Issued by Goodwood Publishing, this journal is an international journal in the field of finance, accounting, and management. International Journal of Financial, Accounting, and Management (IJFAM) comprises a multitude of activities which together form one of the world's fastest-growing international sectors. This journal takes an interdisciplinary approach and includes all aspects of finance, accounting, and management studies. The journal's contents reflect its integrative approach - including primary research articles, discussion of current issues, case studies, reports, book reviews, and forthcoming meetings.
The journal comprises articles which are relevant to both academics and practitioners, and are the results of anonymous reviews by at least two referees chosen by the editor for their specialist knowledge.
Published
2020-12-25
Articles
Empirical evidence on Non-Performing Loans and credit frictions: banking sector in Tunisia
Purpose: This paper explores the most important determinants of friction in the Tunisian credit market. The previous literature argued that friction is largely explained by the increase in Non-Performing Loans Nkusu, 2011; Abadi et al. 2014; Rulyasri et al.2017, Roland et all, 2013.
Research methodology: We constructed a multivariate Vector Error Correction Model, with five macroeconomic variables (industrial production index, the money supply, money market interest rate) to examine the impact of Non-Performing Loans increase in amplifying the Tunisian credit frictions.
Results: The Vector Error Correction Model (VECM) regression results show a negative and important relationship between economic growth and Non-Performing Loans (NPL) ratio, which is very robust during the political crisis of 2011. The money market interest rate and the money supply are positively related to the Non-Performing loan ratio.
Limitation: This study was only focused on Tunisian banking sector as one of the pillars of the Tunisian economy.
Contributions: This highlights that the nature of the monetary policy adopted by the monetary authority of Tunisia plays a significant role in the fluctuation of the Non-Performing Loans ratio. Bank capitalization is positively and statistically significant with Non-Performing Loan ratio, implying that banks with a low level of capital are more likely to have a riskier credit portfolio that causes the increase of Non-Performing Loans in their balance sheet.
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SintaRural infrastructure and smallholders commercialization: analysis of crop input market from Jimma Zone, South-West Ethiopia
Purpose: This study is aimed to examine the effect of rural infrastructure on smallholders’ crop input market participation with reference to Jimma zone.
Research methodology: Censored Tobit approach was employed to model relationships between the degree of household market participation from input side and rural infrastructures.
Results: Distance to the nearest all-weather-road from the farm area was found important. Moreover, provision of rural credit, communication and rural market services was found to significantly foster smallholder commercialization. Unfortunately, we estimated trivial coefficient for agricultural extension.
Limitation: This study is limited to a year data, where we are unable to estimate the long term impact of rural infrastructural service on rural commercialization.
Contribution: Various inadequacies in the provision of services may likely be involved. The right approach for the future should consider efficiency as well as the adequacy of the services being provided. It would be better to provide smallholders with the necessary infrastructures to ensure growth as well as the transformational targets. Besides, interventions intensifying rural access to information are vital.
Keywords: Censored Tobit, Commercialization, Crop input Market index, Infrastructure, Smallholder
The influence of internal control on fraud prevention (Case study at Bank BRI of Cimahi City)
Purpose: The purpose of this research was to determine how much the influence of Internal Control against Fraud Prevention at Bank BRI of Cimahi City. Internal control is an interlocking set of activities that are carried out by the board of directors, management, and other personnel. It is designed to provide confidence in achieving certain goals within the organization. Fraud Prevention is a precautionary measure by creating policies, procedures, organization, control techniques, and employee participation.
Research methodology: The research method used in this study was explanatory method. The number of samples in this study were 46 employees of Bank BRI of Cimahi City. The analytical method used in this study was Partial Hypothesis Test (T-Test) with significance level of 5%. The program used to analyze data was Statistical Package for Social Sciences (SPSS) Ver20.00.
Result: According to this research, internal control has a significant effect on fraud prevention by 50.2%
Limitation: This research only described Bank BRI of Cimahi City.
Contribution: This study can be useful for students, banking employees, and future researchers.
Keywords: Bank BRI of Cimahi City, Fraud prevention, Internal control
Financial performance of Bandar Lampung City Government (Comparing the accountability of two mayor periods: 2006 – 2010 vs 2011 – 2015)
Purpose: The purpose of this research was to determine the significance of differences in financial performance, community welfare, and Gross Regional Domestic Product (GDP) of Bandar Lampung City in two mayor periods.
Research Methodology: This study used secondary data obtained directly from the Lampung Provincial Representative Audit Board with a complete-time series of 10 years during the period 2006 – 2015. The research used region government financial performance, society welfare as measured by the human development index, Gross Regional Domestic Product (GDP) Based on Constant Prices as the variable. By one way-ANOVA to analyze technical data on this research.
Results: There is no significant difference in the average financial performance in the form of effectiveness ratios, efficiency ratios, expenditure balance ratios, and government financial growth ratios of Bandar Lampung in two major periods. However, this research finds there is a significant difference in the average of social welfare as measured by the Human Development Index (HDI) and Gross Regional Domestic Product (GDP) of Bandar Lampung city in two major periods. This means that the Bandar Lampung City Government has not been able to properly maintain and increase its growth.
Limitations: This research took a sample in this study only Bandar Lampung city, while in Lampung province there are 15 regencies/cities, and this research in conducting disparate tests using the Anova test. This research would be better if using more samples and using another test.
Contribution: This study contributes to providing input and advice to the city government in making decisions related to the preparation and realization of the Regional Revenue and Expenditure Budget in the future.
Keywords: Financial performance, Effectiveness, Efficiency, A harmony of spending, Financial growth
Modelling inflation-interest rate nexus for Ghana
Purpose: The research assesses the interest rates-inflation association in the case of Ghana between 2007 and 2013. Monthly and quarterly data were used.
Research Methodology: The model of the vector error correction and Johansen were used to investigate the long-term and short-term association in the model estimated respectively. The vector autoregression (VAR) test was used to model the joint dynamics between the variables. GRETL software was used in these tests. Granger predictive test was done with the EViews software.
Results: The findings of the result confirm both long-run and a short-run association in the model and as well as neutral granger predictive causality.
Limitations: Though the Johansen test is more appropriate for multivariate modelling, Engle-Granger test is considered to be more robust in most cases and as such future studies should consider using the two models in a comparative study to assess whether the current conclusions can collaborate.
Contribution: The paper contributes to knowledge in the field of inflation and Interest rates association, in relation to the financial markets. Future Research models that account for structural breaks and panel works are worth doing.
Keywords: Fisher effect, Treasury bill rates long run, Johansen model
Pages: 227-241
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An agricultural sector assessment of biological asset valuation challenges with inputs considered from valuers
Purpose: Establish whether the industry biological asset fair valuing challenges are country-specific or agricultural-sector specific. Determine how the inputs and challenges experienced by the valuers relate to the industry challenges.
Research Methodology: Descriptive, qualitative conceptual content analysis of financial reports of 50 listed organizations across 10 countries from 2012 to 2015; with relational content analysis through in-person interviews with 24 biological asset valuers.
Results: This paper contradicts prior research as no correlation was identified between large agricultural organizations and the extent of biological asset disclosures. The biological asset valuation and disclosure challenges are not country-specific or agricultural-sector-specific and the inconsistency in factors applied by the valuers appears to impact the industry challenges directly.
Limitations: As biological assets are only held by agricultural organizations of which not all fair value the assets to report thereon – limiting the number of interviews to 24. Data collected via the interviews represent the challenges and valuation considerations of the individuals and their exposure to biological asset valuations.
Contribution: This research analyzed and categorised the biological asset valuation challenges to determine whether it is country-specific and/or unique to an agricultural sector. The input factors and challenges experienced by the valuers in relation to the reporting challenges allow a relational analysis of the industry challenges.
Keywords: Biological asset valuation, Decision-enhancing disclosures, Fair value accounting, Users of financial statements, Valuation elements
