Pub Date : 2023-09-01DOI: 10.55057/ajafin.2023.5.3.2
In recent years, the creative industry in Indonesia, particularly in the field of fashion, has experienced significant growth. One emerging sector within the fashion industry is customizable fashion, which has gained traction due to increasing awareness of sustainability issues and consumers' growing emphasis on the quality of their purchases. These factors have contributed to the overall expansion of the customizable fashion industry. FEMS is a startup operating in the customizable fashion industry in Indonesia. However, the company is currently facing poor financial performance resulting from inadequate financial planning within the organization. Therefore, the objective of this research is to enhance FEMS's business performance through the implementation of effective financial planning strategies. This research adopts a quantitative method and utilizes both primary and secondary data sources. Primary data will be collected through surveys and interviews, while secondary data will be obtained from relevant publications and reports. By analyzing the collected data, the researcher will develop a financial projection/forecast for the next five years. Assumptions, both internal and external, will be considered during the creation of the financial plan. The financial feasibility of the proposed plan will be assessed by analyzing metrics such as internal rate of return (IRR), net present value (NPV), and payback period. These indicators will provide insights into the potential profitability and return on investment of the financial plan. Furthermore, an implementation plan will be created to ensure the smooth execution of the financial strategy. This plan will outline the necessary steps, timelines, and responsible parties involved in implementing the proposed financial initiatives. Through the careful implementation of this plan, FEMS aims to improve its financial performance and achieve sustainable growth in the customizable fashion industry.
{"title":"Improving Business Performance Using Financial Planning Towards Customizable Fashion Startup: Case Study of FEMS","authors":"","doi":"10.55057/ajafin.2023.5.3.2","DOIUrl":"https://doi.org/10.55057/ajafin.2023.5.3.2","url":null,"abstract":"In recent years, the creative industry in Indonesia, particularly in the field of fashion, has experienced significant growth. One emerging sector within the fashion industry is customizable fashion, which has gained traction due to increasing awareness of sustainability issues and consumers' growing emphasis on the quality of their purchases. These factors have contributed to the overall expansion of the customizable fashion industry. FEMS is a startup operating in the customizable fashion industry in Indonesia. However, the company is currently facing poor financial performance resulting from inadequate financial planning within the organization. Therefore, the objective of this research is to enhance FEMS's business performance through the implementation of effective financial planning strategies. This research adopts a quantitative method and utilizes both primary and secondary data sources. Primary data will be collected through surveys and interviews, while secondary data will be obtained from relevant publications and reports. By analyzing the collected data, the researcher will develop a financial projection/forecast for the next five years. Assumptions, both internal and external, will be considered during the creation of the financial plan. The financial feasibility of the proposed plan will be assessed by analyzing metrics such as internal rate of return (IRR), net present value (NPV), and payback period. These indicators will provide insights into the potential profitability and return on investment of the financial plan. Furthermore, an implementation plan will be created to ensure the smooth execution of the financial strategy. This plan will outline the necessary steps, timelines, and responsible parties involved in implementing the proposed financial initiatives. Through the careful implementation of this plan, FEMS aims to improve its financial performance and achieve sustainable growth in the customizable fashion industry.","PeriodicalId":39488,"journal":{"name":"Afro-Asian Journal of Finance and Accounting","volume":"13 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135346801","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}
Pub Date : 2023-08-28DOI: 10.11648/j.jfa.20231104.18
Adebayo Kajogbade Kameel, Adegbie Folajimi Festus
: Globally, environmental accounting and reporting practices as a branch of accounting has been significantly accepted to improve organizational financial performance as a result of both financial and non-financial disclosure on the usage of key natural resources. Multiple uncoordinated legislations by several environmental agencies and lack of technical monitoring devices are responsible for partial compliant with these regulations. Evidence from literature showed that it has improved community and organizational relationship. Nigeria Deposit Money Banks, as a subset of global corporate bodies were reviewed in this study for complete adherence to the Global Reporting Initiative (GRI) requirements and identify any challenges for non-compliant with environmental regulations. Ex-post facto research design was employed by the study. Sample of fourteen listed banks were selected out of the population of twenty two banks using purposive sampling technique. Secondary data were obtained from the annual reports and accounts of fourteen listed deposit money banks as at December 31, 2019. Data obtained were reviewed along the adapted environmental reporting indicators and previous research works conducted by earlier researchers. Contents analysis approach was adopted. The study revealed that Nigeria deposit money banks do not strictly adhere to global reporting initiative requirements since environmental reporting is at voluntary stage in Nigeria; Inadequate monitoring by the environmental agencies and regulatory auditors and non-inclusion of EA & RP in their annual reports and accounts. Challenges identified for non-compliant were categorized three main groups namely; legal frameworks, DMBs related problems and Staff / Individual related problems. The study concluded that environmental accounting and reporting practices is positively significant to the corporate performance reporting; and its inclusion of non-financial reporting has significantly improved corporate decision. Nigerian deposit money banks have identified its relevance to their global acceptance by foreign investors and stakeholders. The study recommended that regulators and accounting professional bodies should make environmental accounting and reporting practices mandatory and its preparation and presentation should be uniform for easy understanding and analysis. Legal framework and policies should be enhanced by governments and agencies while auditors should be mandated to include EA & RP on their checklists.
{"title":"Analysis of Environmental Accounting and Reporting Practices of Listed Banking Companies in Nigeria","authors":"Adebayo Kajogbade Kameel, Adegbie Folajimi Festus","doi":"10.11648/j.jfa.20231104.18","DOIUrl":"https://doi.org/10.11648/j.jfa.20231104.18","url":null,"abstract":": Globally, environmental accounting and reporting practices as a branch of accounting has been significantly accepted to improve organizational financial performance as a result of both financial and non-financial disclosure on the usage of key natural resources. Multiple uncoordinated legislations by several environmental agencies and lack of technical monitoring devices are responsible for partial compliant with these regulations. Evidence from literature showed that it has improved community and organizational relationship. Nigeria Deposit Money Banks, as a subset of global corporate bodies were reviewed in this study for complete adherence to the Global Reporting Initiative (GRI) requirements and identify any challenges for non-compliant with environmental regulations. Ex-post facto research design was employed by the study. Sample of fourteen listed banks were selected out of the population of twenty two banks using purposive sampling technique. Secondary data were obtained from the annual reports and accounts of fourteen listed deposit money banks as at December 31, 2019. Data obtained were reviewed along the adapted environmental reporting indicators and previous research works conducted by earlier researchers. Contents analysis approach was adopted. The study revealed that Nigeria deposit money banks do not strictly adhere to global reporting initiative requirements since environmental reporting is at voluntary stage in Nigeria; Inadequate monitoring by the environmental agencies and regulatory auditors and non-inclusion of EA & RP in their annual reports and accounts. Challenges identified for non-compliant were categorized three main groups namely; legal frameworks, DMBs related problems and Staff / Individual related problems. The study concluded that environmental accounting and reporting practices is positively significant to the corporate performance reporting; and its inclusion of non-financial reporting has significantly improved corporate decision. Nigerian deposit money banks have identified its relevance to their global acceptance by foreign investors and stakeholders. The study recommended that regulators and accounting professional bodies should make environmental accounting and reporting practices mandatory and its preparation and presentation should be uniform for easy understanding and analysis. Legal framework and policies should be enhanced by governments and agencies while auditors should be mandated to include EA & RP on their checklists.","PeriodicalId":39488,"journal":{"name":"Afro-Asian Journal of Finance and Accounting","volume":"8 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-08-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76480252","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 examined the relationship between U.S. economic indicators and the financial health of insurance firms over a decade, from 2010 to 2020. Utilizing a quantitative research approach, data was collected from top insurance companies, juxtaposed against macroeconomic indicators like GDP growth, inflation rate, interest rate, and unemployment rate. Through regression analysis, the study revealed significant correlations between these macroeconomic variables and insurance firms' profitability, solvency, and liquidity metrics. The results indicated that GDP growth was positively correlated with insurance firms' profitability, suggesting that in periods of economic expansion, insurance firms tend to be more profitable. In contrast, inflation rate showed a negative relationship with solvency ratios, pointing to the strain of rising costs on the firms' ability to meet long-term obligations. Interest rates were found to significantly affect the liquidity of insurance firms, where higher rates led to decreased liquidity, likely due to increased costs of borrowing and alterations in the value of rate-sensitive assets and liabilities. Lastly, unemployment rates were negatively correlated with insurance firms' premium collections, implying lower policy underwriting during times of higher joblessness. Moreover, while the interrelationships were evident, the degree of sensitivity varied across firms, with larger insurance providers appearing to be more resilient to macroeconomic fluctuations than their smaller counterparts. The study concluded that while insurance companies are inherently influenced by broader economic trends, the extent of their vulnerability or resilience is also determined by firm-specific factors like size, asset management strategies, and product diversification. The findings underscore the need for proactive management strategies for insurance firms in navigating the ever-shifting economic landscape. Keywords: U.S. Economic Indicators, Insurance Firm Profitability, Macroeconomic Fluctuations, Financial Health, Solvency Ratios
{"title":"The Interplay between U.S. Economic Indicators and Insurance Firm Financial Health","authors":"Eugene W Fench","doi":"10.53819/81018102t4185","DOIUrl":"https://doi.org/10.53819/81018102t4185","url":null,"abstract":"This study examined the relationship between U.S. economic indicators and the financial health of insurance firms over a decade, from 2010 to 2020. Utilizing a quantitative research approach, data was collected from top insurance companies, juxtaposed against macroeconomic indicators like GDP growth, inflation rate, interest rate, and unemployment rate. Through regression analysis, the study revealed significant correlations between these macroeconomic variables and insurance firms' profitability, solvency, and liquidity metrics. The results indicated that GDP growth was positively correlated with insurance firms' profitability, suggesting that in periods of economic expansion, insurance firms tend to be more profitable. In contrast, inflation rate showed a negative relationship with solvency ratios, pointing to the strain of rising costs on the firms' ability to meet long-term obligations. Interest rates were found to significantly affect the liquidity of insurance firms, where higher rates led to decreased liquidity, likely due to increased costs of borrowing and alterations in the value of rate-sensitive assets and liabilities. Lastly, unemployment rates were negatively correlated with insurance firms' premium collections, implying lower policy underwriting during times of higher joblessness. Moreover, while the interrelationships were evident, the degree of sensitivity varied across firms, with larger insurance providers appearing to be more resilient to macroeconomic fluctuations than their smaller counterparts. The study concluded that while insurance companies are inherently influenced by broader economic trends, the extent of their vulnerability or resilience is also determined by firm-specific factors like size, asset management strategies, and product diversification. The findings underscore the need for proactive management strategies for insurance firms in navigating the ever-shifting economic landscape. Keywords: U.S. Economic Indicators, Insurance Firm Profitability, Macroeconomic Fluctuations, Financial Health, Solvency Ratios","PeriodicalId":39488,"journal":{"name":"Afro-Asian Journal of Finance and Accounting","volume":"129 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81823023","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 in-depth study aimed to evaluate the effect of regular audit practices on the financial health of tulip bulb suppliers in the Netherlands. Data was collated from 150 tulip bulb enterprises, representing both large-scale suppliers and smaller family-run operations, spanning a period of 10 years (2015-2020). To assess financial health, key indicators such as liquidity ratios, solvency ratios, and profitability ratios were considered. Statistical analysis revealed that companies subjected to regular audit practices demonstrated a 15% higher median profitability ratio compared to those that had infrequent or no audits. Furthermore, liquidity ratios, indicative of a company's short-term financial health, were on average 18% more favorable among frequently audited suppliers, signifying a better capacity to cover short-term liabilities with short-term assets. In contrast, solvency ratios, which reflect long-term financial health, showed a less pronounced difference between the two groups, with regularly audited firms having only a 5% advantage. Qualitative data, gathered through interviews with CEOs and CFOs of the tulip suppliers, provided insights into the observed statistical results. A significant number of respondents (82%) believed that regular audits instilled a sense of financial discipline and accountability, subsequently impacting their financial decisions and strategies favorably. In conclusion, the research shows the positive implications of regular audit practices on the financial health of tulip bulb suppliers in the Netherlands. While profitability and liquidity were notably better among those subjected to consistent audits, the influence on long-term solvency was less pronounced. Keywords: Regular Audit Practices, Financial Health, Tulip Bulb Suppliers, Netherlands, Profitability Ratios
{"title":"Impact of Regular Audit Practices on Financial Health among Tulip Bulb Suppliers in the Netherlands: An In-depth Study","authors":"Christiaan K. Hooft","doi":"10.53819/81018102t4186","DOIUrl":"https://doi.org/10.53819/81018102t4186","url":null,"abstract":"This in-depth study aimed to evaluate the effect of regular audit practices on the financial health of tulip bulb suppliers in the Netherlands. Data was collated from 150 tulip bulb enterprises, representing both large-scale suppliers and smaller family-run operations, spanning a period of 10 years (2015-2020). To assess financial health, key indicators such as liquidity ratios, solvency ratios, and profitability ratios were considered. Statistical analysis revealed that companies subjected to regular audit practices demonstrated a 15% higher median profitability ratio compared to those that had infrequent or no audits. Furthermore, liquidity ratios, indicative of a company's short-term financial health, were on average 18% more favorable among frequently audited suppliers, signifying a better capacity to cover short-term liabilities with short-term assets. In contrast, solvency ratios, which reflect long-term financial health, showed a less pronounced difference between the two groups, with regularly audited firms having only a 5% advantage. Qualitative data, gathered through interviews with CEOs and CFOs of the tulip suppliers, provided insights into the observed statistical results. A significant number of respondents (82%) believed that regular audits instilled a sense of financial discipline and accountability, subsequently impacting their financial decisions and strategies favorably. In conclusion, the research shows the positive implications of regular audit practices on the financial health of tulip bulb suppliers in the Netherlands. While profitability and liquidity were notably better among those subjected to consistent audits, the influence on long-term solvency was less pronounced. Keywords: Regular Audit Practices, Financial Health, Tulip Bulb Suppliers, Netherlands, Profitability Ratios","PeriodicalId":39488,"journal":{"name":"Afro-Asian Journal of Finance and Accounting","volume":"60 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85891114","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}
Theoretical and empirical evidence has documented erratic and fluctuating firm performance amongst financial firms worldwide and across different economic sectors. The need to stabilize firm performance has instigated a variety of corporate reorganization strategies including Mergers and Acquisitions. However, theoretical and empirical literature has not been quite categorical on the link between operational synergies (arising from Mergers and Acquisitions) and firm performance. Firms have increasingly inclined towards operational synergy to enhance firm performance. Operational synergy has consistently improved firm performance outcomes in most firms. However, while numerous studies have examined the relationship between operational synergy and performance, there exists a need to synthesize and consolidate the findings across diverse contexts and economic sectors. Hence, the purpose of this review was to determine the relationship between operational synergy and firm performance via desktop review. The study was informed by three theories; The Theory of Misvaluation, The Hubris Theory and Stakeholder Theory. The review adopted a positivist research philosophy and desktop review design via evidence-based approach. The Study Documents that operational synergy has a significant effect on firm performance. Additionally, the review finds that firms which actively pursue operational synergy strategies exhibit improved financial performance, cost reduction, streamlined processes, and higher customer satisfaction. The study further finds that firms which successfully achieve operational synergy, particularly through mergers and acquisitions, have a tendency to outperform their competitors financially, with improved profitability, cost efficiency, and overall financial performance. Hence, the study recommends that firms should prioritize the development and implementation of strategies that foster operational synergy such as promoting a culture of collaboration, communication, and integration across different operational functions. Keywords: Operational synergy, Organizational effectiveness, Integration, Efficiency, Review of literature, Performance
{"title":"The Relationship between Operational Synergy and Firm Performance: A Review of Literature","authors":"Sammy Machoka Oira","doi":"10.53819/81018102t4184","DOIUrl":"https://doi.org/10.53819/81018102t4184","url":null,"abstract":"Theoretical and empirical evidence has documented erratic and fluctuating firm performance amongst financial firms worldwide and across different economic sectors. The need to stabilize firm performance has instigated a variety of corporate reorganization strategies including Mergers and Acquisitions. However, theoretical and empirical literature has not been quite categorical on the link between operational synergies (arising from Mergers and Acquisitions) and firm performance. Firms have increasingly inclined towards operational synergy to enhance firm performance. Operational synergy has consistently improved firm performance outcomes in most firms. However, while numerous studies have examined the relationship between operational synergy and performance, there exists a need to synthesize and consolidate the findings across diverse contexts and economic sectors. Hence, the purpose of this review was to determine the relationship between operational synergy and firm performance via desktop review. The study was informed by three theories; The Theory of Misvaluation, The Hubris Theory and Stakeholder Theory. The review adopted a positivist research philosophy and desktop review design via evidence-based approach. The Study Documents that operational synergy has a significant effect on firm performance. Additionally, the review finds that firms which actively pursue operational synergy strategies exhibit improved financial performance, cost reduction, streamlined processes, and higher customer satisfaction. The study further finds that firms which successfully achieve operational synergy, particularly through mergers and acquisitions, have a tendency to outperform their competitors financially, with improved profitability, cost efficiency, and overall financial performance. Hence, the study recommends that firms should prioritize the development and implementation of strategies that foster operational synergy such as promoting a culture of collaboration, communication, and integration across different operational functions. Keywords: Operational synergy, Organizational effectiveness, Integration, Efficiency, Review of literature, Performance","PeriodicalId":39488,"journal":{"name":"Afro-Asian Journal of Finance and Accounting","volume":"17 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-08-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85540572","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}
{"title":"Mediating Effect of Public Participation on the Relationship between Budgeting Practices and Financial Performance of County Governments in Kenya","authors":"","doi":"10.53819/81018102t30104","DOIUrl":"https://doi.org/10.53819/81018102t30104","url":null,"abstract":"","PeriodicalId":39488,"journal":{"name":"Afro-Asian Journal of Finance and Accounting","volume":"62 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-08-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79312022","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}
{"title":"Effect of Budgeting Practices on Financial Performances of County Governments in Kenya","authors":"","doi":"10.53819/81018102t30103","DOIUrl":"https://doi.org/10.53819/81018102t30103","url":null,"abstract":"","PeriodicalId":39488,"journal":{"name":"Afro-Asian Journal of Finance and Accounting","volume":"3 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-08-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80699747","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}
Savings and credit cooperatives play a significant role in this country's financial well-being, promoting savings and providing accessible loans to members of all social classes. This study aimed to investigate the impact of internal controls on the financial performance of Savings and Credit Cooperative Societies (SACCOs) operating in Nairobi County, Kenya. More specifically, the research sought to understand the effects of segregation of duties, approval controls, physical controls, arithmetic controls, and organizational plans on the financial performance of deposit-taking SACCOs in Kenya. The study was grounded in agency theory, stakeholder theory, and systems theory. It utilized a descriptive survey design and focused on a target population of 42 registered deposit-taking SACCOs. A census survey technique was adopted, incorporating all 42 SACCOs in Nairobi County. Primary and secondary data were gathered via structured questionnaires, administered using a drop-and-pick method. The data was analyzed using the Statistical Package for Social Sciences (SPSS) software, with descriptive statistics such as mean and standard deviation and inferential statistics including correlation and regression analyses used. The study found that the segregation of duties, approval of accounting transactions, physical controls, arithmetic controls, and the organization's plan significantly influence the financial performance of SACCOs in Nairobi County. Thus, the study concluded that these variables greatly impact the performance of deposit-taking SACCOs in the county. The study further recommended that government bodies such as the Sacco Societies Regulatory Authority (SASRA) should develop policies guiding deposit-taking SACCOs on improving their segregation of duties, approval of accounting transactions, physical controls, arithmetic controls, and organizational plans. This will substantially enhance the financial performance of these firms.
储蓄和信用合作社在这个国家的金融福利中发挥着重要作用，促进储蓄并向所有社会阶层的成员提供可获得的贷款。本研究旨在调查内部控制对肯尼亚内罗毕县储蓄信贷合作社(SACCOs)财务绩效的影响。更具体地说，这项研究试图了解职责分离、批准控制、实物控制、算术控制和组织计划对肯尼亚接受存款的国有合作公司财务业绩的影响。本研究以代理理论、利益相关者理论和系统理论为基础。它采用了描述性调查设计，重点是42个已登记存款的sacco的目标人口。采用了人口普查调查技术，将内罗毕县所有42个sacco纳入其中。主要和次要数据通过结构化问卷收集，采用丢取法进行管理。数据分析使用SPSS (Statistical Package for Social Sciences)软件，使用描述性统计(如均值和标准差)和推理统计(如相关和回归分析)。研究发现，职责分离、会计交易批准、实物控制、算术控制和组织计划显著影响内罗毕县sacco的财务绩效。因此，本研究得出结论，这些变量极大地影响了县域吸收存款的上市公司的绩效。该研究进一步建议，诸如saco社团监管局(SASRA)等政府机构应制定政策，指导接受存款的saco改进其职责分工、批准会计交易、实物控制、算术控制和组织计划。这将大大提高这些公司的财务业绩。
{"title":"Internal Controls and Financial Performance of Deposit Taking Savings and Credit Co-Operative Societies in Nairobi City County, Kenya","authors":"D. Dr, Fredrick W. S. Ndede","doi":"10.53819/81018102t30102","DOIUrl":"https://doi.org/10.53819/81018102t30102","url":null,"abstract":"Savings and credit cooperatives play a significant role in this country's financial well-being, promoting savings and providing accessible loans to members of all social classes. This study aimed to investigate the impact of internal controls on the financial performance of Savings and Credit Cooperative Societies (SACCOs) operating in Nairobi County, Kenya. More specifically, the research sought to understand the effects of segregation of duties, approval controls, physical controls, arithmetic controls, and organizational plans on the financial performance of deposit-taking SACCOs in Kenya. The study was grounded in agency theory, stakeholder theory, and systems theory. It utilized a descriptive survey design and focused on a target population of 42 registered deposit-taking SACCOs. A census survey technique was adopted, incorporating all 42 SACCOs in Nairobi County. Primary and secondary data were gathered via structured questionnaires, administered using a drop-and-pick method. The data was analyzed using the Statistical Package for Social Sciences (SPSS) software, with descriptive statistics such as mean and standard deviation and inferential statistics including correlation and regression analyses used. The study found that the segregation of duties, approval of accounting transactions, physical controls, arithmetic controls, and the organization's plan significantly influence the financial performance of SACCOs in Nairobi County. Thus, the study concluded that these variables greatly impact the performance of deposit-taking SACCOs in the county. The study further recommended that government bodies such as the Sacco Societies Regulatory Authority (SASRA) should develop policies guiding deposit-taking SACCOs on improving their segregation of duties, approval of accounting transactions, physical controls, arithmetic controls, and organizational plans. This will substantially enhance the financial performance of these firms.","PeriodicalId":39488,"journal":{"name":"Afro-Asian Journal of Finance and Accounting","volume":"19 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-08-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82290657","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}
Pub Date : 2023-07-31DOI: 10.11648/j.jfa.20231104.17
Assoumou Menye Oscar, Djefedie Stéphane Contard
: Leveraged buyouts (LBOs) are a financial arrangement that allows the acquisition of a company by taking on debt. To implement the LBO, a passive holding company must first be created whose sole corporate purpose is to hold equity stakes in operational SMEs. An active holding company, on the other hand, manages a portfolio of equity stakes
{"title":"The Potential Contributions of Leveraged Buyout (LBO) to the Development and Integration of African Countries","authors":"Assoumou Menye Oscar, Djefedie Stéphane Contard","doi":"10.11648/j.jfa.20231104.17","DOIUrl":"https://doi.org/10.11648/j.jfa.20231104.17","url":null,"abstract":": Leveraged buyouts (LBOs) are a financial arrangement that allows the acquisition of a company by taking on debt. To implement the LBO, a passive holding company must first be created whose sole corporate purpose is to hold equity stakes in operational SMEs. An active holding company, on the other hand, manages a portfolio of equity stakes","PeriodicalId":39488,"journal":{"name":"Afro-Asian Journal of Finance and Accounting","volume":"48 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-07-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81372895","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 level of managerial ability that a firm possesses may to a large extend influence its investment efficiency. The purpose of this article is to argue that managerial ability has a significant relationship with the level of firm investment efficiency. Based on a data set of 702 firm year observations for the financial period 2008- 2020, the researchers investigated whether managerial ability (MA) is associated with investment efficiency (IE). The relationship between the independent and dependent variables was tested using multivariate fixed effect panel data regression models. In addition, the researchers included firm level characteristics as its control variables given that they are known to have an association with Investment efficiency in the regression models. The findings reveal that managerial ability had a significant negative relationship with investment efficiency and that higher managerial ability was associated with lower investment efficiency. It was established that firms with higher managerial ability were more likely to overinvest compared to those with lower managerial ability. The findings also revealed that majority of listed firms in Kenya were managed by skilled managers with ability (56%) whereas the remaining 44% were found to be managed by managers with low skills and ability. The scope of the study was on one developing country. There is need for additional studies that will focus on other jurisdictions. The study recommends targeted continuous learning especially on investment efficiency. The study recommends managers to set precise investment goals and implement a comprehensive strategic plan on how to efficiently allocate and prioritize resources. The findings further reiterate the need for firms to not only hire skilled professionals but to also encourage them to set up investment teams within their various business units. The role of these teams should include; continuous evaluation of project risk and return, utilization of technological innovations to improve operational efficiency and adoption of data driven decision making policies. The study emphasizes the importance of isolating individual managerial ability from the general firm efficiency level and the contribution of these specific managerial ability on the quality of firm investment efficiency. Keywords: Investment Efficiency, Disclosure Quality, Listed Firms in Kenya
{"title":"Managerial Ability and Investment Efficiency among Firms Listed at the Nairobi Securities Exchange","authors":"Morgan Ongoro","doi":"10.53819/81018102t2175","DOIUrl":"https://doi.org/10.53819/81018102t2175","url":null,"abstract":"The level of managerial ability that a firm possesses may to a large extend influence its investment efficiency. The purpose of this article is to argue that managerial ability has a significant relationship with the level of firm investment efficiency. Based on a data set of 702 firm year observations for the financial period 2008- 2020, the researchers investigated whether managerial ability (MA) is associated with investment efficiency (IE). The relationship between the independent and dependent variables was tested using multivariate fixed effect panel data regression models. In addition, the researchers included firm level characteristics as its control variables given that they are known to have an association with Investment efficiency in the regression models. The findings reveal that managerial ability had a significant negative relationship with investment efficiency and that higher managerial ability was associated with lower investment efficiency. It was established that firms with higher managerial ability were more likely to overinvest compared to those with lower managerial ability. The findings also revealed that majority of listed firms in Kenya were managed by skilled managers with ability (56%) whereas the remaining 44% were found to be managed by managers with low skills and ability. The scope of the study was on one developing country. There is need for additional studies that will focus on other jurisdictions. The study recommends targeted continuous learning especially on investment efficiency. The study recommends managers to set precise investment goals and implement a comprehensive strategic plan on how to efficiently allocate and prioritize resources. The findings further reiterate the need for firms to not only hire skilled professionals but to also encourage them to set up investment teams within their various business units. The role of these teams should include; continuous evaluation of project risk and return, utilization of technological innovations to improve operational efficiency and adoption of data driven decision making policies. The study emphasizes the importance of isolating individual managerial ability from the general firm efficiency level and the contribution of these specific managerial ability on the quality of firm investment efficiency. Keywords: Investment Efficiency, Disclosure Quality, Listed Firms in Kenya","PeriodicalId":39488,"journal":{"name":"Afro-Asian Journal of Finance and Accounting","volume":"93 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-07-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80448458","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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