Asian Journal of Economics, Finance and Management
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Analysing the Role of Non-traditional Financial Disclosures in Enhancing Corporate Sustainability of High-risk Sectors in Iraq
Get PDFCorporate sustainability has emerged as a significant concern for businesses operating in high-risk sectors, particularly in economies facing political instability, economic volatility, and regulatory uncertainties. This study examined the impact of non- traditional financial disclosures, specifically environmental, social, and governance (ESG) disclosures, on corporate sustainability within high-risk sectors in Iraq. Corporate sustainability was assessed using return on assets (ROA) and return on equity (ROE). The study employed ex-post facto research design, as it relied on existing data that was not subject to modification. It focused on a population of 15 selected listed companies from high-risk sectors in Iraq, namely banking, oil and gas, and construction. A purposive sampling method was adopted to select the firms. The research covered the period from 2013 to 2024. To analyze the relationships between the variables, variance-weighted least-squares regression analysis was applied. The findings revealed that non- traditional financial disclosures had a negative and statistically significant effect on the firm’s financial performance. An increase in ESG reporting was associated with a decline in ROA and ROE, suggesting that in unstable environments, the financial and operational burdens of non-financial disclosure may outweigh its short-term benefits. The study concluded that while non-financial disclosures are globally promoted as mechanisms to enhance corporate accountability and long-term sustainability, in high-risk sectors of Iraq, they appear to undermine short-term financial performance. This suggested that companies in the high-risk sectors should adopt a phased and strategic approach to ESG disclosure, focusing first on areas that align closely with their core business objectives and available resources
Determinants of Fraudulent Financial Reporting among Deposit Money Banks (DMB) in Nigeria: Using the Fraud Diamond Theory
Get PDFThis study examines the determinants of fraudulent financial reporting (FFR) among listed deposit money banks (DMBs) in Nigeria using the Fraud Diamond Theory. Panel data covering 12 DMBs from 2012 to 2023 were analysed using binary logistic regression to assess the effects of pressure (cash flow trend), opportunity (related party transactions), rationalisation (economic downturn), and capability (earnings forecast pressure) on the likelihood of financial misreporting. Control variables included return on assets (ROA), inflation, and exchange rate. The results reveal that cash flow trend (CFT) has a statistically significant negative relationship with FFR at the 1% level, suggesting that declining cash flows increase fraud risk. Related party transactions (RPT) and economic downturn (ECD) are both positively and significantly associated with FFR, supporting the opportunity and rationalisation dimensions of fraud. Inflation also shows a significant positive effect, while exchange rate (FXR) exhibits a significant negative relationship, indicating macroeconomic influences. Capability (PEF) and ROA were not statistically significant. The model demonstrates good predictive power with an AUC of 0.8042 and a classification accuracy of 73.5%. The findings underscore the interplay between financial strain, opportunistic practices, and macroeconomic volatility in driving fraudulent reporting in Nigeria’s banking sector
Big Five Personality Traits and Entrepreneurial Intention of University Lecturers in Nigeria
No full textThe study investigates the link between the personality traits of Nigerian university lecturers and their entrepreneurial intents in the post-COVID-19 era. Based on the Big Five Model, data was gathered from a purposive sample of 207 lecturers in south eastern Nigerian universities. The structural equation modeling was deployed in verifying the proposed conceptual model. Findings indicate that the Covid-19 pandemic ignited entrepreneurial passion among the university lecturers since the hardship they faced during the pandemic era pushed majority to venture into entrepreneurship. Besides, the proposed model explains 58.6% of the variance in lecturers’ entrepreneurial intention in the post-pandemic era. Only conscientiousness, extraversion and neuroticism were confirmed as positive and significant drivers of entrepreneurial intention of the university lecturers in Nigeria in the post-COVID-19 era, while openness and agreeableness emerged as non-significant drivers. The study presents both theoretical and practical insights to the post-pandemic entrepreneurial intentions of an unexplored group (university lecturers) in an emerging economy
The Asymmetric Effect of Fiscal Deficit on Macroeconomic Variables in Sub Saharan Africa
No full textIn most African countries, the intervening fluctuations in sources of government revenue and the endearing corruption as well as mis-prioritisation of the needs of citizens have been noted as the basic reasons behind the high incidence of fiscal deficit over the years. Therefore, this study attempts to examine the asymmetric effect of fiscal deficit on macroeconomic variables in Sub-Saharan Africa using quarterly data between 1990 and 2020. The study employed Non-Linear ARDL model to estimate the asymmetric effect of fiscal deficit on macroeconomic variables in Sub-Saharan Africa. The long run asymmetric effect of fiscal deficit revealed that the influence of fiscal deficit on macroeconomic variables employed in the study was positive but insignificant before the global financial crisis and it means that the influence was asymmetric. However, after the global financial crisis, fiscal deficit exerted negative and significant effects on macroeconomic variables in the selected African countries. This shows symmetric effect. Furthermore, it was discovered that the impact of fiscal deficit on macroeconomic variables was significant with different magnitudes from different countries. The study concluded that the effect of fiscal deficit on macroeconomic variables in Sub-Saharan Africa countries is symmetric and asymmetric respectively. Therefore, the government of the selected countries should formulate workable policies that will improve tax collection, particularly direct and indirect taxes, mostly importantly, by implementing reforms that would enhance the revenue through which growth and macroeconomic variables can be stabilized. Additionally, governments in the selected African countries should endeavour to jettison and reduce various activities that are eroding the revenue of the economy so that the resources available can be directed to economic sectors and important areas that can boost growth and enhance stability of macroeconomic variables in these countries
Valuing Hard-to-value Intangibles: A Review of Methods, Challenges and Emerging Trends
No full textHard to Value Intangibles valuation has become a major concern in finance. This is due to uncertainty, lack of comparables assets combined with high potential for super returns. These assets include digital platforms, data assets, algorithms and proprietary technologies which pose challenges in transfer pricing. These assets are quite challenging to value by regulators, financial analysts, businesses and tax authorities. This paper reviews methods used to value intangible, both traditional and contemporary. It also considers emerging trends in the valuation of intangibles
Comparative Profitability Assessment of Major Agricultural Commodities in Jose Abad Santos, Davao Occidental
No full textThis study examined the profitability, production practices, and challenges of major agricultural crops in Jose Abad Santos, Davao Occidental, focusing on abaca, banana, corn, and coconut. A descriptive survey was conducted with 100 respondents from five selected barangays using a validated questionnaire to collect data on farm profile, production management, marketing, and costs and returns. Results showed that coconut farming was the most profitable, generating a net return of ₱139,000.10 and a production cost per unit of ₱38.95, followed by corn (₱5,073.25 net return; ₱0.23/unit) and banana (₱1,352.32 net return; ₱11.34/unit), while abaca incurred a net loss of ₱109,750.20 due to high production and harvesting costs. Farmers were mostly middle-aged and female, operating small to medium-sized farms using traditional methods with minimal fertilizers or irrigation. Major challenges included lack of capital, poor farm-to-market roads, and pest infestations. The study is significant as it provides practical guidance for farmers, policymakers, and extension workers, highlighting profitable crops, key production constraints, and the need for sustainable practices. The study recommends improving financial access, farm infrastructure, availability of quality planting materials, and training on modern and sustainable farming techniques to enhance productivity and profitability across all crop commodities
Time Series Modeling and Forecasting of Monthly Average Exchange Rate of Nigerian- Naira and United States-dollar
Get PDFThis work considered the time series modeling and forecasting of monthly average exchange rate of the Nigeria -Naria (NGN) and United States -Dollar (USD). The data for this work was obtained from the Central Bank of Nigeria spanning from 2003 to 2024. The time plot of the monthly average exchange rate of both currencies indicated an upward rise in the Dollar and a relatively reduction in the Naira.
To achieve this aim, a powerful timeseries forecasting model known as autoregressive integrated moving average (ARIMA) was employed.
The Exchange rate data was non stationary at level but achieved stationarity after first difference using augmented dickey-fuller (ADF) unit root test via E-views 12.
The strategies for model specification or identification as recommended by Box and Jenkins (1976) were adhered to in this work and ARIMA (8,1,2) was selected as the most parsimonious model among the other five potential or tentative estimated models. This ARIMA (8,1,2) satisfied the residual diagnostic test because of its invertibility and covariance stationary behaviors, this is to say that it had relatively small Akaike’s Information Criterion (AIC) and Standard Error of Regression (SER), higher number of Statistically Significant Coefficients and relatively high adjusted R-Squared.
It is hoped that the forecast graph in Fig. 8 of this work would help the Government, Business Operators and Policy makers to invest wisely, plan their budgets, make inform decisions regarding monetary and fiscal policies of the country. The wandering away of the Original Exchange Rate Data from the Forecasted Series stood amazing and a big lesson for Nigerians to strengthen their currency at all cost
Budget Deficit, Budget Reform and Economic Growth in Nigeria
Get PDFThis study examine the impact of budget reforms and budget deficits on economic growth in Nigeria from 1981 to 2023.The study adopted the Vector error correction model to analyze the time series data. Findings from the Vector error correction model analysis revealed that budget deficit, budget reform has a significant impact on the economic growth of Nigeria. Based on the findings from the study, the study recommends that for improved economic growth, budget reform policies should be such that they ensure linkages of government expenditures ceilings to government revenue, external debt to current account balances and public debt to budget balances. On this basis IMF benchmarks for liquidity, solvency and stationarity can be met. Furthermore, the positive impact of budget deficit and budget reform on economic growth calls for more budget policy reforms that will encourage increase funding to sectors like education and health. These sectors enable growth in any economy. In the same manner, the share of capital expenditure to recurrent expenditure should be such that meets quick acid test ratio like in the 18 years of the study period. Increase government spending especially in budgetary allocation to capital expenditure in areas like education, health, power and housing. Budget reform policies like UBE Act 2003, TETF 2013 should be encouraged. It enhances sectoral allocation efficiency and stimulates economic growth in Nigeria
The Moderating Role of Board Independence on the Impact of Liquidity Risk on Bank Credit Ratings: Evidence from West Africa
Get PDFPurpose: This study looks at how board independence influences the relationship between liquidity risk and credit ratings in Nigerian, Ghanaian and Togolese listed banks. It attempts to investigate how governance arrangements affect the impact of liquidity risk on creditworthiness in emerging financial markets.
Design/Methodology/Approach: Based on innovation, stewardship and financial development theories, the study uses an ex post facto research design and a purposive sample using data from 28 banks across three countries with publicly revealed credit ratings from 2012 to 2023. Standard & Poor's, Moody's and Fitch data were used to create a composite credit rating index (CRIndex) using Principal Component Analysis (PCA) to develop a unified credit rating index. the study employs OLS regression with robust standard errors to test its hypotheses.
Findings: The results reveal a statistically significant and positive relationship between liquidity risk and credit ratings. Furthermore, board independence was found to significantly moderate this relationship, such that the positive impact of liquidity risk on credit ratings diminishes as board independence increases. Control variables, including firm size, profitability and country-specific effects, were also significant predictors of credit rating outcomes.
Practical Implications: The findings underscore the importance of corporate governance structures in shaping how liquidity risk is interpreted by credit rating agencies. Regulators and financial institutions may consider tailoring governance and disclosure standards to reflect the nuanced effects of board independence, particularly in regions with concentrated banking systems and evolving regulatory frameworks.
Originality/Value: This study contributes to the literature on financial risk and corporate governance by offering novel empirical insights into how board independence interacts with liquidity risk to influence credit ratings. The use of a unified CRIndex enhances the methodological robustness and the regional focus fills a notable gap in emerging market credit risk research
Effect of Training and Development Programmes on the Job Performance of Lecturers: A Study of Federal Polytechnics Ado Ekiti, Nigeria
Get PDFThis study examined effect of training and development programmes on the job performance of lecturers in Federal Polytechnics Ado Ekiti. The study adopted descriptive research design of a survey type. The population of the study consisted of 162 lecturers in Management Science and School of Engineering in Federal Polytechnics Ado Ekiti, Nigeria. 116 lecturers were used for sample size of the study, out of which 115 returned the questionnaire given to them. Questionnaire designed in 5-likert scale type was the instrument used to collect data for the study. The face and content validity of the instrument was done by the two experts in the field of study. Twenty (20) lecturers were randomly selected from the department not part of the survey study. Cronbach’s Alpha method was reliability and the coefficient show 0.81 which indicate the instrument was reliable. The data collected were analysed using mean and standard deviation to answer research questions. Simple regression was used to test all the hypotheses at 0.05 level of significance The findings showed that comprehensive training and development programs significantly enhance the performance of lecturers at Federal Polytechnics, Ado Ekiti. The finding showed a positive and statistically significant relationship between on-the-job training and staff performance. Findings showed that there is a positive and statistically significant relationship between factors influencing off-the-job training and staff performance. The results revealed a positive and statistically significant relationship between in-service training and staff performance. The finding indicated a positive and statistically significant relationship between workshops/conferences and staff performance. The study concluded that training and development programs for lecturers improve their skills and allow them to provide excellent administrative services, research, and instruction, ultimately leading to the development of the institution and its students. The study recommended that practical skills, adaptability, and efficiency of academic staff in their teaching, research, and administrative activities can be enhanced through regular and organized on-the-job training. Therefore, academic staff should provide structured and frequently do on the job training at least once in a quarter for their benefit