, the paper breaks the PMP into three main steps, namely, portfolio planning, portfolio construction, and portfolio evaluation, in that order, and then discusses each step while surveying the literature pertaining to it. In addition to the description of the PMP, the paper also answers questions of particular interest to young practitioners, who are taking their first steps towards a career in the finance industry, such as: How portfolio theory, which is at the core of finance theory, is applied in practice? How a financial portfolio of assets is constructed in practice? How the individual assets forming a portfolio are selected and allocated? And is the process of constructing portfolios unique? Although the answers to these questions might appear to be simple and straightforward, they are, in fact, quite complicated. The complication lies not only in making the theory, which is based on certain restrictive and unrealistic assumptions, work in practice, but also in the simultaneous use of a variety of tools and financial concepts in forming a sound investment strategy.
 
The best-practices execution of PCAOB audits requires the use of Analytical Procedures at the Planning and the Substantive Phases. This often finds the auditor using the standard OLS two-parameter linear regression forecasting model [OLSR] to project account-values from the Planning Phase to balances expected at Year-End so as to effect a variance analysis at the Substantive Phase. This is the point of departure of our study. We examine the practical effect of using the OLSR model in a time-series context of the audit. Specifically, this research report provides information on the use of the OLSR model as the model of choice in the audit context compared to the ARIMA(0,2,2)/Holt model which is usually the standard choice for an exponential smoothing model in the presence of autocorrelation of data in the time-stream; autocorrelation is the usual case for longitudinal series taken in the audit. Results: We find that there are reasons to condition the selection of the forecasting model in the Analytical Procedures context based upon autocorrelation in the data-stream. When the time-stream of data exhibits autocorrelation the OLSR model fails in a statistically significant manner to capture the next or one-period ahead client value at the same rate as does the ARIMA/Holt model. This then has implications for the False Negative Investigation Error.
 
A bank's capital charge computation is a widely discussed topic with new approaches emerging continuously. Each bank is computing this figure using internal methodologies in order to reflect its capital adequacy; however, a more homogeneous model is recommended by the Basel committee to enable judging the situation of these financial institutions and comparing different banks among each other. In this paper, we compare different numerical and econometric models to the sensitivity based approach (SBA) implemented by BCBS under Basel III in its February 2015 publication in order to compute the capital charge, we study the influence of having several currencies and maturities within the portfolio and try to define the time horizon and confidence level implied by Basel s III approach through an application on bonds portfolios. By implementing several approaches, we are able to find equivalent VaRs to the one computed by the SBA on a pre-defined confidence level (97.5 %). However, the time horizon differs according to the chosen methodology and ranges from 1 month up to 1 year.
 
PNLD in figures 2019
SAEB school grades
Average values from the 57 schools
This article, based on a performance audit focused on the principle of effectiveness, aims at analyzing the impact resulting from the adoption of private textbooks for the primary school network of a municipality located in South of Brazil. For this, an assessment methodology known as difference-in-differences has been applied to data from the Brazilian Basic Education Assessment System, revealing the impact, on the municipality schools grades, for the use of textbook material other than those provided free of charge by the Federal government.
 
Results of comparative analysis
The aim of the research is to selection general coefficient of operating leverage of enterprise and to great factor model of this.The subject of the research is operating risk of enterprise. Accordingly had study coefficients operating leverage, the fixed and variable costs, the conception of marginal profit and break-even points.Had mace comparative analysis of well-known coefficients of enterprise operating leverage in the article. Here are discussed relationship between coefficients of Operating Leverage, Marginal Profit, Break-even point, the production Margin of Safety and structure of costs. Generally accepted methods of analysis are used in the paper, such as analysis and synthesis, induction and deduction, quantitative and qualitative analysis methods, traditional analysis methods.Results of research had proofed that fixed costs and operating profit ratio can be recognition with General Coefficient of Operating Leverage of enterprise. Had great four-factors model of this indicator too, whose practical use will help the management of enterprises to explore positive and negative factors through the traditional analytical methods and to the adequate decisions will making.
 
This paper quantitatively examines a non-linear capital asset pricing model (CAPM) by using monthly stock returns of major automobile industry firms in Japan. Applying the maximum likelihood method, we derive the following interesting findings. (1) First, in the case where the distribution of stock returns has a fat-tail, our non-linear CAPM is highly effective. Because the parameters of our non-linear CAPM well capture fat-tailed return distributions, the non-linear model estimation derives reliable estimates of beta values. (2) Second, in the case where stock returns are normally distributed, our non-linear CAPM is also effective. Since the parameters of our non-linear CAPM also well capture normally distributed returns by adjusting its degrees of freedom parameter value, the non-linear model estimation similarly derives reliable beta estimates as those derived from the standard linear CAPM. (3) Finally, we further conduct the Wald tests based on the estimators from the standard CAPM and our non-linear CAPM, and we suggest that in the case where the distribution of stock returns has a fat-tail, the Wald test based on the estimators from our non-linear CAPM shall be more reliable than the Wald test based on the estimators from the standard linear CAPM.
 
This paper examines the influence of capital assets acquired outrightly by cash on enterprise profitability from the perspective of construction companies. Data were obtained by means of questionnaire. Analyses were performed using descriptive statistics and Pearson’s product moment coefficient of correlation. Results of descriptive statistics indicate 61.11% preference for acquisition of capital assets by outright cash purchase. Correlation analysis reveals a statistically significant moderate positive relationship between capital assets acquired out rightly through cash payment and net profit. Own capital assets acquired by outright cash purchase improves net profit performance of construction companies. Companies in the construction sector should aim at investing in capital assets through outright cash purchase instead of hiring or leasing.
 
This study investigated the relationship between Top Management Team (TMT) demographic diversities and firm performance using generic strategies as intervening variable in the Marketing and Social Research Association (MSRA) firms in Kenya. First, the relationship between TMT characteristics diversities and generic strategy was analyzed. Second, the link between generic strategy and firm performance was estimated. Mixed methods research design was used to critically investigate the relationship between the latent exogenous and endogenous variables of this study. The mixed research design used in this study was triangulation design, which was mainly transformation design model. The data were analyzed using structural equation modeling analysis, using IBM SPSS AMOS version 21. The study found out that the homogenous demographic diversities among the top management team members had statistically significant effect on cost leadership strategy (P = 0.012). Besides, cost leadership strategy showed a statistically significant positive relationship on firm performance (P = 0.005). The findings of this study implied that organizations need to know and develop the best composition of top management team based on their demographic diversities in relation to the environment. Besides, the organizations need to empower the TMT members using monetary and nonmonetary incentives to further improve performance. Last but not least, the compositions of TMT in marketing research firms need to embrace gender diversity.
 
Prior studies report negative or insignificant relations between conditional conservatism and the cost of equity capital, arguing that conservatism reduces information risk. Using accounting-based conditional conservatism proxies, however, we find a significantly positive association between conditional conservatism and the cost of equity. This positive relation operates via improving information precision about negative earnings shocks and generally inflating information asymmetry among investors, both of which increase the cost of equity. We further find that the cost of equity effect of conditional conservatism disappears in the period after the enactment of the Sarbanes-Oxley Act (SOX), consistent with the notion that nationwide improvement of information precision about negative news and diminished information asymmetry are engendered by the SOX regulation. This study adds to researches on conditional conservatism, SOX, and the cost of equity, and also has policy implications.
 
The characteristics of the three clusters along the main factors 
Ratios of income sources in the three clusters (%) 
Sources of information for financial decisions 
Financial markets and products are becoming increasingly complex. This trend goes hand in hand with an ever-deepening financial information gap. Researchers and marketers should get acquainted with behaviour, habits and attitudes of future’s consumers better. One of the key target groups in exploring this area includes secondary school and university students, as most of the financial education programmes address them. The aim of this study to find out young adults’ characteristics regarding their financial behaviour and attitudes. By segmenting and describing Hungarian undergraduates according to their financial attitudes, the present study sets out to contribute to the success of financial educational programmes, initiated by either the public sector (financial education) or the business sector, with the aim to enhance the level of financial literacy. Based on the database of 2070 respondents, using principal component analysis and K-means clustering, we found that the young people can be categorised into three groups: (1) conservatives, (2) rebels and (3) experienced. The distinct differences in the attitudes and experiences of the three groups suggest that their financial education should be based on different foundations, which is worth considering when developing the relevant curricula.
 
Top-cited authors
Peterson K. Ozili
Latifat Muhibudeen
  • Yusuf Maitama Sule University
Farouk Musa
  • Ahmadu Bello University
Megawati Oktorina
  • Atma Jaya Catholic University of Indonesia
Linda Wedari
  • Binus University