C. T. Danthanarayana, S. J. Francis, A. S. Kumarage
Sri Lanka Railways (SLR) has been experiencing a financial shortfall since the 1940s, characterised by operational expenditure exceeding total revenue. This study aimed to identify the critical determinants of the financial shortfall of Sri Lanka Railways (SLR) using an econometric approach. Employing a quantitative methodology, the study utilised secondary and manipulated data from 1977 to 2022 to examine the effects of four key variables: revenue shortfall from fare revisions (FRFR), subsidised season tickets (FRSS), freight transport volume (FTK), and total wage bill (WB), incorporating the general price level (CCPI) to account for inflation. The regression analysis, using the Auto Regressive Distributed Lag Model, identified a short-run relationship between the financial shortfall (LFS) and lagged variables, including the volume of rail freight transport (LFTK), total employee wage bill (LWB), and the general price level (LCCPI). A long-run relationship was found among revenue shortfall from fare revisions (LFRFR), LWB, LCCPI, and LFS. The findings highlight the significant impact of aligning railway fares with bus fares and managing employee expenses on SLR's financial shortfall. Additionally, the revenue shortfall from subsidised season tickets showed a significant relationship at a 10% significance level, both short-term and long-term. The study underscores the necessity of revising railway fares in line with bus fares to enhance revenue and ensure financial sustainability. Optimising employee-related costs through effective management and reviewing the subsidy structure for season tickets are also recommended. Furthermore, investment in capacity and facility development for freight transport is crucial for mitigating long-term financial shortfalls.
{"title":"Determinants of Financial Shortfalls in State-Owned Railway Systems: An Ardl Approach for Sri Lanka Railways","authors":"C. T. Danthanarayana, S. J. Francis, A. S. Kumarage","doi":"10.4038/ijabf.v10i1.153","DOIUrl":"https://doi.org/10.4038/ijabf.v10i1.153","url":null,"abstract":"Sri Lanka Railways (SLR) has been experiencing a financial shortfall since the 1940s, characterised by operational expenditure exceeding total revenue. This study aimed to identify the critical determinants of the financial shortfall of Sri Lanka Railways (SLR) using an econometric approach. Employing a quantitative methodology, the study utilised secondary and manipulated data from 1977 to 2022 to examine the effects of four key variables: revenue shortfall from fare revisions (FRFR), subsidised season tickets (FRSS), freight transport volume (FTK), and total wage bill (WB), incorporating the general price level (CCPI) to account for inflation. The regression analysis, using the Auto Regressive Distributed Lag Model, identified a short-run relationship between the financial shortfall (LFS) and lagged variables, including the volume of rail freight transport (LFTK), total employee wage bill (LWB), and the general price level (LCCPI). A long-run relationship was found among revenue shortfall from fare revisions (LFRFR), LWB, LCCPI, and LFS. The findings highlight the significant impact of aligning railway fares with bus fares and managing employee expenses on SLR's financial shortfall. Additionally, the revenue shortfall from subsidised season tickets showed a significant relationship at a 10% significance level, both short-term and long-term. The study underscores the necessity of revising railway fares in line with bus fares to enhance revenue and ensure financial sustainability. Optimising employee-related costs through effective management and reviewing the subsidy structure for season tickets are also recommended. Furthermore, investment in capacity and facility development for freight transport is crucial for mitigating long-term financial shortfalls.","PeriodicalId":198654,"journal":{"name":"International Journal of Accounting and Business Finance","volume":"25 13","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141662418","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
There is an unsolved dilemma in the Sri Lankan microfinance sector: whether microfinance institutions target low-income earners or seek profitability. To contribute to this debate, this research investigates the effect of financial performance on outreach and the effect of outreach on financial performance. Balancing financial performance and outreach of microfinance institutions have been conducted in various countries and regions, but specifically not for Sri Lanka after implementing No.06 of 2016 Microfinance Act. This study used an empirical data set for ten years, from 2010 to 2019. Data was collected from 16 MFIs and the panel data regression model was used for the analysis. According to the results MFIs can achieve financial and social objectives simultaneously when serving a larger number of customers and a high percentage of female borrowers. But providing services to the core poor people diminishes their financial performance. As per the findings, policy makers are required to make a roadmap to protect both customers and organization financial sustainability. This study emphasizes the importance of having a proper reporting system for the microfinance sector and future research may wish to consider more MFIs by considering a long period and future research can occupy financial performance and outreach variables which are good at forecasting.
{"title":"Mainstreaming Microfinance: Balancing Financial Performance and Outreach","authors":"K. Panditharathna, R. P. C. R. Rajapakse","doi":"10.4038/ijabf.v10i1.150","DOIUrl":"https://doi.org/10.4038/ijabf.v10i1.150","url":null,"abstract":"There is an unsolved dilemma in the Sri Lankan microfinance sector: whether microfinance institutions target low-income earners or seek profitability. To contribute to this debate, this research investigates the effect of financial performance on outreach and the effect of outreach on financial performance. Balancing financial performance and outreach of microfinance institutions have been conducted in various countries and regions, but specifically not for Sri Lanka after implementing No.06 of 2016 Microfinance Act. This study used an empirical data set for ten years, from 2010 to 2019. Data was collected from 16 MFIs and the panel data regression model was used for the analysis. According to the results MFIs can achieve financial and social objectives simultaneously when serving a larger number of customers and a high percentage of female borrowers. But providing services to the core poor people diminishes their financial performance. As per the findings, policy makers are required to make a roadmap to protect both customers and organization financial sustainability. This study emphasizes the importance of having a proper reporting system for the microfinance sector and future research may wish to consider more MFIs by considering a long period and future research can occupy financial performance and outreach variables which are good at forecasting.","PeriodicalId":198654,"journal":{"name":"International Journal of Accounting and Business Finance","volume":"30 36","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141659832","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
K. Maran, K. S. U. Mohideen, T. Prabaharan, C. R. Senthilnathan
The study explores the significance of the logistics industry in the Indian economy and examines its sector-wise impact on economic well-being. It emphasizes how the presence or absence of transport infrastructure significantly influences economic growth and global competitiveness. With globalization expanding its scope, the study addresses the challenges of global logistics, such as trade laws, cultural differences, and the necessity for efficient cross-border transportation networks. Moreover, the research delves into factors driving the growth of the Indian logistics industry. Innovations and developments are seen as pivotal to economic progress, with intelligent logistics and smart transportation playing crucial roles. The Logistics Performance Index (LPI), a benchmarking tool by the World Bank, ranks countries based on logistics performance. In the 2023 report, India achieved an LPI rating of 3.4, securing the 38th position among 139 countries. The study substantiates the factors fueling the logistics industry with statistical evidence, highlighting technological advancements and the integration of IoT-enabled facilities as key drivers. Furthermore, the study discusses strategic initiatives aimed at enhancing India's logistics infrastructure. The PM Gati Shakti initiative seeks to streamline infrastructure development by promoting integrated planning and coordinated implementation across government departments. Concurrently, the National Logistics Policy (NLP) provides a comprehensive framework for the industry's development. Additionally, the Unified Logistics Interface Platform (ULIP) facilitates real-time information exchange among stakeholders, thereby simplifying logistics planning.
本研究探讨了物流业在印度经济中的重要性，并研究了物流业对经济福祉的影响。研究强调了运输基础设施的有无如何对经济增长和全球竞争力产生重大影响。随着全球化范围的不断扩大，本研究探讨了全球物流所面临的挑战，如贸易法、文化差异以及高效跨境运输网络的必要性。此外，研究还深入探讨了推动印度物流业发展的因素。创新和发展被视为经济进步的关键，其中智能物流和智能运输发挥着至关重要的作用。物流绩效指数（LPI）是世界银行的一个基准工具，根据物流绩效对各国进行排名。在《2023 年报告》中，印度的物流绩效指数为 3.4，在 139 个国家中排名第 38 位。该研究通过统计证据证实了推动物流业发展的各种因素，强调技术进步和物联网设施的整合是主要驱动力。此外，研究还讨论了旨在加强印度物流基础设施的战略举措。总理 Gati Shakti 倡议旨在通过促进政府各部门的综合规划和协调实施来简化基础设施建设。与此同时，国家物流政策（NLP）为该行业的发展提供了一个全面的框架。此外，统一物流界面平台（ULIP）促进了利益相关者之间的实时信息交流，从而简化了物流规划。
{"title":"Process of Acquisition to Destination – A Bang on Economic Prudence with Reference to Indian Logistics Industry","authors":"K. Maran, K. S. U. Mohideen, T. Prabaharan, C. R. Senthilnathan","doi":"10.4038/ijabf.v10i1.154","DOIUrl":"https://doi.org/10.4038/ijabf.v10i1.154","url":null,"abstract":"The study explores the significance of the logistics industry in the Indian economy and examines its sector-wise impact on economic well-being. It emphasizes how the presence or absence of transport infrastructure significantly influences economic growth and global competitiveness. With globalization expanding its scope, the study addresses the challenges of global logistics, such as trade laws, cultural differences, and the necessity for efficient cross-border transportation networks. Moreover, the research delves into factors driving the growth of the Indian logistics industry. Innovations and developments are seen as pivotal to economic progress, with intelligent logistics and smart transportation playing crucial roles. The Logistics Performance Index (LPI), a benchmarking tool by the World Bank, ranks countries based on logistics performance. In the 2023 report, India achieved an LPI rating of 3.4, securing the 38th position among 139 countries. The study substantiates the factors fueling the logistics industry with statistical evidence, highlighting technological advancements and the integration of IoT-enabled facilities as key drivers. Furthermore, the study discusses strategic initiatives aimed at enhancing India's logistics infrastructure. The PM Gati Shakti initiative seeks to streamline infrastructure development by promoting integrated planning and coordinated implementation across government departments. Concurrently, the National Logistics Policy (NLP) provides a comprehensive framework for the industry's development. Additionally, the Unified Logistics Interface Platform (ULIP) facilitates real-time information exchange among stakeholders, thereby simplifying logistics planning.","PeriodicalId":198654,"journal":{"name":"International Journal of Accounting and Business Finance","volume":"14 20","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141661287","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
R. Jeyalakshmi, R. Suresh, T. Prabaharan, B. Keerthana
The economic activities of a nation are measured through various macroeconomic factors such as GDP, EXIM rate, unemployment level, Wholesale Price Index (WPI), and Consumer Price Index (CPI). Numerous studies have focused on identifying the association between inflation and stock prices, with some also highlighting the relationship between gold prices and stock price volatility. This study uses exchange rate and balance of trade as indicators to predict stock price volatility in China. The stock price volatility is measured using the Shanghai Stock Exchange Composite Index (SSE Composite Index). An analytical method is employed to evaluate the involved variables, with Johansen integration used to determine the relationships between them. The Vector Error Correction Model (VECM) is utilized to model these relationships. The Granger causality test and Johansen co-integration test measure the causal relationships of economic variables on the stock market indices. The findings indicate that the exchange rate positively influences stock prices, whereas the balance of trade shows a negative relationship. The exchange rate Granger-causes stock prices, but the reverse is not true. A similar Granger-causing relationship exists between the balance of trade and stock prices. The study also reveals that while the exchange rate of RMB to USD may not have a strong impact on stock prices, the exchange rates of other currencies may significantly influence China's stock prices.
{"title":"Stock Reverberation Due to International Trade Related Economic Factors","authors":"R. Jeyalakshmi, R. Suresh, T. Prabaharan, B. Keerthana","doi":"10.4038/ijabf.v10i1.155","DOIUrl":"https://doi.org/10.4038/ijabf.v10i1.155","url":null,"abstract":"The economic activities of a nation are measured through various macroeconomic factors such as GDP, EXIM rate, unemployment level, Wholesale Price Index (WPI), and Consumer Price Index (CPI). Numerous studies have focused on identifying the association between inflation and stock prices, with some also highlighting the relationship between gold prices and stock price volatility. This study uses exchange rate and balance of trade as indicators to predict stock price volatility in China. The stock price volatility is measured using the Shanghai Stock Exchange Composite Index (SSE Composite Index). An analytical method is employed to evaluate the involved variables, with Johansen integration used to determine the relationships between them. The Vector Error Correction Model (VECM) is utilized to model these relationships. The Granger causality test and Johansen co-integration test measure the causal relationships of economic variables on the stock market indices. The findings indicate that the exchange rate positively influences stock prices, whereas the balance of trade shows a negative relationship. The exchange rate Granger-causes stock prices, but the reverse is not true. A similar Granger-causing relationship exists between the balance of trade and stock prices. The study also reveals that while the exchange rate of RMB to USD may not have a strong impact on stock prices, the exchange rates of other currencies may significantly influence China's stock prices.","PeriodicalId":198654,"journal":{"name":"International Journal of Accounting and Business Finance","volume":"78 24","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141662643","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The study attempts to analyse the return generated by BSE Sensex for the past 24 years and the risk associated with investments in different periods. The study also explores the relationship between valuation ratios and Sensex returns. For this purpose, Sensex data (Index value, Price-earnings ratio, Price-to-book value) for 24 years (1998 to 2022) is taken. The data is analysed using Compounded Annual Growth Rate (CAGR) for different time periods along with standard deviation to assess the return and risk. The association between valuation ratios and index return is analysed using correlation analysis and ANOVA. The results show that risk of investment can be substantially reduced by increasing the holding period of security. The study also reveals that index returns will vary based on the valuation ratio at the point of entry.
{"title":"Unlocking the Secrets of Sensex Returns: The Crucial Role of Valuation in Different Time Horizons","authors":"K. V. Pradeep, K. Simmy","doi":"10.4038/ijabf.v10i1.151","DOIUrl":"https://doi.org/10.4038/ijabf.v10i1.151","url":null,"abstract":"The study attempts to analyse the return generated by BSE Sensex for the past 24 years and the risk associated with investments in different periods. The study also explores the relationship between valuation ratios and Sensex returns. For this purpose, Sensex data (Index value, Price-earnings ratio, Price-to-book value) for 24 years (1998 to 2022) is taken. The data is analysed using Compounded Annual Growth Rate (CAGR) for different time periods along with standard deviation to assess the return and risk. The association between valuation ratios and index return is analysed using correlation analysis and ANOVA. The results show that risk of investment can be substantially reduced by increasing the holding period of security. The study also reveals that index returns will vary based on the valuation ratio at the point of entry.","PeriodicalId":198654,"journal":{"name":"International Journal of Accounting and Business Finance","volume":"22 8","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141661825","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
S. N. Fernando, K. G. M. Nanayakkara, A. K. N. S. S. Hapugoda
Ceylon Electricity Board (CEB) seeks alternative financing through Public Private Partnerships (PPP) due to non-cost-reflective tariff losses and debt overhang, relying on maturity in critical success factors. Thus, the research examines the success factors of Public Private Partnerships in developing power generation infrastructures in Sri Lanka, using quantitative data from a questionnaire distributed to stakeholders in CEB. The data analysis tools of descriptive and inferential statistics were used to analyze the collected data. The economic viability of the project, credibility of government policies, legal and regulatory framework, equitable risk allocation, transparent and efficient procurement process, financial market, a strong and good private consortium, and political stability, were found as the main CSFs for the development of mega power plants. The study was concentrated on the public agency of CEB, for generalization investigation to be extended to private investors, practitioners, and policymakers in the power sector. Further, a comprehensive study on the exploration of CSF to attract private investors to PPP for the development of mega power plants in Sri Lanka would be most beneficial to the industry. The framework developed in this research would be the benchmark for identifying critical success factors for improvement in PPP projects in Sri Lanka.
{"title":"Critical Success Factors for Public-Private Partnerships in the Development of Mega Power Generation Infrastructures in Sri Lanka","authors":"S. N. Fernando, K. G. M. Nanayakkara, A. K. N. S. S. Hapugoda","doi":"10.4038/ijabf.v10i1.152","DOIUrl":"https://doi.org/10.4038/ijabf.v10i1.152","url":null,"abstract":"Ceylon Electricity Board (CEB) seeks alternative financing through Public Private Partnerships (PPP) due to non-cost-reflective tariff losses and debt overhang, relying on maturity in critical success factors. Thus, the research examines the success factors of Public Private Partnerships in developing power generation infrastructures in Sri Lanka, using quantitative data from a questionnaire distributed to stakeholders in CEB. The data analysis tools of descriptive and inferential statistics were used to analyze the collected data. The economic viability of the project, credibility of government policies, legal and regulatory framework, equitable risk allocation, transparent and efficient procurement process, financial market, a strong and good private consortium, and political stability, were found as the main CSFs for the development of mega power plants. The study was concentrated on the public agency of CEB, for generalization investigation to be extended to private investors, practitioners, and policymakers in the power sector. Further, a comprehensive study on the exploration of CSF to attract private investors to PPP for the development of mega power plants in Sri Lanka would be most beneficial to the industry. The framework developed in this research would be the benchmark for identifying critical success factors for improvement in PPP projects in Sri Lanka.","PeriodicalId":198654,"journal":{"name":"International Journal of Accounting and Business Finance","volume":"30 17","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141662286","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The present study develops a Financial Inclusion (FI) index and extends an interlinkage between FI and Economic Growth (EG). The study is the first to develop an FI index created for the main trading nations from 2001-2019 based on financial development, financial depth, and financial stability and creates an association between FI and EG, including trade and foreign investment. Once the FI index is constructed, panel data analysis is applied by examining the stationarity and cointegration of the series, followed by panel regression and causality tests. Findings highlight a strong interlinkage between FI, EG, trade, and foreign investment for the selected nations. It suggests that the nations emphasize financial inclusion to stimulate EG, enhance trade, and increase foreign investment inflows. Each of the three variables is highly integrated, as indicated in the results, and acts as prerequisites for each other. The study is a significant contribution to the field of FI, trade, and EG. As very few studies have been carried out for integrated analysis, this study helps devise policies for expanding further relationships between FI, trade, investment, and EG across nations. Moreover, this study is the first to select a time period that marks major events like the US-China Trade War (2018) and the Global Financial Crisis (2008). The results of this study are helpful to the governments and policymakers of various economies. They can improvise the existing policies and procedures related to trade and foreign investment to enhance FI and EG. It is seen that for each country, the effect of the variables selected is different. In terms of developing holistic and effective trade policies, each nation can assess the relationship between these four key macroeconomic variables.
本研究制定了金融包容性（FI）指数，并扩展了金融包容性与经济增长（EG）之间的相互联系。本研究首次根据金融发展、金融深度和金融稳定性，为 2001-2019 年间的主要贸易国制定了金融包容性指数，并在金融包容性指数和经济增长（包括贸易和外国投资）之间建立了联系。构建 FI 指数后，通过检验序列的平稳性和协整性，然后进行面板回归和因果检验，应用面板数据分析。研究结果表明，所选国家的 FI、EG、贸易和外国投资之间存在密切联系。这表明，这些国家重视金融包容性，以刺激对外投资、加强贸易和增加外资流入。研究结果表明，这三个变量中的每一个都高度融合，互为前提条件。这项研究是对金融投资、贸易和对外投资领域的重大贡献。由于进行综合分析的研究很少，本研究有助于制定政策，进一步扩大各国之间的金融投资、贸易、投资和经济增长之间的关系。此外，本研究首次选择了中美贸易战（2018 年）和全球金融危机（2008 年）等重大事件的时间段。这项研究的结果对各经济体的政府和政策制定者很有帮助。他们可以改进与贸易和外国投资相关的现有政策和程序，以提高 FI 和 EG。可以看出，对每个国家而言，所选变量的影响是不同的。在制定全面有效的贸易政策方面，每个国家都可以评估这四个关键宏观经济变量之间的关系。
{"title":"Unraveling the Interplay: Financial Inclusion's Impact on Growth, Trade Dynamics, and Foreign Investment – A Comprehensive Empirical Study","authors":"S. V. Kushwah, A. A. Siddiqui","doi":"10.4038/ijabf.v10i1.149","DOIUrl":"https://doi.org/10.4038/ijabf.v10i1.149","url":null,"abstract":"The present study develops a Financial Inclusion (FI) index and extends an interlinkage between FI and Economic Growth (EG). The study is the first to develop an FI index created for the main trading nations from 2001-2019 based on financial development, financial depth, and financial stability and creates an association between FI and EG, including trade and foreign investment. Once the FI index is constructed, panel data analysis is applied by examining the stationarity and cointegration of the series, followed by panel regression and causality tests. Findings highlight a strong interlinkage between FI, EG, trade, and foreign investment for the selected nations. It suggests that the nations emphasize financial inclusion to stimulate EG, enhance trade, and increase foreign investment inflows. Each of the three variables is highly integrated, as indicated in the results, and acts as prerequisites for each other. The study is a significant contribution to the field of FI, trade, and EG. As very few studies have been carried out for integrated analysis, this study helps devise policies for expanding further relationships between FI, trade, investment, and EG across nations. Moreover, this study is the first to select a time period that marks major events like the US-China Trade War (2018) and the Global Financial Crisis (2008). The results of this study are helpful to the governments and policymakers of various economies. They can improvise the existing policies and procedures related to trade and foreign investment to enhance FI and EG. It is seen that for each country, the effect of the variables selected is different. In terms of developing holistic and effective trade policies, each nation can assess the relationship between these four key macroeconomic variables.","PeriodicalId":198654,"journal":{"name":"International Journal of Accounting and Business Finance","volume":"15 26","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141662435","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Mergers and acquisitions (M&A) assist public accounting firms in multiple ways. These transactions expand client services, open opportunities in consulting and wealth management, increase revenues, and secure talented personnel. This exploratory study looks to build a preliminary model surrounding the likelihood a firm participates in an M&A transaction. To do so, a sample of the top 100 accounting firms, as reported by Accounting Today in 2019, is utilized. This data is combined with hand-collected news reports of mergers or acquisitions that occurred in 2018. Utilizing logistic regression, the effects of different firm characteristics such as revenues, CEO gender, and management efficiency on the likelihood of a public accounting firm being involved in a merger or acquisition are presented. The model is significant, having a log likelihood of 74.65. This study contains limitations. As this study’s sample is confined to the top 100 firms and reflects a short time window, these results might not apply to all accounting firms. Further, not all accounting firms’ M&A transactions are public knowledge, which may result in a biased sample. However, these limitations do not prevent this study from providing value. This study is one of the few to explore M&A transactions in public accounting. As certain firm characteristics are found to be related to M&A activity, this paper provides a starting point for future research on this topic at a time when M&A activity in public accounting is gaining in popularity.
{"title":" Exploring Mergers and Acquisitions in Public Accounting","authors":"J. McGowan, D. Norris","doi":"10.4038/ijabf.v9i1.134","DOIUrl":"https://doi.org/10.4038/ijabf.v9i1.134","url":null,"abstract":"Mergers and acquisitions (M&A) assist public accounting firms in multiple ways. These transactions expand client services, open opportunities in consulting and wealth management, increase revenues, and secure talented personnel. This exploratory study looks to build a preliminary model surrounding the likelihood a firm participates in an M&A transaction. To do so, a sample of the top 100 accounting firms, as reported by Accounting Today in 2019, is utilized. This data is combined with hand-collected news reports of mergers or acquisitions that occurred in 2018. Utilizing logistic regression, the effects of different firm characteristics such as revenues, CEO gender, and management efficiency on the likelihood of a public accounting firm being involved in a merger or acquisition are presented. The model is significant, having a log likelihood of 74.65. This study contains limitations. As this study’s sample is confined to the top 100 firms and reflects a short time window, these results might not apply to all accounting firms. Further, not all accounting firms’ M&A transactions are public knowledge, which may result in a biased sample. However, these limitations do not prevent this study from providing value. This study is one of the few to explore M&A transactions in public accounting. As certain firm characteristics are found to be related to M&A activity, this paper provides a starting point for future research on this topic at a time when M&A activity in public accounting is gaining in popularity.","PeriodicalId":198654,"journal":{"name":"International Journal of Accounting and Business Finance","volume":"4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-07-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131892237","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
India has one of the largest retail markets in the world. In order to channelize the huge potential of Indian retail sector and to provide best of the cosmopolitan culture to the fast-growing Indian retail market and to stimulate India’s FDI inflows, the Government of India has systematically liberalized FDI in the retail sector since 2006. The present study incorporates retail sector liberalization measures as one of the institutional changes and tries to empirically examine the impact of institutional changes on India’s FDI inflows. Along with the conventional determinants of FDI, extended institutional variable has been incorporated in order to study the inflows from 21 investing countries for the period 2001-2020. The results were captured by employing fixed effects, random effects, and GMM (two-step) estimation. The study suggested a positive and significant coefficient for extended market size, economic freedom index, and extended institutional variable whereas inflation was found to have a significant and negative impact on India’s FDI inflows.
{"title":"Determinants of Foreign Direct Investment in India and Retail Sector Liberalization: A GMM Estimation","authors":"R. Manocha","doi":"10.4038/ijabf.v9i1.132","DOIUrl":"https://doi.org/10.4038/ijabf.v9i1.132","url":null,"abstract":"India has one of the largest retail markets in the world. In order to channelize the huge potential of Indian retail sector and to provide best of the cosmopolitan culture to the fast-growing Indian retail market and to stimulate India’s FDI inflows, the Government of India has systematically liberalized FDI in the retail sector since 2006. The present study incorporates retail sector liberalization measures as one of the institutional changes and tries to empirically examine the impact of institutional changes on India’s FDI inflows. Along with the conventional determinants of FDI, extended institutional variable has been incorporated in order to study the inflows from 21 investing countries for the period 2001-2020. The results were captured by employing fixed effects, random effects, and GMM (two-step) estimation. The study suggested a positive and significant coefficient for extended market size, economic freedom index, and extended institutional variable whereas inflation was found to have a significant and negative impact on India’s FDI inflows.","PeriodicalId":198654,"journal":{"name":"International Journal of Accounting and Business Finance","volume":"127 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-07-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130415106","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study has aimed to investigate the most relevant governance variables which may affect automobile firms’ performance. The step-wise regression has been applied in stages on different variables incorporated in the study. The impact of all variables has been analyzed separately and model fit has been tested for 30 automobile firms. This research divulges that Chief Executive Officer (CEO) Duality was pointedly related to a firm’s performance, lending credence to the validity of the Stewardship theory. The number of independent directors on the audit committee, on the other hand, was found to be pointedly and negatively associated with firms’ performance and supported the agency theory. In this paper, the firm's size and age have a significant impact on Earnings Per Share (EPS). This study supports the stewardship theory and agency theory of corporate governance. The results expand the body of knowledge by providing empirical evidence that governance variables such as CEO duality and audit committee independence ratio have an impact on the performance of the firm. This study presents evidence that the duality of the CEO’s position and the independent audit committees is significant and of paramount importance.
{"title":"Corporate Governance and Firm Value of the Auto Sector-An Empirical Evidence","authors":"N. Chaudhary, R. Dhiman, P. Bhatia, V. Srivastava","doi":"10.4038/ijabf.v9i1.133","DOIUrl":"https://doi.org/10.4038/ijabf.v9i1.133","url":null,"abstract":"This study has aimed to investigate the most relevant governance variables which may affect automobile firms’ performance. The step-wise regression has been applied in stages on different variables incorporated in the study. The impact of all variables has been analyzed separately and model fit has been tested for 30 automobile firms. This research divulges that Chief Executive Officer (CEO) Duality was pointedly related to a firm’s performance, lending credence to the validity of the Stewardship theory. The number of independent directors on the audit committee, on the other hand, was found to be pointedly and negatively associated with firms’ performance and supported the agency theory. In this paper, the firm's size and age have a significant impact on Earnings Per Share (EPS). This study supports the stewardship theory and agency theory of corporate governance. The results expand the body of knowledge by providing empirical evidence that governance variables such as CEO duality and audit committee independence ratio have an impact on the performance of the firm. This study presents evidence that the duality of the CEO’s position and the independent audit committees is significant and of paramount importance.","PeriodicalId":198654,"journal":{"name":"International Journal of Accounting and Business Finance","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-07-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131608070","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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