International Journal of Finance and Accounting Studies

Online ISSN: 2203-4706
Publications
This paper provides evidence for the strength of the comprehensive analysis as an analytical tool to help the decision makers to improve their investment and operational strategies for river transportation projects. To do so, a River Cargo Transportation Company (RCTC) in Brazil was introduced and an integrated financial, economic, distributive and risk analysis was conducted to test the viability of the project. The analysis consists of identifying related financial and economic risk variables and performing the sensitivity analysis of these variables. The evaluation model of this project was based on a cost-benefit analysis methodology and a random calculation in which risk analysis was performed using Monte Carlo simulation. This integrated analysis provided a range of outcomes that can reduce the risk of uncertainty and give more reliable results than estimating the expected net present value or internal rate of return.
 
Financial information quality had not received the necessary attention it deserves until recent years following reported cases and consequences of corporate scandals and failures. In adopting generally accepted accounting principles, the preparers of financial statements seem to believe that they are providing adequate and reliable financial information. However, this may not meet the diversified needs of the investors and prediction ability for future reliance. This may be as a result of adopting inappropriate financial and accounting policy capable of influence misleading operational result that can lead to corporate failures. One aspects of the inappropriate policy for the purpose of this study is depreciation policy. One basic problem that needs to be addressed is whether financial information which has features of high quality standard will automatically provide solution to this inappropriate policy? This study focuses on this gap but in particular reference to straight line method (SLM) of depreciation that is commonly being adopted in the preparation and presentation of financial statements in Nigeria. The objective is therefore to ascertain the extent to which the SLM of depreciation can influence financial information quality of service companies in Nigeria. Primary data were collected through questionnaire. The retrieved questionnaires were analysed using logistic regression. The study finds that straight line method of depreciation influences financial information quality of service companies in Nigeria. The study recommends that despite the general use of straight line method of depreciation, other methods of depreciation should be encouraged for adoption in order to provide an opportunity for comparing depreciation results. The objective is to improve knowledge of depreciation methodology for better option.
 
Descriptive Statistics
Research in accounting has thus far attempted to provide fair and useful financial performance measures for a wide range of users. Academics and professionals have also established income as the key performance measures in making economic decisions. The purpose of this study is to investigate the quality of total comprehensive income (TCI) relative to net income (NI), prepared in accordance with International Financial Reporting Standards (IAS/IFRS). Using a data set covering 2,273 firms from 22 countries in Europe, Asia and Australia between 2006 and 2010, we provided evidence that net income always dominates comprehensive income as a valuation metric. The findings indicated that NI is more value relevant than TCI in predicting the future operating cash flows and income. In addition, NI is more persistent and timely, and explains the actual operating cash flows more precise than TCI. Accruals linked to NI have also better quality than those related to TCI. However, we found that TCI is less smoothing and more conservative than NI. These results do not support the claim that income measured on a comprehensive basis is a better measure of firm performance than NI. These results raise the questions about the usefulness of mandating TCI in IAS/IFRS regulation. Our findings, therefore, should be of interest to IASB, as they provide evidence of fewer quality of the TCI. Perhaps it is time for the IASB to reconsider other comprehensive income components and focus on items included in other comprehensive income to improve the quality of the TCI metric. These results also provide evidence of net income as a primary decision-relevant metric.
 
This paper applies GARCH (p, q) model and non-parametric Run test for studying isolated events of dividend change announcements covering a period of ten years for capturing abnormal returns in the Indian Stock Market using an event window of 61 days. The results indicate that there is no signalling effect of 'dividend increase/decrease along with financial results announcement' event on the share price of companies. Cumulative abnormal return tendency is observed if share purchase is made prior to any of the events. It is also found that adjustment in prices after event date takes place with a substantial time lag reflecting inefficiencies in the market.
 
Correlation table for the studied variables 
The article is all about the effect of environmental accounting and reporting on firm financial performance
 
Abstract The purpose of this phenomenological study was to explore strategies microfinance bank executives use to maintain business sustainability. The concepts of microfinance banking, sustainability value, and strategic management theory formed the conceptual framework for this study. Twenty executives from microfinance banks in Anambra state of Nigeria participated in semi-structured interviews. The data analysis process involved the use of Moustakas’ modified van Kaam process, which resulted in the emergence of three themes: strategic management, fear of microlending, and maintaining sustainability. The findings indicated the practice of strategic management, but indulgence in commercial activities instead of microlending to maintain business sustainability. The outcome reinforced the necessity for a strategic management focus on the expansion of microlending services, implementation of best practices, and technological input. Keywords: Microfinance banking, Nigeria, Sustainability value, Strategic management, Best practices
 
Most studies on company financial performance have mainly focused on either the successful companies or companies that are already in financial distress. However, there is a large group of companies that are in between, that is they are average performers and can be described as belonging to the “grey” zone. The purpose of this study is to analyze the companies in the “grey” zone to identify those that are likely to go into financial distress over time and those that may progress into the good financial performing category. Utilizing 3 key financial ratios, 90 Malaysian publicly listed companies in the manufacturing sector were initially classified into 3 clusters using“ Cluster Analysis” over the period 2006-2010. The classification accuracy in each year is then tested by applying Multiple Discriminant Analysis (MDA). Interestingly, a classification accuracy of more than 90% was obtained for each of the 5 years. The companies in the “grey” zone in the years 2006 and 2010 were further cluster analysed into the below average and into the above average clusters. Out of the 63 companies that were found to be in the “grey” zone in the 2 years under review, 31 companies or 50% improved their position, 18 companies or 28% declined with 14 companies or 22% remaining stagnant. Of special interest would be 5 companies that moved up 3 clusters from poor to good performers and 21 companies that moved up 2 clusters from poor to above average performers. Of concern would be 17 companies that move down one cluster and 1 company dramatically collapsing two clusters downward. A key finding of the study is that by appropriately utilizing financial ratios, investor risk can be minimized. In addition it enhances credit evaluation, stock market value and investment potential.
 
Top-cited authors
Tochukwu Gloria Okafor
  • Nnamdi Azikiwe University, Awka
Jitendra Sharma
  • University of Lucknow
Vijay SHANKAR Pandey
  • University of Lucknow
Bahloul Jaweher
  • University of Sfax
Zulkifflee Mohamed
  • Universiti Tun Abdul Razak (UNIRAZAK)