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Sunflower Price Differentials Attributed to the Disparity of Traditional Cost Accounting and Conventional Methods in Tanzania
Godfrey Molela,
Mohamed Baraza,
Lukelo Msese,
Mohamed Kaluse,
Felix Mlay
Issue:
Volume 9, Issue 4, July 2021
Pages:
111-116
Received:
11 January 2021
Accepted:
18 January 2021
Published:
6 July 2021
Abstract: Sunflower is among the key cash crops in Tanzania, which contribute significantly to the country’s economy. As it is the case for other crop subsectors, sunflower is also grown in abundance by smallholder farmers. Nevertheless, they had been living in poverty throughout their careers in agriculture which on the other hand benefited the counterparties in the trading deals. The unfair price offered to sunflower farmers was discovered in this study to be a misfortune in their investments. The conventional average farm-gate price of TZS. 622.449/Kg was found to be out of the price ranges that were backed by traditional cost accounting system, leaving farmers making losses of minimum TZS. 99.889/Kg. This study was conducted in Singida Region, Tanzania where a sample of 206 household farmers was used to obtain primary data on activity costs while the secondary data concerning the conventional price were obtained from the Districts’ sales reports and farmers’ records. Inferential statistics with one-sample test model was used alongside the IBM SPSS 26.0 statistical package in the quantitative data analysis. It was recommended, further studies to be conducted to explore more about the production cost that is backed by the activity-based costing (ABC) system, as it is more effective in assigning overheads to cost object than the traditional costing.
Abstract: Sunflower is among the key cash crops in Tanzania, which contribute significantly to the country’s economy. As it is the case for other crop subsectors, sunflower is also grown in abundance by smallholder farmers. Nevertheless, they had been living in poverty throughout their careers in agriculture which on the other hand benefited the counterparti...
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What Determines Tax Evasion Attitude: A Study in Selected Zones of SNNPR, Ethiopia
Yonas Sendaba,
Tsegazeab Teklemariam,
Daniel Balcha,
Samson Wondimu,
Tariku Lorato
Issue:
Volume 9, Issue 4, July 2021
Pages:
117-126
Received:
28 May 2021
Accepted:
6 July 2021
Published:
13 July 2021
Abstract: Tax evasion is a phenomenon in every nation even if the magnitude and causes may vary. It is associated with the introduction of taxation itself; tax evasion is a serious problem to a tax system. Therefore, examining what contributes to evasion in a given tax system is vital so that the negative consequences might be identified and solved. The study sought to identifies determinant factors of taxes evasion attitude of taxpayers in selected five zones: Gedeo, Gamo, Hadiya, Halaba and Gurage zone of Southern Nations, Nationalities and Peoples Regions (SNNPR) Ethiopia. Using Yamane (1967) formula and sampled 956 respondents. We have categorized our respondents as evaders, non-evaders and neutral based on the average value of their response and exclude neutral respondents. Accordingly, we used 768 questionnaires. We used a logistic regression model to examine what determines the evasion attitude of taxpayers. It is identified that significant difference among taxpayers towards tax evasion at zone level; Category A taxpayers are inclined to evasion compared to B; the level of education, peer, tax rate, and tax system has contributed to tax evasion attitude positively; and Authorized accountants are found to be facilitators for evasion. Based on our result we concluded that system orients variables are the most determinant factors affecting the evasion attitude of taxpayers compared to demographic attributes.
Abstract: Tax evasion is a phenomenon in every nation even if the magnitude and causes may vary. It is associated with the introduction of taxation itself; tax evasion is a serious problem to a tax system. Therefore, examining what contributes to evasion in a given tax system is vital so that the negative consequences might be identified and solved. The stud...
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Application of Social Network Analysis to Accounting Researches in Private University in Ogun State Nigeria
Ajibade Ayodeji Temitope,
Joshua Abimbola Abosede,
Chukwuekwu Ojianwuna
Issue:
Volume 9, Issue 4, July 2021
Pages:
127-137
Received:
17 June 2021
Accepted:
10 July 2021
Published:
21 July 2021
Abstract: Social Network analysis (SNA) is a concept that focuses on how members of a team collaborate to achieve a defined objective. The study focused on the applicability of SNA to Accounting researches in a world-class private University in Ogun State Nigeria to determine the quality of articles published in high impact journal outlet around the globe. A content analysis of publications in the google scholars of the individual researcher was conducted from the inception till date. The researchers were selected from the position of Lecturer 1 to that of the Professor using a purposive sampling technique. The data extracted was critically analysed through Social Network Analysis thereby presenting an adjacent matrix of collaborations existing among the scholars. The study also adopted a regression analysis so as to determine the extent of the impact of relationship between the researchers on their outcome. The study revealed that effective collaborations among the researchers has enhanced quality publications in high impact journal outlets around the globe which has increased both the individual global visibility as well as improvement on the University world ranking. The study as an eye opening to other private universities recommended an effective team work among the Universities researchers so as to improve quality articles publications and also for enhanced global visibility.
Abstract: Social Network analysis (SNA) is a concept that focuses on how members of a team collaborate to achieve a defined objective. The study focused on the applicability of SNA to Accounting researches in a world-class private University in Ogun State Nigeria to determine the quality of articles published in high impact journal outlet around the globe. A...
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The Impact of Real Earnings Management on Innovation: The Role of Top Executive Compensation
Issue:
Volume 9, Issue 4, July 2021
Pages:
138-144
Received:
8 July 2021
Accepted:
19 July 2021
Published:
24 July 2021
Abstract: Innovation is the key factor to improve the competitiveness of company, with large amount of investment and high risk. Therefore, when facing the pressure of profitability, reducing research and development expenditure is a real earnings management method commonly used by top executives. R&D cuts related to real earnings management belongs to the suboptimal decision-making. Various frictions and high adjustment costs in reduction process may lead to the decline of follow-up innovation. Compensation contract is a governance mechanism for the board of directors to motivate and supervise top executives. Based on the study of the impact of real earnings management on innovation, this paper also analyzes how to design a compensation contract to better mobilize the innovation initiative of executives. This paper chooses the data of Chinese A-share listed companies from 2007 to 2019 to test the economic consequences of real earnings management from innovation perspective by using tobit model. The empirical results show that R&D cuts related to real earnings management can obstruct companies’ innovation, top executive performance pay of non-state-owned enterprises has a negative impact on innovation, and equity incentive can encourage state-owned enterprise executives to improve innovation output. The conclusions highlight the potential costs of managerial manipulation of R&D expenditures to alter reported earnings, and can help to formulate economic policies and top executive compensation contracts to promote innovation.
Abstract: Innovation is the key factor to improve the competitiveness of company, with large amount of investment and high risk. Therefore, when facing the pressure of profitability, reducing research and development expenditure is a real earnings management method commonly used by top executives. R&D cuts related to real earnings management belongs to the s...
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Diachronic Analysis of the Impact of Arbitration on Transaction Costs: The Case of the Detachment of Dividends in France in the Period from 1990 to 2000
Issue:
Volume 9, Issue 4, July 2021
Pages:
145-153
Received:
2 July 2021
Accepted:
20 July 2021
Published:
29 July 2021
Abstract: There are often two competing assumptions as to the interpretation to be given to price adjustments on dividend detachment dates. The tax assumption that the adjustment reflects the tax differential between capital gains and dividends and the tax heterogeneity assumption that favors the creation of clients and the holding of high-yield securities by categories of investors with little income tax. The alternative hypothesis emphasizes arbitrages and dividend capture strategies and concludes that in equilibrium the adjustments reflect the transaction costs of arbitragists. The difference between these two hypotheses is hardly palpable. This work proposes a double contribution. Theoretically, it integrates transaction fees into a model of arbitrage between capital gains and dividends. It is therefore shown, by finding the results of customer effects and by generating new relationships between the fall in the price and transaction costs, that the two hypotheses do not generate contradictory results and respond to the existence of two different tax systems on the Monthly Settlement (RM) and on the Cash. Empirically, it proposes, on the one hand, a measure of implicit transaction costs using the range, based on daily data observed around dividend detachment dates and, on the other hand, it highlights a statistic that reflects the tax differential in the markets. Finally, a study of the volumes offered and requested reinforces the idea that the existence of transaction costs is not incompatible with the customer effect.
Abstract: There are often two competing assumptions as to the interpretation to be given to price adjustments on dividend detachment dates. The tax assumption that the adjustment reflects the tax differential between capital gains and dividends and the tax heterogeneity assumption that favors the creation of clients and the holding of high-yield securities b...
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Liquidity Management, Basel Capital Adequacy and Financial Distress Resolution in the Nigerian Banking Industry
Adolphus Joseph Toby,
Jibaniya Katon Danjuma
Issue:
Volume 9, Issue 4, July 2021
Pages:
154-171
Received:
21 June 2021
Accepted:
19 July 2021
Published:
9 August 2021
Abstract: The purpose of this study is to analyze the effect of liquidity management and BASEL capital adequacy on financial distress resolution in Nigeria. The study adopts a unidirectional causal research design within the single-equation dynamic autoregressive distributive lag (ARDL) framework. The empirical analysis is based on annual time series data covering the period from 1986 to 2018 obtained from different Central Bank of Nigeria (CBN) statistical bulletin and Nigeria Deposit Insurance Corporation (NDIC) quarterly as well as the factsheet of the Nigerian Stock Exchange (NSE). The stationarity test results indicate that the study variables are integrated at different levels, with most of them being I(1) series. The ARDL results show that micro-prudential liquidity management has no significant effect on ratio of distressed banks, while the effect of macro-prudential liquidity management on ratio of distressed banks is significant. The results also show that capital adequacy regulation has no significant effect on both ratio of distressed banks and governance/compliance breaches of distressed banks, while it has a significant effect on business risks exposure of the distressed banks and asset quality of distressed banks. Further, monetary policy measures have no significant effect on the level of distress in the Nigerian banking industry. Based on these findings, we conclude that in Nigeria, prudential measures aimed at achieving macro-level financial sector stability have significant policy implications for financial distress resolution. Also, while traditional monetary policy measures are not effective tools for achieving financial sector stability, the effect of capital adequacy regulation on financial distress resolution depends on how the former is measured. The main contribution of this study is the use of Newey-West robust framework, which consistently estimated the effect of liquidity management and BASEL capital adequacy on financial distress resolution even when both heteroskedasticity and autocorrelation are present in the data.
Abstract: The purpose of this study is to analyze the effect of liquidity management and BASEL capital adequacy on financial distress resolution in Nigeria. The study adopts a unidirectional causal research design within the single-equation dynamic autoregressive distributive lag (ARDL) framework. The empirical analysis is based on annual time series data co...
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Synopsis of the Determinants of the Choice of a Financial Structure of French Industrial and Commercial Groups
Issue:
Volume 9, Issue 4, July 2021
Pages:
172-181
Received:
17 August 2021
Accepted:
27 August 2021
Published:
31 August 2021
Abstract: Belonging to a group modifies the financing conditions of the firms concerned. Thus, we observe that the conditions of access to the financial markets are modified by the very fact of belonging to a group whose financial surface is the most easily identifiable; the interest rates on the loans themselves are less high for these companies. Their dependence on the banking system also appears to be less clear-cut, as the group's head company is able to pass on loans negotiated on favourable terms to certain units within the group. With regard to the level of debt alone, there is often reference to a higher level of debt in groups, based on the chain accounting of the same asset, first as fixed assets and then as equity securities. This last point raises the question of the choice of relevant levels of aggregation for measuring financial variables. Until now, most studies have been based on data from the company accounts. However, the consolidated financial statements provide a better assessment of the financial situation of these groups, in particular by eliminating fully or proportionally consolidated investments. In order to gain a better understanding of the level of indebtedness of a group, it is more appropriate to use the consolidated financial statements to eliminate cross-financing for companies included in the scope of consolidation. Using such data, we can observe real divergences with the results of studies on corporate accounts, which show more favorable borrowing conditions, slightly lower levels of debt and a clear decrease in the use of borrowing in the financing resources for the period 2017-2020, with a domination of self-financing. These divergences can also be observed when comparing the debt levels of companies in different countries where the practice of consolidation is more or less widespread. The main objective of this article is to present the results, obtained from a sample of consolidated accounts of French industrial and commercial groups, of a modeling of debt levels put in perspective with modern financial theory, in that it proposes conceptual candidates explaining current developments.
Abstract: Belonging to a group modifies the financing conditions of the firms concerned. Thus, we observe that the conditions of access to the financial markets are modified by the very fact of belonging to a group whose financial surface is the most easily identifiable; the interest rates on the loans themselves are less high for these companies. Their depe...
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