International Journal of Commerce and Finance (IJCF - İstanbul Commerce University)
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The Effect of Tax Avoidance and Political Connection on Firm Value: Institutional Ownership as Moderating Variable
Get PDFThis research examined the effect of tax avoidance and political connection on firm value with institutional ownership as a moderating variable. It was motivated by many firms that have taken tax avoidance actions in the last period. Tax avoidance activities can reduce firm value from the public perspective. Furthermore, when a business commits a tax offense, it is considered to have violated the law. Tax avoidance activities are conducted to fulfill the interests of firm management instead of the shareholders, which may result in agency conflict. This conflict can be minimized by implementing corporate governance with institutional ownership mechanisms. The existence of institutional ownership can effectively oversee the management. Institutions can also evaluate management performance, reducing tax avoidance activities and controlling political connection between firms and the government. Therefore, firm value cannot be reduced in the long term from the public perspective.This research used secondary data from Manufacturing Firm Financial Reports during 2017-2019. Statistical analysis and hypothesis testing were performed using Smart-PLS software. The results showed that tax avoidance and political connection do not affect firm value. Furthermore, institutional ownership cannot moderate the relationship between tax avoidance and firm value. This research considered institutional ownership as part of corporate governance that can moderate the relationship between tax avoidance, political connection to firm value, and the relationship between tax avoidance and firm value. Meanwhile, institutional ownership could moderate the relationship between political connection to firm value.Keywords: Tax Avoidance, Political Connection, Firm Value, Institutional Ownership
Volatility Switching in The Initial Crisis Period of The Covid-19 Pandemic: Comparing Islamic Stock & Conventional Stock Indexes for Borsa Istanbul
Get PDFThe objective of this research is to examine the volatility structure of both Islamic and conventional indexes at Borsa Istanbul (BIST) in Turkey. Specifically, the study analyzes BIST's KATLM 30 (Islamic index), BIST 30, and BIST 100 Index and compares their return and risk performance during the initial crisis period of the COVID-19 pandemic. The research investigates the stock market's volatility structure under various conditions by utilizing the Markov regime switching autoregressive moving average generalized autoregressive conditional heteroskedasticity (MS-ARMA-GARCH) models with two regimes. The analysis aims to identify low and high volatility regimes in the stock indexes. The study shows that the returns of all three BIST indexes vary in terms of regime change. However, the changes in the conventional indexes (BIST 30 and BIST 100) are higher than those of the Islamic index, with losses during high volatility periods being almost 4-7 times greater than gains during low volatility periods. The research demonstrates that the change in returns from BIST 100 and BIST 30 between different regimes is higher than that of KTLM. In addition to comparing returns, the study also examines the resilience of both conventional and Islamic indexes during crises. These results provide insights into the behavior of stock market indexes during periods of economic turmoil and contribute to the existing literature on the subject
Traditional Clothing to Increase the Competitiveness of MSEMs in the Tourism Sector in South Sulawesi Province
Get PDFThis study aims to determine and examine the impact of the Bajubodo application on the competitiveness of micro, small, and medium enterprises in the tourism sector in South Sulawesi Province. The sample used in this study was 84 business actors. The analysis tool used in this study is structural equality modeling with partial least squares (SEM-PLS). The population in this study was 1,513 MSME actors. The results of the study show that the production and distribution of Bajubodo are still dominated by small businesses based in local artisan communities, with limited technology and production capacity. There is a great opportunity to integrate digital innovation in marketing and distribution through e-commerce platforms and social media. Adapting designs that accommodate the tastes of the younger generation without eliminating traditional values can be a solution to increasing interest in Bajubodo. This study found the importance of government and related institution support in terms of training, access to financing, and promotion of traditional clothing as part of the creative industry. Developing a collaborative strategy involving the government, artisan communities, and innovative business actors. Bajubodo can be the main driver in preserving culture and improving the local economy in South Sulawesi
Auditee Importance, Board Gender Diversity and Audit(or) Quality: Perspectives on Achieving Sustainable Development Goals (SDGs) in Nigeria
Get PDFThe importance of audit(or) in building strong, accountable and transparent institutions, thus ensuring societal peace and justice cannot be underestimated. It is against this background that this paper examined influence of auditee importance and board gender on audit quality, proxied with discretionary accrual earnings management. Data were collected largely from annual reports and audited financial statements of fifty (50) quoted non-financial firms, for 7 years, from 2014 – 2020, aggregating into 350 data sets. Thereafter, descriptive statistics and panel OLS regression were adopted for trend analysis and estimation of model specified for this study. Overall, auditee importance, board gender, alongside auditor type, audit fees and profitability are effective factors that are capable of influencing audit quality, thereby influencing role of external auditor in contributing to the achievement of sustainable world peace, justice, as well as, ensuring creation of strong and accountable institutions. Therefore, to ensure and sustain strong, accountable and transparent institutions, it is recommended that relevant authorities should formulate policies around auditee importance and gender board diversity, in order to achieve the sustainable development goals within the time set for nations.
Crypto-currencies and Stock Market Performance: Evidence from the Nigerian Stock Exchange Market
Get PDFThe COVID-19 era ushered in new investment options and payment systems within the global financial system, this investment option operates independently of the economic stock market. Studies have remained inconclusive if the virtual asset is a substitute or complement that can improve the overall performance of the stock market. Due to this lacuna, this study examines the quantile and conditional mean impact of crypto-currencies on stock market performance in Nigeria. The secondary data was monthly data for (60) months from 31st January 2019 to 31st December 2023. The study was anchored on the financial innovation theory of Schumpeter. The VECM (Vector error correction model) and the Quantile regression technique were the econometric techniques used to draw inferences from the outcome and explanatory variables. The VECM findings revealed that 77.5% of the variance in all share index are explained by their shocks, while BIT (Bitcoin), BNB (Binance smart index), ETH (Ethereum), and LIT (Litecoin) jointly explain positive variation in the all share index performance. Specifically BIT (Bitcoin), contributed 5.58%, BNB (Binance smart index) contributed 7.43%, ETH (Ethereum) contributed 3.64% and Litecoin contributed 5.86%. The Quantile regression technique revealed that cryptocurrencies (Bitcoin, Binance smart index, and Ethereum) have positive and negative significant effects on all share indexes at the upper, middle, and lower bound periods. The study recommended that investors and corporate organization pay attention to the new normal in finance since this asset have also ushered in the Fintech innovation in the financial system
Impact of Supply Chain Infrastructure on Economic Welfare under External Shocks
Get PDFAs the global economies are still working diligently to recover from the COVID-19 pandemic impact, both public and private organizations are working diligently to improve resiliency of supply chains against future shocks alike. Thus, it is critical to understand the relationship between the existing vulnerabilities and current state of supply chains. This study aims to contribute building a framework to investigate the relationship between the economic welfare and supply chain structure during external shocks. Machine Learning (ML) methods are used to conduct the required analyses. The results reveal the strong relationships between the variables chosen in building the model
Do Digital Frauds Influence Banks’ Profitability in Nigeria? A Review.
No full textAs the adoption of digital banking systems continues to grow both in Nigeria and globally, the incidence and complexity of digital fraud have also increased, posing significant threats to financial stability and business operations. These challenges often lead to heightened anxiety and uncertainty among users. In response to this concern, the present study investigates the impact of digital fraud on the profitability of banks in Nigeria. The research relies on secondary data and employs linear regression analysis over an eight-year period (2015–2022). Findings indicate that digital fraud has a significant effect on banks’ profitability, with Automated Teller Machines (ATMs) being the most commonly exploited channel. The study recommends that regulatory authorities and relevant stakeholders should intensify efforts to educate and sensitize bank customers on safe practices when using digital banking platforms
THE MODERATING ROLE OF CULTURAL INTELLIGENCE IN THE RELATIONSHIP BETWEEN EMOTIONAL INTELLIGENCE AND CONFLICT MANAGEMENT STYLES
Get PDFThis research examines the moderating role of cultural intelligence (CQ) in the relationship between emotional intelligence (EQ) and conflict management (CM) styles by focusing on professionals in the airport industry with international operations. An online survey of 480 participants, from 35 countries, primarily composed of white-collar employees was analyzed using SPSS to assess the dimensions of EQ and CQ, as well as their impact on CM styles. The research highlights the unique moderating role of CQ in shaping how EQ influences CM styles. The findings provide valuable insights for organizational behaviour, particularly in defining effective CM styles in multinational work environments
Rising Borsa Istanbul Trading amid 2023 Inflation Sparks Concerns of Stock Market Bubbles?
Get PDF This study delves into the detection of speculative bubbles in Borsa Istanbul, highlighting the limitations of monthly observations and the critical role of weekly data in capturing market nuances. Utilizing the Sup Augmented Dickey Fuller Test (SADF) and Generalized Sup Augmented Dickey Fuller Test (GSADF), the research contrasts the efficacy of monthly and weekly data in identifying speculative tendencies through the price-dividend ratio. Initially, the study portrays potential speculative trends marked by significant increases in investor activity, trading volume, and the BIST 100 index. However, contrary to the early indicators suggesting the formation of a speculative bubble, the empirical analysis for 2023 reveals no definitive evidence of bubbles in the price-dividend ratio. The study emphasizes that while monthly data may signal potential market irregularities, it falls short of capturing transient yet significant speculative episodes, essential for making informed investment decisions in the volatile environment of Borsa Istanbul, emphasizing the indispensable nature of weekly data in detecting nuanced market behaviors. The study underlines the need for a layered, temporally sensitive approach to financial analysis, advocating for continuous adaptation and sophistication in methodologies to navigate the complexities of financial markets effectively
Budget Implementation and Human Capital Development in Nigeria
Get PDFThe issues of low literacy rate, reduction in gross enrolment rate, low life expectancy at birth and increase in infant mortality rate have been attributed to low or lack of adequate budget implementation in the key sectors namely: education, health, agriculture and science and technology which are considered relevant to human capital development by the United Nation Development Programme (UNDP) and it is a common phenomenon affecting development in all Africa economies. It is expected that when the budget is implemented fully, it will drive human capital development components in these sectors. Therefore, the study examines the nexus between budget implementation and human capital development in Nigeria. We used data of education, health, agriculture and science and technology sectors ranging from 2003 to 2019. Evidence from Autoregressive Distributed Lag (ARDL) model showed that budget implementations in health, agriculture, technology, had positive and significant effect on human capital development in the short run. The results further showed that in the long run, budget implementation in agriculture had positive and significant effect on human capital development. The study recommended that budget implementations in these sectors should be given utmost priorities and performed with focus on achieving human capital development